1-1                                   AN ACT
 1-2     relating to the continuation of the State Pension Review Board and
 1-3     to functions performed by the board.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subsection (b), Section 801.102, Government Code,
 1-6     is amended to read as follows:
 1-7           (b)  Appointments to the board shall be made without regard
 1-8     to the race, color, disability [handicap], sex, religion, age, or
 1-9     national origin of the appointees.
1-10           SECTION 2.  Subsections (a) and (c), Section 801.1061,
1-11     Government Code, are amended to read as follows:
1-12           (a)  It is a ground for removal from the board that [if] a
1-13     member:
1-14                 (1)  does not have at the time of taking office
1-15     [appointment] the qualifications required by Section 801.103 or
1-16     801.104;
1-17                 (2)  does not maintain during service on the board the
1-18     qualifications required by Section 801.103 or 801.104;
1-19                 (3)  is ineligible for membership under [violates a
1-20     prohibition established by] Section 801.1021;
1-21                 (4)  cannot, because of illness or disability,
1-22     discharge the member's duties for a substantial part of the
1-23     member's term [for which the member is appointed because of illness
1-24     or disability]; or
1-25                 (5)  is absent from more than half of the regularly
 2-1     scheduled board meetings that the member is eligible to attend
 2-2     during a calendar year without an excuse approved [unless the
 2-3     absence is excused] by a majority vote of the board.
 2-4           (c)  If the executive director has knowledge that a potential
 2-5     ground for removal exists, the executive director shall notify the
 2-6     presiding officer of the board of the potential ground.  The
 2-7     presiding officer shall then notify the governor and the attorney
 2-8     general that a potential ground for removal exists.  If the
 2-9     potential ground for removal involves the presiding officer, the
2-10     executive director shall notify the next highest ranking officer of
2-11     the board, who shall then notify the governor and the attorney
2-12     general that a potential ground for removal exists.
2-13           SECTION 3.  Subchapter B, Chapter 801, Government Code, is
2-14     amended by adding Section 801.1062 to read as follows:
2-15           Sec. 801.1062.  TRAINING PROGRAM.  (a)  A person who is
2-16     appointed to and qualifies for office as a member of the board may
2-17     not vote, deliberate, or be counted as a member in attendance at a
2-18     meeting of the board until the person completes a training program
2-19     that complies with this section.
2-20           (b)  The training program must provide the person with
2-21     information regarding:
2-22                 (1)  this chapter;
2-23                 (2)  the programs operated by the board;
2-24                 (3)  the role and functions of the board;
2-25                 (4)  the rules of the board, with an emphasis on the
2-26     rules that relate to disciplinary and investigatory authority;
 3-1                 (5)  the current budget for the board;
 3-2                 (6)  the results of the most recent formal audit of the
 3-3     board;
 3-4                 (7)  the requirements of:
 3-5                       (A)  the open meetings law, Chapter 551;
 3-6                       (B)  the public information law, Chapter 552;
 3-7                       (C)  the administrative procedure law,  Chapter
 3-8     2001; and
 3-9                       (D)  other laws relating to public officials,
3-10     including conflict of interest laws; and
3-11                 (8)  any applicable ethics policies adopted by the
3-12     board or the Texas Ethics Commission.
3-13           (c)  A person appointed to the board is entitled to
3-14     reimbursement, as provided by the General Appropriations Act, for
3-15     the travel expenses incurred in attending the training program
3-16     regardless of whether the attendance at the program occurs before
3-17     or after the person qualifies for office.
3-18           SECTION 4.  Section 801.107, Government Code, is amended to
3-19     read as follows:
3-20           Sec. 801.107.  SUNSET PROVISION.  The State Pension Review
3-21     Board is subject to Chapter 325 (Texas Sunset Act).  Unless
3-22     continued in existence as provided by that chapter, the board is
3-23     abolished and this chapter expires September 1, 2013 [2001].
3-24           SECTION 5.  Section 801.110, Government Code, is amended to
3-25     read as follows:
3-26           Sec. 801.110.  PRESIDING OFFICERS.  The governor [board]
 4-1     shall designate a member of the board as the [select its] presiding
 4-2     officer of the board to serve in that capacity at the will of the
 4-3     governor [officers].
 4-4           SECTION 6.  Section 801.111, Government Code, is amended by
 4-5     amending Subsection (c) and adding Subsection (e) to read as
 4-6     follows:
 4-7           (c)  The board shall develop and implement policies that
 4-8     clearly separate [define] the policy-making [respective]
 4-9     responsibilities of the board and the management responsibilities
4-10     of the executive director and the staff of the board.
4-11           (e)  The executive director or the executive director's
4-12     designee shall provide to board employees information and training
4-13     on the benefits and methods of participation in the state employee
4-14     incentive program.
4-15           SECTION 7.  Section 801.1111, Government Code, is amended to
4-16     read as follows:
4-17           Sec. 801.1111.  EQUAL EMPLOYMENT OPPORTUNITY.  (a)  The
4-18     executive director or the executive director's designee shall
4-19     prepare and maintain a written policy statement that implements [to
4-20     assure implementation of] a program of equal employment opportunity
4-21     to ensure that [under which] all personnel decisions [transactions]
4-22     are made without regard to race, color, disability [handicap], sex,
4-23     religion, age, or national origin.
4-24           (b)  The policy statement must include:
4-25                 (1)  personnel policies, including policies relating to
4-26     recruitment, evaluation, selection, [appointment,] training, and
 5-1     promotion of personnel, that show the intent of the board to avoid
 5-2     the unlawful employment practices described by Chapter 21, Labor
 5-3     Code; and
 5-4                 (2)  an [a comprehensive] analysis of the extent to
 5-5     which the composition of the board's personnel is in accordance
 5-6     with state and [board work force that meets] federal law and a
 5-7     description of [and state guidelines;]
 5-8                 [(3)  procedures by which a determination can be made
 5-9     of significant underutilization in the board work force of all
5-10     persons for whom federal or state guidelines encourage a more
5-11     equitable balance; and]
5-12                 [(4)]  reasonable methods to achieve compliance with
5-13     state and federal law [appropriately address those areas of
5-14     significant underutilization].
5-15           (c) [(b)]  A policy statement [prepared under Subsection (a)]
5-16     must:
5-17                 (1)  [cover an annual period,] be updated [at least]
5-18     annually;
5-19                 (2)  be reviewed by the state Commission on Human
5-20     Rights for compliance with Subsection (b)(1);[,] and
5-21                 (3)  be filed with the governor's office.
5-22           (d) [(c)]  The governor's office shall deliver a biennial
5-23     report to the legislature based on the information received under
5-24     Subsection (c) [(b)].  The report may be made separately or as a
5-25     part of other biennial reports made to the legislature.
5-26           SECTION 8.  Section 801.114, Government Code, is amended to
 6-1     read as follows:
 6-2           Sec. 801.114.  QUALIFICATIONS AND STANDARDS OF CONDUCT.  The
 6-3     executive director or the executive director's designee [board]
 6-4     shall provide to [its] members of the board and to board employees,
 6-5     as often as necessary, information regarding the requirements
 6-6     [their qualifications] for office or employment under this chapter,
 6-7     including information regarding a person's [and their]
 6-8     responsibilities under applicable laws relating to standards of
 6-9     conduct for state officers or employees.
6-10           SECTION 9.  Section 801.201, Government Code, is amended by
6-11     adding Subsection (c) to read as follows:
6-12           (c)  The board by rule shall:
6-13                 (1)  adopt a brief standard form that will assist the
6-14     board in efficiently determining the actuarial soundness and
6-15     current financial condition of a public retirement system; and
6-16                 (2)  require that a retirement system submitting
6-17     information required for the review or study described under
6-18     Section 801.202(1) or (2) include the form with the submission.
6-19           SECTION 10.  Subchapter C, Chapter 801, Government Code, is
6-20     amended by adding Section 801.207 to read as follows:
6-21           Sec. 801.207.  COMPLAINTS.  (a)  The board shall maintain a
6-22     file on each written complaint filed with the board.  The file must
6-23     include:
6-24                 (1)  the name of the person who filed the complaint;
6-25                 (2)  the date the complaint is received by the board;
6-26                 (3)  the subject matter of the complaint;
 7-1                 (4)  the name of each person contacted in relation to
 7-2     the complaint;
 7-3                 (5)  a summary of the results of the review or
 7-4     investigation of the complaint; and
 7-5                 (6)  an explanation of the reason the file was closed,
 7-6     if the board closed the file without taking action other than to
 7-7     investigate the complaint.
 7-8           (b)  The board shall provide to the person filing the
 7-9     complaint and to each person who is a subject of the complaint a
7-10     copy of the board's policies and procedures relating to complaint
7-11     investigation and resolution.
7-12           (c)  The board, at least quarterly until final disposition of
7-13     the complaint, shall notify the person filing the complaint and
7-14     each person who is a subject of the complaint of the status of the
7-15     investigation unless the notice would jeopardize an undercover
7-16     investigation.
7-17           SECTION 11.  (a)  The designation of a presiding officer of
7-18     the State Pension Review Board under Section 801.110, Government
7-19     Code, as amended by this Act, applies only to the designation of a
7-20     presiding officer for a term of office that begins on or after the
7-21     effective date of this Act.  The presiding officer who is serving
7-22     immediately before the effective date of this Act continues to
7-23     serve as presiding officer for the term for which the person was
7-24     selected.
7-25           (b)  The changes in law made by this Act in the prohibitions
7-26     and qualifications applying to members of the State Pension Review
 8-1     Board do not affect the entitlement of a member serving on the
 8-2     board immediately before September 1, 2001, to continue to serve
 8-3     and function as a member of the board for the remainder of the
 8-4     member's term.  The changes in law apply only to a member appointed
 8-5     on or after September 1, 2001.
 8-6           SECTION 12.  This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 302 passed the Senate on
         March 29, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 302 passed the House on
         April 17, 2001, by a non-record vote.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor