1-1     By:  Zaffirini                                         S.B. No. 302
 1-2           (In the Senate - Filed February 7, 2001; February 8, 2001,
 1-3     read first time and referred to Committee on State Affairs;
 1-4     March 26, 2001, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 7, Nays 0; March 26, 2001,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 302                By:  Shapleigh
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the continuation of the State Pension Review Board and
1-11     to functions performed by the board.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Subsection (b), Section 801.102, Government Code,
1-14     is amended to read as follows:
1-15           (b)  Appointments to the board shall be made without regard
1-16     to the race, color, disability [handicap], sex, religion, age, or
1-17     national origin of the appointees.
1-18           SECTION 2.  Subsections (a) and (c), Sections 801.1061,
1-19     Government Code, are amended to read as follows:
1-20           (a)  It is a ground for removal from the board that [if] a
1-21     member:
1-22                 (1)  does not have at the time of taking office
1-23     [appointment] the qualifications required by Section 801.103 or
1-24     801.104;
1-25                 (2)  does not maintain during service on the board the
1-26     qualifications required by Section 801.103 or 801.104;
1-27                 (3)  is ineligible for membership under [violates a
1-28     prohibition established by] Section 801.1021;
1-29                 (4)  cannot, because of illness or disability,
1-30     discharge the member's duties for a substantial part of the
1-31     member's term [for which the member is appointed because of illness
1-32     or disability]; or
1-33                 (5)  is absent from more than half of the regularly
1-34     scheduled board meetings that the member is eligible to attend
1-35     during a calendar year without an excuse approved [unless the
1-36     absence is excused] by a majority vote of the board.
1-37           (c)  If the executive director has knowledge that a potential
1-38     ground for removal exists, the executive director shall notify the
1-39     presiding officer of the board of the potential ground.  The
1-40     presiding officer shall then notify the governor and the attorney
1-41     general that a potential ground for removal exists.  If the
1-42     potential ground for removal involves the presiding officer, the
1-43     executive director shall notify the next highest ranking officer of
1-44     the board, who shall then notify the governor and the attorney
1-45     general that a potential ground for removal exists.
1-46           SECTION 3.  Subchapter B, Chapter 801, Government Code, is
1-47     amended by adding Section 801.1062 to read as follows:
1-48           Sec. 801.1062.  TRAINING PROGRAM.  (a)  A person who is
1-49     appointed to and qualifies for office as a member of the board may
1-50     not vote, deliberate, or be counted as a member in attendance at a
1-51     meeting of the board until the person completes a training program
1-52     that complies with this section.
1-53           (b)  The training program must provide the person with
1-54     information regarding:
1-55                 (1)  this chapter;
1-56                 (2)  the programs operated by the board;
1-57                 (3)  the role and functions of the board;
1-58                 (4)  the rules of the board, with an emphasis on the
1-59     rules that relate to disciplinary and investigatory authority;
1-60                 (5)  the current budget for the board;
1-61                 (6)  the results of the most recent formal audit of the
1-62     board;
1-63                 (7)  the requirements of:
1-64                       (A)  the open meetings law, Chapter 551;
 2-1                       (B)  the public information law, Chapter 552;
 2-2                       (C)  the administrative procedure law,  Chapter
 2-3     2001; and
 2-4                       (D)  other laws relating to public officials,
 2-5     including conflict of interest laws; and
 2-6                 (8)  any applicable ethics policies adopted by the
 2-7     board or the Texas Ethics Commission.
 2-8           (c)  A person appointed to the board is entitled to
 2-9     reimbursement, as provided by the General Appropriations Act, for
2-10     the travel expenses incurred in attending the training program
2-11     regardless of whether the attendance at the program occurs before
2-12     or after the person qualifies for office.
2-13           SECTION 4.  Section 801.107, Government Code, is amended to
2-14     read as follows:
2-15           Sec. 801.107.  SUNSET PROVISION.  The State Pension Review
2-16     Board is subject to Chapter 325 (Texas Sunset Act).  Unless
2-17     continued in existence as provided by that chapter, the board is
2-18     abolished and this chapter expires September 1, 2013 [2001].
2-19           SECTION 5.  Section 801.110, Government Code, is amended to
2-20     read as follows:
2-21           Sec. 801.110.  PRESIDING OFFICERS.  The governor [board]
2-22     shall designate a member of the board as the [select its] presiding
2-23     officer of the board to serve in that capacity at the will of the
2-24     governor [officers].
2-25           SECTION 6.  Section 801.111, Government Code, is amended by
2-26     amending Subsection (c) and adding Subsection (e) to read as
2-27     follows:
2-28           (c)  The board shall develop and implement policies that
2-29     clearly separate [define] the policy-making [respective]
2-30     responsibilities of the board and the management responsibilities
2-31     of the executive director and the staff of the board.
2-32           (e)  The executive director or the executive director's
2-33     designee shall provide to board employees information and training
2-34     on the benefits and methods of participation in the state employee
2-35     incentive program.
2-36           SECTION 7.  Section 801.1111, Government Code, is amended to
2-37     read as follows:
2-38           Sec. 801.1111.  EQUAL EMPLOYMENT OPPORTUNITY.  (a)  The
2-39     executive director or the executive director's designee shall
2-40     prepare and maintain a written policy statement that implements [to
2-41     assure implementation of] a program of equal employment opportunity
2-42     to ensure that [under which] all personnel decisions [transactions]
2-43     are made without regard to race, color, disability [handicap], sex,
2-44     religion, age, or national origin.
2-45           (b)  The policy statement must include:
2-46                 (1)  personnel policies, including policies relating to
2-47     recruitment, evaluation, selection, [appointment,] training, and
2-48     promotion of personnel, that show the intent of the board to avoid
2-49     the unlawful employment practices described by Chapter 21, Labor
2-50     Code; and
2-51                 (2)  an [a comprehensive] analysis of the extent to
2-52     which the composition of the board's personnel is in accordance
2-53     with state and [board work force that meets] federal law and a
2-54     description of [and state guidelines;]
2-55                 [(3)  procedures by which a determination can be made
2-56     of significant underutilization in the board work force of all
2-57     persons for whom federal or state guidelines encourage a more
2-58     equitable balance; and]
2-59                 [(4)]  reasonable methods to achieve compliance with
2-60     state and federal law [appropriately address those areas of
2-61     significant underutilization].
2-62           (c) [(b)]  A policy statement [prepared under Subsection (a)]
2-63     must:
2-64                 (1)  [cover an annual period,] be updated [at least]
2-65     annually;
2-66                 (2)  be reviewed by the state Commission on Human
2-67     Rights for compliance with Subsection (b)(1);[,] and
2-68                 (3)  be filed with the governor's office.
2-69           (d) [(c)]  The governor's office shall deliver a biennial
 3-1     report to the legislature based on the information received under
 3-2     Subsection (c) [(b)]. The report may be made separately or as a
 3-3     part of other biennial reports made to the legislature.
 3-4           SECTION 8.  Section 801.114, Government Code, is amended to
 3-5     read as follows:
 3-6           Sec. 801.114.  QUALIFICATIONS AND STANDARDS OF CONDUCT.  The
 3-7     executive director or the executive director's designee [board]
 3-8     shall provide to [its] members of the board and to board employees,
 3-9     as often as necessary, information regarding the requirements
3-10     [their qualifications] for office or employment under this chapter,
3-11     including information regarding a person's [and their]
3-12     responsibilities under applicable laws relating to standards of
3-13     conduct for state officers or employees.
3-14           SECTION 9.  Section 801.201, Government Code, is amended by
3-15     adding Subsection (c) to read as follows:
3-16           (c)  The board by rule shall:
3-17                 (1)  adopt a brief standard form that will assist the
3-18     board in efficiently determining the actuarial soundness and
3-19     current financial condition of a public retirement system; and
3-20                 (2)  require that a retirement system submitting
3-21     information required for the review or study described under
3-22     Section 801.202(1) or (2) include the form with the submission.
3-23           SECTION 10.  Subchapter C, Chapter 801, Government Code, is
3-24     amended by adding Section 801.207 to read as follows:
3-25           Sec. 801.207.  COMPLAINTS.  (a)  The board shall maintain a
3-26     file on each written complaint filed with the board.  The file must
3-27     include:
3-28                 (1)  the name of the person who filed the complaint;
3-29                 (2)  the date the complaint is received by the board;
3-30                 (3)  the subject matter of the complaint;
3-31                 (4)  the name of each person contacted in relation to
3-32     the complaint;
3-33                 (5)  a summary of the results of the review or
3-34     investigation of the complaint; and
3-35                 (6)  an explanation of the reason the file was closed,
3-36     if the board closed the file without taking action other than to
3-37     investigate the complaint.
3-38           (b)  The board shall provide to the person filing the
3-39     complaint and to each person who is a subject of the complaint a
3-40     copy of the board's policies and procedures relating to complaint
3-41     investigation and resolution.
3-42           (c)  The board, at least quarterly until final disposition of
3-43     the complaint, shall notify the person filing the complaint and
3-44     each person who is a subject of the complaint of the status of the
3-45     investigation unless the notice would jeopardize an undercover
3-46     investigation.
3-47           SECTION 11.  (a)  The designation of a presiding officer of
3-48     the State Pension Review Board under Section 801.110, Government
3-49     Code, as amended by this Act, applies only to the designation of a
3-50     presiding officer for a term of office that begins on or after the
3-51     effective date of this Act.  The presiding officer who is serving
3-52     immediately before the effective date of this Act continues to
3-53     serve as presiding officer for the term for which the person was
3-54     selected.
3-55           (b)  The changes in law made by this Act in the prohibitions
3-56     and qualifications applying to members of the State Pension Review
3-57     Board do not affect the entitlement of a member serving on the
3-58     board immediately before September 1, 2001, to continue to serve
3-59     and function as a member of the board for the remainder of the
3-60     member's term.  The changes in law apply only to a member appointed
3-61     on or after September 1, 2001.
3-62           SECTION 12.  This Act takes effect September 1, 2001.
3-63                                  * * * * *