Amend CSHB 2866 by adding the following appropriately 
numbered Sections to the bill and renumbering subsequent Sections 
as appropriate:
	SECTION __.  Section 2, Chapter 88, Acts of the 77th 
Legislature, Regular Session, 2001 (Article 6243h, Vernon's Texas 
Civil Statutes), is amended by amending Subsections (c), (d), (e), 
(h), (j), (n), and (p) and adding Subsections (c-1), (c-2), (c-3), 
(h-1), (j-1), and (n-1) to read as follows:
	(c)  The pension board consists of nine trustees as follows:                   
		(1)  an employee of the city's financial division [the 
mayor of the city, or the director of the civil service commission 
as the mayor's representative];
		(2)  an actuary [the city treasurer or a person 
performing the duties of treasurer];
		(3)  two [four] municipal employees of the city who are 
members of the pension system;
		(4)  two retirees, each of whom:                                              
			(A)  has at least five years of credited service in 
the pension system;    
			(B)  receives a retirement pension from the 
pension system; and            
			(C)  is not an officer or employee of the city; 
[and]     
		(5)  one person who:                                                          
			(A)  has been a resident of this state for the 
three years preceding the date of initial appointment; [and]
			(B)  is not a city officer or employee and is not 
related within the second degree by consanguinity or affinity, as 
determined under Chapter 573, Government Code, to a person who is a 
city officer or employee;
			(C)  is a registered voter of the city;                               
			(D)  is not a member of the municipal pension 
system and is not related within the second degree by consanguinity 
or affinity, as determined under Chapter 573, Government Code, to a 
person who is a member of the municipal pension system; and
			(E)  meets the qualifications established by the 
pension board under Subsection (j-1) of this section; and
		(6)  two registered investment advisors.                               
	(c-1)  To serve as a trustee under Subsection (c)(1) of this 
section, the person must be appointed by the mayor.
	(c-2)  To serve as a trustee under Subsection (c)(2) of this 
section, the person must be a fellow of the Society of Actuaries who 
is appointed by the pension review committee of the city council or, 
if a pension review committee does not exist, by a vote of a 
majority of the members of the city council.  The trustee who is 
appointed under this subsection shall:
		(1)  submit quarterly reports to the pension review 
committee of the city council or, if a pension review committee does 
not exist, to the city council; or
		(2)  meet quarterly with the pension review committee of 
the city council or, if a pension review committee does not exist, 
with the city council.
	(c-3)  The trustee appointed under Subsection (c)(2) of this 
section may be removed at any time by a vote of a majority of the 
city council.  A vacancy caused by the trustee's death, 
resignation, or removal shall be filled by the city council.  The 
appointee serves for the remainder of the unexpired term of the 
replaced trustee.  The trustee appointed to fill the remainder of 
the term may not serve beyond the expiration of the three-year term 
unless the trustee is appointed for a new term by the pension review 
committee of the city council or, if a pension review committee does 
not exist, by a vote of a majority of the members of the city 
council.
	(d)  To serve as a trustee under Subsection (c)(3) of this 
section, a person must be a member with at least five years of 
credited service and be elected by the active members of the pension 
system at an election called by the pension board.  The [No more 
than two of the] employee trustees may not be employees of the same 
department.
	(e)  A person elected as an employee trustee under Subsection 
(d) of this section who retires during the trustee's term shall 
remain in office until the expiration of the term.  [Persons elected 
as employee trustees serve staggered four year terms, with the 
terms of two of the trustees expiring in each even numbered year.  
Each employee trustee shall continue to serve until a successor is 
qualified.]
	(h)  To serve as a trustee under Subsection (c)(6) of this 
section, the person must be appointed by the pension review 
committee of the city council or, if a pension review committee does 
not exist, by a vote of a majority of the members of the city 
council.  A trustee who is appointed under this subsection shall:
		(1)  submit quarterly reports to the pension review 
committee of the city council or, if a pension review committee does 
not exist, to the city council; or
		(2)  meet quarterly with the pension review committee of 
the city council or, if a pension review committee does not exist, 
with the city council.