H.B. No. 1390
 
AN ACT
relating to a firefighters' relief and retirement fund in certain
municipalities.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 1, Article 6243e.2(1), Revised Statutes,
is amended by adding Subdivisions (1-b), (13-a), (15-a), and (15-b)
to read as follows:
             (1-b)  "Beneficiary adult child" means a child of a
member by birth or adoption who:
                   (A)  is not an eligible child; and
                   (B)  is designated a beneficiary of a member's
DROP account by valid designation under Section 5(j-1).
             (13-a)  "Normal retirement age" means the earlier of:
                   (A)  the age at which the member attains 20 years
of service; or
                   (B)  the age at which the member first attains the
age of at least 50 years and at least 10 years of service.
             (15-a)  "PROP" means the post-retirement option plan
under Section 5A of this article.
             (15-b)  "PROP account" means the notional account
established to reflect the credits and contributions of a member or
surviving spouse who has made a PROP election in accordance with
Section 5A of this article.
       SECTION 2.  Section 2, Article 6243e.2(1), Revised Statutes,
is amended by amending Subsections (b), (h), (j), (n), (p), and (r)
and adding Subsections (h-1), (h-2), (p-1), and (s) to read as
follows:
       (b)  The board of trustees of the fund shall be known as the
"(name of municipality) Firefighters' Relief and Retirement Fund
Board of Trustees" and the fund shall be known as the "(name of
municipality) Firefighters' Relief and Retirement Fund." The board
consists of 10 trustees, including:
             (1)  the mayor or an appointed representative of the
mayor;
             (2)  the treasurer of the municipality or, if there is
not a treasurer, the secretary, clerk, or other person who by law,
charter provision, or ordinance performs the duty of treasurer of
the municipality;
             (3)  five firefighters who are members of the fund;
             (4)  one person who is a retired firefighter and a
member of the fund with at least 20 years of participation; and
             (5)  two persons, each of whom is a registered voter of
the municipality, has been a resident of the municipality for at
least one year [three years] preceding the date of initial
appointment, and is not a municipal officer or employee.
       (h)  The board shall annually elect from among the trustees a
chair, a vice chair, and a secretary. [The person described under
Subsection (b)(2) of this section serves as the treasurer of the
fund under penalty of that person's official bond and oath of
office.]
       (h-1)  The board may form a standing or ad hoc committee
composed of any number of trustees of the board to further
administration of the fund. A committee composed of all the
trustees of the board:
             (1)  may be established only by order of the board, fund
rule, or policy; and
             (2)  has the same power as the board to take final
action, including the power to issue orders on matters within the
scope of the committee's authority as defined by applicable law,
rule, or policy.
       (h-2)  If the board establishes a pension benefits committee
under Subsection (h-1) of this section, that committee, even if it
is composed of fewer than all the trustees of the board, may
deliberate and act in place of the board regarding each application
for benefits submitted to the fund by a member or the member's
survivor. Final action of a pension benefits committee on an
application for benefits is binding, subject only to any right of
appeal to the board under law, rule, or policy at the time the
application is filed. Except to the extent the final action of a
pension benefits committee may be appealed to the board, the final
action of the pension benefits committee on an application for
benefits constitutes the final action of the board, including for
purposes of filing an appeal to a district court under Section 12 of
this article.
       (j)  Six [A majority of the] trustees of the board constitute 
[constitutes] a quorum to transact business of the board or of any
committee composed of all the trustees of the board. An order of
the board or a committee must be made by vote recorded in the
minutes of the [board's] proceedings of the board or committee.  
Each decision of the board in a matter under the board's
jurisdiction is final and binding as to each affected
[firefighter,] member[,] and beneficiary, subject only to the
rights of appeal specified by this article.
       (n)  The board shall, not later than January 31 of each year,
provide to [make and file with] the person described by Subsection
(b)(2) of this section [treasurer of the municipality] a detailed
and itemized report of all receipts and disbursements with respect
to the fund, together with a statement of fund administration,
during the preceding fiscal year of the fund, and shall provide
[make and file] other reports and statements or existing financial
[furnish further] information concerning the fund as from time to
time may be required or requested by the person described by
Subsection (b)(2) of this section [treasurer of the municipality].
       (p)  The board shall manage the fund according to the terms
and purposes of this article and all applicable sections of the code
and has the powers necessary to accomplish that purpose, including
the power to:
             (1)  adopt for the administration of the fund written
rules, policies, and procedures [guidelines] not inconsistent with
this article;
             (2)  interpret and construe this article and any
summary plan descriptions or benefits procedures, except that each
construction must meet any qualification requirements established
under Section 401 of the code;
             (3)  correct any defect, supply any omission, and
reconcile any inconsistency that appears in this article in a
manner and to the extent that the board considers expedient to
administer this article for the greatest benefit of all members;
             (4)  select, employ, and compensate employees the board
considers necessary or advisable in the proper and efficient
administration of the fund;
             (5)  determine all questions, whether legal or factual,
relating to eligibility for participation, service, or benefits or
relating to the administration of the fund to promote the uniform
administration of the fund for the benefit of all members;
             (6)  establish and maintain records necessary or
appropriate to the proper administration of the fund; and
             (7)  compel witnesses to attend and testify before the
board concerning matters related to the operation of this article
in the same manner provided for taking of testimony before notaries
public.
       (p-1)  A rule, policy, or procedure adopted by the board
under Subsection (p)(1) of this section is final and binding with
respect to any matter within the board's jurisdiction and
authority.
       (r)  The board shall maintain at the offices of the fund [the
original of] each rule, policy, or procedure [guideline] adopted
under this section and shall deliver to the person described by
Subsection (b)(2) of this section [municipality] a copy of each
adopted rule, policy, or procedure [guideline].
       (s)  Title 9, Property Code, does not apply to the fund.
       SECTION 3.  Section 3, Article 6243e.2(1), Revised Statutes,
is amended by amending Subsections (g) and (l) and adding
Subsections (g-1), (g-2), (g-3), and (n) to read as follows:
       (g)  The board may, from fund assets, purchase from an
insurer licensed to do business in this state insurance to:
             (1)  provide for legal defense of the fund;
             (2)  cover liabilities and losses of the fund;
             (3)  cover any other insurable risk to the fund; and
             (4)  provide for the legal defense of or [and to]
indemnify and hold harmless the trustees of the board and employees
of the fund [board, individually and collectively, harmless] from
the effects and consequences of their acts, errors, omissions, or
other [and] conduct within the scope of their duties as trustees or
employees, whether the acts, errors, omissions, or other conduct is
proven or merely alleged [official capacity as fiduciaries or
cofiduciaries or within the scope of what the board trustee or
employee believes in good faith, at the time, to be the board
trustee's or employee's official capacity. An insurance company
through which insurance is purchased under this subsection has a
cause of action against a board trustee or employee to the extent
that a loss results from the board trustee's or employee's wilful
and malicious misconduct or gross negligence].
       (g-1)  The board may use fund assets to provide insurance
coverage comparable to that provided by insurers under Subsection
(g) of this section by entering into a collective pool providing
governmental entities of this state with self-insurance coverage,
including coverage authorized by Chapter 791 or 2259, Government
Code, or Chapter 119, Local Government Code. This article does not
limit the ability of the board to provide any type of group
insurance or self-insurance coverage in a pool of governmental
entities for fund employees and their beneficiaries as a benefit of
employment.
       (g-2)  If insurance or pooled governmental self-insurance
coverage is unavailable, insufficient, inadequate, or not in
effect, the board may indemnify a board trustee or employee for
liability imposed as damages and for reasonable costs and expenses
incurred by that individual in defense of an alleged act, error, or
omission committed in the individual's official capacity or within
the scope of what the board trustee or employee believed in good
faith, at the time, to be the board trustee's or employee's official
capacity. The board may not indemnify a board trustee or employee
for the amount of a loss that results from the board trustee's or
employee's wilful and malicious misconduct or gross negligence.
       (g-3)  The board may establish a self-insurance fund to pay
claims for the indemnification of board trustees or employees under
Subsection (g-2) of this section. The board shall provide that the
self-insurance fund must be limited to an amount not to exceed the
greater of three percent of the fund assets or $5 million. The
self-insurance fund shall be invested in the same manner as other
assets of the fund, and all earnings and losses from investing the
self-insurance fund shall be credited to the self-insurance fund
unless that credit exceeds the limit on the self-insurance fund set
by the board or this subsection. Amounts held in the self-insurance
fund may not be included in the actuarial valuation for purposes of
determining the municipal contribution rate or the assets available
to satisfy the actuarial liabilities of the fund to pay service,
disability, or death benefits provided by this article. A decision
to indemnify or make a reimbursement out of the self-insurance fund
must be made by a majority vote of board trustees eligible to vote
on the matter. If the proposed indemnification or reimbursement is
of a trustee, that trustee may not vote on the matter.
       (l)  The trustees, executive director, and employees of the
fund are fully protected and free of liability for any action taken
or omission made or any action or omission suffered by them in good
faith, objectively determined, in the performance of their duties
for the fund. The protection from liability provided by this
subsection is cumulative of and in addition to any other
constitutional, statutory, or common law official or governmental
immunity, defense, and civil or procedural protection provided to
the fund as a governmental entity and to a fund trustee or employee
as an official or employee of a governmental entity. Except for a
waiver expressly provided by this article, this article does not
grant an implied waiver of any immunity.
       (n)  On the reported death of a member, the fund or an
authorized representative of the fund may obtain the death
certificate or the pending death certificate directly from the
issuing examiner or governmental agency without the prior
notification or confirmation that otherwise may be required under
law to expedite the issuance of death benefits from the fund to
survivors in need of those benefits.
       SECTION 4.  Section 4(b), Article 6243e.2(1), Revised
Statutes, is amended to read as follows:
       (b)  A member who terminates active service on or after
November 1, 1997, and who has completed at least 20 years of
participation in the fund on the effective date of termination of
service is entitled to a monthly service pension, beginning after
[on] the effective date of termination of active service, in an
amount equal to 50 percent of the member's average monthly salary,
plus three percent of the member's average monthly salary for each
year of participation in excess of 20 years, but not in excess of 30
years of participation, for a maximum total benefit of 80 percent of
the member's average monthly salary.
       SECTION 5.  Section 5, Article 6243e.2(1), Revised Statutes,
is amended by amending Subsections (a), (i), (j), and (q) and adding
Subsection (j-1) to read as follows:
       (a)  A member who is eligible to receive a service pension
under Section 4 of this article and who remains in active service
may elect to participate in the deferred retirement option plan
provided by this section. On subsequently terminating active
service, a member who elected the DROP may apply for a monthly
service pension under Section 4 of this article, except that the
effective date of the member's election to participate in the DROP
will be considered the member's retirement date for determining the
amount of the member's monthly service pension. The member may also
apply for any DROP benefit provided under this section on
terminating active service. An election to participate in the
DROP, once approved by the board, is irrevocable.  A DROP
participant's monthly benefit at retirement is increased by two
percent of the amount of the member's original benefit for every
full year of participation in the DROP by the member.  For a
member's final year of participation, but not beyond the member's
10th year in the DROP, if a full year of participation is not
completed, the member shall receive a prorated increase of 0.166
percent of the member's original benefit for each month of
participation in that year.  An [This] increase provided by this
subsection does not apply to benefits payable under Subsection (l)
of this section. An [This] increase under this subsection is
applied to the member's benefit at retirement and is not added to
the member's DROP account. The total increase under this
subsection may not exceed 20 percent for 10 years of participation
in the DROP by the member.
       (i)  The [For purposes of computing and providing service
pension benefits under Section 4 of this article and for purposes of
computing and providing death benefits under Section 7 of this
article, the] day immediately before the [effective] date [of] the
DROP participant's election becomes effective is the last day used
for purposes of computing and providing service pension benefits
under Section 4 of this article or for purposes of computing and
providing death benefits under Section 7 of this article
[considered to be the date the member terminates active service]. A
salary earned or additional years of participation completed after
the member's DROP election becomes effective may not be considered
in the computation of retirement or death benefits, except for the
limited purpose of percentage increases provided under Subsection
(a) of this section.
       (j)  If a DROP participant dies before complete distribution
of the member's DROP account has been made, the member's DROP
account balance shall be distributed to the member's eligible
beneficiaries, determined as follows:
             (1)  if the member is survived by a spouse who was the
member's spouse on the date the member's DROP election became
effective [last day of active service] and one or more eligible
children, one-half of the member's DROP account balance shall be
paid to that eligible spouse, and the remaining one-half shall be
divided equally among the member's eligible children;
             (2)  if the member is survived by a spouse described by
Subdivision (1) of this subsection, but not by an eligible child,
the member's entire DROP account balance shall be paid to the
surviving spouse;
             (3)  if the member is survived by one or more eligible
children, but not by a spouse described by Subdivision (1) of this
subsection, the member's DROP account balance shall be divided
equally among the eligible children;
             (4)  if the member is not survived by a spouse described
by Subdivision (1) of this subsection or an eligible child, the
member's DROP account balance shall be divided equally among the
member's eligible parents;
             (5)  if the member is not survived by a spouse described
by Subdivision (1) of this subsection, an eligible child, or an
eligible parent, the member's DROP account balance shall be
distributed in accordance with the member's beneficiary
designation filed with the board or, if the member has failed to
file a valid beneficiary designation, to the member's estate;
             (6)  if a member's spouse described by Subdivision (1)
of this subsection was not married to the member on the date the
member's DROP election became effective, the spouse shall receive a
reduced benefit equal to the benefit otherwise payable to the
surviving spouse under this subsection, multiplied by the
percentage of the period between the member's DROP election and the
date the member left active service during which the spouse and the
member were married, and the amount by which the spouse's benefit is
reduced shall be divided among any other eligible survivors as if
the member did not have an eligible spouse or, if there are no
eligible survivors, distributed in accordance with the member's
beneficiary designation filed with the board, or if the member
failed to file a valid beneficiary designation, to the member's
estate; and
             (7)  if the conditions described by Subdivision (1),
(2), or (6) of this subsection exist, the surviving spouse may elect
to maintain the DROP account with the fund in the same manner
described by Subsections (e), (f), and (g) of this section.
       (j-1)  Only for the purpose of distributing a member's DROP
account under Subsection (j) of this section, a person who is
designated a beneficiary adult child in a valid beneficiary
designation filed by the member with the board is considered an
eligible child. A designation under this subsection is distinct
from the member's beneficiary designation under Subsection (j)(5)
of this section.
       (q)  A member may revoke the member's Back-DROP election by
notifying the fund in writing not later than the earlier of:
             (1)  the date the member leaves active service; or
             (2)  the 10th business day after the date the member
signs an application form for a Back-DROP.
       SECTION 6.  Article 6243e.2(1), Revised Statutes, is amended
by adding Section 5A to read as follows:
       Sec. 5A.  POST-RETIREMENT OPTION PLAN.  (a) The following
persons may elect to participate in the post-retirement option plan
provided by this section:
             (1)  a member who terminates active service after
participating in the DROP and who is eligible to receive a service
pension or other taxable benefits under Section 5 of this article;
             (2)  a retired member, whether or not that member was a
DROP participant, who is eligible to receive a service pension or
other taxable benefits under Section 4 of this article; or
             (3)  a surviving spouse of a member who elects and is
eligible to participate in the PROP under Subsection (f) of this
section.
       (b)  A PROP participant may elect to have all or part of the
amount that the participant would otherwise receive as a monthly
service pension or other taxable benefits under this article, less
any amount the board determines is required to pay the
participant's share of group medical insurance costs, credited to
the participant's PROP account. The participant's PROP account
shall be credited with hypothetical earnings in the same manner as
the amounts in a member's DROP account under Section 5(d) of this
article. At any time, a PROP participant may stop the amounts being
credited to the participant's PROP account and elect to resume
receiving the participant's monthly service pension or other
taxable benefits under this article.
       (c)  A member or surviving spouse who elects to participate
in the PROP shall comply with the PROP election process established
by the board.
       (d)  Subject to rules and procedures adopted by the board, a
PROP participant may elect to receive partial payments from the
participant's PROP account in an amount determined by the
participant. The board may establish rules and procedures
concerning partial payments, including limitations on timing and
frequency of those payments. A PROP participant who elects partial
payments may, at any time, elect to receive the PROP participant's
entire remaining PROP account balance in a single lump-sum payment.
If, at any time after the initial credit to the PROP account, a
participant's PROP account balance becomes zero, the account closes
and the participant's participation in the PROP ceases. A person
whose PROP account has been closed because of a zero balance is not
eligible to again participate in the PROP.
       (e)  An election by a member or surviving spouse to receive a
single lump-sum payment or partial payments under Subsection (d) of
this section must satisfy the requirements of Section 401(a)(9) of
the code. All distributions and changes in the form of distribution
must be made in a manner and at a time that comply with that section
of the code.
       (f)  The board by rule or policy may permit a member's
surviving spouse to elect to participate in the PROP by choosing
either or both of the following options:
             (1)  continuing a deceased member's PROP account; or
             (2)  establishing a PROP account in which to receive
credits from all or part of the surviving spouse's survivor
benefits.
       (g)  A surviving spouse PROP participant and the
participant's PROP account are subject to this section and any
additional rules the board may adopt relating to PROP accounts and
participants generally or to surviving spouse PROP accounts and
participants particularly. The board may, by rule, further
restrict or define, through the establishment of reasonable
categories, who is a surviving spouse of a member for purposes of
this section.
       (h)  If a member who is a PROP participant dies before
complete distribution of the participant's PROP account has been
made, the participant's PROP account balance shall be distributed
in the same manner as a DROP account balance is distributed under
Sections 5(j), (j-1), and (k) of this article, except for amounts
subject to a surviving spouse's election under Subsection (f) of
this section that results in the nondistribution from the plan of
all or part of the deceased participant's PROP account.
       (i)  Only benefits that are taxable under the code may be
credited to a PROP account. Nontaxable disability benefits or
other nontaxable benefits, including the nontaxable part of any
benefit, may not be credited to a PROP account.
       (j)  The board may set a date after which additional members
or surviving spouses will not be allowed to elect to participate in
the PROP.
       (k)  The board may set a date after which the crediting of
additional benefits of a member or a surviving spouse to a PROP
account is not allowed.
       (l)  The board by rule or policy may limit the number of
distribution transactions for all PROP participants or for any
category of PROP participants.
       (m)  The board by rule or policy may establish a minimum
dollar amount allowed for crediting of benefit amounts to a PROP
account.
       (n)  The board may adopt rules, policies, or procedures that
the board determines are necessary or desirable to implement or
administer this section.
       SECTION 7.  Sections 6(b), (c), and (e), Article 6243e.2(1),
Revised Statutes, are amended to read as follows:
       (b)  If the board determines that a member is not capable of
performing the usual and customary duties of the member's
classification or position because of the member's on-duty
disability, the member is entitled to receive a monthly disability
pension, beginning after [on] the effective date of the member's
termination of active service, in an amount equal to the greater of:
             (1)  50 percent of the member's average monthly salary;
or
             (2)  the service pension the member would have been
entitled to receive under Section 4 of this article based on years
of participation as of the effective date of the member's
termination of active service.
       (c)  If the board determines that a member is not capable of
performing any substantial gainful activity because of the member's
on-duty disability, the member is entitled to receive a monthly
disability pension, beginning after [on] the effective date of the
member's termination of active service, in an amount equal to the
greater of:
             (1)  75 percent of the member's average monthly salary;
or
             (2)  the service pension the member would have been
entitled to receive under Section 4 of this article based on years
of participation on the effective date of the member's termination
of active service.
       (e)  If the board determines that a member is not capable of
performing the usual and customary duties of the member's
classification or position because of the member's off-duty
disability, the member is entitled to an off-duty disability
pension in lieu of any other benefit under this article. If the
board makes that determination, the member is entitled to receive a
monthly disability pension, beginning after [on] the effective date
of the member's termination of active service, in an amount equal to
the greater of:
             (1)  25 percent of the member's average monthly salary,
plus 2-1/2 percent of the member's average monthly salary for each
full year of participation in the fund, except that the total
monthly disability pension under this subdivision may not exceed 50
percent of the member's average monthly salary; or
             (2)  the service pension the member would have been
entitled to receive under Section 4 of this article based on years
of participation on the effective date of the member's termination
of active service.
       SECTION 8.  Section 10A(f), Article 6243e.2(1), Revised
Statutes, is amended to read as follows:
       (f)  In determining the lump-sum payment amount, the total
number of years since the commencement date of each retired
member's or eligible survivor's annual retirement or survivor
benefit shall be divided by the total number of years since the
commencement date of all retired members' and eligible survivors'
annual retirement or survivor benefit to establish a payment
percentage for each retired member and eligible survivor. For
purposes of this section, benefits provided under Section 4(d) of
this article may not be included in a retired member's or eligible
survivor's annual retirement or survivor benefit.
       SECTION 9.  Sections 11(f), (g), and (m), Article
6243e.2(1), Revised Statutes, are amended to read as follows:
       (f)  A member, eligible survivor, or beneficiary who is
entitled to receive a benefit payment under this article is
entitled to receive the benefit beginning after [on] the date the
member ceases to carry out the member's regular duties as a
firefighter, notwithstanding the fact that the member may remain on
the payroll of the member's fire department or receive sick leave,
vacation, or other pay after the effective date of termination of
the member's regular duties as a firefighter. In this article, an
authorization to receive a benefit "beginning after [on] the
effective date of the member's termination of active service"
includes authority for the member to instead elect to make the
member's pension effective after [on] the date the member ceases to
carry out the member's regular duties as a firefighter. If there is
a delay in beginning payment of benefits resulting from the
requirements of Section 6(h) of this article for disability
pensions, the member or beneficiary shall, when the disability
pension is approved by the board, be paid the full amount of the
disability pension that has accrued since the effective date of
termination of the member's regular duties as a firefighter.
       (g)  A member may designate in a trust document accepted by
the fund a trustee to receive the benefit payable to any eligible
survivor or beneficiary other than the member's eligible spouse or
a spouse eligible to receive a benefit under the DROP. On or after
the death or incapacity of the member, an eligible survivor or
beneficiary may designate a trustee under this subsection. If the
eligible survivor or beneficiary is disabled or a minor child, the
parent or legal guardian, as applicable, of the eligible survivor
or beneficiary may make the designation. Any [such] designation
made under this subsection must be made on a form approved by the
board.
       (m)  A benefit payable under this article because of the
death of a member or eligible beneficiary may not be paid to a
person convicted of causing that death but instead shall be paid as
if the convicted person predeceased the deceased member or
beneficiary. [If no beneficiary is entitled to the benefit as a
result, the benefit shall be paid to the decedent's estate.] Except
as otherwise permitted by this subsection with respect to
suspension of benefits, the board is not required to withhold
payment to a person convicted of causing the death of a member or
eligible beneficiary until the board receives actual notice of the
conviction of that person. The board may suspend payment of a
benefit payable on the death of a member or an eligible beneficiary
on the indictment of the person who would otherwise be entitled to
the benefit, and the suspension remains in effect until the board
determines that a final disposition of the charges relating to the
cause of death has occurred. If a benefit payment is suspended
under this subsection and the person is not convicted, the benefit
again becomes payable with interest computed at the rate earned by
the fund during the time the benefit payment was suspended. For
purposes of this subsection, a person has been convicted of causing
the death of a member or eligible beneficiary if:
             (1)  the person has pleaded guilty or nolo contendere
to, or the person has been found guilty by a court of competent
jurisdiction of, an offense at the trial of which it is established
that the person's intentional or knowing act or omission caused the
death of the member or eligible beneficiary, regardless of whether
sentence is imposed or probated; and
             (2)  an appeal of the conviction is not pending, and the
time provided for appeal has expired.
       SECTION 10.  Sections 12(a) and (b), Article 6243e.2(1),
Revised Statutes, are amended to read as follows:
       (a)  A member who is eligible for retirement for length of
service or disability or who has a claim for temporary disability,
or any of the member's beneficiaries, who is aggrieved by a decision
or order of the board, whether on the basis of rejection of a claim
or of the amount allowed, may appeal from the decision or order of
the board to a district court in the county in which the board is
located by giving written notice of the intention to appeal. The
notice must contain a statement of the intention to appeal,
together with a brief statement of the grounds and reasons the party
feels aggrieved. The notice must be served personally on an officer
[the chair, secretary, or treasurer] of the board not later than the
20th day after the date of the order or decision. After service of
the notice, the party appealing shall file with the district court a
copy of the notice of intention to appeal, together with the
affidavit of the party making service showing how, when, and on whom
the notice was served.
       (b)  Not later than the 30th day after the date of service of
the notice of intention to appeal on the board, an officer [the
secretary or treasurer] of the board shall file with the district
court a transcript of all papers and proceedings in the case before
the board. When the copy of the notice of intention to appeal and
the transcript have been filed with the court, the appeal is
considered perfected, and the court shall docket the appeal, assign
the appeal a number, fix a date for hearing the appeal, and notify
both the appellant and the board of the date fixed for the hearing.
       SECTION 11.  Sections 13(b) and (d), Article 6243e.2(1),
Revised Statutes, are amended to read as follows:
       (b)  At the time that physical examinations are administered
on behalf of the municipality, each applicant must be provided
written notice that a copy of the results of the examination will be
forwarded to the board for the purpose of determining whether the
applicant has a preexisting condition that would be relevant to any
determination under Section 6 of this article. Not later than the
10th day after the date of a physical examination performed on an
applicant for a beginning position in the fire department as
required by Section 143.022, Local Government Code, the
municipality shall provide to the board a copy of all documents
resulting from the physical examination. The board may require
additional physical examinations if necessary in determining the
presence or absence of any preexisting condition. The fund shall
pay the cost of any additional physical examination the board
requires. The [If accepted by the board, the] applicant's
membership in the fund is effective on acceptance by the board
[being appointed to the position of probationary firefighter].
       (d)  The municipality shall make [monthly] contributions to
the fund once every two weeks in an amount equal to the product of
the contribution rate certified by the board and the aggregate
salaries paid to members of the fund during the period [month] for
which the contribution is made. The board shall certify the
municipality's contribution rate for each year or portion of a year
based on the results of actuarial valuations made at least every
three years. The municipality's contribution rate shall be
composed of the normal cost plus the level percentage of salary
payment required to amortize the unfunded actuarial liability over
a constant period of 30 years computed on the basis of an acceptable
actuarial reserve funding method approved by the board.
Notwithstanding any other provision of this article, the
contributions by the municipality, when added to any contributions
with respect to a qualified governmental excess benefit arrangement
maintained in accordance with Section 14(c) of this article, may
not be less than twice the amount paid into the fund by
contributions of the members.
       SECTION 12.  Section 14(a), Article 6243e.2(1), Revised
Statutes, is amended to read as follows:
       (a)  Notwithstanding any other provision of this article, a
member may not accrue a benefit or allowance under this article in
excess of an amount that, when added to all other pension benefits
received under plans of the municipality that are qualified under
Section 401 of the code, results in an annual benefit in excess of
the applicable limits provided by Section 415 of the code. That
accrual limitation applies only as long as satisfaction of Section
415 of the code is necessary to maintain the tax-qualified status of
the fund under Section 401 of the code. Any benefit accruals
limited under this subsection must be determined [certified] by a
qualified actuary selected by the board.
       SECTION 13.  (a) Except as provided by Subsection (b) of this
section, this Act takes effect immediately if it receives a vote of
two-thirds of all the members elected to each house, as provided by
Section 39, Article III, Texas Constitution. If this Act does not
receive the vote necessary for immediate effect, this Act takes
effect September 1, 2007.
       (b)  Section 5A, Article 6243e.2(1), Revised Statutes, as
added by this Act, takes effect October 1, 2007.
____________________________________________________________
   President of the SenateSpeaker of the House      
       I certify that H.B. No. 1390 was passed by the House on April
5, 2007, by the following vote:  Yeas 137, Nays 0, 1 present, not
voting.
______________________________
Chief Clerk of the House   
       I certify that H.B. No. 1390 was passed by the Senate on May
3, 2007, by the following vote:  Yeas 31, Nays 0.
______________________________
Secretary of the Senate    
APPROVED:  _____________________
APPROVED:  _____________________
                   Date          
 
 
          _____________________
                 Governor