By: Keffer (Senate Sponsor - Averitt) H.B. No. 2400
         (In the Senate - Received from the House April 24, 2007;
  April 26, 2007, read first time and referred to Committee on State
  Affairs; May 4, 2007, reported favorably by the following vote:  
  Yeas 8, Nays 0; May 4, 2007, sent to printer.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to membership in, contributions to, benefits from, and
  administration of the Texas Emergency Services Retirement System.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 861, Government Code, is amended by
  adding Sections 861.008 and 861.009 to read as follows:
         Sec. 861.008.  IMMUNITY FROM LIABILITY. The state board,
  commissioner, and employees of the pension system are not liable
  for any action taken or omission made or suffered by them in good
  faith in the performance of any duty or prerogative in connection
  with the administration of the pension system.
         Sec. 861.009.  VENUE. An action in state court by or against
  the pension system shall be brought in Travis County.
         SECTION 2.  Section 862.002(a), Government Code, is amended
  to read as follows:
         (a)  Except as otherwise provided by this section and Section
  862.0021, each person who performs service as a volunteer or
  auxiliary employee of a participating department is a member of the
  pension system.
         SECTION 3.  Chapter 862, Government Code, is amended by
  adding Section 862.0021 to read as follows:
         Sec. 862.0021.  PROBATIONARY PERIOD BEFORE MEMBERSHIP.  (a)
  A participating department may impose a probationary period for a
  volunteer or auxiliary employee.
         (b)  A probationary period imposed under this section must
  end not later than six months after the date the person begins
  service with the participating department.
         (c)  The participating department is not required to pay
  contributions for the person during the probationary period.
         (d)  A person's membership in the pension system begins on
  the date that the department begins payment of contributions for
  that person, without regard to whether the person's service is
  subject to a probationary period for other purposes.
         SECTION 4.  Sections 864.004 and 864.005, Government Code,
  are amended to read as follows:
         Sec. 864.004.  DISABILITY RETIREMENT BENEFITS [ANNUITY].  
  (a)  A member is entitled to disability retirement benefits from the
  pension system only if a local board determines that the member
  became disabled during the performance of emergency service duties
  and is unable to return to work at the member's regular occupation
  or, if the member is a student, is unable to return to the member's
  scholastic studies. A disabled member must, at the time of
  disability, elect between a service [or disability] retirement
  annuity or disability retirement benefits, if eligible for both.
         (b)  A disabled member described by Subsection (a) who does
  not elect to receive a service retirement annuity is entitled to
  [who is disabled during the performance of emergency service duties
  is automatically vested 100 percent as of the date of disability if
  the disability occurs before the member has completed the period
  provided under Section 864.001 for full service retirement
  benefits.
         [(c)     A member whose disability results from performing
  emergency service duties is guaranteed a] disability retirement
  benefits [annuity] of $300 a month or a greater amount that the
  state board by rule adopts based on monthly contributions of a
  participating department for its members.
         (c)  To continue to receive disability retirement benefits
  in the form of a continuing annuity, computed in the manner
  described by Subsection (b), a [(d)  A] person who is determined by
  a local board to be temporarily disabled must:
               (1)  apply to the medical board appointed by the state
  board; [Social Security Administration] and
               (2)  [be certified,] not later than the first [second]
  anniversary of the date the person was determined to be temporarily
  disabled, be certified by the medical board as permanently disabled
  for the performance of the duties of the person's regular
  occupation [by that agency or by any alternative procedure the
  state board provides by rule].
         Sec. 864.005.  CERTIFICATION AND CONTINUANCE OF
  DISABILITY.  (a)  A local board shall require a member who is
  receiving temporary disability benefits to file a disability rating
  report every three months from a physician chosen by the local
  board. If a report indicates a significant improvement in [change
  of] condition, the local board, after notice and a hearing, may
  adopt an order to terminate payments [or place the member on
  permanent disability]. The local board shall send a copy of each
  order adopted under this subsection to the commissioner.
         (b)  Temporary disability [Disability] benefits cease if the
  recipient returns to work at the person's regular occupation,
  resumes scholastic studies, or performs emergency service duties
  for any agency, or if the local board adopts an order under
  Subsection (d).
         (c)  Subject to Subsection (d), temporary disability
  benefits cease on a date at the expiration of a period, not to
  exceed one year, determined to be the likely duration of the
  disability by a physician in a written statement to the pension
  system.
         (d)  If the local board has reason to believe that a ground
  for termination of temporary disability benefits exists, the local
  board may set a date for a hearing on the matter. The local board,
  after notice and a hearing, may adopt an order terminating
  temporary disability benefits if the local board determines that a
  ground for termination exists. The local board may not adopt an
  order under this subsection on the basis of a physician's
  previously submitted statement as to the likely duration of the
  disability if the local board determines, after a hearing, that the
  disability continues. The local board shall send a copy of each
  order adopted under this subsection to the commissioner.
         (e)  Payments of a continuing disability retirement annuity
  to a retiree certified by the medical board as permanently disabled
  under Section 864.004(c) cease if the retiree returns to work at the
  retiree's regular employment or performs emergency service duties.
         (f)  If the commissioner has reason to believe that a ground
  for termination of a continuing disability retirement annuity
  exists, the commissioner shall set a date for a hearing on
  continuation or termination of the annuity. The commissioner,
  after notice and a hearing, shall adopt an order terminating the
  continuing disability retirement annuity if the commissioner
  determines that a ground for termination exists.
         (g)  Except as provided by this subsection, a continuing
  disability retirement annuity terminates on the fifth anniversary
  of the date payment of the annuity begins. To continue receiving
  payments of a continuing disability retirement annuity after the
  fifth anniversary, the retiree must be recertified by the medical
  board as being permanently disabled for the performance of [becomes
  capable of performing the duties of the person's most recent
  position with a participating department or] the duties of any
  [another] occupation for which the person is reasonably suited by
  education, training, and experience and that could reasonably be
  expected to provide the person with at least 75 percent of the
  salary the person was earning at the time the disability occurred.
  Rejection of a suitable offer of employment as described in this
  subsection is conclusive evidence for purposes of this subtitle
  that the person is no longer eligible to receive disability
  retirement benefits[, if the employment would provide the person
  with a salary equal to or greater than the salary the person was
  earning at the time the disability occurred].
         (h) [(c)]  The state board or a local board may require
  financial information from a person as a condition to the continued
  receipt of disability retirement benefits, including federal
  income tax returns and wage earning forms. Failure to timely
  provide requested information is a ground for terminating benefits.
         SECTION 5.  Section 864.006(a), Government Code, is amended
  to read as follows:
         (a)  The surviving spouse and dependents of a member who dies
  as a result of performing emergency service duties are entitled to
  receive in equal shares a death benefit annuity equal to
  [two-thirds of] the service retirement annuity that the decedent
  would have been entitled to receive if the decedent had been able to
  retire, vested at 100 percent, on the date of the decedent's death.
  [As long as both the spouse and one or more dependents survive, an
  additional one-third of that annuity is payable to the dependents
  in equal shares.]
         SECTION 6.  Sections 864.007, 864.008, and 864.011,
  Government Code, are amended to read as follows:
         Sec. 864.007.  MEMBER NONSERVICE DEATH BENEFIT.  The state
  board by rule may provide the beneficiary of a deceased member whose
  death did not result from the performance of emergency service
  duties a [lump-sum] benefit, which may be a lump-sum amount or an
  annuity [that is the greater of:
               [(1)     the amount contributed to the fund on the
  decedent's behalf; or
               [(2)     the sum that would have been contributed on the
  decedent's behalf from whatever source at the end of the period
  provided under Section 864.001 for full service retirement
  benefits].
         Sec. 864.008.  VESTED MEMBER DEATH BENEFIT ANNUITY.  (a)  
  The state board by rule may provide that the surviving spouse of a
  deceased member who dies as an active member of a participating
  department before retirement but after meeting the minimum age and
  service requirements for service retirement is entitled to a
  portion [two-thirds] of the monthly annuity that the decedent would
  have received if the decedent had retired on the date of death.
         (b)  The state board by rule may provide that the surviving
  spouse of a deceased member who dies after terminating service with
  all participating departments and meeting a service [vesting]
  requirement under Section 864.001 but before attaining the age of
  55 is entitled to a death benefit annuity, in an amount to be
  determined by rule, beginning on the date that is the later of:
               (1)  the date that the decedent would have attained
  that age; or
               (2)  the date of application for the annuity [, equal to
  two-thirds of the monthly annuity to which the decedent would have
  been entitled on that date].
         (c)  A rule adopted under Subsection (b) may not authorize
  payment for a period before the date specified by that subsection.
         Sec. 864.011.  FIRST PAYMENT OF RETIREMENT OR DEATH BENEFIT
  ANNUITY.  The cashing or depositing of the first payment of a
  service retirement annuity, disability retirement annuity, or
  death benefit annuity by a person entitled to it, or the receipt by
  a financial institution for credit to that person's account of a
  transfer of funds by the pension system through electronic means,
  is considered acceptance of the amount of the annuity and of the
  amount of service of the person on whose service the annuity is
  based [, if the annuity is based on the payee's service, is
  conclusive evidence for purposes of this subtitle that the payee is
  retired].
         SECTION 7.  Chapter 864, Government Code, is amended by
  adding Section 864.0135 to read as follows:
         Sec. 864.0135.  OPTIONAL ANNUITY INCREASE OR SUPPLEMENTAL
  PAYMENTS. (a)  The state board by rule may authorize a
  participating department to:
               (1)  make one or more supplemental payments to retirees
  and other beneficiaries of the pension system; or
               (2)  provide an increase in the amount of annuities
  paid to retirees and other beneficiaries of the pension system.
         (b)  A participating department that elects an option under a
  rule adopted under this section shall fund all increased benefits
  that are provided to retirees and other beneficiaries of the
  department under the option.
         SECTION 8.  Sections 864.016(a), (c), and (d), Government
  Code, are amended to read as follows:
         (a)  A claim for disability retirement benefits or a lump-sum
  death benefit must be filed with the local board. A claim for
  service retirement benefits must be filed with the commissioner,
  who shall forward the claim to the appropriate local board for a
  hearing. A claim for a death benefit annuity must be filed with the
  commissioner, who shall make a determination of the merits of the
  claim and issue a decision to the claimant. On receiving a claim
  under this section, the local board shall hold a hearing to decide
  the claim. The local board shall send a written copy of its
  decision to the claimant and the commissioner. If a local board
  does not determine a claim for service retirement benefits and file
  its determination with the commissioner before the 16th day after
  the date the local board receives the claim, the commissioner may
  determine the merits of the claim.
         (c)  An appeal of a local board decision under this section
  is begun by delivering a notice of appeal to the presiding officer
  or secretary of the local board that made the decision. The notice
  must be delivered not later than the 20th day after the date of the
  decision and contain a brief description of the reasons for the
  appeal. The aggrieved person must file a copy of the notice with
  the commissioner.
         (d)  An appeal of a local board decision under this section
  is held in Austin and is a contested case under Chapter 2001,
  conducted as a de novo hearing by the State Office of Administrative
  Hearings.
         SECTION 9.  Section 865.010(c), Government Code, is amended
  to read as follows:
         (c)  The commissioner may request and administer [, in an
  emergency,] state funds appropriated by the legislature in addition
  to those required by this subtitle [and appropriated by the
  legislature].
         SECTION 10.  Section 864.015, Government Code, is repealed.
         SECTION 11.  (a) The change in law made by this Act to
  Sections 864.004 and 864.005, Government Code, does not apply to a
  person who, on the effective date of this Act, is receiving
  permanent disability retirement benefits under those sections as
  they existed immediately before amendment by this Act, and the
  prior law is continued in effect for this purpose.
         (b)  A person who, on the effective date of this Act, is
  receiving temporary disability benefits under Section 864.004,
  Government Code, as that section existed immediately before
  amendment by this Act, is entitled to receive temporary disability
  benefits in accordance with a certification made before the
  effective date of this Act. To continue to receive disability
  retirement benefits after September 1, 2008, the person must be
  certified, before September 1, 2008, as permanently disabled as
  provided by Section 864.005, Government Code, as amended by this
  Act, and is subject to the recertification requirement of that
  section.
         SECTION 12.  This Act takes effect September 1, 2007.
 
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