82R5935 TJS-F

By: Menendez H.B. No. 1939

A BILL TO BE ENTITLED

AN ACT

relating to the creation of an advisory committee to assist the board of trustees of the Texas Municipal Retirement System.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter B, Chapter 855, Government Code, is amended by adding Section 855.117 to read as follows:

Sec. 855.117. ADVISORY COMMITTEE. (a) The board of trustees shall establish an advisory committee to:

(1) provide input to the board on matters relating to the retirement system;

(2) facilitate communication between the retirement system and its members, retirees, beneficiaries, and participating municipalities; and

(3) allow stakeholders, municipal officials and policy makers, and employee organizations to share their input and perspective on issues under review by the board.

(b) The advisory committee consists of:

(1) a trustee of the board of trustees appointed by the board who shall serve as an ex officio, nonvoting member and presiding officer of the advisory committee; and

(2) individual class members and group class members appointed in accordance with this section.

(c) The board of trustees shall appoint nine individual class members to serve staggered three-year terms so that three individual class members' terms expire at the end of each calendar year. An individual class member may not serve more than two terms. The board shall fill the position of an individual class member:

(1) at the December meeting of the board of trustees that occurs immediately before the date on which a member's term is due to expire; and

(2) in the event of a vacancy, at the next regularly scheduled meeting of the board.

(d) Individual class members must be highly qualified and diverse, as determined by the board of trustees, and their membership must fairly represent different geographic regions of the state, differently sized municipalities, different employment and professional backgrounds, and the diverse workplaces of participating municipalities. To serve as an individual class member, a person must be:

(1) a member of the retirement system;

(2) a retiree of a participating municipality;

(3) an elected official of a participating municipality;

(4) a former trustee of the board of trustees; or

(5) a qualified individual, as determined by the board, with knowledge of the funding and operation of public retirement systems.

(e) An individual class member serves at the will of the board of trustees.

(f) Group class membership may only be composed of one representative and one alternate representative from each of the following organizations:

(1) the Combined Law Enforcement Associations of Texas;

(2) the Texas Municipal Police Association;

(3) the Texas State Association of Fire Fighters;

(4) the Service Employees International Union;

(5) the Texas Municipal League;

(6) the Government Finance Officers Association of Texas;

(7) the Texas Municipal Human Resources Association; and

(8) any other organization designated by the board of trustees.

(g) An alternate representative shall attend an advisory committee meeting, including a joint meeting with the board of trustees, if the representative of an organization is unable to attend.

(h) Each organization listed in Subsection (f) may, at the organization's sole discretion, nominate the representative and the alternate to serve as a group class member of the advisory committee. Each organization shall communicate the organization's nomination to the board of trustees in writing. The board shall appoint the nominee to the advisory committee at the next scheduled meeting of the board after the nomination is received by the board. If a member of the group class resigns, is removed, or becomes unable to serve on the advisory committee, the organization may nominate another person to that position in writing to the board and the board shall appoint the nominee to the advisory committee at the board's next scheduled meeting.

(i) A group class member may be removed by the board of trustees for cause or at the will of the organization that nominated the member.

(j) The advisory committee shall meet quarterly or at the call of the presiding officer. All meetings shall take place at the offices of the retirement system or at a place specified by the presiding officer. The presiding officer shall determine the agenda for a meeting in advance of the meeting.

(k) A quorum of the advisory committee is a majority of all of the members attending a meeting, excluding alternates not attending on behalf of a representative. A majority vote of a quorum of the advisory committee is required for action by the advisory committee. Each member of the individual class and each representative of an organization in the group class is entitled to one vote.

(l) The advisory committee shall:

(1) participate in an annual joint meeting with the board of trustees to receive from the board a presentation of the retirement system's most recent actuarial valuation;

(2) review and provide input to the board regarding potential legislative changes affecting the retirement system;

(3) provide input to the board regarding issues affecting the retirement system's participating municipalities, members, retirees, and beneficiaries; and

(4) maintain communication with statewide professional organizations, including employer and employee groups.

(m) The advisory committee shall report on its activities to the board of trustees at meetings with and special presentations before the board, which shall be scheduled as needed.

(n) Chapter 2110 does not apply to the advisory committee.

SECTION 2. Not later than January 1, 2012, the board of trustees of the Texas Municipal Retirement System shall establish the advisory committee required by Section 855.117, Government Code, as added by this Act.

SECTION 3. This Act takes effect September 1, 2011.