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A BILL TO BE ENTITLED
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AN ACT
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relating to the continuation of the office of the fire fighters' |
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pension commissioner and the administration of the Texas emergency |
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services retirement system and the Texas local firefighters |
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retirement systems. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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ARTICLE 1. AMENDMENTS TO CHAPTER 865, GOVERNMENT CODE |
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SECTION 1.01. Section 865.002, Government Code, is amended |
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by adding Subsections (c), (d), and (e) to read as follows: |
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(c) A person may not be a trustee or an employee of the |
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pension system employed in a "bona fide executive, administrative, |
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or professional capacity," as that phrase is used for purposes of |
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establishing an exemption to the overtime provisions of the federal |
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Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.), |
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if: |
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(1) the person is an officer, employee, or paid |
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consultant of a Texas trade association in the field of investment |
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or insurance; or |
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(2) the person's spouse is an officer, manager, or paid |
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consultant of a Texas trade association in the field of investment |
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or insurance. |
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(d) In this section, a Texas trade association means a |
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cooperative and voluntarily joined statewide association of |
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business or professional competitors in this state designed to |
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assist its members and its industry or profession in dealing with |
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mutual business or professional problems and in promoting their |
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common interest. |
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(e) A person may not serve as a trustee or act as the general |
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counsel to the state board or the pension system if the person is |
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required to register as a lobbyist under Chapter 305 because of the |
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person's activities for compensation on behalf of a business or an |
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association related to the operation of the state board. |
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SECTION 1.02. Chapter 865, Government Code, is amended by |
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adding Section 865.0035 to read as follows: |
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Sec. 865.0035. STATE BOARD MEMBER TRAINING. (a) A person |
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who is appointed to and qualifies for office as a member of the |
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state board may not vote, deliberate, or be counted as a member in |
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attendance at a meeting of the state board until the person |
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completes a training program that complies with this section. |
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(b) A training program must provide the person with |
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information regarding: |
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(1) this subtitle; |
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(2) the programs, functions, rules, and budget of the |
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pension system; |
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(3) the results of the most recent formal audit of the |
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system; |
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(4) the requirements of laws relating to open |
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meetings, public information, administrative procedure, and |
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conflicts of interest; and |
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(5) any applicable ethics policies adopted by the |
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system or the Texas Ethics Commission. |
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(c) A person appointed to the state board is entitled to |
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reimbursement, as provided by the General Appropriations Act, for |
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the travel expenses incurred in attending the training program |
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regardless of whether the attendance at the program occurs before |
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or after the person qualifies for office. |
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ARTICLE 2. AMENDMENTS TO TEXAS LOCAL FIRE FIGHTERS RETIREMENT ACT |
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SECTION 2.01. Section 2, Texas Local Fire Fighters |
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Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is |
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amended by amending Subdivision (1) and adding Subdivisions (1-a) |
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and (1-b) to read as follows: |
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(1) "Commissioner" means the fire fighters' pension |
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commissioner appointed under Section 21 of this Act. |
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(1-a) "Compensation" includes amounts of workers' |
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compensation benefits that are received by an employee and by which |
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the employee's salary is reduced. |
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(1-b) "Contribution" means an amount of money paid by |
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a municipality or other political subdivision to a retirement |
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system or required to be paid periodically to a retirement system by |
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or on behalf of a member of the retirement system for the purpose of |
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financing benefits payable by the system. |
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SECTION 2.02. Section 2(10), Texas Local Fire Fighters |
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Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is |
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redesignated as Section 2(1-c), Texas Local Fire Fighters |
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Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), to |
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read as follows: |
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(1-c) [(10)] "Determination date" means: |
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(A) the day before the effective date of an |
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addition or change adopted by the board of trustees of a retirement |
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system under Section 7 of this Act; or |
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(B) the date of divorce for a member or retiree |
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whose benefits under this Act are subject to a qualified domestic |
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relations order. |
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SECTION 2.03. Section 18(g), Texas Local Fire Fighters |
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Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is |
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amended to read as follows: |
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(g) A board of trustees established under this Act shall, |
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not later than February 28 of each year, file with the [fire
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fighters' pension] commissioner a detailed and itemized report of |
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all receipts and disbursements with respect to its fund during the |
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fund's preceding fiscal year, together with a list of the members of |
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the board. A board shall file such additional information as is |
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required or requested from time to time by the [fire fighters'
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pension] commissioner. |
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SECTION 2.04. Section 18A, Texas Local Fire Fighters |
|
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Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is |
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amended to read as follows: |
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Sec. 18A. ENFORCEMENT OF ACT. (a) If a board of trustees |
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fails or refuses to comply with an applicable requirement of this |
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Act, the [fire fighters' pension] commissioner may issue a subpoena |
|
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addressed to a sheriff or constable to require the production of |
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books, records, or other documents that may be necessary to provide |
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or determine compliance. |
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(b) The attorney general shall represent the [fire
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fighters' pension] commissioner in the enforcement of this Act and |
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may file an appropriate pleading or action in a district court in |
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Travis County to enforce a subpoena or secure a writ of mandamus to |
|
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compel compliance with this Act. |
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SECTION 2.05. Section 21, Texas Local Fire Fighters |
|
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Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is |
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amended to read as follows: |
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Sec. 21. [FIRE FIGHTERS' PENSION] COMMISSIONER. (a) The |
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governor shall appoint, with the advice and consent of the senate, a |
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[fire fighters' pension] commissioner from lists, each containing |
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not fewer than three nor more than 10 nominees, that are submitted |
|
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by the State Firemen's and Fire Marshals' Association of Texas and |
|
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the Texas State Association of Fire Fighters. |
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(b) A person is not eligible for appointment as the [fire
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fighters' pension] commissioner if the person or the person's |
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spouse: |
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(1) is employed by or participates in the management |
|
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of a business entity or other organization regulated by or |
|
|
receiving money from the office of the commissioner; |
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(2) owns or controls, directly or indirectly, more |
|
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than a 10 percent interest in a business entity or other |
|
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organization regulated by or receiving money from the office of the |
|
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commissioner; or |
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(3) uses or receives a substantial amount of tangible |
|
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goods, services, or money from the office of the commissioner other |
|
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than compensation or reimbursement authorized by law for the [fire
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fighters' pension] commissioner. |
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(c) Appointment of the [fire fighters' pension] |
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commissioner shall be made without regard to the race, color, |
|
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disability, sex, religion, age, or national origin of the |
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appointee. |
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(d) The [fire fighters' pension] commissioner serves a term |
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of six [four] years. |
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(e) The office of the [fire fighters' pension] commissioner |
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shall be located in Austin. |
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(g) The [fire fighters' pension] commissioner is entitled |
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to reimbursement by the state for actual and necessary expenses |
|
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incurred in performing functions of the office. |
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(h) The office of the [fire fighters' pension] commissioner |
|
|
is subject to Chapter 325, Government Code (Texas Sunset Act). |
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Unless continued in existence as provided by that chapter, the |
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office is abolished September 1, 2025 [2013]. |
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(i) Any reference in law to the firemen's pension |
|
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commissioner means the [fire fighters' pension] commissioner |
|
|
provided by this section. |
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(j) The [fire fighters' pension] commissioner may conduct |
|
|
seminars or workshops for persons interested in issues pertaining |
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to retirement systems under this Act. The commissioner may impose |
|
|
and collect a fee for attendance at a seminar or workshop in an |
|
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amount that, in the aggregate, does not exceed the estimated costs |
|
|
of preparing for and conducting the seminar or workshop. Fees |
|
|
collected under this subsection shall be remitted to the |
|
|
comptroller of public accounts for deposit in an account in the |
|
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general revenue fund to be known as the fire fighters' pension |
|
|
commissioner account. Amounts in the account may be appropriated |
|
|
only to the commissioner for the payment of administrative |
|
|
expenses. |
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(k) A person may not serve as the [fire fighters' pension] |
|
|
commissioner or act as the general counsel to the commissioner [or
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to the office of the fire fighters' pension commissioner] if the |
|
|
person is required to register as a lobbyist under Chapter 305, |
|
|
Government Code, because of the person's activities for |
|
|
compensation on behalf of a profession related to the operation of |
|
|
the office of the [fire fighters' pension] commissioner. |
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SECTION 2.06. Section 21A, Texas Local Fire Fighters |
|
|
Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is |
|
|
amended by amending Subsections (a), (b), (c), (f), (g), (h), |
|
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(h-1), (i), and (j) and adding Subsection (k) to read as follows: |
|
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(a) The [fire fighters' pension] commissioner shall provide |
|
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to the commissioner's employees [and to the state board of trustees
|
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|
of the Fire Fighters' Relief and Retirement Fund established under
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the Texas Statewide Volunteer Fire Fighters Retirement Act (Article
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6243e.3, Vernon's Texas Civil Statutes)], as often as necessary, |
|
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information regarding the employees' [their] qualifications for |
|
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[office or] employment and [their] responsibilities under |
|
|
applicable laws relating to standards of conduct for state |
|
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[officers or] employees. |
|
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(b) The [fire fighters' pension] commissioner or the |
|
|
commissioner's designee shall develop a system of annual |
|
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performance evaluations. All merit pay for employees of the |
|
|
commissioner must be based on the system established under this |
|
|
subsection. |
|
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(c) The [fire fighters' pension] commissioner or the |
|
|
commissioner's designee shall prepare and maintain a written policy |
|
|
statement that implements a program of equal employment opportunity |
|
|
to ensure that all personnel decisions are made without regard to |
|
|
race, color, disability, sex, religion, age, or national origin. |
|
|
The policy statement must include: |
|
|
(1) personnel policies, including policies relating |
|
|
to recruitment, evaluation, selection, training, and promotion of |
|
|
personnel, that show the intent of the [office of the fire fighters'
|
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|
pension] commissioner to avoid the unlawful employment practices |
|
|
described by Chapter 21, Labor Code; and |
|
|
(2) an analysis of the extent to which the composition |
|
|
of the [office's] personnel of the commissioner's office is in |
|
|
accordance with state and federal law and a description of |
|
|
reasonable methods to achieve compliance with state and federal |
|
|
law. |
|
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(f) The [fire fighters' pension] commissioner shall hear |
|
|
appeals as provided by this Act and may examine the records and |
|
|
accounts of boards of trustees established under this Act and adopt |
|
|
rules and prescribe forms for the administration of this Act and |
|
|
shall classify and coordinate the reports of the various boards of |
|
|
trustees and shall verify any and all applications of the boards of |
|
|
trustees. |
|
|
(g) The [fire fighters' pension] commissioner shall file |
|
|
annually with the governor and the presiding officer of each house |
|
|
of the legislature a complete and detailed written report |
|
|
accounting for all funds received and disbursed by the commissioner |
|
|
during the preceding fiscal year, other than funds of the Texas |
|
|
emergency services retirement fund [Fire Fighters' Relief and
|
|
|
Retirement Fund] established under Section 865.009, Government |
|
|
Code [the Texas Statewide Volunteer Fire Fighters Retirement Act
|
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|
(Article 6243e.3, Vernon's Texas Civil Statutes)]. The annual |
|
|
report must be in the form and reported in the time provided by the |
|
|
General Appropriations Act. |
|
|
(h) The office of the [fire fighters' pension] commissioner |
|
|
shall maintain a file on each written complaint filed with the |
|
|
office. The file must include: |
|
|
(1) the name of the person who filed the complaint; |
|
|
(2) the date the complaint is received by the office; |
|
|
(3) the subject matter of the complaint; |
|
|
(4) the name of each person contacted in relation to |
|
|
the complaint; |
|
|
(5) a summary of the results of the review or |
|
|
investigation of the complaint; and |
|
|
(6) an explanation of the reason the file was closed, |
|
|
if the office closed the file without taking action other than to |
|
|
investigate the complaint. |
|
|
(h-1) The [fire fighters' pension] commissioner shall |
|
|
prepare and maintain a written plan that describes how a person who |
|
|
does not speak English or who has a physical, mental, or |
|
|
developmental disability can be provided reasonable access to the |
|
|
programs administered by the commissioner. |
|
|
(i) The [office of the fire fighters' pension] commissioner |
|
|
shall provide to the person filing the complaint and to each person |
|
|
who is a subject of the complaint a copy of the commissioner's |
|
|
[office's] policies and procedures relating to complaint |
|
|
investigation and resolution. |
|
|
(j) The [office of the fire fighters' pension] |
|
|
commissioner, at least quarterly until final disposition of the |
|
|
complaint, shall notify the person filing the complaint and each |
|
|
person who is a subject of the complaint of the status of the |
|
|
investigation unless the notice would jeopardize an undercover |
|
|
investigation. |
|
|
(k) The commissioner may accept on behalf of the |
|
|
commissioner's office gifts of money or other property from any |
|
|
public or private source. |
|
|
SECTION 2.07. Section 22, Texas Local Fire Fighters |
|
|
Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is |
|
|
amended to read as follows: |
|
|
Sec. 22. APPEALS FROM LOCAL BOARD DECISIONS. (a) A person |
|
|
aggrieved by a decision of a board of trustees relating to |
|
|
eligibility for or amount of benefits payable by a retirement |
|
|
system may appeal the decision to the [fire fighters' pension] |
|
|
commissioner. |
|
|
(b) An appeal under this section is begun by delivering a |
|
|
notice of appeal with the chairman, secretary, or |
|
|
secretary-treasurer of the board of trustees 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 or grounds for appeal. The aggrieved person must file a |
|
|
copy of the notice with the [fire fighters' pension] commissioner. |
|
|
(c) An appeal under this section to the [fire fighters'
|
|
|
pension] commissioner is held in Austin and is a contested case |
|
|
under Chapter 2001, Government Code, [the Administrative Procedure
|
|
|
and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
|
|
|
Statutes)] conducted as a de novo hearing by the State Office of |
|
|
Administrative Hearings. |
|
|
(d) After a hearing under Subsection (c) of this section, |
|
|
the commissioner shall decide each appeal from a board of trustees' |
|
|
decision, issue a written opinion, and notify the board of trustees |
|
|
and the claimant if the commissioner overrules the board of |
|
|
trustees' decision. |
|
|
SECTION 2.08. Section 22A, Texas Local Fire Fighters |
|
|
Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is |
|
|
amended to read as follows: |
|
|
Sec. 22A. ATTORNEY. A board of trustees may employ an |
|
|
attorney to represent the board in one or all legal matters, |
|
|
including a hearing on appeal to the [fire fighters' pension] |
|
|
commissioner. At the request of a board of trustees, the city |
|
|
attorney of the municipality of which the board is a part shall, |
|
|
without additional compensation, represent the board in one or all |
|
|
legal matters. |
|
|
SECTION 2.09. Section 26, Texas Local Fire Fighters |
|
|
Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is |
|
|
amended to read as follows: |
|
|
Sec. 26. GIFTS ACCEPTED FROM ANY SOURCE. The commissioner |
|
|
or the board of trustees of a retirement system established under |
|
|
this Act is authorized to accept and receive for the use and benefit |
|
|
of the fund, in addition to member contributions and contributions |
|
|
of the municipality or other political subdivision, gifts of money |
|
|
from any source. |
|
|
SECTION 2.10. Section 27(d), Texas Local Fire Fighters |
|
|
Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is |
|
|
amended to read as follows: |
|
|
(d) A board of trustees established under this Act shall |
|
|
adopt formal investment policies that emphasize safety and |
|
|
diversity as well as liquidity for benefit payments. In developing |
|
|
those policies, the board of trustees shall give special |
|
|
consideration to the preferred investment practices of the |
|
|
Government Finance [Financial] Officers Association. Not later |
|
|
than December 31 of each year, the board of trustees shall submit to |
|
|
the [fire fighters' pension] commissioner a copy of the investment |
|
|
policies adopted by the board. |
|
|
SECTION 2.11. Sections 30(b) and (c), Texas Local Fire |
|
|
Fighters Retirement Act (Article 6243e, Vernon's Texas Civil |
|
|
Statutes), are amended to read as follows: |
|
|
(b) Contributions picked up as provided by this section |
|
|
shall be treated as employer contributions in determining tax |
|
|
treatment of the amounts under the Internal Revenue Code of 1986. |
|
|
Each municipality or other political subdivision picking up |
|
|
contributions shall continue, however, to compute federal income |
|
|
tax withholding as if these contributions were employee wages until |
|
|
the first payroll period that begins after the date the [fire
|
|
|
fighters' pension] commissioner files with the secretary of state a |
|
|
notice stating that the United States Internal Revenue Service has |
|
|
determined or a federal court has ruled that under Section 414(h), |
|
|
Internal Revenue Code of 1986 [(26 U.S.C. Section 414(h))], the |
|
|
contributions are not includable in the gross income of a member |
|
|
until they are distributed or made available. Employee |
|
|
contributions picked up as provided by this section shall be |
|
|
deposited to the credit of the individual account of each affected |
|
|
member and shall be treated for all other purposes of this Act as if |
|
|
the contributions had been deducted from the compensation of |
|
|
members. Picked up contributions are not includable in a |
|
|
computation of contribution rates of the municipality or other |
|
|
political subdivision. |
|
|
(c) A pick up of employee contributions takes effect in a |
|
|
municipality or other political subdivision on January 1 of the |
|
|
year following the year in which: |
|
|
(1) the governing body of the municipality or other |
|
|
political subdivision by ordinance has adopted the pick up; |
|
|
(2) the pick up has been approved by majority vote of |
|
|
the participating members of the retirement system at an election |
|
|
by secret ballot at which at least 50 percent of the participating |
|
|
members vote; and |
|
|
(3) the [fire fighters' pension] commissioner has |
|
|
filed with the secretary of state a notice stating that the United |
|
|
States Internal Revenue Service has issued a determination that the |
|
|
plan covering employees of the municipality or other political |
|
|
subdivision is a qualified retirement plan under Section 401(a), |
|
|
Internal Revenue Code of 1986 [(26 U.S.C. Section 401(a))], and |
|
|
that its related trust is tax exempt under Section 501(a) of that |
|
|
code [(26 U.S.C. Section 501(a))]. |
|
|
SECTION 2.12. Sections 31(b) and (c), Texas Local Fire |
|
|
Fighters Retirement Act (Article 6243e, Vernon's Texas Civil |
|
|
Statutes), are amended to read as follows: |
|
|
(b) The board of trustees of a retirement system for a fire |
|
|
department consisting partly of employees and partly of volunteers |
|
|
may transfer assets actuarially attributable to the volunteers from |
|
|
the retirement system under this Act to the Texas Emergency |
|
|
Services Retirement System under Subtitle H, Title 8, Government |
|
|
Code [statewide program provided by the Texas Statewide Volunteer
|
|
|
Fire Fighters Retirement Act (Article 6243e.3, Vernon's Texas Civil
|
|
|
Statutes)], if the board obtains approval as provided by Section 7 |
|
|
of this Act provided 51 percent of the volunteers first petition the |
|
|
board for such change. |
|
|
(c) The [fire fighters' pension] commissioner shall |
|
|
determine whether retirement systems for fire departments |
|
|
consisting exclusively of volunteers are inactive, for purposes of |
|
|
this Act, because of the infrequency of their submission of |
|
|
contributions and reports required by this Act or other law. The |
|
|
commissioner shall, not later than June 1, 1992, notify the boards |
|
|
of trustees of retirement systems determined inactive under this |
|
|
subsection of that determination. This Act does not apply after |
|
|
December 31, 1992, to a retirement system determined inactive under |
|
|
this subsection unless before that date, the retirement system has |
|
|
completed an actuarial study of the retirement system and agreed to |
|
|
provide financing to the retirement system determined by the |
|
|
actuary to be sufficient to finance an actuarially sound system. |
|
|
[The board of trustees of an inactive retirement system may, in lieu
|
|
|
of agreeing to actuarially sound financing, elect to transfer the
|
|
|
assets of the retirement system to the statewide program provided
|
|
|
by the Texas Statewide Volunteer Fire Fighters Retirement Act
|
|
|
(Article 6243e.3, Vernon's Texas Civil Statutes).] |
|
|
SECTION 2.13. Section 32(a), Texas Local Fire Fighters |
|
|
Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is |
|
|
amended to read as follows: |
|
|
(a) Information contained in records that are in the custody |
|
|
of a retirement system established under this Act concerning an |
|
|
individual member, retiree, annuitant, or beneficiary is |
|
|
confidential under Section 552.101, Government Code [3(a)(1),
|
|
|
Chapter 424, Acts of the 63rd Legislature, Regular Session, 1973
|
|
|
(Article 6252-17a, Vernon's Texas Civil Statutes)], and may not be |
|
|
disclosed in a form identifiable with a specific individual unless: |
|
|
(1) the information is disclosed to: |
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(A) the individual; |
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(B) the individual's attorney, guardian, |
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executor, administrator, conservator, or other person who the board |
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of trustees of the retirement system determines is acting in the |
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interest of the individual or the individual's estate; |
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(C) a spouse or former spouse of the individual |
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if the board of trustees determines that the information is |
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relevant to the spouse's or former spouse's interest in member |
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accounts, benefits, or other amounts payable by the retirement |
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system; or |
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(D) a person authorized by the individual in |
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writing to receive the information; or |
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(2) the information is disclosed under an |
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authorization of the board of trustees that specifies the reason |
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for the disclosure. |
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SECTION 2.14. Section 2(9), Texas Local Fire Fighters |
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Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is |
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repealed. |
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ARTICLE 3. EFFECTIVE DATE |
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SECTION 3.01. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2013. |