H.B. No. 1756
 
 
 
 
AN ACT
  relating to the board of trustees of and distribution of certain
  benefits by a retirement system for firefighters in certain
  municipalities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2.03(b), Chapter 183 (S.B. 598), Acts of
  the 64th Legislature, Regular Session, 1975 (Article 6243e.1,
  Vernon's Texas Civil Statutes), is amended to read as follows:
         (b)  Between November 1 of each year and the first Monday in
  January of the following year, the board of trustees shall hold an
  election to elect one member of the board of trustees. If only one
  firefighter or retiree is nominated for a position under Subsection
  (c) of this section, instead of holding an election, the board of
  trustees may appoint the sole nominated candidate at the first
  board meeting in January. The board shall adopt procedures for the
  appointment of a sole nominated candidate under this subsection.  A
  board member appointed under this subsection is considered elected
  for purposes of this Act.
         SECTION 2.  Section 7.09, Chapter 183 (S.B. 598), Acts of the
  64th Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's
  Texas Civil Statutes), is amended by adding Subsection (d) to read
  as follows:
         (d)  The board of trustees may adopt rules to establish
  procedures for and requirements governing a member's designation of
  a beneficiary under this section.
         SECTION 3.  Section 8.05, Chapter 183 (S.B. 598), Acts of the
  64th Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's
  Texas Civil Statutes), is amended by adding Subsection (d) to read
  as follows:
         (d)  The board of trustees may adopt rules that modify the
  availability of distributions under Subsection (a) of this section,
  provided that the modifications do not:
               (1)  impair the distribution rights under that
  subsection; or
               (2)  cause distributions to occur later than required
  under Section 401(a)(9), Internal Revenue Code of 1986.
         SECTION 4.  Sections 8.07(b), (c), and (d), Chapter 183
  (S.B. 598), Acts of the 64th Legislature, Regular Session, 1975
  (Article 6243e.1, Vernon's Texas Civil Statutes), are amended to
  read as follows:
         (b)  If a member who participates in the DROP dies before
  distribution of the member's entire DROP account [while in active
  service or if the member has not filed an election with the board of
  trustees as described by Subsection (c) of this section],
  distributions to the designated beneficiary will begin not more
  than one year after the date of the member's death and shall be made
  either as a single-payment distribution of the member's DROP
  account balance or in not more than four equal annual installments
  over a period of not more than 37 months.
         (c)  [If a member who participates in the DROP dies after
  terminating active service and has filed an election with the board
  of trustees to be paid in not more than four equal annual
  installments over a period of not more than 37 months, the balance
  of the member's DROP account shall be distributed to the designated
  beneficiary in the manner that the member selected.
         [(d)] If the member has not designated a beneficiary to
  receive distributions from the member's DROP account or if the
  person so designated does not survive the member by at least 72
  hours, the member's DROP account shall be distributed in a
  single-sum payment as soon as administratively possible after the
  member's death to any surviving spouse who survives the member by at
  least 72 hours, if any, or to the member's estate if there is no
  surviving spouse.
         SECTION 5.  Section 9.04(a-2), Chapter 183 (S.B. 598), Acts
  of the 64th Legislature, Regular Session, 1975 (Article 6243e.1,
  Vernon's Texas Civil Statutes), is amended to read as follows:
         (a-2)  The collective adjustment amount described by
  Subsection (a-1) of this section:
               (1)  is an amount equal to the actuarial value, as
  determined by the board's actuary based on the interest and
  mortality assumptions adopted by the board of trustees for the most
  recent actuarial valuation of the fund, of the percentage increase
  in the Consumer Price Index for All Urban Consumers as determined by
  the United States Department of Labor for the applicable
  determination period ending in a calendar month that precedes by
  not more than four months the month in which [immediately preceding
  the date] the cost-of-living adjustment is to take effect,
  multiplied by the total amount of benefits payable in the month
  immediately preceding the date an adjustment is to take effect to
  persons who are eligible to receive an adjustment under this
  section; and
               (2)  if applicable:
                     (A)  is reduced by an amount that the board's
  actuary determines is necessary to maintain the financial stability
  of the fund; or
                     (B)  is increased in accordance with Subsection
  (b) of this section.
         SECTION 6.  The board of trustees of a retirement system
  subject to this Act shall adopt procedures required under Section
  2.03(b), Chapter 183 (S.B. 598), Acts of the 64th Legislature,
  Regular Session, 1975 (Article 6243e.1, Vernon's Texas Civil
  Statutes), as amended by this Act, before a sole nominated
  candidate may be appointed to the board of trustees.
         SECTION 7.  This Act takes effect September 1, 2015.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1756 was passed by the House on April
  16, 2015, by the following vote:  Yeas 146, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1756 was passed by the Senate on May
  15, 2015, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor