86R24648 LED-F
 
  By: Flynn H.B. No. 2821
 
  Substitute the following for H.B. No. 2821:
 
  By:  Gutierrez C.S.H.B. No. 2821
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to credit in, benefits from, and administration of the
  Texas Municipal Retirement System.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 851.001, Government Code, is amended by
  adding Subdivision (8-a) and amending Subdivision (15) to read as
  follows:
               (8-a)  "Excluded prior service credit" means prior
  service credit described by Section 853.0015 and:
                     (A)  adopted under Section 853.105(d-1); or
                     (B)  required by Section 853.303(a-1), (a-2), or
  (a-3).
               (15)  "Amortization period" means, as to a particular
  municipality, the expiration of the maximum number of years, not to
  exceed 30 years, [time ending with the later of:
                     [(A)     the expiration of 25 years after the
  effective date of the municipality's participation in the
  retirement system;
                     [(B)  the expiration of 25 years] after the most
  recent actuarial valuation date for the municipality[; or
                     [(C)     the period determined under Section
  855.407(h)].
         SECTION 2.  Section 851.004, Government Code, is amended to
  read as follows:
         Sec. 851.004.  POWERS, [AND] PRIVILEGES, AND IMMUNITIES.
  (a)  The retirement system has the powers, privileges, and
  immunities of a corporation, as well as the powers, privileges, and
  immunities conferred by this subtitle.
         (b)  The board of trustees, director, members of an advisory
  committee or medical board appointed by the board of trustees, and
  staff of the retirement system are not liable for any action taken
  or omission made or suffered by them in good faith in the
  performance of any duty in connection with any program, system, or
  benefit administered by the retirement system.
         SECTION 3.  The heading to Section 853.003, Government Code,
  is amended to read as follows:
         Sec. 853.003.  BUY BACK OF CREDITED SERVICE PREVIOUSLY
  CANCELED.
         SECTION 4.  Subchapter A, Chapter 853, Government Code, is
  amended by adding Sections 853.0015 and 853.004 to read as follows:
         Sec. 853.0015.  EXCLUDED PRIOR SERVICE CREDIT. If a member
  is entitled to receive excluded prior service credit under this
  chapter, the excluded prior service credit certified to the member:
               (1)  may only be used to satisfy length of service
  requirements for vesting and retirement eligibility; and
               (2)  may not be used to determine eligibility for or
  computation of updated service credits.
         Sec. 853.004.  RULES FOR CREDITABLE SERVICE. The board of
  trustees may adopt rules necessary or desirable to implement this
  chapter.
         SECTION 5.  Section 853.105, Government Code, is amended by
  amending Subsections (a), (c), and (d) and adding Subsection (d-1)
  to read as follows:
         (a)  After receiving a certification of prior service and
  average prior service compensation under Section 853.104, the
  retirement system [board of trustees] shall determine the member's
  prior service credit.
         (c)  The [For an employee of a municipality having an
  effective date of participation in the retirement system after
  December 31, 1975, the] prior service credit is an amount computed
  as a percentage determined as provided by Subsection (d) or, if
  applicable, Subsection (d-1), times a base credit equal to the
  accumulation at three percent interest of a series of monthly
  amounts for the number of months of approved prior service, times
  the sum of:
               (1)  the rate of contributions required of employees of
  the municipality for current service; plus
               (2)  the rate described in Subdivision (1) times the
  municipal current service matching ratio.
         (d)  The governing body of a municipality [having an
  effective date of retirement system participation after December
  31, 1975,] shall determine in the ordinance providing for
  participation the percentage to be applied against the base credit
  in computing a prior service credit under Subsection (c). Except as
  provided by Subsection (d-1), the [The] percentage adopted may be
  any multiple of 10 percent that does not exceed 100 percent of the
  base credit, with 10 percent being the minimum percentage a
  municipality may adopt. A governing body may not adopt a percentage
  under this subsection until the actuary first determines, and the
  retirement system [board of trustees] concurs in the determination,
  that the municipality is able to fund, before the 30th [25th]
  anniversary of the effective date of its participation in the
  retirement system, all prior service obligations that the
  municipality proposes to assume under this section.
         (d-1)  The governing body of a municipality shall adopt, by
  ordinance, a zero percent prior service credit if, before joining
  the retirement system, the municipality provided retirement
  benefits to its employees that were funded partly or wholly by the
  municipality.  Prior service credit adopted under this subsection
  is excluded prior service credit.
         SECTION 6.  Section 853.106, Government Code, is amended to
  read as follows:
         Sec. 853.106.  PRIOR SERVICE CERTIFICATE. (a)  After
  determining a member's prior service credit under Section 853.105,
  the retirement system [board of trustees] shall issue to the member
  a prior service certificate stating:
               (1)  the number of months of prior service credited;
               (2)  the average prior service compensation; and
               (3)  the prior service credit.
         (b)  As long as a person remains a member, the person's prior
  service certificate is, for purposes of retirement, conclusive
  evidence of the information it contains, except that a member or
  participating municipality[, before the first anniversary of its
  issuance or modification,] may request that the retirement system
  correct an error in the prior service [board of trustees to modify
  the] certificate in accordance with Section 852.110.
         SECTION 7.  Section 853.303, Government Code, is amended by
  adding Subsections (a-1), (a-2), and (a-3) and amending Subsections
  (c) and (d) to read as follows:
         (a-1)  This subsection applies to a participating
  municipality that is required to adopt a zero percent prior service
  credit under Section 853.105(d-1).  If the governing body of a
  participating municipality subject to this subsection authorizes
  the granting of prior service credit to an employee under
  Subsection (a), the employee is only entitled to receive excluded
  prior service credit.
         (a-2)  This subsection applies to a participating
  municipality that, before having a department of the municipality
  begin participating in the retirement system, provided other
  retirement benefits to its employees in that department funded
  partly or wholly by the municipality.  If, on or after January 1,
  2020, the governing body of a participating municipality subject to
  this subsection authorizes the granting of prior service credit to
  an employee under Subsection (a), the employee is only entitled to
  receive excluded prior service credit.
         (a-3)  This subsection applies to a participating
  municipality that elected to discontinue the participation in the
  retirement system of persons employed or reemployed after the date
  of an election to discontinue under Section 852.006(a), provided
  other retirement benefits to those persons funded partly or wholly
  by the municipality, and subsequently elects, by ordinance, to have
  those persons resume participating in the retirement system as
  employees.  If, on or after January 1, 2020, the governing body of a
  participating municipality subject to this subsection authorizes
  prior service credit under Subsection (a) to an employee described
  by this subsection, the employee is only entitled to excluded prior
  service credit.
         (c)  As soon as practicable after a member has filed a
  statement of prior service under this section, the municipality
  shall verify the prior service claimed and certify to the
  retirement system [board of trustees] the creditable prior service
  approved and the average monthly compensation paid to the member
  during the period of the service.
         (d)  After receiving a certification of prior service and
  average monthly compensation under this section, the retirement
  system [board of trustees] shall:
               (1)  determine the prior service credit allowable to
  the member in the manner provided by Section 853.105; and
               (2)  issue to the member a prior service certificate as
  provided by Section 853.106.
         SECTION 8.  Section 853.401(a), Government Code, is amended
  to read as follows:
         (a)  Except as provided by Subsection (b) and Section
  853.0015, the governing body of a participating municipality by
  ordinance may authorize the crediting in the retirement system of
  updated service credits for service performed for the municipality
  by members.  Beginning January 1, 2022, a member must be a
  contributing employee of the municipality on the date prescribed by
  Section 853.402(e) to be eligible to receive an updated service
  credit authorized under this section. An updated service credit
  authorized under this section replaces any updated service credit
  or prior service credit previously authorized for part of the same
  service.
         SECTION 9.  Section 853.402, Government Code, is amended by
  adding Subsection (g) to read as follows:
         (g)  The retirement system may recalculate updated service
  credit for purposes of determining a member's retirement annuity
  if:
               (1)  the member reestablishes credited service in
  accordance with Section 853.003 and retires in the same calendar
  year; and
               (2)  any municipality for which the member performed
  creditable service adopts an ordinance authorizing updated service
  credits under Section 853.401, 853.404, or 853.601 with an
  effective date of January 1 of the same calendar year.
         SECTION 10.  Section 853.601(a), Government Code, is amended
  to read as follows:
         (a)  The governing body of a participating municipality in
  ordinances authorizing updated service credits under Section
  853.401 [on or after January 1, 1984,] may provide that those
  members who are eligible for such credits on the basis of service
  with the granting municipality, who have unforfeited credit for
  prior service or current service with another participating
  municipality or municipalities by reason of previous employment,
  and who are contributing members on the date prescribed by Section
  853.402(e), shall be credited in the retirement system with updated
  service credit calculated in the manner prescribed by Sections
  853.401 and 853.402, except that in determining the base updated
  service credit of the member under Section 853.402(c)(1), all
  unforfeited credited service performed by the member by reason of
  previous employment in other participating municipalities prior to
  the date prescribed by Section 853.402(e) shall be treated as if
  performed in the service of the municipality adopting the
  ordinance, and that amount shall be reduced by an amount equal to
  the sum of:
               (1)  2 times the amount credited to the member's
  individual account on the date prescribed in Section 853.402(e),
  which any participating municipality has undertaken to match on a 1
  to 1 ratio; plus
               (2)  2.5 times the amount credited to the member's
  individual account, subject to a 1.5 to 1 matching ratio by any
  participating municipality; plus
               (3)  3 times the amount credited to the member's
  individual account, subject to a 2 to 1 matching ratio by any
  participating municipality; and plus
               (4)  the sum of all updated service credits, prior
  service credits, special prior service credits, and antecedent
  service credits allowed to the member by any other participating
  municipality by which the member was previously employed and to
  which the member is entitled.
         SECTION 11.  Section 854.006(f), Government Code, is amended
  to read as follows:
         (f)  If a divorce decree or a qualified domestic relations
  order, as that term is defined by Section 804.001, so provides, the
  benefit payable to a retiree who is receiving payments of an annuity
  for the retiree's life with payments to continue after the retiree's
  death until the death of another person under Section
  854.104(c)(1), (2), or (5), 854.305(c)[(1), (2), or (5)], or
  854.410(c)[(1), (2), or (5)] may be increased to the amount that
  would have been payable if the retiree had selected an annuity
  payable only during the retiree's lifetime if:
               (1)  the proceeding in which the decree or order is
  entered terminates the marriage between the retiree and the person
  who was designated to receive the continued payment after the
  retiree's death;
               (2)  the decree or order awards the retiree all
  benefits resulting from the retiree's participation in the
  retirement system; and
               (3)  the decree or order is signed after December 31,
  1999.
         SECTION 12.  Section 854.301, Government Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  A member may not apply for a disability retirement
  annuity under this subchapter after the date the member's
  participating municipality begins participation in the
  occupational disability benefits program under Subchapter E.
         SECTION 13.  Sections 854.408(a) and (b), Government Code,
  are amended to read as follows:
         (a)  The standard occupational disability retirement annuity
  payable under this subchapter is the sum of the member's prior
  service annuity and current service annuity.  A prior service
  annuity is subject to reduction under Section 855.308(f). A
  standard occupational disability retirement annuity[:
               [(1)]  is payable throughout the life of the retiree
  except as otherwise provided by this subchapter[; and
               [(2)     is reducible as to any month or series of months
  as provided by this section].
         (b)  The occupational disability retirement annuity of a
  disability retiree may not be suspended under this subchapter after
  the date the disability retiree attains 60 years of age [During any
  month in which a retiree who is less than 60 years old receives
  earned income subject to taxation under the Federal Insurance
  Contributions Act or that would be subject to those taxes if the
  employer were not an exempt organization, the standard occupational
  disability retirement annuity may not exceed the greater of the
  following amounts:
               [(1)     the amount that is required to be added to the
  retiree's earned income for the month to equal the highest average
  compensation on which the retiree made membership contributions to
  the retirement system during any 12 consecutive months during the
  three calendar years immediately preceding the year in which the
  retiree retired for disability, when the highest average
  compensation is multiplied by the percentage increase, if any, in
  the Consumer Price Index for All Urban Consumers published by the
  Bureau of Labor Statistics of the United States Department of Labor
  from December of the year immediately preceding the effective date
  of the person's retirement to the December that is 13 months before
  a computation is made under this subsection; or
               [(2)     the monthly annuity attributable to the retiree's
  accumulated contributions at the time of the person's retirement].
         SECTION 14.  Section 854.409, Government Code, is amended to
  read as follows:
         Sec. 854.409.  MEDICAL EXAMINATION [REPORTS REQUIRED] OF
  RETIREES. (a)  The retirement system may require, by written
  request, a disability retiree under this subchapter who is younger
  than 60 years of age to undergo a medical examination and provide
  current medical and other relevant information reaffirming the
  status of the retiree as meeting the requirements for certification
  of occupational disability under Section 854.407(b).  The
  retirement system or medical board may designate a physician to
  perform the examination. The retiree shall pay the cost of the
  examination, unless the director, at the director's discretion,
  waives that requirement and has the retirement system pay the cost
  of the examination [A disability retiree who is less than 60 years
  old and who accepts employment or during any month receives income
  that is subject to taxation under the Federal Insurance
  Contributions Act shall promptly notify the board of trustees in
  writing if the amount of the earnings, when added to the amount of
  the standard occupational disability retirement benefit, produces
  a sum in excess of the average monthly compensation on which the
  retiree made member contributions during the 12-month period
  preceding the date of the person's retirement].
         (b)  [Each retiree who is receiving an occupational
  disability retirement annuity and is less than 60 years old shall
  make annual reports to the board of trustees on such form as the
  board may prescribe, concerning receipt by the retiree of income
  that is subject to taxation under the Federal Insurance
  Contributions Act or that would be subject to those taxes if the
  employer were not an exempt organization, along with any supporting
  information as may be required by the board of trustees.] If a
  disability retiree refuses to submit to a medical examination or
  fails to provide current medical or other [the] information
  requested under Subsection (a) [required under this section], the
  retirement system [director] may suspend payments of the disability 
  annuity as provided by this section [until the retiree provides the
  required information].
         (c)  If a disability retiree refuses to submit to a medical
  examination or fails to provide current medical or other
  information requested under Subsection (a) by the first anniversary
  of the date the retirement system requested the medical examination
  or information, the retirement system may suspend payments of the
  disability annuity until the earlier of the date the retiree:
               (1)  attains 60 years of age; or
               (2)  submits to a medical examination and provides the
  requested information.
         (d)  If a disability retiree submits to a medical examination
  and provides the requested information before the fourth
  anniversary of the date the retirement system requested the medical
  examination or information, the retirement system may pay the
  suspended payments of the disability annuity in a lump sum.
         (e)  If the medical board finds that a disability retiree
  under this subchapter has experienced medical improvement to the
  extent that the disability retiree no longer meets the requirements
  for certification of occupational disability under Section
  854.407(b), the medical board shall certify the medical board's
  findings and submit the findings to the director. If the director
  concurs in the medical board's findings under this section, the
  director may adopt the findings, and the retirement system may
  suspend payments of the disability annuity and take other action as
  the retirement system, in the retirement system's discretion,
  considers equitable and appropriate to address the situation, until
  the disability retiree attains 60 years of age.
         (f)  The suspension of a benefit under this section does not
  suspend payment of a benefit to an alternate payee under a qualified
  domestic relations order.
         SECTION 15.  Section 854.410(e), Government Code, is amended
  to read as follows:
         (e)  To select an optional occupational disability
  retirement annuity, a member or retiree must make the selection and
  designate a beneficiary on a form prescribed by and filed with the
  retirement system [board of trustees] before the 31st day after the
  effective date of retirement.
         SECTION 16.  Subchapter E, Chapter 854, Government Code, is
  amended by adding Section 854.411 to read as follows:
         Sec. 854.411.  RULES FOR OPTIONAL DISABILITY RETIREMENT
  ANNUITIES.  The board of trustees may adopt rules necessary or
  desirable to implement this subchapter.
         SECTION 17.  Section 855.007, Government Code, is amended by
  amending Subsections (a), (b), and (c) and adding Subsections (e),
  (f), (g), (h), (i), (j), and (k) to read as follows:
         (a)  The board of trustees shall hold at least four [regular]
  meetings [in March, June, September, and December of] each year and
  additional [special] meetings when called by the director.
         (b)  Before the fifth day preceding the day of a meeting, the
  director shall give written notice of the [a special] meeting to
  each trustee unless notice is waived.
         (c)  Except as otherwise provided by this subtitle, Chapter
  551, or other law, all [All] meetings of the board must be open to
  the public.
         (e)  Notwithstanding Chapter 551 or any other law, the board
  of trustees may hold an open or closed meeting by telephone
  conference call, videoconference, or other similar
  telecommunication method. The board may use a telephone conference
  call, videoconference, or other similar telecommunication method
  for purposes of establishing a quorum or voting or for any other
  meeting purpose in accordance with Subsection (f) and this
  subsection. This subsection applies without regard to the subject
  matter discussed or considered by the board at a meeting.
         (f)  A meeting of the board of trustees held by telephone
  conference call, videoconference, or other similar
  telecommunication method:
               (1)  is subject to the notice requirements applicable
  to other board meetings;
               (2)  may not be held unless notice of the meeting
  specifies the location of the meeting at which at least one trustee
  of the board will be physically present; and
               (3)  must be open and audible to the public at the
  location specified in the notice under Subdivision (2) during the
  open portions of the meeting.
         (g)  Chapter 551 does not require the board of trustees to
  confer with one or more employees, consultants, or legal counsel of
  the retirement system or with a third party, including
  representatives of an issuer of restricted securities or a private
  investment fund, in an open meeting if the only purpose of the
  conference is to receive information from or question the
  employees, consultants, or legal counsel of the retirement system
  or the third party relating to an investment or a potential
  investment.
         (h)  The board of trustees or a committee of the board may
  conduct a closed meeting in accordance with Subchapter E, Chapter
  551, with the retirement system's internal or external auditors to
  discuss:
               (1)  governance, risk management or internal control
  weaknesses, known or suspected compliance violations or fraud,
  status of regulatory reviews or investigations, or identification
  of potential fraud risk areas and audits for the annual internal
  audit plan; or
               (2)  the auditors' ability to perform duties in
  accordance with the Internal Audit Charter and relevant auditing
  standards.
         (i)  Notwithstanding Chapter 551 or any other law, the board
  of trustees may conduct a closed meeting to consider and discuss:
               (1)  evaluations or duties of trustees or board
  consultants; and
               (2)  self-evaluations of the board as a whole. 
         (j)  Notwithstanding any other law, Chapter 551 does not
  apply to an assembly of the board of trustees or one of the board's
  committees while attending a summit, conference, convention,
  workshop, or other event held for educational purposes if the
  assembly or committee does not deliberate, vote, or take action on a
  specific matter of public business or public policy over which the
  board of trustees or a committee of the board has supervision or
  control. This subsection does not apply to a meeting of the board of
  trustees scheduled or called under the board's bylaws.
         (k)  The board of trustees may adopt rules necessary or
  desirable to implement this section.
         SECTION 18.  Section 855.107, Government Code, is amended to
  read as follows:
         Sec. 855.107.  AUDIT. (a) In this section:
               (1)  "Audit" means an internal or independent external
  audit authorized or required by this section or initiated or
  commissioned by the board of trustees or a committee of the board of
  trustees. The term includes a financial audit, compliance audit,
  economy and efficiency audit, effectiveness audit, performance
  audit, security or risk audit, attestation, management-directed
  engagement, or investigation.
               (2)  "Audit working paper" includes all information,
  documentary or otherwise, prepared or maintained in conducting an
  audit or preparing an audit report, including:
                     (A)  internal or external communications relating
  to the audit that are made or received in the course of the audit; 
                     (B)  drafts of an audit report or portions of
  those drafts; 
                     (C)  drafts of audit plans; and 
                     (D)  records of risk assessments.
         (b)  Annually, or more often, the board of trustees shall
  have the accounts of the retirement system audited by a certified
  public accountant.
         (c)  In addition to the financial audit required by
  Subsection (b), the board of trustees may initiate or commission an
  audit or investigation of activities, functions, or operations of
  the retirement system as the board determines appropriate.
         (d)  Audit working papers prepared, maintained, or assembled
  by the retirement system or an agent of the retirement system are
  not a record of the board of trustees for purposes of Section
  855.112, and are confidential and excepted from the disclosure
  requirements of Chapter 552.
         (e)  Unless made confidential under other law, an audit
  report, when received by the board of trustees in its final form, is
  public information not excepted from the requirements of Section
  552.021.
         SECTION 19.  Section 855.110(c), Government Code, is amended
  to read as follows:
         (c)  The board of trustees, after consultation with the
  actuary, by rule or by funding policy adopted by the board of
  trustees, may:
               (1)  set open or closed amortization periods not to
  exceed 30 [25] years;
               (2)  change the period for amortizing a municipality's
  unfunded actuarial accrued liabilities from an open period to a
  closed period or from a closed period to an open period;
               (3)  decrease or increase the amortization period,
  provided the amortization period may not exceed 30 years; and
               (4)  set different amortization periods for unfunded
  actuarial accrued liabilities arising from different types of
  events giving rise to liabilities and ladder the amortization of
  the liabilities.
         SECTION 20.  Section 855.112, Government Code, is amended to
  read as follows:
         Sec. 855.112.  RECORDS [OF BOARD OF TRUSTEES]. (a) The
  retirement system [board of trustees] shall keep, in convenient
  form, data necessary for required computations and valuations by
  the actuary.
         (b)  The board of trustees shall keep a permanent record of
  all of its proceedings.
         (c)  Records of the board of trustees are open to the public.
         SECTION 21.  Section 855.114, Government Code, is amended to
  read as follows:
         Sec. 855.114.  OBTAINING INFORMATION. (a)  In this section,
  "participant" means a member, former member, retiree, annuitant,
  beneficiary, or alternate payee of the retirement system.
         (b)  The board of trustees shall obtain from participants
  [members] or participating municipalities information necessary
  for the proper operation of the retirement system.
         (c)  Each participant and participating municipality shall
  timely provide, in the form and manner specified by the retirement
  system, information necessary for the proper operation and
  administration of the retirement system.
         SECTION 22.  Section 855.115, Government Code, is amended by
  amending Subsections (a), (c), and (d) and adding Subsections
  (a-1), (b-1), (e), (f), (g), and (h) to read as follows:
         (a)  In this section, "participant" has the meaning assigned
  by Section 855.114.
         (a-1)  Information contained in records that are in the
  custody of the retirement system or maintained in the custody of
  another governmental entity or an administrator or carrier acting
  in cooperation with or on behalf of the retirement system
  concerning a participant [an individual member, retiree,
  annuitant, or beneficiary] is confidential and not subject to
  public disclosure. Except as otherwise provided by this section,
  the retirement system is not required to accept or comply with a
  request for a record or information about a record of a participant,
  or to seek an opinion from the attorney general because the records
  of a participant are not public records and are exempt from
  disclosure and the public information provisions of Chapter 552.
  Participant information [under Section 552.101, and] may not be
  disclosed [in a form identifiable with a specific individual]
  unless:
               (1)  the information is disclosed to:
                     (A)  the participant [individual] or the
  participant's [individual's] attorney, guardian, executor,
  administrator, conservator, or other person who the director
  determines is acting in the interest of the participant
  [individual] or the participant's [individual's] estate;
                     (B)  a spouse or former spouse of a participant
  [the individual] after the director determines that the information
  is relevant to the spouse's or former spouse's interest in member
  accounts, benefits, or other amounts payable by the retirement
  system;
                     (C)  a governmental official or employee after the
  director determines that disclosure of the information requested is
  reasonably necessary to:
                           (i)  the performance of the duties of the
  official or employee; or
                           (ii)  perform the purposes of the retirement
  system; or
                     (D)  a person authorized by the participant
  [individual] in writing to receive the information; or
               (2)  the information is disclosed pursuant to a
  subpoena and the director determines that the participant
  [individual] will have a reasonable opportunity to contest the
  subpoena.
         (b-1)  This section does not require the retirement system to
  compile or disclose a list of participants' names, addresses,
  social security numbers, or other descriptive or demographic
  information.
         (c)  The director may designate other employees of the
  retirement system to make the necessary determinations under
  Subsection (a-1) [(a)].
         (d)  A determination and disclosure under Subsection (a-1) 
  [(a)] may be made without notice to the participant [individual
  member, retiree, annuitant, or beneficiary].
         (e)  A record released or received by the retirement system
  under this section may be transmitted electronically, including
  through the use of an electronic signature or certification in a
  form acceptable to the retirement system. An unintentional
  disclosure to, or unauthorized access by, a third party related to
  the transmission or receipt of information under this section is
  not a violation by the retirement system of any law, including any
  law or rule relating to the protection of confidential information.
         (f)  The records of a participant remain confidential after
  release to a person, including a governmental official or employee,
  as authorized by this section. The records of the participant may
  become part of a public record of an administrative or judicial
  proceeding, and the participant waives the confidentiality of the
  records, including medical records, unless the records are closed
  to public access by a protective order issued under applicable law.
         (g)  The retirement system may require a participant to
  provide the participant's social security number as the retirement
  system considers necessary to ensure the proper administration of
  all services, benefits, plans, and programs under the retirement
  system's administration or as otherwise required by state or
  federal law.
         (h)  The retirement system has sole discretion in
  determining if a record is subject to this section. For purposes of
  this section, a record includes any record of the retirement system
  containing information about a participant, living or deceased.
         SECTION 23.  Section 855.116, Government Code, is amended to
  read as follows:
         Sec. 855.116.  ELECTRONIC INFORMATION [FILING OF CERTAIN
  DOCUMENTS]. (a) In this section:
               (1)  "Electronic [, "electronic] filing" means the
  filing of data by the communication of information by facsimile or
  in the form of digital electronic signals transformed by computer
  and stored on microfilm, magnetic tape, magnetic or solid state
  [optical] disk, or any other electronic storage or other medium.
               (2)  "Electronic record" means any information that is
  recorded in a form for computer processing.
         (b)  The board of trustees may adopt rules and procedures
  relating to the electronic filing of documents with the retirement
  system and the delivery of information electronically by the
  retirement system. A document that is electronically filed in
  accordance with those rules and procedures is considered to have
  been properly filed with the retirement system.
         (c)  The retirement system may provide confidential
  information electronically to participating municipalities,
  members, retirees, beneficiaries, annuitants, alternate payees,
  and other persons authorized to receive the information and may
  receive information electronically from the individuals or
  entities, as applicable, including by use of an electronic
  signature or certification in a form acceptable to the retirement
  system. An unintentional disclosure to, or unauthorized access by,
  a third party related to the transmission or receipt of information
  under this section is not a violation by the retirement system of
  any law, including a rule relating to the protection of
  confidential information.
         (d)  Subject to Subsection (f), the retirement system may
  provide to a member, retiree, or annuitant any information that is
  required to be provided, distributed, or furnished under Section
  802.106(a), (b), (d), or (e) by:
               (1)  sending the information to an e-mail address or
  other electronic address furnished to the retirement system by the
  member, retiree, or annuitant; or
               (2)  directing the member, retiree, or annuitant
  through a written notice, e-mail, or other electronic notice to an
  Internet website address to access the information.
         (e)  Subject to Subsection (f), the retirement system may
  provide to a member, retiree, or annuitant the information that is
  required to be provided under Section 802.106(c) by directing the
  member, retiree, or annuitant through a written notice, e-mail, or
  other electronic notice to an Internet website address to access
  the information.
         (f)  Electronic notice sent under this section by e-mail or
  other electronic means may only be sent to an e-mail address or
  other electronic address furnished to the retirement system by the
  member, retiree, or annuitant.
         (g)  The retirement system may:
               (1)  photograph, microphotograph, film, or make an
  electronic record of any record in the retirement system's
  possession; or
               (2)  preserve the record through electronic document
  imaging.
         (h)  If a record is reproduced under Subsection (g), the
  retirement system may destroy or dispose of the original record if
  the system first:
               (1)  places the reproduction or electronic record in a
  file that is conveniently accessible to retirement system
  personnel; and
               (2)  provides for the preservation, examination, and
  use of the reproduction or stored electronic record.
         (i)  A photograph, microphotograph, film, electronic record,
  or electronic document image of a record received by the retirement
  system or reproduced under Subsection (g) is equivalent to the
  original record for all purposes, including introduction as
  evidence in all courts and administrative agency proceedings. A
  certified or authenticated copy of the photograph,
  microphotograph, film, electronic record, or electronic document
  image is admissible as evidence to the same extent as the original
  record.
         (j)  The director or an authorized representative may
  certify the authenticity of a record reproduced under this section
  and may charge a fee for the certified copy as provided by law.
         (k)  Certified records shall be furnished to any person who
  is authorized by law to receive them.
         SECTION 24.  The heading to Section 855.202, Government
  Code, is amended to read as follows:
         Sec. 855.202.  LEGAL REPRESENTATION [ADVISER].
         SECTION 25.  Section 855.202, Government Code, is amended by
  amending Subsection (b) and adding Subsection (c) to read as
  follows:
         (b)  The attorney shall act as the legal adviser to the board
  of trustees [and shall represent the system in all litigation].
         (c)  The board of trustees, the director, or the director's
  designee may employ or obtain the services of other attorneys or
  outside legal counsel to represent the retirement system in
  litigation or advise the retirement system on fiduciary or legal
  matters.
         SECTION 26.  Section 855.301, Government Code, is amended by
  amending Subsection (a) and adding Subsection (d) to read as
  follows:
         (a)  The board of trustees shall invest and reinvest the
  assets of the retirement system without distinction as to their
  source in accordance with Section 67, Article XVI, Texas
  Constitution. For purposes of the investment authority of the
  board of trustees under Section 67, Article XVI, Texas
  Constitution, "security" or "securities" means any investment
  instrument within the meaning of the term as defined by Section 4,
  The Securities Act (Article 581-4, Vernon's Texas Civil Statutes),
  15 U.S.C. Section 77b(a)(1), or 15 U.S.C. Section 78c(a)(10).  An
  interest in a limited partnership or investment contract is
  considered a security without regard to the number of investors or
  the control, access to information, or rights granted to or
  retained by the retirement system. Any instrument or contract
  intended to manage transaction, currency exchange, or interest rate
  risk in purchasing, selling, or holding securities, or that derives
  all or substantially all of its value from the value or performance
  of one or more securities, including an index or group of
  securities, is considered to be a security.
         (d)  The board of trustees may:
               (1)  delegate discretionary investment authority to
  and contract with external investment managers to invest and manage
  the assets held in trust by the retirement system; and
               (2)  contract with external investment advisors and
  consultants to assist and advise the board and the staff of the
  retirement system.
         SECTION 27.  Section 855.407, Government Code, is amended by
  amending Subsections (f) and (h) and adding Subsection (i) to read
  as follows:
         (f)  The governing body of a municipality that is determined
  by the actuary to be unable to finance all obligations charged
  against its account in the benefit accumulation fund within the
  municipality's current amortization period [25 years after its most
  recent actuarial valuation date] may elect to have the municipality
  contribute to its account in the benefit accumulation fund at a rate
  that does not exceed in any year the sum of two percent and the
  maximum contribution rate specified by Subsection (a) and by
  Section 855.501, if applicable, and that the actuary annually may
  determine as necessary to finance the existing levels of benefits
  before the expiration of the municipality's current amortization
  period [25 years after the most recent actuarial valuation date].
         (h)  Subject to Subsection (i), if [If] the board of trustees
  adopts any actuarial changes, including changes [change] in
  actuarial assumptions or in actuarial method, that would result in
  any municipality having an increase in its combined contribution
  rate of more than one-half of one percent of the total compensation
  paid to its employees based on its current amortization period, the
  board may, after consultation with the actuary, take any or all of
  the following actions [and if its governing body adopts a
  resolution requesting a new amortization period, the municipality
  will be assigned a new amortization period equal to the lesser of]:
               (1)  phase in the increase in the contribution rate for
  the municipality over a reasonable period of time;
               (2)  increase the period for amortizing the
  municipality's unfunded actuarial accrued liabilities for a period
  that does not exceed 30 years; or
               (3)  allow the municipality to request in writing an
  increase in the municipality's amortization period, provided that
  the new amortization period the municipality may be assigned equals
  the lesser of:
                     (A)  the number of years required to limit the
  increase in the combined rate to one-half of one percent of the
  total compensation paid to its employees; or
                     (B) [(2)]  the maximum number of years, not to
  exceed 30 [40] years, specified by the board of trustees.
         (i)  A municipality may decline to phase in the increase in
  the municipality's contribution rate or increase the municipality's
  amortization period under Subsection (h).
         SECTION 28.  Sections 852.005(b), 853.105(b), 854.408(c)
  and (d), and 854.410(f), Government Code, are repealed.
         SECTION 29.  The changes in law made to Chapter 854,
  Government Code, as amended by this Act, apply to a retiree
  regardless of whether the person retired before, on, or after the
  effective date of this Act.
         SECTION 30.  This Act takes effect January 1, 2020.