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AN ACT
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relating to the board of trustees, benefits, and contributions of |
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certain fire and police pension funds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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ARTICLE 1. CONTINGENT PROVISIONS EFFECTIVE SEPTEMBER 1, 2007 |
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SECTION 1.01. Sections 1(a) and (b), Chapter 101, Acts of |
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the 43rd Legislature, 1st Called Session, 1933 (Article 6243b, |
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Vernon's Texas Civil Statutes), are amended to read as follows: |
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(a) In all incorporated cities and towns containing more |
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than 550,000 inhabitants and less than 600,000 inhabitants, having |
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a fully or partially paid fire department, three (3) citizens of |
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said city or town to be designated by the mayor [or the mayor's
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authorized representative], two (2) citizens of said city or town |
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to be designated by the city manager of said city or town [mayor,
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the chief of police or the chief's authorized representative, the
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chief of the fire department or the chief's authorized
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representative, and the successors of the mayor, chief of police,
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and chief of the fire department], three (3) policemen [other than
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the chief or assistant chief,] to be elected by members of the |
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policemen's pension fund, and three (3) firemen [other than the
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chief or assistant chief,] to be elected by members of the firemen's |
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pension fund, composing eleven (11) members, seven (7) of which |
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shall be a quorum, shall constitute a board of trustees of the |
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Firemen and Policemen Pension Fund, to provide for the disbursement |
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of the same and to designate the beneficiaries thereof. [The three
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policemen and the three firemen named above shall be elected to a
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term of four (4) years. The term for a citizen designated by the
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mayor is four (4) years.] The board shall be known as the Board of |
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Firemen and Policemen Pension Fund, __________, Texas. Said board |
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shall organize by choosing one member as Chairman and by appointing |
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a secretary. Such board shall have charge of and administer said |
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fund and shall order payments therefrom in pursuance of the |
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provisions of this law. It shall report annually to the governing |
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body of such city or town the condition of the said fund and the |
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receipts and disbursements on account of the same with a complete |
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list of beneficiaries of said fund and the amounts paid them. |
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(b) The members of the board of trustees serve four-year |
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terms. [Of the first two (2) citizens designated by the mayor to
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serve on the board of trustees after the effective date of this
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subsection, one shall serve a four-year term and the other a
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two-year term. Thereafter all terms shall be for four (4) years.
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Of the first six (6) firemen and policemen elected after the
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effective date of this subsection, three (3) of the firemen and
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policemen shall serve four-year terms and three (3) of the firemen
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and policemen shall serve two-year terms. The first four-year
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terms shall not be served by all three members elected from the
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firemen's fund nor by all three members elected from the policemen's
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fund. This determination shall be made by lot under the supervision
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of the board. Thereafter all elected terms shall be for four (4)
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years.] |
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SECTION 1.02. Section 2, Chapter 101, Acts of the 43rd |
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Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's |
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Texas Civil Statutes), is amended to read as follows: |
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Sec. 2. PARTICIPATION IN FUND; WAGE DEDUCTIONS. Each |
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member fireman and policeman in the employment of such city or town |
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must participate in said fund, except in times of national |
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emergency those persons as are employed during that time shall not |
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be required to participate in the fund, and said city or town shall |
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be authorized to deduct a sum of not less than one per cent (1%) nor |
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in excess of six per cent (6%) of his wages from each month to form a |
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part of the fund known as the Firemen and Policemen Pension Fund, |
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except that the city or town shall deduct a sum less than one per |
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cent (1%) or more than six per cent (6%) of the member's wages each |
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month to form a part of the fund if the board of trustees of that |
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fund increases or decreases the percentage of wages to be |
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contributed to the fund under the provisions of Section 10A or 14A |
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of this Act. The amount to be deducted from the wages of those named |
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above who must participate in the fund is to be determined by the |
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board of trustees as provided for in Section 1 of this Act within |
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the minimum and maximum deductions herein provided or as otherwise |
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provided under the provisions of Section 10A or 14A of this Act. |
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SECTION 1.03. Section 3, Chapter 101, Acts of the 43rd |
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Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's |
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Texas Civil Statutes), is amended to read as follows: |
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Sec. 3. PAYMENTS TO FUND. There shall be deducted for such |
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fund from the wages of each fireman and policeman a sum to be |
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determined by the board of trustees under the provisions of |
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Sections [Section] 2, [or] 10A, and 14A of this Act. Any donations |
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made to such fund and rewards received by any member of either of |
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said funds, and all funds received from any source for such fund |
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shall be deposited in like manner to the credit of such fund. |
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SECTION 1.04. Section 10A, Chapter 101, Acts of the 43rd |
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Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's |
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Texas Civil Statutes), is amended to read as follows: |
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Sec. 10A. MODIFICATION OF BENEFITS, MEMBERSHIP |
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QUALIFICATIONS, ELIGIBILITY REQUIREMENTS AND CONTRIBUTIONS; |
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CONDITIONS. (a) Notwithstanding anything to the contrary in other |
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parts of this Act and subject to Subsections (b) and (c) of this |
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section, the Board of Trustees may, by majority vote of the whole |
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board, make from time to time one or more of the following changes, |
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or modifications: |
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(1) modify or change prospectively or retroactively in |
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any manner whatsoever any of the benefits provided by this Act, |
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except that any retroactive change or modification shall only |
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increase pensions or benefits; |
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(2) modify or change prospectively in any manner |
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whatsoever any of the membership qualifications; |
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(3) modify or change prospectively or retroactively in |
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any manner whatsoever any of the eligibility requirements for |
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pensions or benefits; |
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(4) increase or decrease prospectively the percentage |
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of wages less than the one per cent (1%) minimum or above the six per |
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cent (6%) maximum provided in Section 2 of this Act to be |
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contributed to the fund; or |
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(5) provide prospectively for refunds, in whole or in |
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part, and with or without interest, of contributions made to the |
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fund by employees who leave the city service before qualifying for a |
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pension. |
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(b) None of the changes made under Subsection (a) of this |
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section may be made unless all of the following conditions are |
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sequentially complied with: |
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(1) the change must be approved by a qualified actuary |
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selected by a four-fifths vote of the Board; the actuary's approval |
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must be based on an actuarial finding that the change is supported |
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by the existing funding status of the fund; the actuary, if an |
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individual, must be a Fellow of the Society of Actuaries or a Fellow |
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of the Conference of Actuaries in Public Practice or a Member of the |
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American Academy of Actuaries; the actuary, if an actuarial |
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consulting firm, must be established in the business of providing |
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actuarial consulting services to pension plans and have experienced |
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personnel able to provide the requested services; the findings upon |
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which the properly selected and qualified actuary's approval are |
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based are not subject to judicial review; |
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(2) the change must be approved by a majority of all |
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persons then making contributions to the fund as employees of a |
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department to which the change would directly apply, voting by |
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secret ballot at an election held after ten (10) days' notice given |
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by posting at a prominent place in every station or substation of a |
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department to which the change would directly apply and in the city |
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hall; |
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(3) the changes, except changes made under the |
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provisions of Subdivision (1), Subsection (a), of this section, |
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shall apply only to active member employees who are members of the |
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affected departments at the time the change becomes effective and |
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those who enter the departments thereafter; and |
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(4) the changes shall not deprive any person, without |
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his written consent, of any right to receive a pension or benefits |
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which have already become vested and matured. |
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(c) If the Board of Trustees proposes to change benefits |
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under Subdivision (1), Subsection (a), of this section, the change |
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is not effective until the change is finally approved in accordance |
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with this subsection. The Board shall submit the change for |
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approval by the city's or town's governing body. If disapproved by |
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the governing body, or if the governing body fails to act within |
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sixty (60) days of presentation to the governing body, the Board, by |
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resolution passed by a majority of the whole Board, plus one, may |
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require the city's or town's governing body to hold an election, as |
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soon as practicable, for approval of the change by the qualified |
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voters of the city or town. Any change proposed and subsequently |
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approved by the voters under this subsection becomes effective as |
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of the beginning of the city's or town's next fiscal year. |
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SECTION 1.05. Chapter 101, Acts of the 43rd Legislature, |
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1st Called Session, 1933 (Article 6243b, Vernon's Texas Civil |
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Statutes), is amended by adding Section 14A to read as follows: |
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Sec. 14A. CONTRIBUTION INCREASES. (a) If at any time a |
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qualified actuary that meets the requirements of Subdivision (1), |
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Subsection (b), Section 10A of this Act, determines that the total |
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contribution rate, expressed as a percentage of wages, is |
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insufficient to amortize the unfunded actuarial accrued liability, |
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as defined under the Governmental Accounting Standards Board |
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Statement No. 25, over a period not to exceed forty (40) years: |
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(1) the city's or town's governing body may increase |
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the city or town contribution rate; and |
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(2) to the extent that the city or town contribution |
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rate increases under Subdivision (1) of this subsection, the member |
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contribution rate must increase by an amount equal to the member |
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contribution rate before the increase multiplied by a fraction: |
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(A) the numerator of which is the increase in the |
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amount of city or town contribution rate; and |
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(B) the denominator of which is the amount of the |
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city or town contribution rate before the increase. |
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(b) The sum of the city or town contribution rate and the |
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member contribution rate after an increase under this section may |
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not exceed the total contribution rate determined by the qualified |
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actuary to be necessary to amortize the unfunded actuarial accrued |
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liability over a forty (40) year period. |
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SECTION 1.06. (a) In this section: |
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(1) "Board of trustees" means a board of trustees |
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constituted under Section 1(a), Chapter 101, Acts of the 43rd |
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Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's |
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Texas Civil Statutes). |
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(2) "City or town" means a city or town that operates a |
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Firemen and Policemen Pension Fund under Chapter 101, Acts of the |
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43rd Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's |
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Texas Civil Statutes). |
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(b) The two citizen members of the board of trustees who are |
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designated by the mayor of the city or town and who are serving on |
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the board of trustees on the effective date of this article shall |
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continue to serve for the remainder of the members' four-year |
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terms. |
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(c) The mayor of the city or town or the mayor's authorized |
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representative who is serving on the board of trustees on the |
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effective date of this article shall continue to serve until the |
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mayor appoints a third citizen member under this subsection. As |
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soon as practicable after the effective date of this article, the |
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mayor shall appoint a citizen member to serve a four-year term. |
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(d) The chief of police or the chief's authorized |
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representative and the chief of the fire department or the chief's |
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authorized representative who are serving on the board of trustees |
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on the effective date of this article shall continue to serve until |
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the city manager of the city or town appoints two citizen members to |
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the board of trustees under this subsection. As soon as practicable |
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after the effective date of this article, the city manager shall |
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appoint the two citizen members. The city manager shall designate |
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one citizen member appointed under this subsection to serve a |
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four-year term and, notwithstanding Section 1(b), Chapter 101, Acts |
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of the 43rd Legislature, 1st Called Session, 1933 (Article 6243b, |
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Vernon's Texas Civil Statutes), as amended by this article, shall |
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designate one citizen member to serve a two-year term. The |
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successors of the individuals appointed under this subsection shall |
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serve four-year terms in accordance with Section 1(b), Chapter 101, |
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Acts of the 43rd Legislature, 1st Called Session, 1933 (Article |
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6243b, Vernon's Texas Civil Statutes), as amended by this article. |
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(e) A member of the board of trustees elected by the members |
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of a firemen's pension fund or the members of a policemen's pension |
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fund and serving on the effective date of this article shall |
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continue to serve on the board for the remainder of the member's |
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term. |
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SECTION 1.07. (a) This article is contingent on the |
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deposit, not later than July 31, 2007, of at least $100 million to a |
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Firemen and Policemen Pension Fund by a city or town that operates |
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such a fund under Chapter 101, Acts of the 43rd Legislature, 1st |
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Called Session, 1933 (Article 6243b, Vernon's Texas Civil |
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Statutes). |
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(b) If no city or town described by Subsection (a) of this |
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section makes the deposit described by that subsection on or before |
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July 31, 2007, this article has no effect. |
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(c) A city or town described by Subsection (a) of this |
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section that makes the deposit described by that subsection shall |
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publish notice of the deposit in the Texas Register as soon as |
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practicable after the date of the deposit. |
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SECTION 1.08. Subject to Section 1.07 of this article, this |
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article takes effect September 1, 2007. |
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ARTICLE 2. CONTINGENT PROVISIONS EFFECTIVE SEPTEMBER 1, 2009 |
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SECTION 2.01. Section 1(a), Chapter 101, Acts of the 43rd |
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Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's |
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Texas Civil Statutes), is reenacted to read as follows: |
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(a) In all incorporated cities and towns containing more |
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than 550,000 inhabitants and less than 600,000 inhabitants, having |
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a fully or partially paid fire department, the mayor or the mayor's |
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authorized representative, two (2) citizens of said city or town to |
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be designated by the mayor, the chief of police or the chief's |
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authorized representative, the chief of the fire department or the |
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chief's authorized representative, and the successors of the mayor, |
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chief of police, and chief of the fire department, three (3) |
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policemen other than the chief or assistant chief, to be elected by |
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members of the policemen's pension fund, three (3) firemen other |
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than the chief or assistant chief, to be elected by members of the |
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firemen's pension fund, composing eleven (11) members, seven (7) of |
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which shall be a quorum, shall constitute a board of trustees of the |
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Firemen and Policemen Pension Fund, to provide for the disbursement |
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of the same and to designate the beneficiaries thereof. The three |
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policemen and the three firemen named above shall be elected to a |
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term of four (4) years. The term for a citizen designated by the |
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mayor is four (4) years. The board shall be known as the Board of |
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Firemen and Policemen Pension Fund, __________, Texas. Said board |
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shall organize by choosing one member as Chairman and by appointing |
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a secretary. Such board shall have charge of and administer said |
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fund and shall order payments therefrom in pursuance of the |
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provisions of this law. It shall report annually to the governing |
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body of such city or town the condition of the said fund and the |
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receipts and disbursements on account of the same with a complete |
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list of beneficiaries of said fund and the amounts paid them. |
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SECTION 2.02. Section 2, Chapter 101, Acts of the 43rd |
|
|
Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's |
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Texas Civil Statutes), is reenacted to read as follows: |
|
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Sec. 2. PARTICIPATION IN FUND; WAGE DEDUCTIONS. Each |
|
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member fireman and policeman in the employment of such city or town |
|
|
must participate in said fund, except in times of national |
|
|
emergency those persons as are employed during that time shall not |
|
|
be required to participate in the fund, and said city or town shall |
|
|
be authorized to deduct a sum of not less than one per cent (1%) nor |
|
|
in excess of six per cent (6%) of his wages from each month to form a |
|
|
part of the fund known as the Firemen and Policemen Pension Fund, |
|
|
except that the city or town shall deduct a sum less than one per |
|
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cent (1%) or more than six per cent (6%) of the member's wages each |
|
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month to form a part of the fund if the board of trustees of that |
|
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fund increases or decreases the percentage of wages to be |
|
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contributed to the fund under the provisions of Section 10A of this |
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Act. The amount to be deducted from the wages of those named above |
|
|
who must participate in the fund is to be determined by the board of |
|
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trustees as provided for in Section 1 of this Act within the minimum |
|
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and maximum deductions herein provided or as otherwise provided |
|
|
under the provisions of Section 10A of this Act. |
|
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SECTION 2.03. Section 3, Chapter 101, Acts of the 43rd |
|
|
Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's |
|
|
Texas Civil Statutes), is reenacted to read as follows: |
|
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Sec. 3. PAYMENTS TO FUND. There shall be deducted for such |
|
|
fund from the wages of each fireman and policeman a sum to be |
|
|
determined by the board of trustees under the provisions of Section |
|
|
2 or 10A of this Act. Any donations made to such fund and rewards |
|
|
received by any member of either of said funds, and all funds |
|
|
received from any source for such fund shall be deposited in like |
|
|
manner to the credit of such fund. |
|
|
SECTION 2.04. Sections 10A(a) and (b), Chapter 101, Acts of |
|
|
the 43rd Legislature, 1st Called Session, 1933 (Article 6243b, |
|
|
Vernon's Texas Civil Statutes), are reenacted to read as follows: |
|
|
(a) Notwithstanding anything to the contrary in other parts |
|
|
of this Act, the Board of Trustees may, by majority vote of the |
|
|
whole board, make from time to time one or more of the following |
|
|
changes, or modifications: |
|
|
(1) modify or change prospectively or retroactively in |
|
|
any manner whatsoever any of the benefits provided by this Act, |
|
|
except that any retroactive change or modification shall only |
|
|
increase pensions or benefits; |
|
|
(2) modify or change prospectively in any manner |
|
|
whatsoever any of the membership qualifications; |
|
|
(3) modify or change prospectively or retroactively in |
|
|
any manner whatsoever any of the eligibility requirements for |
|
|
pensions or benefits; |
|
|
(4) increase or decrease prospectively the percentage |
|
|
of wages less than the one per cent (1%) minimum or above the six per |
|
|
cent (6%) maximum provided in Section 2 of this Act to be |
|
|
contributed to the fund; or |
|
|
(5) provide prospectively for refunds, in whole or in |
|
|
part, and with or without interest, of contributions made to the |
|
|
fund by employees who leave the city service before qualifying for a |
|
|
pension. |
|
|
(b) None of the changes made under Subsection (a) of this |
|
|
section may be made unless all of the following conditions are |
|
|
sequentially complied with: |
|
|
(1) the change must be approved by a qualified actuary |
|
|
selected by a four-fifths vote of the Board; the actuary, if an |
|
|
individual, must be a Fellow of the Society of Actuaries or a Fellow |
|
|
of the Conference of Actuaries in Public Practice or a Member of the |
|
|
American Academy of Actuaries; the findings upon which the |
|
|
properly selected and qualified actuary's approval are based are |
|
|
not subject to judicial review; |
|
|
(2) the change must be approved by a majority of all |
|
|
persons then making contributions to the fund as employees of a |
|
|
department to which the change would directly apply, voting by |
|
|
secret ballot at an election held after ten (10) days' notice given |
|
|
by posting at a prominent place in every station or substation of a |
|
|
department to which the change would directly apply and in the city |
|
|
hall; |
|
|
(3) the changes, except changes made under the |
|
|
provisions of Subdivision (1), Subsection (a), of this section, |
|
|
shall apply only to active member employees who are members of the |
|
|
affected departments at the time the change becomes effective and |
|
|
those who enter the departments thereafter; and |
|
|
(4) the changes shall not deprive any person, without |
|
|
his written consent, of any right to receive a pension or benefits |
|
|
which have already become vested and matured. |
|
|
SECTION 2.05. The following laws are repealed: |
|
|
(1) Section 1(b), Chapter 101, Acts of the 43rd |
|
|
Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's |
|
|
Texas Civil Statutes), as amended by Article 1 of this Act; |
|
|
(2) Section 10A(c), Chapter 101, Acts of the 43rd |
|
|
Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's |
|
|
Texas Civil Statutes), as added by Article 1 of this Act; and |
|
|
(3) Section 14A, Chapter 101, Acts of the 43rd |
|
|
Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's |
|
|
Texas Civil Statutes), as added by Article 1 of this Act. |
|
|
SECTION 2.06. (a) In this section: |
|
|
(1) "Board of trustees" means a board of trustees |
|
|
constituted under Section 1(a), Chapter 101, Acts of the 43rd |
|
|
Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's |
|
|
Texas Civil Statutes). |
|
|
(2) "City or town" means a city or town that operates a |
|
|
Firemen and Policemen Pension Fund under Chapter 101, Acts of the |
|
|
43rd Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's |
|
|
Texas Civil Statutes). |
|
|
(b) On the effective date of this article, the term of the |
|
|
citizen member of the board of trustees appointed by the mayor of |
|
|
the city or town under Section 1.06(c) of this Act terminates and |
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the mayor or a representative designated by the mayor shall serve as |
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|
a member of the board of trustees. The two other citizen members of |
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the board of trustees who are designated by the mayor of the city or |
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|
town and who are serving on the board of trustees on the effective |
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|
date of this article shall continue to serve for the remainder of |
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|
the members' four-year terms. |
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|
(c) On the effective date of this article, the terms of the |
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|
two citizen members of the board of trustees appointed by the city |
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|
manager under Section 1.06(d) of this Act terminate and the chief |
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|
of police or the chief's authorized representative and the chief of |
|
|
the fire department or the chief's authorized representative shall |
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|
serve as members of the board of trustees. |
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|
(d) A member of the board of trustees elected by the members |
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|
of a firemen's pension fund or the members of a policemen's pension |
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|
fund and serving on the effective date of this article shall |
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|
continue to serve on the board for the remainder of the member's |
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|
term. |
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|
SECTION 2.07. (a) This article takes effect only if Article |
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1 of this Act takes effect in accordance with Section 1.07 of this |
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|
Act. If Article 1 of this Act does not take effect, this article has |
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|
no effect. |
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|
(b) Subject to Subsection (a) of this section, this article |
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|
takes effect September 1, 2009, and supersedes Article 1 of this Act |
|
|
unless, not later than July 31, 2009, at least $110 million is |
|
|
deposited to a Firemen and Policemen Pension Fund by a city or town |
|
|
that operates such a fund under Chapter 101, Acts of the 43rd |
|
|
Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's |
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|
Texas Civil Statutes). |
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|
(c) If a city or town described by Subsection (b) of this |
|
|
section makes the deposit described by that subsection on or before |
|
|
July 31, 2009, this article has no effect. |
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|
(d) A city or town described by Subsection (b) of this |
|
|
section that makes the deposit described by that subsection shall |
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|
publish notice of the deposit in the Texas Register as soon as |
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|
practicable after the date of the deposit. |
| |
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| |
______________________________ |
______________________________ |
| |
President of the Senate |
Speaker of the House |
| |
| |
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|
I certify that H.B. No. 3355 was passed by the House on May 8, |
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|
2007, by the following vote: Yeas 146, Nays 0, 2 present, not |
|
|
voting. |
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______________________________ |
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Chief Clerk of the House |
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| |
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|
I certify that H.B. No. 3355 was passed by the Senate on May |
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|
23, 2007, by the following vote: Yeas 31, Nays 0. |
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|
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|
______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |