S.B. No. 220
 
 
 
 
AN ACT
  relating to the abolition of the office of the fire fighters'
  pension commissioner and the transfer and disposition of its
  functions relating to the Texas Emergency Services Retirement
  System and the Texas local firefighters retirement systems.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1.  AMENDMENTS TO SUBTITLE H, TITLE 8, GOVERNMENT CODE
         SECTION 1.01.  Section 861.001, Government Code, is amended
  by adding Subdivision (5-a) to read as follows:
               (5-a)  "Executive director" means the person appointed
  executive director under Section 865.0095.
         SECTION 1.02.  Section 861.008, Government Code, is amended
  to read as follows:
         Sec. 861.008.  IMMUNITY FROM LIABILITY.  The state board,
  executive director [commissioner], and employees of the pension
  system are not liable for any action taken or omission made or
  suffered by them in good faith in the performance of any duty or
  prerogative in connection with the administration of the pension
  system.
         SECTION 1.03.  Subsection (a), Section 862.001, Government
  Code, is amended to read as follows:
         (a)  The governing body of a department that performs
  emergency services may, in the manner provided for taking official
  action by the body, elect to participate in the pension system.  A
  governing body shall notify the executive director [commissioner]
  as soon as practicable of an election made under this subsection.  
  Except as provided by Subsection (b), an election to participate
  under this subsection is irrevocable.
         SECTION 1.04.  Subsection (a), Section 862.0025, Government
  Code, is amended to read as follows:
         (a)  Except as provided by Subsection (b), the governing body
  of a participating department may make an election to include all
  persons who provide support services for the department as members
  of the pension system on the same terms as all other volunteers of
  the department.  An election under this section takes effect on the
  first day of the calendar month that begins after the month in which
  the election is made and communicated to the executive director
  [commissioner].  Once made, an election under this section is
  irrevocable.
         SECTION 1.05.  Subsections (a), (d), and (f), Section
  864.005, Government Code, are amended to read as follows:
         (a)  A local board shall require a member who is receiving
  temporary disability benefits to file a disability rating report
  every three months from a physician chosen by the local board.  If a
  report indicates a significant improvement in condition, the local
  board, after notice and a hearing, may adopt an order to terminate
  payments.  The local board shall send a copy of each order adopted
  under this subsection to the executive director [commissioner].
         (d)  If the local board has reason to believe that a ground
  for termination of temporary disability benefits exists, the local
  board may set a date for a hearing on the matter.  The local board,
  after notice and a hearing, may adopt an order terminating
  temporary disability benefits if the local board determines that a
  ground for termination exists.  The local board may not adopt an
  order under this subsection on the basis of a physician's
  previously submitted statement as to the likely duration of the
  disability if the local board determines, after a hearing, that the
  disability continues.  The local board shall send a copy of each
  order adopted under this subsection to the executive director
  [commissioner].
         (f)  If the state board [commissioner] has reason to believe
  that a ground for termination of a continuing disability retirement
  annuity exists, the state board [commissioner] shall set a date for
  a hearing on continuation or termination of the annuity.  The state
  board [commissioner], after notice and a hearing, shall adopt an
  order terminating the continuing disability retirement annuity if
  the state board [commissioner] determines that a ground for
  termination exists.
         SECTION 1.06.  Subsection (a), Section 864.010, Government
  Code, is amended to read as follows:
         (a)  The executive director [commissioner] shall continue to
  administer benefits of the pension system for members and retirees
  who perform service for a formerly participating department that
  has withdrawn from participation in the pension system or has
  ceased to exist.
         SECTION 1.07.  Subsections (a), (b), (c), (e), (f), and (g),
  Section 864.016, Government Code, are amended to read as follows:
         (a)  A claim for disability retirement benefits or a lump-sum
  death benefit must be filed with the local board.  A claim for
  service retirement benefits must be filed with the executive
  director [commissioner], who shall forward the claim to the
  appropriate local board for a hearing.  A claim for a death benefit
  annuity must be filed with the executive director.  The executive
  director [commissioner, who] shall make a determination of the
  merits of the claim for a death benefit annuity and issue a decision
  to the claimant.  On receiving a claim under this section, the local
  board shall hold a hearing to decide the claim.  The local board
  shall send a written copy of its decision to the claimant and the
  executive director [commissioner].  If a local board does not
  determine a claim for service retirement benefits and file its
  determination with the executive director [commissioner] before
  the 16th day after the date the local board receives the claim, the
  executive director [commissioner] may determine the merits of the
  claim.
         (b)  A person aggrieved by a decision of a local board
  relating to eligibility for or the amount of benefits under this
  subtitle may appeal the decision to the state board [commissioner].
         (c)  An appeal of a local board decision under this section
  is begun by delivering a notice of appeal to the presiding officer
  or secretary of the local board 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 for the
  appeal.  The aggrieved person must file a copy of the notice with
  the state board [commissioner].
         (e)  After a hearing under Subsection (d), the state board
  [commissioner] shall decide each appeal from a local board
  decision, issue a written opinion, and notify the local board and
  the claimant if the state board [commissioner] overrules the local
  board's decision.
         (f)  [A person aggrieved by a decision of the commissioner
  under this section may appeal the decision to the state board.   The
  state board shall decide each appeal based on the hearing record.
         [(g)]  A final decision of the state board under this section
  is subject to judicial review under Chapter 2001.  The standard of
  review is by substantial evidence.  Venue of the appeal is only in a
  district court in Travis County [may not be appealed to a court or
  be subject to any other legal process].
         SECTION 1.08.  Section 865.001, Government Code, is amended
  by amending Subsection (b) and adding Subsection (c) to read as
  follows:
         (b)  At least five [Six] trustees must be active members of
  the pension system, one of whom must represent emergency medical
  services personnel.
         (c)  One trustee may be a retiree of the pension system.
         SECTION 1.09.  Chapter 865, Government Code, is amended by
  adding Section 865.0011 to read as follows:
         Sec. 865.0011.  SUNSET REVIEW. The state board of the
  pension system is subject to review under Chapter 325 (Texas Sunset
  Act) but is not abolished under that chapter. The state board shall
  be reviewed during the period in which state agencies scheduled to
  be abolished in 2025, and every 12th year after that year, are
  reviewed.
         SECTION 1.10.  Section 865.002, Government Code, is amended
  by adding Subsections (c), (d), and (e) to read as follows:
         (c)  A person may not be a trustee or an employee of the
  pension system employed in a "bona fide executive, administrative,
  or professional capacity," as that phrase is used for purposes of
  establishing an exemption to the overtime provisions of the federal
  Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.),
  if:
               (1)  the person is an officer, employee, or paid
  consultant of a Texas trade association in the field of emergency
  services, including firefighting, or public retirement systems; or
               (2)  the person's spouse is an officer, manager, or paid
  consultant of a Texas trade association in the field of emergency
  services, including firefighting, or public retirement systems.
         (d)  In this section, a Texas trade association means a
  cooperative and voluntarily joined statewide association of
  business or professional competitors in this state designed to
  assist its members and its industry or profession in dealing with
  mutual business or professional problems and in promoting their
  common interest.
         (e)  A person may not serve as a trustee or act as the general
  counsel to the state board or the pension system if the person is
  required to register as a lobbyist under Chapter 305 because of the
  person's activities for compensation on behalf of a business or an
  association related to the operation of the state board.
         SECTION 1.11.  Chapter 865, Government Code, is amended by
  adding Section 865.0035 to read as follows:
         Sec. 865.0035.  STATE BOARD MEMBER TRAINING. (a)  A person
  who is appointed to and qualifies for office as a member of the
  state board may not vote, deliberate, or be counted as a member in
  attendance at a meeting of the state board until the person
  completes a training program that complies with this section.
         (b)  A training program must provide the person with
  information regarding:
               (1)  this subtitle;
               (2)  the programs, functions, rules, and budget of the
  pension system;
               (3)  the results of the most recent formal audit of the
  system;
               (4)  the requirements of laws relating to open
  meetings, public information, administrative procedure, and
  conflicts of interest; and
               (5)  any applicable ethics policies adopted by the
  system or the Texas Ethics Commission.
         (c)  A person appointed to the state board is entitled to
  reimbursement, as provided by the General Appropriations Act, for
  the travel expenses incurred in attending the training program
  regardless of whether the attendance at the program occurs before
  or after the person qualifies for office.
         SECTION 1.12.  Subsection (c), Section 865.005, Government
  Code, is amended to read as follows:
         (c)  If the executive director [commissioner] has knowledge
  that a potential ground for removal exists, the executive director
  [commissioner] shall notify the presiding officer of the state
  board of the ground.  The presiding officer shall then notify the
  governor that a potential ground for removal exists.
         SECTION 1.13.  Section 865.006, Government Code, is amended
  by adding Subsection (c) to read as follows:
         (c)  The state board shall develop and implement policies
  that:
               (1)  clearly separate the policy-making
  responsibilities of the state board and the management
  responsibilities of the executive director and the staff of the
  pension system; and
               (2)  provide the public with a reasonable opportunity
  to appear before the state board and to speak on any issue under the
  jurisdiction of the state board.
         SECTION 1.14.  Chapter 865, Government Code, is amended by
  adding Section 865.0061 to read as follows:
         Sec. 865.0061.  WRITTEN POLICY ON MANAGING AND ADMINISTERING
  CONTRACTS. The state board shall adopt a written policy, including
  procedures, to guide staff in managing and administering contracts
  entered into by or on behalf of the pension system. The written
  policy adopted under this section must, at a minimum:
               (1)  address how the pension system:
                     (A)  plans for contracting needs and develops
  solicitation documents;
                     (B)  reviews, evaluates, and awards contract
  proposals;
                     (C)  manages and approves contract changes;
                     (D)  identifies performance issues and resolves
  contract disputes;
                     (E)  monitors contract expenditures; and
                     (F)  closes out contracts; and
               (2)  require the pension system to maintain a central
  location for filing contracts and information related to contracts
  entered into by or on behalf of the pension system.
         SECTION 1.15.  Subsection (c), Section 865.007, Government
  Code, is amended to read as follows:
         (c)  The state board or the executive director 
  [commissioner] may accept on behalf of the pension system gifts of
  money or other property from any public or private source.
         SECTION 1.16.  Chapter 865, Government Code, is amended by
  adding Section 865.0095 to read as follows:
         Sec. 865.0095.  EXECUTIVE DIRECTOR. (a)  The state board,
  by a majority vote of all members, shall appoint a person other than
  a member of the board to serve at the board's will as executive
  director.
         (b)  To be eligible to serve as the executive director, a
  person must:
               (1)  be a citizen of the United States; and
               (2)  have executive ability and experience necessary to
  conduct the duties of executive director.
         SECTION 1.17.  Sections 865.010, 865.011, and 865.013,
  Government Code, are amended to read as follows:
         Sec. 865.010.  EXECUTIVE DIRECTOR'S [COMMISSIONER'S]
  DUTIES.  (a)  The executive director [commissioner] shall oversee
  the distribution of all benefits.
         (b)  The executive director [commissioner] shall collect the
  revenues for the fund from the governing bodies of participating
  departments.
         (c)  The executive director [commissioner] may request and
  administer state funds appropriated by the legislature in addition
  to those required by this subtitle.
         (d)  The state board [commissioner] is responsible for
  recovering any fraudulently acquired benefits.  If it appears that
  fraud has occurred, the state board [commissioner] shall notify the
  appropriate local board and the claimant and hold a hearing.  If
  after the hearing the state board [commissioner] determines that
  benefits have been or are being fraudulently acquired, the state
  board [commissioner] shall seek action in a court.
         Sec. 865.011.  RECORDS AND REPORTS.  (a)  The executive
  director [commissioner] may at any reasonable time examine the
  records and accounts of local boards.
         (b)  The executive director [commissioner] shall require in
  a timely manner periodic reports from the local boards and shall
  prepare necessary forms for use by local boards.
         (c)  The executive director [commissioner] shall prepare an
  annual report on the activity and status of the fund and submit the
  report to the governor, the lieutenant governor, and the speaker of
  the house of representatives.
         (d)  The state board shall electronically submit a report to
  the governor, the lieutenant governor, the speaker of the house of
  representatives, the Legislative Budget Board, and the State
  Pension Review Board if:
               (1)  as a result of an event or action, there is a
  significant change to the actuarial valuation of the pension
  system's assets or liabilities, including the extent to which the
  system's liabilities are unfunded;
               (2)  there is any change to the contributions made to or
  benefits paid from the system; or
               (3)  an actuarial valuation must be corrected or
  repeated because of the use of erroneous information or assumptions
  used in the valuation.
         (e)  A report submitted under Subsection (d)(1) must include
  and consider the effect alternative contributions and benefit
  structures would have on the actuarial valuation of the system,
  including changes in the state's contribution under Section
  865.015, as well as state funding of administrative expenses.
         (f)  The state board shall determine the meaning of
  "significant change" for purposes of Subsection (d)(1), which must
  include circumstances in which there is an increase in the time
  required to amortize the unfunded liabilities of the pension system
  to a period that exceeds 30 years, assuming a maximum state
  contribution under Section 865.015.
         (g)  A report required under Subsection (d) may be combined
  with any other report required by this chapter or other law.
         Sec. 865.013.  MONITORING OF CONTRIBUTION SUBMISSION.  A
  local board shall monitor the timely submission of required
  contributions to the executive director [commissioner].
         SECTION 1.18.  Subsection (c), Section 865.014, Government
  Code, is amended to read as follows:
         (c)  Contributions required as provided by this section
  shall be paid at the times and in the manner that the state board
  prescribes by rule.  Contributions required by this section shall
  be submitted by electronic funds transfer unless the executive
  director [commissioner] grants an exception based on the difficulty
  of a participating department's use of that payment method.  
  Contributions that are not paid within the time required by the
  state board accrue interest at the most recent assumed actuarial
  rate of return on investments of the fund.
         SECTION 1.19.  Subsection (a), Section 865.017, Government
  Code, is amended to read as follows:
         (a)  The pension system shall withhold payment of a monthly
  retirement annuity if a participating department attempts to
  provide information to the executive director [commissioner]
  relating to continued eligibility to receive the payments and the
  recipient fails to cooperate or provide the requested information.  
  The state board may adopt rules to enforce this subsection.
         SECTION 1.20.  Section 865.018, Government Code, is amended
  by amending Subsection (b) and adding Subsections (c), (d), and (e)
  to read as follows:
         (b)  The executive director [commissioner] and the state
  board shall certify the actuarial and financial soundness of the
  fund every two years with the assistance of a qualified actuary.
         (c)  An actuarial valuation conducted under this section
  must include:
               (1)  an analysis clearly shown in the valuation based
  on each of the following assumptions:
                     (A)  no state contribution to the fund, including
  no state funding of administrative expenses; and
                     (B)  a maximum state contribution to the fund,
  including state funding of administrative expenses; and
               (2)  the number of years required to amortize the
  unfunded actuarial liabilities of the pension system under each
  assumption under Subdivision (1).
         (d)  At least once every five years, the state board, with
  the assistance of the actuary, shall:
               (1)  audit the actuarial valuation required under this
  section; and
               (2)  conduct an actuarial experience study, the
  contents of which are determined by the state board in consultation
  with the actuary.
         (e)  The actuarial valuation and experience study required
  under Subsection (d) are not required to be conducted concurrently.
         SECTION 1.21.  Subsections (a) and (c), Section 865.019,
  Government Code, are amended to read as follows:
         (a)  Information contained in records that are in the custody
  of the pension system concerning an individual member, annuitant,
  or beneficiary is confidential 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 individual or the individual's attorney,
  guardian, executor, administrator, conservator, or other person
  who the executive director [commissioner] determines is acting in
  the interest of the individual or the individual's estate;
                     (B)  a spouse or former spouse of the individual
  after the executive director [commissioner] 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
  pension system;
                     (C)  a governmental official or employee after the
  executive director [commissioner] determines that disclosure of
  the information requested is reasonably necessary to the
  performance of the duties of the official or employee; or
                     (D)  a person authorized by the individual in
  writing to receive the information; or
               (2)  the information is disclosed under a subpoena and
  the executive director [commissioner] determines that the
  individual will have a reasonable opportunity to contest the
  subpoena.
         (c)  The executive director [commissioner] may designate
  other employees of the pension system to make the necessary
  determinations under Subsection (a).
         SECTION 1.22.  Subsections (c) and (d), Section 865.020,
  Government Code, are amended to read as follows:
         (c)  The medical board shall:
               (1)  investigate essential statements and certificates
  made by or on behalf of a member of the pension system in connection
  with an application for disability retirement or, as requested by
  the executive director [commissioner], with an application for an
  on-duty death benefit; and
               (2)  report in writing to the executive director
  [commissioner] its conclusions and recommendations on all matters
  referred to it.
         (d)  The medical board is not subject to subpoena regarding
  findings it makes in assisting the executive director
  [commissioner] under this section, and its members may not be held
  liable for any opinions, conclusions, or recommendations made under
  this section.
         SECTION 1.23.  Chapter 865, Government Code, is amended by
  adding Section 865.021 to read as follows:
         Sec. 865.021.  COMPLAINT FILES. (a)  The pension system
  shall maintain a system to promptly and efficiently act on
  complaints filed with the system.  The system shall maintain
  information about:
               (1)  parties to the complaint;
               (2)  the subject matter of the complaint;
               (3)  a summary of the results of the review or
  investigation of the complaint; and
               (4)  the disposition of the complaint.
         (b)  The pension system shall make information available
  describing its procedures for complaint investigation and
  resolution.
         (c)  The pension system shall periodically notify the
  complaint parties of the status of the complaint until final
  disposition.
  ARTICLE 2.  AMENDMENTS TO CIVIL STATUTES
         SECTION 2.01.  The Texas Local Fire Fighters Retirement Act
  (Article 6243e, Vernon's Texas Civil Statutes) is amended by adding
  Section 18B to read as follows:
         Sec. 18B.  TECHNICAL ASSISTANCE, TRAINING, AND INFORMATION
  FOR BOARDS OF TRUSTEES. (a)  The State Pension Review Board shall
  provide technical assistance, training, and information to members
  of the boards of trustees established under this Act.  The training
  required by this section must be designed to meet the specific needs
  of members of boards of trustees administering benefit plans for
  local fire fighters, including small-to-medium-sized benefit
  plans.
         (b)  To the extent resources are available, the board shall
  designate one person who specializes in providing the technical
  assistance, training, and information required under Subsection
  (a).
         SECTION 2.02.  Sections 22 and 22A, Texas Local Fire
  Fighters Retirement Act (Article 6243e, Vernon's Texas Civil
  Statutes), are 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 State Office of
  Administrative Hearings [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 State Pension Review Board [fire
  fighters' pension commissioner].
         (b-1)  As soon as practicable after receiving a notice of
  appeal under Subsection (b) of this section, the State Pension
  Review Board shall refer the matter to the State Office of
  Administrative Hearings by submitting notice of the appeal to that
  office.
         (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)  The sole function of the State Pension Review Board with
  respect to an appeal under this section is to refer the appeal to
  the State Office of Administrative Hearings, and that office has
  exclusive authority to decide the appeal.
         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 State Office of Administrative
  Hearings [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 2.03.  Subsection (d), Section 27, 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 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 2.04.  Subsection (h), Section 28, Texas Local Fire
  Fighters Retirement Act (Article 6243e, Vernon's Texas Civil
  Statutes), is amended to read as follows:
         (h)  A retirement system established under this Act is exempt
  from Subchapter C, Chapter 802, Government Code, except Sections
  802.202, 802.205, and 802.207.
         SECTION 2.05.  Subsections (b) and (c), Section 30, 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
  determines [has determined] or a federal court rules [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 issues [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)).
  ARTICLE 3.  CONFORMING CHANGES TO OTHER LAW
         SECTION 3.01.  (a)  Sections 54.353 and 54.3531, Education
  Code, which were added by Section 17, Chapter 359 (S.B. 32), Acts of
  the 82nd Legislature, Regular Session, 2011, as a nonsubstantive
  redesignation of the two versions of Section 54.208, Education
  Code, as amended by Chapters 1285 (H.B. 2013) and 1299 (H.B. 2347),
  Acts of the 81st Legislature, Regular Session, 2009, are reenacted
  to conform to the reenactment of Section 54.208, Education Code,
  and the addition of Section 54.2081, Education Code, by Chapter 959
  (H.B. 1163), Acts of the 82nd Legislature, Regular Session, 2011,
  and Section 54.353, Education Code, is amended to read as follows:
         Sec. 54.353.  FIREFIGHTERS ENROLLED IN FIRE SCIENCE COURSES.
  (a)  The governing board of an institution of higher education
  shall exempt from the payment of tuition and laboratory fees any
  student enrolled in one or more courses offered as part of a fire
  science curriculum who:
               (1)  is employed as a firefighter by a political
  subdivision of this state; or
               (2)  is currently, and has been for at least one year,
  an active member of an organized volunteer fire department
  participating in the Texas Emergency Services Retirement System or
  a retirement system established under the Texas Local Fire Fighters
  Retirement Act (Article 6243e, Vernon's Texas Civil Statutes) and 
  [in this state, as defined by the fire fighters' pension
  commissioner,] who holds:
                     (A)  an Accredited Advanced level of
  certification, or an equivalent successor certification, under the
  State Firemen's and Fire Marshals' Association of Texas volunteer
  certification program; or
                     (B)  Phase V (Firefighter II) certification, or an
  equivalent successor certification, under the Texas Commission on
  Fire Protection's voluntary certification program under Section
  419.071, Government Code.
         (b)  An exemption provided under this section does not apply
  to deposits that may be required in the nature of security for the
  return or proper care of property loaned for the use of students.
         (c)  Notwithstanding Subsection (a), a student who for a
  semester or term at an institution of higher education receives an
  exemption under this section may continue to receive the exemption
  for a subsequent semester or term at any institution only if the
  student makes satisfactory academic progress toward a degree or
  certificate at that institution as determined by the institution
  for purposes of financial aid.
         (d)  Notwithstanding Subsection (a), the exemption provided
  under this section does not apply to any amount of additional
  tuition the institution elects to charge a resident undergraduate
  student under Section 54.014(a) or (f).
         (e)  Notwithstanding Subsection (a), the exemption provided
  under this section does not apply to any amount of tuition the
  institution charges a graduate student in excess of the amount of
  tuition charged to similarly situated graduate students because the
  student has a number of semester credit hours of doctoral work in
  excess of the applicable number provided by Section 61.059(l)(1) or
  (2).
         (f)  The Texas Higher Education Coordinating Board shall
  adopt:
               (1)  rules governing the granting or denial of an
  exemption under this section, including rules relating to the
  determination of a student's eligibility for an exemption; and
               (2)  a uniform listing of degree programs covered by
  the exemption under this section.
         Sec. 54.3531.  PEACE OFFICERS ENROLLED IN CERTAIN COURSES.
  (a)  The governing board of an institution of higher education
  shall exempt from the payment of tuition and laboratory fees
  charged by the institution for a criminal justice or law
  enforcement course or courses an undergraduate student who:
               (1)  is employed as a peace officer by this state or by
  a political subdivision of this state;
               (2)  is enrolled in a criminal justice or law
  enforcement-related degree program at the institution;
               (3)  is making satisfactory academic progress toward
  the student's degree as determined by the institution; and
               (4)  applies for the exemption at least one week before
  the last date of the institution's regular registration period for
  the applicable semester or other term.
         (b)  Notwithstanding Subsection (a), a student may not
  receive an exemption under this section for any course if the
  student has previously attempted a number of semester credit hours
  for courses taken at any institution of higher education while
  classified as a resident student for tuition purposes in excess of
  the maximum number of those hours specified by Section 61.0595(a)
  as eligible for funding under the formulas established under
  Section 61.059.
         (c)  Notwithstanding Subsection (a), the governing board of
  an institution of higher education may not provide exemptions under
  this section to students enrolled in a specific class in a number
  that exceeds 20 percent of the maximum student enrollment
  designated by the institution for that class.
         (d)  An exemption provided under this section does not apply
  to deposits that may be required in the nature of security for the
  return or proper care of property loaned for the use of students.
         (e)  The Texas Higher Education Coordinating Board shall
  adopt:
               (1)  rules governing the granting or denial of an
  exemption under this section, including rules relating to the
  determination of a student's eligibility for an exemption; and
               (2)  a uniform listing of degree programs covered by
  the exemption under this section.
         (f)  If the legislature does not specifically appropriate
  funds to an institution of higher education in an amount sufficient
  to pay the institution's costs in complying with this section for a
  semester, the governing board of the institution of higher
  education shall report to the Senate Finance Committee and the
  House Appropriations Committee the cost to the institution of
  complying with this section for that semester.
         (b)  Sections 54.208 and 54.2081, Education Code, are
  repealed.
         SECTION 3.02.  Subsection (b), Section 572.003, Government
  Code, is amended to read as follows:
         (b)  The term means:
               (1)  the Banking Commissioner of The Banking Department
  of Texas;
               (2)  [the fire fighters' pension commissioner;
               [(3)]  the administrative director of the Office of
  Court Administration of the Texas Judicial System;
               (3) [(4)]  the chief executive of the Office of Public
  Utility Counsel;
               (4) [(5)]  the executive director of the State Bar of
  Texas;
               (5) [(6)]  the director of the lottery division of the
  Texas Lottery Commission;
               (6) [(7)]  the deputy in charge of the department of
  security in the lottery division of the Texas Lottery Commission;
               (7) [(8)]  the director of the bingo division of the
  Texas Lottery Commission; or
               (8) [(9)]  the secretary of state.
         SECTION 3.03.  Subdivision (3), Section 614.152, Government
  Code, is amended to read as follows:
               (3)  "State fire agency" means the:
                     (A)  Office [firefighters' pension commissioner;
                     [(B)  Texas Department] of Rural Affairs
  established in the Department of Agriculture;
                     (B) [(C)]  service;
                     (C) [(D)]  Texas Commission on Fire Protection;
                     (D) [(E)]  Texas A&M Engineering Extension
  Service [of The Texas A&M University System]; and
                     (E) [(F)]  Texas State Fire Marshal's Office of
  the Texas Department of Insurance.
         SECTION 3.04.  Section 2155.148, Government Code, is amended
  to read as follows:
         Sec. 2155.148.  CERTAIN PURCHASES FOR TEXAS [STATEWIDE]
  EMERGENCY SERVICES [PERSONNEL] RETIREMENT SYSTEM [FUND].  (a)  The
  Texas Emergency Services Retirement System [fire fighters' pension
  commissioner] is delegated all purchasing functions relating to the
  purchase of goods or services from funds other than general revenue
  funds for a purpose the state board of trustees of the Texas
  Emergency Services Retirement System [statewide emergency services
  personnel retirement fund] determines relates to the fiduciary
  duties of the retirement system [fund].
         (b)  The Texas Emergency Services Retirement System [fire
  fighters' pension commissioner] shall acquire goods or services by
  any procurement method approved by the state board of trustees of
  the Texas Emergency Services Retirement System [statewide
  emergency services personnel retirement fund] that provides the
  best value to the retirement system [fund]. The retirement system
  [fire fighters' pension commissioner] shall consider the best value
  standards provided by Section 2155.074.
         (c)  The commission shall procure goods or services for the
  Texas Emergency Services Retirement System [fire fighters' pension
  commissioner] at the request of the retirement system [pension
  commissioner], and the retirement system [pension commissioner]
  may use the services of the commission in procuring goods or
  services.
  ARTICLE 4.  REPEALER
         SECTION 4.01.  The following statutes are repealed:
               (1)  Subsection (c), Section 802.103, Government Code;
               (2)  Subdivision (3), Section 861.001, Government
  Code;
               (3)  Subsection (g), Section 18, Texas Local Fire
  Fighters Retirement Act (Article 6243e, Vernon's Texas Civil
  Statutes);
               (4)  Section 18A, Texas Local Fire Fighters Retirement
  Act (Article 6243e, Vernon's Texas Civil Statutes);
               (5)  Section 21, Texas Local Fire Fighters Retirement
  Act (Article 6243e, Vernon's Texas Civil Statutes);
               (6)  Section 21A, Texas Local Fire Fighters Retirement
  Act (Article 6243e, Vernon's Texas Civil Statutes); and
               (7)  Subsection (c), Section 31, Texas Local Fire
  Fighters Retirement Act (Article 6243e, Vernon's Texas Civil
  Statutes).
  ARTICLE 5.  TRANSITION
         SECTION 5.01.  (a)  Not later than September 1, 2013, the
  state board of trustees of the Texas Emergency Services Retirement
  System shall appoint an executive director under Section 865.0095,
  Government Code, as added by this Act.
         (b)  Effective September 1, 2013:
               (1)  the office of the fire fighters' pension
  commissioner is abolished and the term of the person holding that
  position expires; and
               (2)  all powers, duties, obligations, and rights of
  action of the fire fighters' pension commissioner under:
                     (A)  Subtitle H, Title 8, Government Code, as
  provided by Article 1 of this Act, are transferred to the:
                           (i)  executive director of the Texas
  Emergency Services Retirement System appointed under Section
  865.0095, Government Code, as added by this Act; or
                           (ii)  state board of trustees of the Texas
  Emergency Services Retirement System established under Section
  865.001, Government Code; and
                     (B)  Section 2155.148, Government Code, are
  transferred to the Texas Emergency Services Retirement System.
         (c)  In connection with the transfers required by Subsection
  (b) of this section, the furniture, computers, other property and
  equipment, files, and related materials used by the fire fighters'
  pension commissioner are transferred to the executive director of
  the Texas Emergency Services Retirement System.
         (d)  A rule adopted by or on behalf of the fire fighters'
  pension commissioner in connection with or relating to Subtitle H,
  Title 8, Government Code, in effect on September 1, 2013, continues
  in effect until it is amended or repealed by the state board of
  trustees of the Texas Emergency Services Retirement System.
         (e)  The unobligated and unexpended balance of any
  appropriation made to the fire fighters' pension commissioner in
  connection with or relating to Subtitle H, Title 8, Government
  Code, for the state fiscal biennium ending August 31, 2013, is
  transferred and reappropriated to the state board of trustees of
  the Texas Emergency Services Retirement System for the purpose of
  implementing the powers, duties, obligations, and rights of action
  transferred to that system under Subsection (b) of this section.
         (f)  Notwithstanding the amendment by this Act of Subsection
  (b), Section 572.003, Government Code, Subsection (d), Section
  572.003, Government Code, does not apply to the abolition of the
  office of the fire fighters' pension commissioner by this Act.
         (g)  Subsection (f), Section 864.016, Government Code, as
  amended by this Act, applies to a final decision of the state board
  of trustees of the Texas Emergency Services Retirement System that
  is rendered on or after the effective date of this Act. A decision
  of the state board rendered before the effective date of this Act is
  governed by the law in effect on the date the decision was rendered,
  and the former law is continued in effect for that purpose.
         SECTION 5.02.  The change in law made by this Act to Section
  865.002, Government Code, regarding prohibitions on members of the
  state board of trustees of the Texas Emergency Services Retirement
  System does not affect the entitlement of a member serving on the
  board immediately before September 1, 2013, to continue to serve
  and function as a member of the board for the remainder of the
  member's term.  The change in law made to that section applies only
  to a member appointed on or after September 1, 2013.
         SECTION 5.03.  (a)  Effective September 1, 2013, all powers,
  duties, obligations, and rights of action of the fire fighters'
  pension commissioner under the Texas Local Fire Fighters Retirement
  Act (Article 6243e, Vernon's Texas Civil Statutes) are, except as
  provided by Subsection (e) of this section, terminated as provided
  by Article 2 of this Act.
         (b)  In connection with the requirements of Subsection (a) of
  this section, property and records other than those described by
  Subsection (c), Section 5.01 of this article are transferred to the
  comptroller of public accounts in accordance with Subsection (e),
  Section 325.017, Government Code.
         (c)  A rule adopted by the fire fighters' pension
  commissioner in connection with or relating to the Texas Local Fire
  Fighters Retirement Act (Article 6243e, Vernon's Texas Civil
  Statutes) expires on September 1, 2013.
         (d)  Effective September 1, 2013, the unobligated and
  unexpended balance of any appropriations made to the fire fighters'
  pension commissioner in connection with or relating to the Texas
  Local Fire Fighters Retirement Act (Article 6243e, Vernon's Texas
  Civil Statutes), for the state fiscal biennium ending August 31,
  2013, is transferred to the general revenue fund in accordance with
  Subsection (c), Section 325.017, Government Code.
         (e)  Any administrative hearing on appeal to the fire
  fighters' pension commissioner under Section 22, Texas Local Fire
  Fighters Retirement Act (Article 6243e, Vernon's Texas Civil
  Statutes), is transferred without change in status to the State
  Office of Administrative Hearings.
         SECTION 5.04.  The attorney general shall continue any
  proceeding involving the office of the fire fighters' pension
  commissioner that is pending on the effective date of this Act in
  accordance with the law in effect on the date the proceeding was
  commenced, and the former law is continued in effect for that
  purpose.
         SECTION 5.05.  Except as provided by Subsection (e), Section
  5.03 of this Act, the changes in law made by this Act apply only to a
  proceeding involving an appeal under Section 864.016, Government
  Code, as amended by this Act, or Section 22, Texas Local Fire
  Fighters Retirement Act (Article 6243e, Vernon's Texas Civil
  Statutes), as amended by this Act, that is commenced on or after the
  effective date of this Act. A proceeding involving an appeal
  commenced before the effective date of this Act is governed by the
  law as it existed immediately before the effective date of this Act,
  and that law is continued in effect for that purpose.
         SECTION 5.06.  Sections 325.017 and 325.020, Government
  Code, apply in relation to the abolition of the office of the fire
  fighters' pension commissioner.  In the event of a conflict between
  those sections and a provision of this Act, this Act prevails.
         SECTION 5.07.  If the transfers required under Sections 5.01
  and 5.03 of this article are not completed by September 1, 2013, the
  governor shall appoint a person to complete the transfers.
         SECTION 5.08.  To the extent of any conflict, this Act
  prevails over another Act of the 83rd Legislature, Regular Session,
  2013, relating to nonsubstantive additions to and corrections in
  enacted codes.
  ARTICLE 6.  EFFECTIVE DATE
         SECTION 6.01.  This Act takes effect immediately if it
  receives a vote of two-thirds of all the members elected to each
  house, as provided by Section 39, Article III, Texas Constitution.  
  If this Act does not receive the vote necessary for immediate
  effect, this Act takes effect September 1, 2013.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 220 passed the Senate on
  May 14, 2013, by the following vote:  Yeas 29, Nays 2.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 220 passed the House on
  May 22, 2013, by the following vote:  Yeas 145, Nays 0, two
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor