H.B. No. 1390

	AN ACT
	relating to a firefighters' relief and retirement fund in certain
	municipalities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 1, Article 6243e.2(1), Revised Statutes,
	is amended by adding Subdivisions (1-b), (13-a), (15-a), and (15-b)
	to read as follows:
	(1-b)  "Beneficiary adult child" means a child of a
	member by birth or adoption who:
	(A)  is not an eligible child; and
	(B)  is designated a beneficiary of a member's
	DROP account by valid designation under Section 5(j-1).
	(13-a)  "Normal retirement age" means the earlier of:
	(A)  the age at which the member attains 20 years
	of service; or
	(B)  the age at which the member first attains the
	age of at least 50 years and at least 10 years of service.
	(15-a)  "PROP" means the post-retirement option plan
	under Section 5A of this article.
	(15-b)  "PROP account" means the notional account
	established to reflect the credits and contributions of a member or
	surviving spouse who has made a PROP election in accordance with
	Section 5A of this article.
	SECTION 2.  Section 2, Article 6243e.2(1), Revised Statutes,
	is amended by amending Subsections (b), (h), (j), (n), (p), and (r)
	and adding Subsections (h-1), (h-2), (p-1), and (s) to read as
	follows:
	(b)  The board of trustees of the fund shall be known as the
	"(name of municipality) Firefighters' Relief and Retirement Fund
	Board of Trustees" and the fund shall be known as the "(name of
	municipality) Firefighters' Relief and Retirement Fund." The board
	consists of 10 trustees, including:
	(1)  the mayor or an appointed representative of the
	mayor;
	(2)  the treasurer of the municipality or, if there is
	not a treasurer, the secretary, clerk, or other person who by law,
	charter provision, or ordinance performs the duty of treasurer of
	the municipality;
	(3)  five firefighters who are members of the fund;
	(4)  one person who is a retired firefighter and a
	member of the fund with at least 20 years of participation; and
	(5)  two persons, each of whom is a registered voter of
	the municipality, has been a resident of the municipality for at
	least one year [three years] preceding the date of initial
	appointment, and is not a municipal officer or employee.
	(h)  The board shall annually elect from among the trustees a
	chair, a vice chair, and a secretary. [The person described under
	Subsection (b)(2) of this section serves as the treasurer of the
	fund under penalty of that person's official bond and oath of
	office.]
	(h-1)  The board may form a standing or ad hoc committee
	composed of any number of trustees of the board to further
	administration of the fund. A committee composed of all the
	trustees of the board:
	(1)  may be established only by order of the board, fund
	rule, or policy; and
	(2)  has the same power as the board to take final
	action, including the power to issue orders on matters within the
	scope of the committee's authority as defined by applicable law,
	rule, or policy.
	(h-2)  If the board establishes a pension benefits committee
	under Subsection (h-1) of this section, that committee, even if it
	is composed of fewer than all the trustees of the board, may
	deliberate and act in place of the board regarding each application
	for benefits submitted to the fund by a member or the member's
	survivor. Final action of a pension benefits committee on an
	application for benefits is binding, subject only to any right of
	appeal to the board under law, rule, or policy at the time the
	application is filed. Except to the extent the final action of a
	pension benefits committee may be appealed to the board, the final
	action of the pension benefits committee on an application for
	benefits constitutes the final action of the board, including for
	purposes of filing an appeal to a district court under Section 12 of
	this article.
	(j)  Six [A majority of the] trustees of the board constitute
	[constitutes] a quorum to transact business of the board or of any
	committee composed of all the trustees of the board. An order of
	the board or a committee must be made by vote recorded in the
	minutes of the [board's] proceedings of the board or committee.
	Each decision of the board in a matter under the board's
	jurisdiction is final and binding as to each affected
	[firefighter,] member[,] and beneficiary, subject only to the
	rights of appeal specified by this article.
	(n)  The board shall, not later than January 31 of each year,
	provide to [make and file with] the person described by Subsection
	(b)(2) of this section [treasurer of the municipality] a detailed
	and itemized report of all receipts and disbursements with respect
	to the fund, together with a statement of fund administration,
	during the preceding fiscal year of the fund, and shall provide
	[make and file] other reports and statements or existing financial
	[furnish further] information concerning the fund as from time to
	time may be required or requested by the person described by
	Subsection (b)(2) of this section [treasurer of the municipality].
	(p)  The board shall manage the fund according to the terms
	and purposes of this article and all applicable sections of the code
	and has the powers necessary to accomplish that purpose, including
	the power to:
	(1)  adopt for the administration of the fund written
	rules, policies, and procedures [guidelines] not inconsistent with
	this article;
	(2)  interpret and construe this article and any
	summary plan descriptions or benefits procedures, except that each
	construction must meet any qualification requirements established
	under Section 401 of the code;
	(3)  correct any defect, supply any omission, and
	reconcile any inconsistency that appears in this article in a
	manner and to the extent that the board considers expedient to
	administer this article for the greatest benefit of all members;
	(4)  select, employ, and compensate employees the board
	considers necessary or advisable in the proper and efficient
	administration of the fund;
	(5)  determine all questions, whether legal or factual,
	relating to eligibility for participation, service, or benefits or
	relating to the administration of the fund to promote the uniform
	administration of the fund for the benefit of all members;
	(6)  establish and maintain records necessary or
	appropriate to the proper administration of the fund; and
	(7)  compel witnesses to attend and testify before the
	board concerning matters related to the operation of this article
	in the same manner provided for taking of testimony before notaries
	public.
	(p-1)  A rule, policy, or procedure adopted by the board
	under Subsection (p)(1) of this section is final and binding with
	respect to any matter within the board's jurisdiction and
	authority.
	(r)  The board shall maintain at the offices of the fund [the
	original of] each rule, policy, or procedure [guideline] adopted
	under this section and shall deliver to the person described by
	Subsection (b)(2) of this section [municipality] a copy of each
	adopted rule, policy, or procedure [guideline].
	(s)  Title 9, Property Code, does not apply to the fund.
	SECTION 3.  Section 3, Article 6243e.2(1), Revised Statutes,
	is amended by amending Subsections (g) and (l) and adding
	Subsections (g-1), (g-2), (g-3), and (n) to read as follows:
	(g)  The board may, from fund assets, purchase from an
	insurer licensed to do business in this state insurance to:
	(1)  provide for legal defense of the fund;
	(2)  cover liabilities and losses of the fund;
	(3)  cover any other insurable risk to the fund; and
	(4)  provide for the legal defense of or [and to]
	indemnify and hold harmless the trustees of the board and employees
	of the fund [board, individually and collectively, harmless] from
	the effects and consequences of their acts, errors, omissions, or
	other [and] conduct within the scope of their duties as trustees or
	employees, whether the acts, errors, omissions, or other conduct is
	proven or merely alleged [official capacity as fiduciaries or
	cofiduciaries or within the scope of what the board trustee or
	employee believes in good faith, at the time, to be the board
	trustee's or employee's official capacity. An insurance company
	through which insurance is purchased under this subsection has a
	cause of action against a board trustee or employee to the extent
	that a loss results from the board trustee's or employee's wilful
	and malicious misconduct or gross negligence].
	(g-1)  The board may use fund assets to provide insurance
	coverage comparable to that provided by insurers under Subsection
	(g) of this section by entering into a collective pool providing
	governmental entities of this state with self-insurance coverage,
	including coverage authorized by Chapter 791 or 2259, Government
	Code, or Chapter 119, Local Government Code. This article does not
	limit the ability of the board to provide any type of group
	insurance or self-insurance coverage in a pool of governmental
	entities for fund employees and their beneficiaries as a benefit of
	employment.
	(g-2)  If insurance or pooled governmental self-insurance
	coverage is unavailable, insufficient, inadequate, or not in
	effect, the board may indemnify a board trustee or employee for
	liability imposed as damages and for reasonable costs and expenses
	incurred by that individual in defense of an alleged act, error, or
	omission committed in the individual's official capacity or within
	the scope of what the board trustee or employee believed in good
	faith, at the time, to be the board trustee's or employee's official
	capacity. The board may not indemnify a board trustee or employee
	for the amount of a loss that results from the board trustee's or
	employee's wilful and malicious misconduct or gross negligence.
	(g-3)  The board may establish a self-insurance fund to pay
	claims for the indemnification of board trustees or employees under
	Subsection (g-2) of this section. The board shall provide that the
	self-insurance fund must be limited to an amount not to exceed the
	greater of three percent of the fund assets or $5 million. The
	self-insurance fund shall be invested in the same manner as other
	assets of the fund, and all earnings and losses from investing the
	self-insurance fund shall be credited to the self-insurance fund
	unless that credit exceeds the limit on the self-insurance fund set
	by the board or this subsection. Amounts held in the self-insurance
	fund may not be included in the actuarial valuation for purposes of
	determining the municipal contribution rate or the assets available
	to satisfy the actuarial liabilities of the fund to pay service,
	disability, or death benefits provided by this article. A decision
	to indemnify or make a reimbursement out of the self-insurance fund
	must be made by a majority vote of board trustees eligible to vote
	on the matter. If the proposed indemnification or reimbursement is
	of a trustee, that trustee may not vote on the matter.
	(l)  The trustees, executive director, and employees of the
	fund are fully protected and free of liability for any action taken
	or omission made or any action or omission suffered by them in good
	faith, objectively determined, in the performance of their duties
	for the fund. The protection from liability provided by this
	subsection is cumulative of and in addition to any other
	constitutional, statutory, or common law official or governmental
	immunity, defense, and civil or procedural protection provided to
	the fund as a governmental entity and to a fund trustee or employee
	as an official or employee of a governmental entity. Except for a
	waiver expressly provided by this article, this article does not
	grant an implied waiver of any immunity.
	(n)  On the reported death of a member, the fund or an
	authorized representative of the fund may obtain the death
	certificate or the pending death certificate directly from the
	issuing examiner or governmental agency without the prior
	notification or confirmation that otherwise may be required under
	law to expedite the issuance of death benefits from the fund to
	survivors in need of those benefits.
	SECTION 4.  Section 4(b), Article 6243e.2(1), Revised
	Statutes, is amended to read as follows:
	(b)  A member who terminates active service on or after
	November 1, 1997, and who has completed at least 20 years of
	participation in the fund on the effective date of termination of
	service is entitled to a monthly service pension, beginning after
	[on] the effective date of termination of active service, in an
	amount equal to 50 percent of the member's average monthly salary,
	plus three percent of the member's average monthly salary for each
	year of participation in excess of 20 years, but not in excess of 30
	years of participation, for a maximum total benefit of 80 percent of
	the member's average monthly salary.
	SECTION 5.  Section 5, Article 6243e.2(1), Revised Statutes,
	is amended by amending Subsections (a), (i), (j), and (q) and adding
	Subsection (j-1) to read as follows:
	(a)  A member who is eligible to receive a service pension
	under Section 4 of this article and who remains in active service
	may elect to participate in the deferred retirement option plan
	provided by this section. On subsequently terminating active
	service, a member who elected the DROP may apply for a monthly
	service pension under Section 4 of this article, except that the
	effective date of the member's election to participate in the DROP
	will be considered the member's retirement date for determining the
	amount of the member's monthly service pension. The member may also
	apply for any DROP benefit provided under this section on
	terminating active service. An election to participate in the
	DROP, once approved by the board, is irrevocable.  A DROP
	participant's monthly benefit at retirement is increased by two
	percent of the amount of the member's original benefit for every
	full year of participation in the DROP by the member.  For a
	member's final year of participation, but not beyond the member's
	10th year in the DROP, if a full year of participation is not
	completed, the member shall receive a prorated increase of 0.166
	percent of the member's original benefit for each month of
	participation in that year.  An [This] increase provided by this
	subsection does not apply to benefits payable under Subsection (l)
	of this section. An [This] increase under this subsection is
	applied to the member's benefit at retirement and is not added to
	the member's DROP account. The total increase under this
	subsection may not exceed 20 percent for 10 years of participation
	in the DROP by the member.
	(i)  The [For purposes of computing and providing service
	pension benefits under Section 4 of this article and for purposes of
	computing and providing death benefits under Section 7 of this
	article, the] day immediately before the [effective] date [of] the
	DROP participant's election becomes effective is the last day used
	for purposes of computing and providing service pension benefits
	under Section 4 of this article or for purposes of computing and
	providing death benefits under Section 7 of this article
	[considered to be the date the member terminates active service]. A
	salary earned or additional years of participation completed after
	the member's DROP election becomes effective may not be considered
	in the computation of retirement or death benefits, except for the
	limited purpose of percentage increases provided under Subsection
	(a) of this section.
	(j)  If a DROP participant dies before complete distribution
	of the member's DROP account has been made, the member's DROP
	account balance shall be distributed to the member's eligible
	beneficiaries, determined as follows:
	(1)  if the member is survived by a spouse who was the
	member's spouse on the date the member's DROP election became
	effective [last day of active service] and one or more eligible
	children, one-half of the member's DROP account balance shall be
	paid to that eligible spouse, and the remaining one-half shall be
	divided equally among the member's eligible children;
	(2)  if the member is survived by a spouse described by
	Subdivision (1) of this subsection, but not by an eligible child,
	the member's entire DROP account balance shall be paid to the
	surviving spouse;
	(3)  if the member is survived by one or more eligible
	children, but not by a spouse described by Subdivision (1) of this
	subsection, the member's DROP account balance shall be divided
	equally among the eligible children;
	(4)  if the member is not survived by a spouse described
	by Subdivision (1) of this subsection or an eligible child, the
	member's DROP account balance shall be divided equally among the
	member's eligible parents;
	(5)  if the member is not survived by a spouse described
	by Subdivision (1) of this subsection, an eligible child, or an
	eligible parent, the member's DROP account balance shall be
	distributed in accordance with the member's beneficiary
	designation filed with the board or, if the member has failed to
	file a valid beneficiary designation, to the member's estate;
	(6)  if a member's spouse described by Subdivision (1)
	of this subsection was not married to the member on the date the
	member's DROP election became effective, the spouse shall receive a
	reduced benefit equal to the benefit otherwise payable to the
	surviving spouse under this subsection, multiplied by the
	percentage of the period between the member's DROP election and the
	date the member left active service during which the spouse and the
	member were married, and the amount by which the spouse's benefit is
	reduced shall be divided among any other eligible survivors as if
	the member did not have an eligible spouse or, if there are no
	eligible survivors, distributed in accordance with the member's
	beneficiary designation filed with the board, or if the member
	failed to file a valid beneficiary designation, to the member's
	estate; and
	(7)  if the conditions described by Subdivision (1),
	(2), or (6) of this subsection exist, the surviving spouse may elect
	to maintain the DROP account with the fund in the same manner
	described by Subsections (e), (f), and (g) of this section.
	(j-1)  Only for the purpose of distributing a member's DROP
	account under Subsection (j) of this section, a person who is
	designated a beneficiary adult child in a valid beneficiary
	designation filed by the member with the board is considered an
	eligible child. A designation under this subsection is distinct
	from the member's beneficiary designation under Subsection (j)(5)
	of this section.
	(q)  A member may revoke the member's Back-DROP election by
	notifying the fund in writing not later than the earlier of:
	(1)  the date the member leaves active service; or
	(2)  the 10th business day after the date the member
	signs an application form for a Back-DROP.
	SECTION 6.  Article 6243e.2(1), Revised Statutes, is amended
	by adding Section 5A to read as follows:
	Sec. 5A.  POST-RETIREMENT OPTION PLAN.  (a) The following
	persons may elect to participate in the post-retirement option plan
	provided by this section:
	(1)  a member who terminates active service after
	participating in the DROP and who is eligible to receive a service
	pension or other taxable benefits under Section 5 of this article;
	(2)  a retired member, whether or not that member was a
	DROP participant, who is eligible to receive a service pension or
	other taxable benefits under Section 4 of this article; or
	(3)  a surviving spouse of a member who elects and is
	eligible to participate in the PROP under Subsection (f) of this
	section.
	(b)  A PROP participant may elect to have all or part of the
	amount that the participant would otherwise receive as a monthly
	service pension or other taxable benefits under this article, less
	any amount the board determines is required to pay the
	participant's share of group medical insurance costs, credited to
	the participant's PROP account. The participant's PROP account
	shall be credited with hypothetical earnings in the same manner as
	the amounts in a member's DROP account under Section 5(d) of this
	article. At any time, a PROP participant may stop the amounts being
	credited to the participant's PROP account and elect to resume
	receiving the participant's monthly service pension or other
	taxable benefits under this article.
	(c)  A member or surviving spouse who elects to participate
	in the PROP shall comply with the PROP election process established
	by the board.
	(d)  Subject to rules and procedures adopted by the board, a
	PROP participant may elect to receive partial payments from the
	participant's PROP account in an amount determined by the
	participant. The board may establish rules and procedures
	concerning partial payments, including limitations on timing and
	frequency of those payments. A PROP participant who elects partial
	payments may, at any time, elect to receive the PROP participant's
	entire remaining PROP account balance in a single lump-sum payment.
	If, at any time after the initial credit to the PROP account, a
	participant's PROP account balance becomes zero, the account closes
	and the participant's participation in the PROP ceases. A person
	whose PROP account has been closed because of a zero balance is not
	eligible to again participate in the PROP.
	(e)  An election by a member or surviving spouse to receive a
	single lump-sum payment or partial payments under Subsection (d) of
	this section must satisfy the requirements of Section 401(a)(9) of
	the code. All distributions and changes in the form of distribution
	must be made in a manner and at a time that comply with that section
	of the code.
	(f)  The board by rule or policy may permit a member's
	surviving spouse to elect to participate in the PROP by choosing
	either or both of the following options:
	(1)  continuing a deceased member's PROP account; or
	(2)  establishing a PROP account in which to receive
	credits from all or part of the surviving spouse's survivor
	benefits.
	(g)  A surviving spouse PROP participant and the
	participant's PROP account are subject to this section and any
	additional rules the board may adopt relating to PROP accounts and
	participants generally or to surviving spouse PROP accounts and
	participants particularly. The board may, by rule, further
	restrict or define, through the establishment of reasonable
	categories, who is a surviving spouse of a member for purposes of
	this section.
	(h)  If a member who is a PROP participant dies before
	complete distribution of the participant's PROP account has been
	made, the participant's PROP account balance shall be distributed
	in the same manner as a DROP account balance is distributed under
	Sections 5(j), (j-1), and (k) of this article, except for amounts
	subject to a surviving spouse's election under Subsection (f) of
	this section that results in the nondistribution from the plan of
	all or part of the deceased participant's PROP account.
	(i)  Only benefits that are taxable under the code may be
	credited to a PROP account. Nontaxable disability benefits or
	other nontaxable benefits, including the nontaxable part of any
	benefit, may not be credited to a PROP account.
	(j)  The board may set a date after which additional members
	or surviving spouses will not be allowed to elect to participate in
	the PROP.
	(k)  The board may set a date after which the crediting of
	additional benefits of a member or a surviving spouse to a PROP
	account is not allowed.
	(l)  The board by rule or policy may limit the number of
	distribution transactions for all PROP participants or for any
	category of PROP participants.
	(m)  The board by rule or policy may establish a minimum
	dollar amount allowed for crediting of benefit amounts to a PROP
	account.
	(n)  The board may adopt rules, policies, or procedures that
	the board determines are necessary or desirable to implement or
	administer this section.
	SECTION 7.  Sections 6(b), (c), and (e), Article 6243e.2(1),
	Revised Statutes, are amended to read as follows:
	(b)  If the board determines that a member is not capable of
	performing the usual and customary duties of the member's
	classification or position because of the member's on-duty
	disability, the member is entitled to receive a monthly disability
	pension, beginning after [on] the effective date of the member's
	termination of active service, in an amount equal to the greater of:
	(1)  50 percent of the member's average monthly salary;
	or
	(2)  the service pension the member would have been
	entitled to receive under Section 4 of this article based on years
	of participation as of the effective date of the member's
	termination of active service.
	(c)  If the board determines that a member is not capable of
	performing any substantial gainful activity because of the member's
	on-duty disability, the member is entitled to receive a monthly
	disability pension, beginning after [on] the effective date of the
	member's termination of active service, in an amount equal to the
	greater of:
	(1)  75 percent of the member's average monthly salary;
	or
	(2)  the service pension the member would have been
	entitled to receive under Section 4 of this article based on years
	of participation on the effective date of the member's termination
	of active service.
	(e)  If the board determines that a member is not capable of
	performing the usual and customary duties of the member's
	classification or position because of the member's off-duty
	disability, the member is entitled to an off-duty disability
	pension in lieu of any other benefit under this article. If the
	board makes that determination, the member is entitled to receive a
	monthly disability pension, beginning after [on] the effective date
	of the member's termination of active service, in an amount equal to
	the greater of:
	(1)  25 percent of the member's average monthly salary,
	plus 2-1/2 percent of the member's average monthly salary for each
	full year of participation in the fund, except that the total
	monthly disability pension under this subdivision may not exceed 50
	percent of the member's average monthly salary; or
	(2)  the service pension the member would have been
	entitled to receive under Section 4 of this article based on years
	of participation on the effective date of the member's termination
	of active service.
	SECTION 8.  Section 10A(f), Article 6243e.2(1), Revised
	Statutes, is amended to read as follows:
	(f)  In determining the lump-sum payment amount, the total
	number of years since the commencement date of each retired
	member's or eligible survivor's annual retirement or survivor
	benefit shall be divided by the total number of years since the
	commencement date of all retired members' and eligible survivors'
	annual retirement or survivor benefit to establish a payment
	percentage for each retired member and eligible survivor. For
	purposes of this section, benefits provided under Section 4(d) of
	this article may not be included in a retired member's or eligible
	survivor's annual retirement or survivor benefit.
	SECTION 9.  Sections 11(f), (g), and (m), Article
	6243e.2(1), Revised Statutes, are amended to read as follows:
	(f)  A member, eligible survivor, or beneficiary who is
	entitled to receive a benefit payment under this article is
	entitled to receive the benefit beginning after [on] the date the
	member ceases to carry out the member's regular duties as a
	firefighter, notwithstanding the fact that the member may remain on
	the payroll of the member's fire department or receive sick leave,
	vacation, or other pay after the effective date of termination of
	the member's regular duties as a firefighter. In this article, an
	authorization to receive a benefit "beginning after [on] the
	effective date of the member's termination of active service"
	includes authority for the member to instead elect to make the
	member's pension effective after [on] the date the member ceases to
	carry out the member's regular duties as a firefighter. If there is
	a delay in beginning payment of benefits resulting from the
	requirements of Section 6(h) of this article for disability
	pensions, the member or beneficiary shall, when the disability
	pension is approved by the board, be paid the full amount of the
	disability pension that has accrued since the effective date of
	termination of the member's regular duties as a firefighter.
	(g)  A member may designate in a trust document accepted by
	the fund a trustee to receive the benefit payable to any eligible
	survivor or beneficiary other than the member's eligible spouse or
	a spouse eligible to receive a benefit under the DROP. On or after
	the death or incapacity of the member, an eligible survivor or
	beneficiary may designate a trustee under this subsection. If the
	eligible survivor or beneficiary is disabled or a minor child, the
	parent or legal guardian, as applicable, of the eligible survivor
	or beneficiary may make the designation. Any [such] designation
	made under this subsection must be made on a form approved by the
	board.
	(m)  A benefit payable under this article because of the
	death of a member or eligible beneficiary may not be paid to a
	person convicted of causing that death but instead shall be paid as
	if the convicted person predeceased the deceased member or
	beneficiary. [If no beneficiary is entitled to the benefit as a
	result, the benefit shall be paid to the decedent's estate.] Except
	as otherwise permitted by this subsection with respect to
	suspension of benefits, the board is not required to withhold
	payment to a person convicted of causing the death of a member or
	eligible beneficiary until the board receives actual notice of the
	conviction of that person. The board may suspend payment of a
	benefit payable on the death of a member or an eligible beneficiary
	on the indictment of the person who would otherwise be entitled to
	the benefit, and the suspension remains in effect until the board
	determines that a final disposition of the charges relating to the
	cause of death has occurred. If a benefit payment is suspended
	under this subsection and the person is not convicted, the benefit
	again becomes payable with interest computed at the rate earned by
	the fund during the time the benefit payment was suspended. For
	purposes of this subsection, a person has been convicted of causing
	the death of a member or eligible beneficiary if:
	(1)  the person has pleaded guilty or nolo contendere
	to, or the person has been found guilty by a court of competent
	jurisdiction of, an offense at the trial of which it is established
	that the person's intentional or knowing act or omission caused the
	death of the member or eligible beneficiary, regardless of whether
	sentence is imposed or probated; and
	(2)  an appeal of the conviction is not pending, and the
	time provided for appeal has expired.
	SECTION 10.  Sections 12(a) and (b), Article 6243e.2(1),
	Revised Statutes, are amended to read as follows:
	(a)  A member who is eligible for retirement for length of
	service or disability or who has a claim for temporary disability,
	or any of the member's beneficiaries, who is aggrieved by a decision
	or order of the board, whether on the basis of rejection of a claim
	or of the amount allowed, may appeal from the decision or order of
	the board to a district court in the county in which the board is
	located by giving written notice of the intention to appeal. The
	notice must contain a statement of the intention to appeal,
	together with a brief statement of the grounds and reasons the party
	feels aggrieved. The notice must be served personally on an officer
	[the chair, secretary, or treasurer] of the board not later than the
	20th day after the date of the order or decision. After service of
	the notice, the party appealing shall file with the district court a
	copy of the notice of intention to appeal, together with the
	affidavit of the party making service showing how, when, and on whom
	the notice was served.
	(b)  Not later than the 30th day after the date of service of
	the notice of intention to appeal on the board, an officer [the
	secretary or treasurer] of the board shall file with the district
	court a transcript of all papers and proceedings in the case before
	the board. When the copy of the notice of intention to appeal and
	the transcript have been filed with the court, the appeal is
	considered perfected, and the court shall docket the appeal, assign
	the appeal a number, fix a date for hearing the appeal, and notify
	both the appellant and the board of the date fixed for the hearing.
	SECTION 11.  Sections 13(b) and (d), Article 6243e.2(1),
	Revised Statutes, are amended to read as follows:
	(b)  At the time that physical examinations are administered
	on behalf of the municipality, each applicant must be provided
	written notice that a copy of the results of the examination will be
	forwarded to the board for the purpose of determining whether the
	applicant has a preexisting condition that would be relevant to any
	determination under Section 6 of this article. Not later than the
	10th day after the date of a physical examination performed on an
	applicant for a beginning position in the fire department as
	required by Section 143.022, Local Government Code, the
	municipality shall provide to the board a copy of all documents
	resulting from the physical examination. The board may require
	additional physical examinations if necessary in determining the
	presence or absence of any preexisting condition. The fund shall
	pay the cost of any additional physical examination the board
	requires. The [If accepted by the board, the] applicant's
	membership in the fund is effective on acceptance by the board
	[being appointed to the position of probationary firefighter].
	(d)  The municipality shall make [monthly] contributions to
	the fund once every two weeks in an amount equal to the product of
	the contribution rate certified by the board and the aggregate
	salaries paid to members of the fund during the period [month] for
	which the contribution is made. The board shall certify the
	municipality's contribution rate for each year or portion of a year
	based on the results of actuarial valuations made at least every
	three years. The municipality's contribution rate shall be
	composed of the normal cost plus the level percentage of salary
	payment required to amortize the unfunded actuarial liability over
	a constant period of 30 years computed on the basis of an acceptable
	actuarial reserve funding method approved by the board.
	Notwithstanding any other provision of this article, the
	contributions by the municipality, when added to any contributions
	with respect to a qualified governmental excess benefit arrangement
	maintained in accordance with Section 14(c) of this article, may
	not be less than twice the amount paid into the fund by
	contributions of the members.
	SECTION 12.  Section 14(a), Article 6243e.2(1), Revised
	Statutes, is amended to read as follows:
	(a)  Notwithstanding any other provision of this article, a
	member may not accrue a benefit or allowance under this article in
	excess of an amount that, when added to all other pension benefits
	received under plans of the municipality that are qualified under
	Section 401 of the code, results in an annual benefit in excess of
	the applicable limits provided by Section 415 of the code. That
	accrual limitation applies only as long as satisfaction of Section
	415 of the code is necessary to maintain the tax-qualified status of
	the fund under Section 401 of the code. Any benefit accruals
	limited under this subsection must be determined [certified] by a
	qualified actuary selected by the board.
	SECTION 13.  (a) Except as provided by Subsection (b) of this
	section, 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, 2007.
	(b)  Section 5A, Article 6243e.2(1), Revised Statutes, as
	added by this Act, takes effect October 1, 2007.
	____________________________________________________________
	President of the SenateSpeaker of the House
	I certify that H.B. No. 1390 was passed by the House on April
	5, 2007, by the following vote:  Yeas 137, Nays 0, 1 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 1390 was passed by the Senate on May
	3, 2007, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	APPROVED:  _____________________
	Date
	_____________________
	Governor