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  S.B. No. 200
 
 
 
 
AN ACT
  relating to the continuation and functions of the State Pension
  Review Board.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsection (a), Section 801.102, Government
  Code, is amended to read as follows:
         (a)  The board is composed of seven [nine] members.
         SECTION 2.  Section 801.1021, Government Code, is amended to
  read as follows:
         Sec. 801.1021.  CONFLICT PROVISIONS. (a)  In this section,
  "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.
         (b)  A person is not eligible for appointment as a member of
  the board if the person or the person's spouse:
               (1)  is employed by or participates in the management
  of a business entity or other organization receiving funds from the
  board;
               (2)  owns or controls, directly or indirectly, more
  than a 10 percent interest in a business entity or other
  organization receiving funds from the board; or
               (3)  uses or receives a substantial amount of tangible
  goods, services, or funds from the board, other than compensation
  or reimbursement authorized by law for board membership,
  attendance, or expenses.
         (c) [(b)]  A person may not serve as a member of the board or
  act as the general counsel to the board 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 profession related to
  the operation of the board.
         (d)  A person may not be a member of the board and may not be a
  board employee 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 pensions; or
               (2)  the person's spouse is an officer, manager, or paid
  consultant of a Texas trade association in the field of pensions.
         SECTION 3.  Section 801.106, Government Code, is amended to
  read as follows:
         Sec. 801.106.  TERMS OF OFFICE. Members of the board hold
  office for staggered terms of six years, with the terms of two or
  three members, as appropriate, expiring on January 31 of each
  odd-numbered year.
         SECTION 4.  Subsection (a), Section 801.1061, Government
  Code, is amended to read as follows:
         (a)  It is a ground for removal from the board that a member:
               (1)  does not have at the time of taking office the
  qualifications required by Section 801.103 [or 801.104];
               (2)  does not maintain during service on the board the
  qualifications required by Section 801.103 [or 801.104];
               (3)  is ineligible for membership under Section
  801.1021;
               (4)  cannot, because of illness or disability,
  discharge the member's duties for a substantial part of the member's
  term; or
               (5)  is absent from more than half of the regularly
  scheduled board meetings that the member is eligible to attend
  during a calendar year without an excuse approved by a majority vote
  of the board.
         SECTION 5.  Section 801.107, Government Code, is amended to
  read as follows:
         Sec. 801.107.  SUNSET PROVISION. The State Pension Review
  Board is subject to Chapter 325 (Texas Sunset Act). Unless
  continued in existence as provided by that chapter, the board is
  abolished and this chapter expires September 1, 2025 [2013].
         SECTION 6.  Subchapter C, Chapter 801, Government Code, is
  amended by adding Section 801.2012 to read as follows:
         Sec. 801.2012.  NEGOTIATED RULEMAKING AND ALTERNATIVE
  DISPUTE RESOLUTION PROCEDURES. (a)  The board shall develop and
  implement a policy to encourage the use of:
               (1)  negotiated rulemaking procedures under Chapter
  2008 for the adoption of board rules; and
               (2)  appropriate alternative dispute resolution
  procedures under Chapter 2009 to assist in the resolution of
  internal and external disputes under the board's jurisdiction.
         (b)  The board's procedures relating to alternative dispute
  resolution must conform, to the extent possible, to any model
  guidelines issued by the State Office of Administrative Hearings
  for the use of alternative dispute resolution by state agencies.
         (c)  The board shall:
               (1)  coordinate the implementation of the policy
  adopted under Subsection (a);
               (2)  provide training as needed to implement the
  procedures for negotiated rulemaking or alternative dispute
  resolution; and
               (3)  collect data concerning the effectiveness of those
  procedures.
         SECTION 7.  Subchapter C, Chapter 801, Government Code, is
  amended by adding Section 801.208 to read as follows:
         Sec. 801.208.  EDUCATION AND TRAINING. As authorized by
  Section 801.113(e), the board may develop and conduct training
  sessions and other educational activities for trustees and
  administrators of public retirement systems. In exercising the
  board's authority under this section, the board may:
               (1)  conduct live training seminars on an Internet
  website at intervals the board considers necessary to keep trustees
  and administrators reasonably informed;
               (2)  maintain archives of previous seminars reasonably
  accessible to trustees and administrators on the Internet website;
  and
               (3)  use technologies and innovations the board
  considers appropriate to educate the greatest practicable number of
  trustees and administrators.
         SECTION 8.  Section 802.001, Government Code, is amended by
  adding Subdivision (1-a) to read as follows:
               (1-a)  "Defined contribution plan" means a plan
  provided by the governing body of a public retirement system that
  provides for an individual account for each participant and for
  benefits based solely on the amount contributed to the
  participant's account, and any income, expenses, gains and losses,
  and any forfeitures of accounts of other participants that may be
  allocated to the participant's account.
         SECTION 9.  Section 802.002, Government Code, is amended by
  amending Subsection (b) and adding Subsections (c) and (d) to read
  as follows:
         (b)  If a public [an exempt] retirement system or program
  that is exempt under Subsection (a) is required by law to make an
  actuarial valuation of the assets of the system or program and
  publish actuarial information about the system or program, the
  actuary making the valuation and the governing body publishing the
  information must include the information required by Section
  802.101(b).
         (c)  Notwithstanding any other law, a defined contribution
  plan is exempt from Sections 802.101, 802.1012, 802.1014, 802.103,
  802.104, and 802.202(d). This subsection may not be construed to
  exempt any plan from Section 802.105 or 802.106(h).
         (d)  Notwithstanding any other law, a retirement system that
  is organized under the Texas Local Fire Fighters Retirement Act
  (Article 6243e, Vernon's Texas Civil Statutes) for a fire
  department consisting exclusively of volunteers as defined by that
  Act is exempt from Sections 802.101, 802.1012, 802.1014, 802.102,
  802.103, 802.104, and 802.202(d). This subsection may not be
  construed to exempt any plan from Section 802.105 or 802.106(h).
         SECTION 10.  Subchapter B, Chapter 802, Government Code, is
  amended by adding Section 802.1014 to read as follows:
         Sec. 802.1014.  ACTUARIAL EXPERIENCE STUDY. (a)  In this
  section, "actuarial experience study" means a study in which
  actuarial assumptions are reviewed in light of relevant experience
  factors, important trends, and economic projections with the
  purpose of determining whether actuarial assumptions require
  adjustment.
         (b)  Except as provided by Subsection (c), a public
  retirement system that conducts an actuarial experience study shall
  submit to the board a copy of the actuarial experience study before
  the 31st day after the date of the study's adoption.
         (c)  This section does not apply to the Employees Retirement
  System of Texas, the Teacher Retirement System of Texas, the Texas
  County and District Retirement System, the Texas Municipal
  Retirement System, or the Judicial Retirement System of Texas Plan
  Two.
         SECTION 11.  Section 802.102, Government Code, is amended to
  read as follows:
         Sec. 802.102.  AUDIT. The governing body of a public
  retirement system shall have the accounts of the system audited at
  least annually by a certified public accountant in accordance with
  generally accepted auditing standards. A general audit of a
  governmental entity, as defined by Section 802.1012, does not
  satisfy the requirement of this section.
         SECTION 12.  Section 802.103, Government Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  A general audit of a governmental entity, as defined by
  Section 802.1012, does not satisfy the requirement of this section.
         SECTION 13.  Subsection (h), Section 802.106, Government
  Code, is amended to read as follows:
         (h)  A public retirement system shall submit to the board
  [State Pension Review Board] copies of the summarized information
  required by Subsections (a) and (b)[. A system shall submit a copy
  of the information required by Subsection (a)] before the 31st day
  after the date of publication or [and a copy of the information
  required by Subsection (b) before the 271st day after] the date a
  change is adopted, as appropriate.
         SECTION 14.  (a)  Subtitle A, Title 8, Government Code, is
  amended by adding Chapter 807 to read as follows:
  CHAPTER 807.  PROHIBITION ON INVESTMENT IN IRAN
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 807.001.  DEFINITIONS. In this chapter:
               (1)  "Active business operations" means all business
  operations that are not inactive business operations.
               (2)  "Board" means the State Pension Review Board.
               (3)  "Business operations" means engaging in commerce
  in any form in Iran, including by acquiring, developing,
  maintaining, owning, selling, possessing, leasing, or operating
  equipment, facilities, personnel, products, services, personal
  property, real property, or any other apparatus of business or
  commerce.
               (4)  "Company" means a sole proprietorship,
  organization, association, corporation, partnership, joint
  venture, limited partnership, limited liability partnership,
  limited liability company, or other entity or business association
  whose securities are publicly traded, including a wholly owned
  subsidiary, majority-owned subsidiary, parent company, or
  affiliate of those entities or business associations, that exists
  to make a profit.
               (5)  "Direct holdings" means, with respect to a
  company, all securities of that company held directly by a state
  governmental entity in an account or fund in which a state
  governmental entity owns all shares or interests.
               (6)  "Inactive business operations" means the mere
  continued holding or renewal of rights to property previously
  operated to generate revenue but not presently deployed to generate
  revenue.
               (7)  "Indirect holdings" means, with respect to a
  company, all securities of that company held in an account or fund,
  such as a mutual fund, managed by one or more persons not employed
  by a state governmental entity, in which the state governmental
  entity owns shares or interests together with other investors not
  subject to the provisions of this chapter. The term does not
  include money invested under a plan described by Section 401(k) or
  457 of the Internal Revenue Code of 1986.
               (8)  "Listed company" means a company listed by the
  board under Section 807.051.
               (9)  "Military equipment" means weapons, arms,
  military supplies, and equipment that readily may be used for
  military purposes, including radar systems and military-grade
  transport vehicles.
               (10)  "Scrutinized company" means a company that
  engages in scrutinized business operations described by Section
  807.002.
               (11)  "State governmental entity" means:
                     (A)  the Employees Retirement System of Texas,
  including a retirement system administered by that system;
                     (B)  the Teacher Retirement System of Texas;
                     (C)  the Texas Municipal Retirement System;
                     (D)  the Texas County and District Retirement
  System; and
                     (E)  the Texas Emergency Services Retirement
  System.
         Sec. 807.002.  SCRUTINIZED BUSINESS OPERATIONS. A company
  engages in scrutinized business operations if:
               (1)  the company has business operations that involve
  contracts with or providing supplies or services to the government
  of Iran, a company in which the government of Iran has any direct or
  indirect equity share, a consortium or project commissioned by the
  government of Iran, or a company involved in a consortium or project
  commissioned by the government of Iran; or
               (2)  the company supplies military equipment to Iran.
         Sec. 807.003.  EXCEPTION. Notwithstanding any provision of
  this chapter, a company that the United States government
  affirmatively declares to be excluded from its federal sanctions
  regime relating to Iran is not subject to divestment or the
  investment prohibition under this chapter.
         Sec. 807.004.  OTHER LEGAL OBLIGATIONS. With respect to
  actions taken in compliance with this chapter, including all good
  faith determinations regarding companies as required by this
  chapter, a state governmental entity is exempt from any conflicting
  statutory or common law obligations, including any obligations with
  respect to making investments, divesting from any investment,
  preparing or maintaining any list of companies, or choosing asset
  managers, investment funds, or investments for the state
  governmental entity's securities portfolios.
         Sec. 807.005.  INDEMNIFICATION OF STATE GOVERNMENTAL
  ENTITIES, EMPLOYEES, AND OTHERS. In a cause of action based on an
  action, inaction, decision, divestment, investment, company
  communication, report, or other determination made or taken in
  connection with this chapter, the state shall, without regard to
  whether the person performed services for compensation, indemnify
  and hold harmless for actual damages, court costs, and attorney's
  fees adjudged against, and defend:
               (1)  an employee, a member of the governing body, or any
  other officer of a state governmental entity;
               (2)  a contractor of a state governmental entity;
               (3)  a former employee, a former member of the
  governing body, or any other former officer of a state governmental
  entity who was an employee or officer when the act or omission on
  which the damages are based occurred;
               (4)  a former contractor of a state governmental entity
  who was a contractor when the act or omission on which the damages
  are based occurred; and
               (5)  a state governmental entity.
         Sec. 807.006.  NO PRIVATE CAUSE OF ACTION. (a)  A person,
  including a member, retiree, or beneficiary of a retirement system
  to which this chapter applies, an association, a research firm, a
  company, or any other person may not sue or pursue a private cause
  of action against the state, a state governmental entity, an
  employee, a member of the governing body, or any other officer of a
  state governmental entity, or a contractor of a state governmental
  entity, for any claim or cause of action, including breach of
  fiduciary duty, or for violation of any constitutional, statutory,
  or regulatory requirement in connection with any action, inaction,
  decision, divestment, investment, company communication, report,
  or other determination made or taken in connection with this
  chapter.
         (b)  A person who files suit against the state, a state
  governmental entity, an employee, a member of the governing body,
  or any other officer of a state governmental entity, or a contractor
  of a state governmental entity, is liable for paying the costs and
  attorney's fees of a person sued in violation of this section.
         Sec. 807.007.  INAPPLICABILITY OF REQUIREMENTS INCONSISTENT
  WITH FIDUCIARY RESPONSIBILITIES AND RELATED DUTIES. A state
  governmental entity is not subject to a requirement of this chapter
  if the state governmental entity determines that the requirement
  would be inconsistent with its fiduciary responsibility with
  respect to the investment of entity assets or other duties imposed
  by law relating to the investment of entity assets, including the
  duty of care established under Section 67, Article XVI, Texas
  Constitution.
         Sec. 807.008.  RELIANCE ON COMPANY RESPONSE. The board and a
  state governmental entity may rely on a company's response to a
  notice or communication made under this chapter without conducting
  any further investigation, research, or inquiry.
  SUBCHAPTER B.  DUTIES REGARDING INVESTMENTS
         Sec. 807.051.  LISTED COMPANIES. (a)  The board shall
  prepare and maintain, and provide to each state governmental
  entity, a list of all scrutinized companies. In maintaining the
  list, the board may review and rely, as appropriate in the board's
  judgment, on publicly available information regarding companies
  with business operations in Iran, including information provided by
  the state, nonprofit organizations, research firms, international
  organizations, and governmental entities.
         (b)  The board shall update the list annually or more often
  as the board considers necessary, but not more often than
  quarterly, based on information from, among other sources, those
  listed in Subsection (a).
         (c)  Not later than the 30th day after the date the list of
  scrutinized companies is first provided or updated, the board shall
  file the list with the presiding officer of each house of the
  legislature and the attorney general.
         Sec. 807.052.  IDENTIFICATION OF INVESTMENT IN LISTED
  COMPANIES. Not later than the 14th day after the date a state
  governmental entity receives the list provided under Section
  807.051, the state governmental entity shall notify the board of
  the listed companies in which the state governmental entity owns
  direct holdings or indirect holdings.
         Sec. 807.053.  NOTICE TO LISTED COMPANY ENGAGED IN INACTIVE
  BUSINESS OPERATIONS. For each listed company identified under
  Section 807.052 that is engaged in only scrutinized inactive
  business operations, the state governmental entity shall send a
  written notice informing the company of this chapter and
  encouraging the company to continue to refrain from initiating
  active business operations in Iran until it is able to avoid being
  considered a listed company. The state governmental entity shall
  continue the correspondence as the entity, in its sole discretion,
  considers necessary, but is not required to initiate correspondence
  more often than semiannually.
         Sec. 807.054.  ACTIONS RELATING TO LISTED COMPANY ENGAGED IN
  ACTIVE BUSINESS OPERATIONS. (a)  For each listed company
  identified under Section 807.052 that is engaged in scrutinized
  active business operations, the state governmental entity shall
  send a written notice informing the company of its listed company
  status and warning the company that it may become subject to
  divestment by state governmental entities.
         (b)  The notice must offer the company the opportunity to
  clarify its Iran-related activities and must encourage the company,
  not later than the 90th day after the date the company receives
  notice under this section, to either cease its scrutinized business
  operations or convert the operations to inactive business
  operations in order to avoid qualifying for divestment by state
  governmental entities.
         (c)  If, during the time provided by Subsection (b), the
  company ceases scrutinized business operations, the board shall
  remove the company from the list maintained under Section 807.051
  and this chapter will no longer apply to the company unless it
  resumes scrutinized business operations.
         (d)  If, during the time provided by Subsection (b), the
  company converts its scrutinized active business operations to
  inactive business operations, the company is subject to all
  provisions of this chapter relating to inactive business
  operations.
         (e)  If, after the time provided by Subsection (b) expires,
  the company continues to have scrutinized active business
  operations, the state governmental entity shall sell, redeem,
  divest, or withdraw all publicly traded securities of the company,
  except securities described by Section 807.056, according to the
  schedule provided by Section 807.055.
         Sec. 807.055.  DIVESTMENT OF ASSETS. (a)  A state
  governmental entity required to sell, redeem, divest, or withdraw
  all publicly traded securities of a listed company shall comply
  with the following schedule:
               (1)  at least 50 percent of those assets must be removed
  from the state governmental entity's assets under management not
  later than the 270th day after the date the company receives notice
  under Section 807.054 or Subsection (b) unless the state
  governmental entity determines, based on a good faith exercise of
  its fiduciary discretion and subject to Subdivision (2), that a
  later date is more prudent; and
               (2)  100 percent of those assets must be removed from
  the state governmental entity's assets under management not later
  than the 450th day after the date the company receives notice under
  Section 807.054 or Subsection (b).
         (b)  If a company that ceased scrutinized active business
  operations after receiving notice under Section 807.054 resumes
  scrutinized active business operations, the state governmental
  entity shall send a written notice to the company informing it that
  the state governmental entity will sell, redeem, divest, or
  withdraw all publicly traded securities of the scrutinized company
  according to the schedule in Subsection (a).
         (c)  Except as provided by Subsection (a), a state
  governmental entity may delay the schedule for divestment under
  that subsection only to the extent that the state governmental
  entity determines, in the state governmental entity's good faith
  judgment, that divestment from listed companies will likely result
  in a loss in value or a benchmark deviation described by Section
  807.057(a). If a state governmental entity delays the schedule for
  divestment, the state governmental entity shall submit a report to
  the presiding officer of each house of the legislature and the
  attorney general stating the reasons and justification for the
  state governmental entity's delay in divestment from listed
  companies. The report must include documentation supporting its
  determination that the divestment would result in a loss in value or
  benchmark deviation described by Section 807.057(a), including
  objective numerical estimates. The state governmental entity shall
  update the report every six months.
         Sec. 807.056.  INVESTMENTS EXEMPTED FROM DIVESTMENT. A
  state governmental entity is not required to divest from any
  indirect holdings in actively or passively managed investment funds
  or private equity funds. The state governmental entity shall
  submit letters to the managers of investment funds containing
  listed companies requesting that they consider removing those
  companies from the fund or create a similar actively or passively
  managed fund with indirect holdings devoid of listed companies. If
  the manager creates a similar fund with substantially the same
  management fees and same level of investment risk and anticipated
  return, the state governmental entity may replace all applicable
  investments with investments in the similar fund in a time frame
  consistent with prudent fiduciary standards.
         Sec. 807.057.  AUTHORIZED INVESTMENT IN LISTED COMPANIES.
  (a)  A state governmental entity may cease divesting from or may
  reinvest in one or more listed companies if clear and convincing
  evidence shows that:
               (1)  the state governmental entity has suffered or will
  suffer a loss in the hypothetical value of all assets under
  management by the state governmental entity as a result of having to
  divest from listed companies under this chapter; or
               (2)  an individual portfolio that uses a
  benchmark-aware strategy would be subject to an aggregate expected
  deviation from its benchmark as a result of having to divest from
  listed companies under this chapter.
         (b)  A state governmental entity may cease divesting from or
  may reinvest in a listed company as provided by this section only to
  the extent necessary to ensure that the state governmental entity
  does not suffer a loss in value or deviate from its benchmark as
  described by Subsection (a).
         (c)  Before a state governmental entity may cease divesting
  from or may reinvest in a listed company under this section, the
  state governmental entity must provide a written report to the
  presiding officer of each house of the legislature and the attorney
  general setting forth the reason and justification, supported by
  clear and convincing evidence, for its decisions to cease
  divestment, to reinvest, or to remain invested in a listed company.
         (d)  The state governmental entity shall update the report
  required by Subsection (c) semiannually, as applicable.
         (e)  This section does not apply to reinvestment in a company
  that is no longer a listed company.
         Sec. 807.058.  PROHIBITED INVESTMENTS. Except as provided
  by Sections 807.003 and 807.057, a state governmental entity may
  not acquire securities of a listed company.
  SUBCHAPTER C.  EXPIRATION; REPORT; ENFORCEMENT
         Sec. 807.101.  EXPIRATION OF CHAPTER. This chapter expires
  on the earlier of:
               (1)  the date the United States revokes its sanctions
  against the government of Iran; or
               (2)  the date the United States Congress or the
  president of the United States, through legislation or executive
  order, declares that mandatory divestment of the type provided for
  in this chapter interferes with the conduct of United States
  foreign policy.
         Sec. 807.102.  REPORT. Not later than December 31 of each
  year, each state governmental entity shall file a publicly
  available report with the presiding officer of each house of the
  legislature and the attorney general that:
               (1)  identifies all securities sold, redeemed,
  divested, or withdrawn in compliance with Section 807.055;
               (2)  identifies all prohibited investments under
  Section 807.058; and
               (3)  summarizes any changes made under Section 807.056.
         Sec. 807.103.  ENFORCEMENT. The attorney general may bring
  any action necessary to enforce this chapter.
         (b)  Not later than January 1, 2014, the State Pension Review
  Board shall prepare and provide to each state governmental entity,
  as defined by Section 807.001, Government Code, as added by this
  Act, the list of scrutinized companies required by Section 807.051,
  Government Code, as added by this Act.
         (c)  Notwithstanding any other provision of this Act, this
  section takes effect January 1, 2014.
         SECTION 15.  (a)  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.
         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.
         (b)  Subsection (a) of this section takes effect only on the
  failure of legislation by the 83rd Legislature, Regular Session,
  2013, providing for 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 to
  become law.
         SECTION 16.  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 17.  Section 801.104 and Subsection (c), Section
  802.103, Government Code, are repealed.
         SECTION 18.  (a)  The change in law made by this Act to
  Section 801.1021, Government Code, regarding prohibitions on
  members of the State Pension Review Board 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.
         (b)  Section 802.1014, Government Code, as added by this Act,
  applies only to an actuarial experience study conducted on or after
  the effective date of this Act. An actuarial experience study
  conducted before the effective date of this Act is governed by the
  law in effect immediately before that date, and that law is
  continued in effect for that purpose.
         (c)  Section 802.102, Government Code, as amended by this
  Act, is intended to clarify existing law with respect to the audit
  required by that section.
         (d)  Subsection (d), Section 802.103, Government Code, as
  added by this Act, is intended to clarify existing law with respect
  to the annual financial report required by Section 802.103,
  Government Code.
         (e)  Subsection (h), Section 802.106, Government Code, as
  amended by this Act, applies only to a change in statutes or
  ordinances governing a retirement system described by Subsection
  (b), Section 802.106, Government Code, that is adopted on or after
  the effective date of this Act. A change in statutes or ordinances
  that is adopted before the effective date of this Act is governed by
  the law in effect immediately before that date, and that law is
  continued in effect for that purpose.
         SECTION 19.  (a)  A person who is serving as a member of the
  State Pension Review Board appointed under Section 801.103,
  Government Code, on the effective date of this Act continues to
  serve until the person's term expires.
         (b)  The governor shall make appointments to fill vacancies
  on the State Pension Review Board so that board members' terms of
  office expire in compliance with Section 801.106, Government Code,
  as amended by this Act, and, if necessary for compliance with that
  section, a person may be appointed to a term of office that expires
  in less than six years.
         (c)  The term of a person who is serving as a member of the
  State Pension Review Board appointed under Section 801.104,
  Government Code, expires on the effective date of this Act.
         SECTION 20.  Contingent on the failure of legislation by the
  83rd Legislature, Regular Session, 2013, providing for 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 to become law, the State Pension
  Review Board shall provide any necessary assistance, including
  educational training, technical assistance, and other information
  to retirement systems organized under the Texas Local Fire Fighters
  Retirement Act (Article 6243e, Vernon's Texas Civil Statutes).
         SECTION 21.  This Act takes effect September 1, 2013.
 
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 200 passed the Senate on
  April 2, 2013, by the following vote:  Yeas 31, Nays 0;
  May 7, 2013, Senate refused to concur in House amendments and
  requested appointment of Conference Committee; May 8, 2013, House
  granted request of the Senate; May 24, 2013, Senate adopted
  Conference Committee Report by the following vote:  Yeas 31,
  Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 200 passed the House, with
  amendments, on April 26, 2013, by the following vote:  Yeas 138,
  Nays 0, two present not voting; May 8, 2013, House granted request
  of the Senate for appointment of Conference Committee;
  May 24, 2013, House adopted Conference Committee Report by the
  following vote:  Yeas 145, Nays 0, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
             Date
 
 
  ______________________________ 
            Governor