H.B. No. 1756

	AN ACT
	relating to the board of trustees of and distribution of certain
	benefits by a retirement system for firefighters in certain
	municipalities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 2.03(b), Chapter 183 (S.B. 598), Acts of
	the 64th Legislature, Regular Session, 1975 (Article 6243e.1,
	Vernon's Texas Civil Statutes), is amended to read as follows:
	(b)  Between November 1 of each year and the first Monday in
	January of the following year, the board of trustees shall hold an
	election to elect one member of the board of trustees. If only one
	firefighter or retiree is nominated for a position under Subsection
	(c) of this section, instead of holding an election, the board of
	trustees may appoint the sole nominated candidate at the first
	board meeting in January. The board shall adopt procedures for the
	appointment of a sole nominated candidate under this subsection.  A
	board member appointed under this subsection is considered elected
	for purposes of this Act.
	SECTION 2.  Section 7.09, Chapter 183 (S.B. 598), Acts of the
	64th Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's
	Texas Civil Statutes), is amended by adding Subsection (d) to read
	as follows:
	(d)  The board of trustees may adopt rules to establish
	procedures for and requirements governing a member's designation of
	a beneficiary under this section.
	SECTION 3.  Section 8.05, Chapter 183 (S.B. 598), Acts of the
	64th Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's
	Texas Civil Statutes), is amended by adding Subsection (d) to read
	as follows:
	(d)  The board of trustees may adopt rules that modify the
	availability of distributions under Subsection (a) of this section,
	provided that the modifications do not:
	(1)  impair the distribution rights under that
	subsection; or
	(2)  cause distributions to occur later than required
	under Section 401(a)(9), Internal Revenue Code of 1986.
	SECTION 4.  Sections 8.07(b), (c), and (d), Chapter 183
	(S.B. 598), Acts of the 64th Legislature, Regular Session, 1975
	(Article 6243e.1, Vernon's Texas Civil Statutes), are amended to
	read as follows:
	(b)  If a member who participates in the DROP dies before
	distribution of the member's entire DROP account [while in active
	service or if the member has not filed an election with the board of
	trustees as described by Subsection (c) of this section],
	distributions to the designated beneficiary will begin not more
	than one year after the date of the member's death and shall be made
	either as a single-payment distribution of the member's DROP
	account balance or in not more than four equal annual installments
	over a period of not more than 37 months.
	(c)  [If a member who participates in the DROP dies after
	terminating active service and has filed an election with the board
	of trustees to be paid in not more than four equal annual
	installments over a period of not more than 37 months, the balance
	of the member's DROP account shall be distributed to the designated
	beneficiary in the manner that the member selected.
	[(d)] If the member has not designated a beneficiary to
	receive distributions from the member's DROP account or if the
	person so designated does not survive the member by at least 72
	hours, the member's DROP account shall be distributed in a
	single-sum payment as soon as administratively possible after the
	member's death to any surviving spouse who survives the member by at
	least 72 hours, if any, or to the member's estate if there is no
	surviving spouse.
	SECTION 5.  Section 9.04(a-2), Chapter 183 (S.B. 598), Acts
	of the 64th Legislature, Regular Session, 1975 (Article 6243e.1,
	Vernon's Texas Civil Statutes), is amended to read as follows:
	(a-2)  The collective adjustment amount described by
	Subsection (a-1) of this section:
	(1)  is an amount equal to the actuarial value, as
	determined by the board's actuary based on the interest and
	mortality assumptions adopted by the board of trustees for the most
	recent actuarial valuation of the fund, of the percentage increase
	in the Consumer Price Index for All Urban Consumers as determined by
	the United States Department of Labor for the applicable
	determination period ending in a calendar month that precedes by
	not more than four months the month in which [immediately preceding
	the date] the cost-of-living adjustment is to take effect,
	multiplied by the total amount of benefits payable in the month
	immediately preceding the date an adjustment is to take effect to
	persons who are eligible to receive an adjustment under this
	section; and
	(2)  if applicable:
	(A)  is reduced by an amount that the board's
	actuary determines is necessary to maintain the financial stability
	of the fund; or
	(B)  is increased in accordance with Subsection
	(b) of this section.
	SECTION 6.  The board of trustees of a retirement system
	subject to this Act shall adopt procedures required under Section
	2.03(b), Chapter 183 (S.B. 598), Acts of the 64th Legislature,
	Regular Session, 1975 (Article 6243e.1, Vernon's Texas Civil
	Statutes), as amended by this Act, before a sole nominated
	candidate may be appointed to the board of trustees.
	SECTION 7.  This Act takes effect September 1, 2015.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 1756 was passed by the House on April
	16, 2015, by the following vote:  Yeas 146, Nays 0, 2 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 1756 was passed by the Senate on May
	15, 2015, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	Date
	_____________________
	Governor