bill reshaping the police and fire pension board

The text as introduced · 1,003 words

89R15745 RDR-D

By: Y. Davis of Dallas
H.B. No. 4875

A BILL TO BE ENTITLED

AN ACT

relating to the board of trustees of the retirement systems for

police and firefighters in certain municipalities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 3.01(b), (b-1), (b-4), (d), (e), and

(f), Article 6243a-1, Revised Statutes, are amended to read as

follows:

(b) Subject to Subsections (b-1) and (b-2) of this section,

the board consists of 11 trustees who shall be selected and shall

serve as follows:

(1) four [ six ] trustees appointed by the mayor, in

consultation with the city council;

(2) three trustees elected under rules adopted by the

board by the members and pensioners of the pension system from a

slate of nominees, in a number determined under the rules, selected

and vetted by the nominations committee;

(3) [ subject to Subsection (b-3) of this section, ] one

trustee who is a current [ or former ] police officer of the city

nominated and elected by members of the pension system under rules

adopted by the board; [ and ]

(4) [ subject to Subsection (b-3) of this section, ] one

trustee who is a current [ or former ] fire fighter of the city

nominated and elected by members of the pension system under rules

adopted by the board ;

(5) one trustee who is a former police officer of the

city nominated and elected by members of the pension system under

rules adopted by the board; and

(6) one trustee who is a former fire fighter of the

city nominated and elected by members of the pension system under

rules adopted by the board .

(b-1) To be appointed or elected a trustee under Subsection

(b)(1) or (2) of this section, a person:

(1) must have demonstrated financial, accounting,

business, investment, budgeting, real estate, or actuarial

expertise; and

(2) may not be an elected official of the city.

(b-4) A trustee is [ not ] required to reside in the

nominating [ a particular ] city [ or county of this state ].

(d) A vacancy on the board in a trustee position under

Subsection (b)(1) , [ or ] (2) , (5), or (6) of this section shall be

filled in the same manner as the original appointment, or election.

The board by rule shall determine the manner by which a vacancy in a

trustee position under Subsection (b)(3) or (4) of this section is

filled.

(e) The mayor shall determine whether all trustees

appointed under Subsection (b)(1) of this section hold office for

staggered two-year terms or staggered three-year terms. The

nominations committee shall determine whether all trustees elected

under Subsection (b)(2), (3), [ or ] (4) , (5), or (6) of this section

hold office for staggered two-year terms or staggered three-year

terms. A trustee appointed or elected, as applicable, under

Subsection (b)(1) or (2) of this section may not serve for more than

six consecutive years on the board.

(f) The election of the trustees under Subsection (b)(2),

(3), [ or ] (4) , (5) or (6) of this section[ , including an election

under Subsection (b-3) of this section to fill a trustee position

under Subsection (b)(3) or (4) of this section, ] shall be held under

the supervision of the board, and the board shall adopt such rules

governing the election procedure as it considers appropriate, as

long as the rules are consistent with generally accepted principles

of secret ballot and majority rule. The rules adopted by the board

shall be recorded in the minutes of the board and made available to

the members of any pension plan within the pension system.

SECTION 2. Section 3.011(e), Article 6243a-1, Revised

Statutes, is amended to read as follows:

(e) The nominations committee shall nominate trustees to

the board in accordance with Section [ Sections ] 3.01(b)(2) [ and

(b-3) ] of this article.

SECTION 3. Sections 3.012(a) and (b), Article 6243a-1,

Revised Statutes, are amended to read as follows:

(a) In accordance with procedures adopted by board rule, a

trustee:

(1) appointed under Section 3.01(b)(1) of this article

may be removed by the mayor for cause; and

(2) elected under Section 3.01(b)(2), (3), [ or ] (4) ,

(5), or (6) of this article may be removed by the nominations

committee for cause.

(b) It is a cause for removal of a trustee from the board

that the trustee:

(1) does not have at the time of taking office the

qualifications required by Section 3.01(b) or (b-1)(1) of this

article[ , subject to Subsection (b-3) of that section ];

(2) does not maintain during service on the board the

qualifications required by Section 3.01(b) or (b-1)(1) of this

article[ , subject to Subsection (b-3) of that section ];

(3) is ineligible for membership under Section

3.01(b-1)(2) or (b-2) of this article; or

(4) is absent from more than one-third [ 40 percent ] of

the meetings that the trustee is eligible to attend during a

calendar year [ without an excuse approved by a majority vote of the

board ].

SECTION 4. Section 3.01(b-3), Article 6243a-1, Revised

Statutes, is repealed.

SECTION 5. The changes in law made by this Act do not affect

the term of a member of the board of trustees of a pension system

administered under Article 6243a-1, Revised Statutes, serving on

the board on the effective date of this Act.

SECTION 6. The changes in law made to Sections 3.01, 3.011,

and 3.012, Article 6243a-1, Revised Statutes, as amended by this

Act, apply only to an appointment or vacancy on a board of trustees

that occurs on or after the effective date of this Act. An

appointment or vacancy on a board of trustees that occurs before the

effective date of this Act is governed by the law in effect on the

date of the meeting, and the former law is continued in effect for

that purpose.

SECTION 7. This Act takes effect September 1, 2025.