(a) In the event the local board cannot be constituted under §865.012, Texas Government Code, for any reason, the participating department head of such participating department, with the written consent of the governing body of the political subdivision associated with the department, shall notify the executive director in writing no later than the last business day in February of the failure to constitute the local board and authorize the delegation of the local board's duties to the executive director under this section.
(b) In the event a local board fails to perform any of the duties required by the local board under state law for a period of 12 months or more, including, without limitation, the failure to hold at least 2 meetings during the prior calendar year, the failure to convene within a reasonable time to determine a member's right to a disability benefit, or the failure to verify the accuracy of the membership roster under §310.8 of this title, the executive director will send written notice to the local board chair, the participating department head, and the governing body of the political subdivision associated with such department of the local board's failure to perform its duties as soon as administratively practicable following such failure and will request that the local board take action to resolve such failure within a specified timeframe that is at least 90 days. If the local board fails to perform its duties within such specified timeframe, the local board will be deemed to have designated its duties to the executive director, and the executive director is authorized by the state board to perform the duties of the local board and to make any determinations required of the local board on and after such date.
(c) An annual administrative penalty will be imposed on the governing body of the political subdivision associated with the department for each calendar year, or portion thereof, during which the executive director performs the duties of the local board as provided under this section. The amount of such administrative penalty will be $2,500 for the first calendar year and will increase by 5% for each subsequent calendar year.
(d) The participating department head shall provide the executive director with any information that is requested by the executive director in order to carry out the duties delegated to the executive director under this section, including, without limitation, any service records of members and retirees or any injury reports that may be related to a disability claim.
(e) Once the duties of a local board have been delegated to the executive director under this section, the executive director shall continue to act on behalf of the local board until such time as the participating department head or the governing body of the political subdivision associated with the department notifies the executive director in writing that a local board has been constituted and will perform the duties required of it under state law.
(f) The executive director may waive an administrative penalty under this section if the executive director determines, after a written request for a waiver from a local board, participating department head or governing body of the political subdivision, that the failure was beyond the control of the parties responsible for convening the local board and was not the result of neglect, indifference, or lack of diligence.

Source Note: The provisions of this §310.13 adopted to be effective July 5, 2020, 45 TexReg 4528