BILL ANALYSIS



H.B. 2686
By: Turner, Sylvester
04-12-95
Committee Report (Unamended)


BACKGROUND

The Pension Board entrusted with the general administration,
management and responsibility for the operation of the Pension
System, has no statutory authority to administer the pension fund
in compliance with Internal Revenue Code rules and regulations, nor
any statutory authority to develop and adopt for the administration
of the pension system any written rules and guidelines
incorporating applicable Internal Revenue Code Regulations
applicable to Governmental Plans.

PURPOSE

To allow the Board to administer the fund in compliance with
Internal Revenue Codes and Regulations applicable to governmental
plans.

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Pension Board affected by
this bill in SECTION 2:  Chapter 76, Acts of the 50th Legislature,
1947, Article 6243g-1, Section 4(1), V.T.C.S.

SECTION BY SECTION ANALYSIS

SECTION 1:  Amends Section 4, Police Officers' Pension System in
cities of 1,200,000 or more (Article 6243g-1) V.T.C.S., by adding
Section 4(k) to allow the Board to administer the pension fund
consistent with the Internal Revenue Code of 1986 as amended.

SECTION 2:  Amends Section 4, Police Officers' Pension System in
cities of 1,200,000 or more (Article 6234g-1) V.T.C.S., by adding
Section 4(l) to allow the Board to adopt written rules and
guidelines for the administration of the Pension System consistent
with Internal Revenue Code Regulations and Rulings applicable to
governmental plans.

SECTION 3:  Emergency clause

SUMMARY OF COMMITTEE ACTION

HB 2686 was considered by the committee in a public hearing held on
April 12, 1995.

Rep. Sylvester Turner testified as the bill's author.

The following person testified for the bill:
     John Lawson representing the Houston Police Officer's Pension
System

The bill was reported favorably without amendment with the
recommendation that it do pass and be printed, and be sent to the
Committee on Local and Consent Calendars by a record vote of 5
ayes, 0 nays, 0 pnv & 4 absent.