BILL ANALYSIS


                                                        H.B. 2686
                                        By: Turner, S. (Whitmire)
                                      Intergovernmental Relations
                                                         05-17-95
                              Senate Committee Report (Unamended)
BACKGROUND

The Police Officers' Pension Board has no statutory authority to
administer the pension fund in compliance with the 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

As proposed, H.B. 2686 relates to the administration of and
adoption of rules by retirement systems for police officers in
certain municipalities.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to the Police Officers' Pension Board under SECTION 2 (Sec. 4(l),
Article 6243g-1, V.T.C.S.) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 4, Article 6243g-1, V.T.C.S., by adding
Subsection (k), as follows:

     (k)  Requires the Police Officers' Pension Board (pension
     board) to administer the Police Officers' Pension System
     (system) consistent with the applicable sections of the
     Internal Revenue Code of 1986, as amended.
     
     SECTION 2.     Amends Section 4, Chapter 76, Article 6243g-1, V.T.C.S.,
by adding Subsection (l), as follows:

     (l)  Provides that the pension board is hereby vested with the
     power to adopt written rules and guidelines consistent with
     this Act for the administration of the system.
     
     SECTION 3.     Emergency clause.
           Effective date: 90 days after adjournment.