BILL ANALYSIS



S.B. 449
By: Montford (Telford)
March 7, 1995
Committee Report (Unamended)


BACKGROUND

The Texas Local Fire Fighters Retirement Act covers 37 paid fire
departments and 100 volunteer fire departments throughout the
state. 

PURPOSE

As proposed, S.B. 449 amends provisions relating to membership in,
contributions to, and administration of the local retirement
systems for fire fighters. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 3, Article 6243e, V.T.C.S. (Texas Local
Fire Fighters Retirement Act), by adding Subsection (e), to provide
that this Act applies to a political subdivision outside the
boundaries of a municipality that has a regularly organized fire
department not consisting exclusively of volunteers, except a
political subdivision whose fire department is governed by another
state law providing for retirement benefits for fire personnel. 
Provides that this Act applies to fire department personnel who are
employees, if the fire department consists of both volunteers and
employees.

SECTION 2. Amends Section 27, Article 6243e, V.T.C.S., to require
the board to exercise judgment and care, considering the probable
income from an investment and the probable safety of the capital,
in making investments for a retirement system.  Requires a board of
trustees to adopt a written investment policy stating how assets of
the retirement system that it administers may be invested.  Deletes
existing Subsection (a), Subdivisions (1)-(10) regarding certain
types of securities and financial products and Subsections (c) and
(d).  

SECTION 3. Amends Section 29(e), Article 6243e, V.T.C.S., to delete
specific amounts that a fire department volunteer must contribute
to the retirement system.

SECTION 4. Amends Sections 2(1), (2), and (8), Article 6243e,
V.T.C.S., to amend the definitions of "contribution," "employee,"
and "volunteer."

SECTION 5. Amends Section 4, Article 6243e, V.T.C.S., to make
conforming changes.

SECTION 6. Amends Section 11(b), Article 6243e, V.T.C.S., to make
conforming changes.

SECTION 7. Amends Section 18(f), Article 6243e, V.T.C.S., to make
conforming changes.

SECTION 8. Amends Sections 19(a) and (b), Article 6243e, as
follows:

     (a)  Provides that the firefighters' retirement system is
     governed by a board of trustees consisting, among others, of
     the chief operating officer of the political subdivision or
     the chief operating officer's designated representative. 
     Makes conforming changes.
     
     (b)  Makes conforming changes.
     
     SECTION 9.     Amends Section 24(b), Article 6243e, V.T.C.S., to make
conforming changes.

SECTION 10.    Amends Section 26, Article 6243e, V.T.C.S., to
authorize the board of trustees of a retirement system to accept
and receive gifts from any source, in addition to member
contributions, for the use and benefit of the fund.  Makes
conforming changes.

SECTION 11.    Amends Section 28(g), Article 6243e, V.T.C.S., to
make conforming changes.

SECTION 12.    Amends Sections 29(a)-(d), Article 6243e, V.T.C.S.,
to make conforming changes.

SECTION 13.    Amends Section 30, Article 6243e, V.T.C.S., to make
conforming changes.

SECTION 14.    Emergency clause.
           Effective date: upon passage.

SUMMARY OF COMMITTEE ACTION

In accordance with House rules, a public hearing was held on March
6, 1995.  SB 449 was substituted for its House companion bill, HB
1061.

On March 6, 1995, the full committee voted to report SB 449 to the
House without amendments with the recommendation that it do pass by
a reocrd vote of 5 ayes, 0 nays, 0 pnv & 4 absent.