BILL ANALYSIS C.S.S.B. 904 By: Henderson (Elkins) April 26, 1995 Committee Report (Substituted) BACKGROUND The Village Fire Department and the Village Police Department in Houston are established organizations which provide fire, police, and emergency medical services to an estimated 20,000 people. The departments are operated through separate boards of police and fire commissioners from each city. The organizations are composed of 80 government employees who participate in a privately invested pension fund that does not competitively compare to the funding level that the Texas Municipal Retirement System can provide. PURPOSE C.S.S.B. 904 authorizes certain fire and police departments to participate in the Texas Municipal Retirement System. 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 852.005, Government Code, by adding Subsection (c) and (d) (c) Adds language to provide that a fire or police department has the standing of a municipality if the department was created and is operating under an interlocal cooperation agreement between two or more municipalities located in a county with a population of at least two million, is supervised by an administrative agency appointed by the contracting municipalities, and provides common fire protection or law enforcement services to the contracting municipalities. Authorizes the governing body of the participating municipality that has voted by ordinance or resolution to accept responsibility as stipulated for all payments required of and obligations incurred by the department should the interlocal cooperation agreement be dissolved or expire. All ordinances adopted by the participating municipalities regarding participation are to be approved by the Board of Trustees. (d) Authorizes the governing board of the supervising administrative agency, by order, to take an action for a department described by this subsection that is required or authorized by this subtitle to be made by municipal ordinance. SECTION 2. Emergency clause Pensions & Investments Committee COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute bill adds a Subsection (2) to SECTION 1, of Section 852.005, Government Code. Subsection (2) states that the governing body of a participating municipality that has voted by resolution or ordinance to accept responsibility for all payments required of and obligations incurred by the department under this subtitle should a interlocal cooperation agreement be dissolved or expire, the participation ordinances are to be approved by the Board of Trustees. SUMMARY OF COMMITTEE ACTION SB 904 was considered by the committee in a public hearing on April 24, 1995. Rep. Elkins testified as the bill's House sponsor. The following persons testified for the bill: George Stubblefield representing the Village Fire Department & Village Police Department; Terrence Kendall representing the Texas Municipal Retirement System; Jim Lyde representing the Texas Municipal Police Assoc; The committee considered a complete substitute for the bill. One amendment was offered to the substitute. The amendment was adopted without objection. The Chair directed staff to incorporate the amendment into the substitute. The bill was reported favorably as substituted with the recommendation that it do pass and be printed by a record vote of 7 ayes, 0 nays, 0 pnv & 2 absent.