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.