SRC-HRD H.B. 336 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 336
By: Telford (Bivins)
Intergovernmental Relations
4-29-97
Engrossed


DIGEST 

The Texas Local Fire Fighters Retirement Act (TLFFRA) relates to the
administration of paid and partly paid firefighters' retirement systems.
Currently, the plan does not allow a change or addition to a pension plan
to be retroactive.  Also, current law requires that the two persons who
are not officers or employees of the political subdivision and are elected
to the board by other board members to be residents of the political
subdivision.

The bill would prohibit a change or addition to a retirement plan under
TLFFRA from being applied retroactively to its effective date unless it is
required to maintain a plan's tax qualification status. Also, this bill
broadens the eligibility requirement for the board of trustees' civilian
members to include persons living outside the municipality.
PURPOSE

As proposed, H.B. 336 prohibits a change or addition to a retirement plan
under the Texas Local Fire Fighters Retirement Act (TLFFRA) from being
applied retroactively to its effective date unless it is required to
maintain a plan's tax qualification status.  Also, this bill broadens the
eligibility requirement for the board of trustees' civilian members to
include persons living outside the municipality.               

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 7(f), Article 6243e, V.T.C.S. (Texas Local Fire
Fighters Retirement Act), to prohibit a change or addition from being
applied retroactive to its effective date unless required to maintain a
plan's tax qualification status. 

SECTION 2. Amends Section 19(a), Article 6243e, V.T.C.S., to provide that,
in each municipality and other political subdivision to which this Act
applies and that has a fire department that does not consist exclusively
of volunteers, the fire fighters' retirement system is governed by a board
of trustees consisting of, among others, two persons who reside in this
state in the municipality or other political subdivision or within the
extraterritorial jurisdiction of the municipality, rather than two
residents of the municipality or other political subdivision, who are not
officers or employees of the municipality or other political subdivision,
and who are elected by a majority vote of the members of the board of
trustees determined as provided by Subdivisions (1) (2), (3), of this
subsection. 

SECTION 3. Emergency clause.
  Effective date: upon passage.