SBW C.S.H.B. 336 75(R)BILL ANALYSIS PENSIONS & INVESTMENTS C.S.H.B. 336 By: Telford 2-26-97 Committee Report (Substituted) BACKGROUND 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. PURPOSE The bill assures the Texas Local Fire Fighters' Retirement Act (TLFFRA) that a change or addition to a local fire fighters retirement plan to be retroactive if the change or addition 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 It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 7f, Texas Local Fire Fighters Retirement Act (Article 6243e, Vernon's Texas Civil Statutes ), by adding new language stipulating that a change or addition may not be applied retroactive to its effective date "unless required to maintain a plan's tax qualification status." SECTION 2. Amends Section 19(a), Texas Local Fire Fighters Retirement Act (Article 6243e, Vernon's Texas Civil Statutes ), defines the members of the board of trustees which covers the volunteer fire fighters' system. Amends Subsection 4 by adding language that two persons who live within the extra territorial jurisdiction of the municipality are eligible to serve on the board. SECTION 3. Emergency Clause COMPARISON OF ORIGINAL TO SUBSTITUTE CSHB 336 amends SECTION 2 (a)(4) by restricting those who are eligible to serve on the Texas Local Fire Fighters Retirement Board to those who live within the extra territorial jurisdiction of the municipality.