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.