SBW C.S.H.B. 862 75(R)BILL ANALYSIS


PENSIONS & INVESTMENTS
C.S.H.B. 862
By: Chisum
5-1-97
Committee Report (Substituted)



BACKGROUND 

State law enforcement agencies face an obstacle in recruiting experienced
officers into state service.  Veteran officers with prior law enforcement
service do not receive any consideration for previous hazardous duty.
These officers lose retirement tenure on entry to state service, even
though they continue to serve in a hazardous duty environment despite
their age. 

PURPOSE

To allow law enforcement officers to purchase credit from the Employees
Retirement Service for up to 5 years of prior commissioned police service
to a local government.  The local government must be Texas Commission on
Law Enforcement Officer Standards and Education approved. Includes minimum
current retirement criteria to protect the state's personnel investment. 

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 Subchapter F, Chapter 813 of the Government Code by
adding Section 813.511 which states that previous peace officer service
may be used to establish service credit in the retirement system.
Stipulates who is eligible to establish credit as an officer and who may
establish credit by deposit.  Stipulates the terms of credit: annual rate
and time limit. 

SECTION 2:  A person who is a law enforcement or custodial officer for two
years or more on the effective date of this Act is eligible to apply for
service credit. 

SECTION 3:  Effective date, September 1, 1997.

SECTION 4:  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute bill makes the following changes to the original bill in
SECTION 1.     

Subsection (a) is broken down into subdivisions (1) and (2).   
 (1) adds language to the qualifications stating "or not required to be
licensed by that  commission."   
 (2) adds the qualifier "commissioned by a municipal police department or
county sheriff's  office in this state." 

Subsection (c)  (1) is amended in the substitute bill makes clarifying
changes regarding the rate  at which the member's service is computed. 
 (2) Changes the interest rate computed from 5 percent to 10 percent.

Subsection (e)  Added language in the substitute bill stating that the
state is not required to make   contributions for service established
under this section.