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.