SRC-TNM S.B. 431 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 431
By: Haywood
Intergovernmental Relations
2-11-97
As Filed


DIGEST 

Currently, volunteer fire departments, who are members of the Fire
Fighters' Pension Fund, have to meet strict requirements to withdraw from
the system.  If a department wishes to withdraw but does not intend to
transfer all assets and liabilities to another pension fund, the Fire
Fighters' Pension Commission refuses to allow the withdrawal.  Existing
primarily on contributions, some departments join the system and then find
themselves financially unable to continue their contributions to the fund.
S.B. 431 outlines provisions regarding withdrawal from the volunteer fire
fighters' relief and retirement fund. 

PURPOSE

As proposed, S.B. 431 outlines provisions regarding withdrawal from the
volunteer fire fighters' relief and retirement fund. 

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 Article 6243e.3, V.T.C.S., (Texas Statewide Volunteer
Fire Fighters Retirement Act), by adding Section 12B, as follows: 

Sec. 12B. WITHDRAWAL FROM PENSION SYSTEM; ELECTION.  Authorizes a member
fire department, not later than August 31, 1998, to withdraw from the Fire
Fighters Pension Fund if the action is approved by unanimous vote of
certain parties.  Provides that all contributions made by a governing body
for a member fire department that withdraws from the pension system under
this section remain in the fund.  Prohibits a person from receiving a
benefit from the pension system based on service with the department after
the effective date of a department's withdrawal from the pension system
under this section. Requires the state board of trustees to notify each
member fire department of the department's right to withdraw from the
pension system under this section.  Provides that this section expires
September 1, 1998. 

SECTION 2. Effective date: September 1, 1997.

SECTION 3. Emergency clause.