SEG C.S.S.B. 1209 75(R)BILL ANALYSIS PENSIONS & INVESTMENTS C.S.S.B. 1209 By: Barrientos (Kubiak) 5-8-97 Committee Report (Substituted) BACKGROUND Currently, participation in the proportionate retirement program for public employees is contingent upon the fulfillment of specific qualifications. This bill provides amended guidelines for the participation process in the proportionate retirement programs for public employees. PURPOSE As proposed, C.S.S.B. 1209 provides guidelines for the participation process in the proportionate retirement programs for public employees. 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 Section 803.0021, Government Code, to provide that this chapter applies to a retirement system that makes an election under Section 803.101(f), Government Code, among other provisions. Makes a conforming change. SECTION 2. Amends Section 803.101, Government Code, by amending Subsection (a) and adding Subsection (f). (a) Makes a conforming change. (f) Authorizes the governing body of a public retirement system in this state for general municipal employees that is a qualified plan under Section 401(a) of the Internal Revenue Code of 1986 (26 U.S.C. Section 401) to elect to participate in the proportionate retirement program through an adoption of a resolution to that effect. Prohibits the adoption of a resolution without the approval of the governing body's municipality that finances the retirement system. Requires the governing body of the retirement system to notify all other participating retirement systems of the election. Provides that the effective date of participation in the proportionate retirement program by a retirement system for which an election is made as the first day of the third month after the month in which notice is given under this subsection. SECTION 3. Amends Section 803.103(a), Government Code, to provide that participation in the proportionate retirement program by certain entities does not include participation with a retirement system described by Section 803.0021(1), if one of the entities has elected to limit its participation and has not revoked the election under Subsection (b). Also does not include participation described under Section 803.0021(3). SECTION 4. Effective date: September 1, 1997. SECTION 5. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE SECTION 2 removes the stipulation that a participating municipality must have a population of not less than 55,000. SECTION 3 allows for the inclusion of Section 803.0021(1), with limitations, and removes the limitations for Section 803.0021(3).