SRC-MAX C.S.S.B. 1209 75(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 1209
By: Barrientos
Intergovernmental Relations
4-10-97
Committee Report (Substituted)


DIGEST 

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), to authorize 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) and that is in a municipality with a population of
not less than 55,000 to elect to participate in the proportionate
retirement program by adopting a resolution to that effect. Prohibits a
resolution from being adopted under this subsection without the approval
of the governing body of the 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 under this
subsection is the first day of the third month after the month in which
notice is given under this subsection. 

SECTION 3. Amends Section 803.103, 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(3), rather than Section 803.0021(1), if one of the
entities elects, rather has elected, to so limit its participation and has
not revoked the election under Subsection (b). Requires an election under
Subsection (a) to be filed before the effective date of a public
retirement system's participation in the program as provided by Section
803.101(f), or the right of election under Subsection (a) is waived.
Makes conforming changes. 

SECTION 4. Effective date:  September 1, 1997.

SECTION 5. Emergency clause.





 SUMMARY OF COMMITTEE CHANGES

SECTION 2.

Amends Section 803.101, Government Code, to authorize the governing body
of a public retirement system for general municipal employees that is a
qualified plan under Section 401(a) of th Internal Revenue Code of 1986
(26 U.S.C. Section 401) and that is in a municipality with a population of
not less that 55,000 to perform certain functions.   

SECTION 3. 

Amends Section 803.103, Government Code, to provide that the provisions of
Subsection (a) do not include participation with a retirement system
described by Section 803.0021(3). Requires an election under Subsection
(a) to be filed before the effective date of a public retirement system's
participation in the program as provided by Section 803.101(f), or the
right of election under Subsection (a) is waived.  Makes conforming and
nonsubstantive changes.