1-1     By:  Barrientos                                        S.B. No. 538

 1-2           (In the Senate - Filed February 11, 1997; February 17, 1997,

 1-3     read first time and referred to Committee on Intergovernmental

 1-4     Relations; March 24, 1997, reported adversely, with favorable

 1-5     Committee Substitute by the following vote:  Yeas 11, Nays 0;

 1-6     March 24, 1997, sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 538                 By:  Gallegos

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to eligibility and benefits under public retirement

1-11     systems for employees of certain municipalities.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  Sections 2 and 3, Chapter 451, Acts of the 72nd

1-14     Legislature, Regular Session, 1991 (Article 6243n, Vernon's Texas

1-15     Civil Statutes), are amended to read as follows:

1-16           Sec. 2.  DEFINITIONS.  The following words and phrases have

1-17     the meanings assigned by this section unless a different meaning is

1-18     plainly required by the context:

1-19                 (1)  "Accumulated deposits" means the amount standing

1-20     to the credit of a member derived from the deposits required to be

1-21     made by the member to the retirement system improved annually by

1-22     interest credited at a rate determined by the retirement board from

1-23     time to time upon the advice of the retirement board's actuary and

1-24     credited as of December 31 to amounts standing to the credit of the

1-25     member on January 1 of the same calendar year.

1-26                 (2)  "Actual retirement date" means the last day of the

1-27     month during which a member retires.

1-28                 (3)  "Actuarial equivalent" means any benefit of equal

1-29     present value when computed on the basis of actuarial tables

1-30     adopted by the retirement board from time to time upon the advice

1-31     of the retirement board's actuary.  The actuarial tables adopted

1-32     for this purpose shall be tables that are acceptable to the

1-33     Internal Revenue Service and be clearly identified by resolution

1-34     adopted by the retirement board.

1-35                 (4)  "Actuary" means the technical advisor of the

1-36     retirement board regarding the operations which are based on

1-37     mortality, service, and compensation experience.

1-38                 (5)  "Agency of the municipality" means any agency or

1-39     instrumentality of the city, or governmental or publicly owned

1-40     legal entity created by the municipality, subsequent to the

1-41     effective date of this Act, to perform or provide a public service

1-42     or function and which entity is not a hospital authority and

1-43     employs one or more employees to provide services and/or accomplish

1-44     its public purpose.

1-45                 (6)  "Approved medical leave of absence" means any

1-46     absence authorized in writing by the member's employer for the

1-47     purpose of enabling the member to obtain medical care or treatment

1-48     or to recover from any sickness or injury.

1-49                 (7)  "Authorized leave of absence" means military leave

1-50     of absence, including a period of not more than 90 days after the

1-51     date of release from active military duty, or any other leave of

1-52     absence during which a member is otherwise authorized by law to

1-53     continue making contributions to the system.  The term does not

1-54     include an approved medical leave of absence.

1-55                 (8)  "Average final compensation" means the average

1-56     monthly compensation, as defined and limited by Subdivision (12) of

1-57     this section, less overtime, incentive, and terminal pay, plus, (i)

1-58     amounts picked up by the employer pursuant to Section 10(e) of this

1-59     Act, and (ii) amounts not otherwise included in the member's

1-60     taxable income by reason of either an election under a "cafeteria"

1-61     plan as described in Section 125 of the code or deferrals under a

1-62     plan of deferred compensation within the scope of Section 457 of

1-63     the code, to the extent not in excess of $12,500 for persons who

1-64     first become members after 1995 that is earned by a member during,

 2-1     as applicable:

 2-2                       (A)  if the member has 120 months or more of

 2-3     membership service, the 36 months of membership service which

 2-4     yielded the highest average during the last 120 months of

 2-5     membership service;

 2-6                       (B)  if the member has less than 120 months of

 2-7     membership service, but has at least 36 months of membership

 2-8     service, then the average during the 36 months which yield the

 2-9     highest average; or

2-10                       (C)  if the member does not have 36 months of

2-11     membership service, then the average during the member's months of

2-12     membership service.

2-13                 (9)  "Beneficiary" means the member's designated

2-14     beneficiary. If there is no effective beneficiary designation on

2-15     the date of the member's death, or if the designated beneficiary

2-16     predeceases the member (or dies in or as a result of the same event

2-17     that caused the member's death and does not survive the member by

2-18     48 hours), the member's spouse or, if the member does not have a

2-19     spouse, the member's estate shall be the beneficiary.

2-20                 (10)  "Board" means the boards of directors of an

2-21     employer that is not a municipality as described in Section 1 of

2-22     this Act.

2-23                 (11)  "Code" means the United States Internal Revenue

2-24     Code of 1986 (26 U.S.C. Section 1 et seq.) and its successors.

2-25                 (12)  "Compensation" means, with respect to any member,

2-26     such member's wages, within the meaning of Section 3401(a) of the

2-27     code (for purposes of income tax withholding at the source) but

2-28     determined without regard to any rules that limit the remuneration

2-29     included in wages based on the nature or location of the employment

2-30     or the services performed (such as the exception for agricultural

2-31     labor in Section 3401(a)(2) of the code).  Compensation in excess

2-32     of $12,500 per month for any employee who first becomes a member in

2-33     a year commencing after 1995 shall be disregarded.  The $12,500

2-34     limitation shall be adjusted for cost of living increases as

2-35     provided under Section 401(a)(17) of the code.  [In applying the

2-36     limitations, the family group of a highly compensated employee who

2-37     is one of the 10 employees of the employer paid the highest

2-38     compensation during the year shall be treated as a single employee,

2-39     except that, for this purpose, family members shall include only

2-40     the affected highly compensated employee's spouse and lineal

2-41     descendants who have not attained age 19 before the close of the

2-42     year.  If, as a result of the application of such rules, the

2-43     adjusted $12,500 limitation is exceeded, the limitation shall be

2-44     prorated among the affected family members' compensation prior to

2-45     the application of the limitation or the limitation shall be

2-46     adjusted in accordance with any other method permitted by Internal

2-47     Revenue Service guidelines.]

2-48                 (13)  "Consumer price index" means the Consumer Price

2-49     Index for Urban Wage Earners and Clerical Workers (United States

2-50     City Average, All Items) published monthly by the Bureau of Labor

2-51     Statistics, United States Department of Labor, or its successor in

2-52     function.

2-53                 (14)  "Creditable service" means the total of prior

2-54     service and membership service.

2-55                 (15)  "Current service annuity" means a series of equal

2-56     monthly payments payable for the member's life after retirement for

2-57     membership service from funds of the retirement system equal to

2-58     one-twelfth of the product of 2.6 [2.3] percent of a member's

2-59     average final compensation multiplied by the number of months of

2-60     membership service.  [However, if payments commence before the

2-61     member's normal retirement date, the amount of the monthly payments

2-62     to which the member would otherwise be entitled shall be reduced as

2-63     provided by Section 7(e) of this Act.]

2-64                 (16)  "Deposits" means the amounts required to be paid

2-65     by members in accordance with the provisions of this Act.

2-66                 (17)  "Designated beneficiary" means any person, trust,

2-67     or estate properly designated in writing by a member to receive

2-68     benefits from the system in the event of the member's death.  If

2-69     the member is married, an individual other than the member's spouse

 3-1     may be the designated beneficiary only if the spouse consents to

 3-2     such designation in the form and manner prescribed by the

 3-3     retirement board.

 3-4                 (18)  "Disability retirement" means the termination of

 3-5     employment of a member because of disability with a disability

 3-6     retirement allowance as provided in Section 8 of this Act.

 3-7                 (19)  "Employer" means the city or municipality

 3-8     described in Section 1 of this Act, a hospital authority as defined

 3-9     in Subdivision (24) of this section or the retirement board defined

3-10     in Subdivision (43) [(42)] of this section, or an agency of the

3-11     municipality as defined in Subdivision (5) of this section.

3-12                 (20)  "Fund" means the trust fund containing the

3-13     aggregate of the assets of Fund No. 1 and Fund No. 2.

3-14                 (21)  "Fund No. 1" means the fund in which shall be

3-15     kept all accumulated deposits of members who have not withdrawn

3-16     from the system.

3-17                 (22)  "Fund No. 2" means the fund in which shall be

3-18     kept all money contributed by the city on behalf of city employees,

3-19     all money contributed by a hospital authority on behalf of hospital

3-20     authority employees, and all money contributed by the retirement

3-21     board on behalf of retirement board employees, interest earned

3-22     thereon, and all accumulations and earnings of the system.

3-23                 (23)  "Governing body" means the city council of the

3-24     municipality described in Section 1 and its successors as

3-25     constituted from time to time.

3-26                 (24)  "Hospital authority" means a municipal hospital

3-27     authority created after September 1, 1992, under Chapter 262,

3-28     Health and Safety Code, and its subsequent amendments, by a city

3-29     governed by this Act.

3-30                 (25)  "Investment consultant" means the person or

3-31     entity that monitors the investment performance of the system and

3-32     provides such other services as requested by the retirement board.

3-33                 (26)  "Investment manager" means the persons or

3-34     entities that have the power to manage, acquire, or dispose of

3-35     assets of Fund No. 1 or Fund No. 2 on behalf of the retirement

3-36     system and that acknowledge fiduciary responsibility to the system

3-37     in writing.  An investment manager must be a person, firm, or

3-38     corporation registered as an investment adviser under the

3-39     Investment Advisers Act of 1940, a bank, or an insurance company

3-40     qualified to manage, acquire or dispose of assets under the laws of

3-41     more than one state including the State of Texas and must otherwise

3-42     meet the requirements of Section 802.204, Government Code, and its

3-43     subsequent amendments.

3-44                 (27)  "Life annuity" means a series of equal monthly

3-45     payments, payable after retirement for a member's life, consisting

3-46     of a combination of prior service pension and current service

3-47     annuity to which the member is entitled.

3-48                 (28)  "Life annuity (modified cash refund)" means a

3-49     life annuity providing that, in the event of death of the retired

3-50     member before that member has received payments under the life

3-51     annuity totaling the amount of that member's accumulated deposits

3-52     at the date of retirement, the excess of such accumulated deposits

3-53     over the payments made shall be paid in one lump sum to the

3-54     member's designated beneficiary.

3-55                 (29)  "Malfeasance" means (A) willful misconduct or (B)

3-56     the knowingly improper performance of any act, duty or

3-57     responsibility under this Act, including non-performance; which

3-58     interrupts or interferes with the administration, operation and

3-59     management of the retirement system or any person's duties under

3-60     this Act.

3-61                 (30)  "Member" means any:

3-62                       (A)  regular full-time employee of an employer;

3-63     and

3-64                       (B)  former regular full-time employee who has

3-65     not withdrawn the member's accumulated deposits from the system.

3-66           In any case of doubt regarding the eligibility of any

3-67     employee to become or remain a member of the retirement system, the

3-68     decision of the retirement board is final.

3-69                 (31)  "Membership service" means the period of time on

 4-1     or after January 1, 1941, during which a person is or was employed

 4-2     as a regular full-time employee or is or was on an authorized leave

 4-3     of absence and who is eligible for participation in the system and

 4-4     pays into and keeps on deposit the amounts of money prescribed to

 4-5     be paid by the member into the system.  The term includes redeemed

 4-6     membership service.

 4-7                 (32)  "Normal retirement age" means attainment of age

 4-8     62.

 4-9                 (33)  "Normal retirement date" means the earlier of the

4-10     date on which the member has completed 25 years of creditable

4-11     service or has reached normal retirement age.

4-12                 (34)  "Prior service" means service as an employee of

4-13     the city rendered prior to January 1, 1941, for which a pension

4-14     credit is allowable under prior law governing the retirement system

4-15     of that city and includes redeemed prior service.

4-16                 (35)  "Prior service pension" means a series of equal

4-17     monthly payments payable from funds of the retirement system for a

4-18     member's life after retirement for prior service equal to

4-19     one-twelfth of the product of 2.6 [2.3] percent of the member's

4-20     average monthly earnings during a period of five years preceding

4-21     January 1, 1941, multiplied by the number of months of prior

4-22     service. On retirement at an age other than normal retirement age,

4-23     the monthly prior service pension herein prescribed shall be the

4-24     actuarial equivalent thereof at the member's actual retirement

4-25     date, based on the schedule or schedules of payments approved by

4-26     the actuary and adopted by the retirement board and in effect on

4-27     the member's actual retirement date.

4-28                 (36)  "Qualified domestic relations order" has the

4-29     meaning assigned by Section 804.001, Government Code, and its

4-30     subsequent amendments.

4-31                 (37)  "Redeemed membership service" means membership

4-32     service reinstated in accordance with Section 5(e) of this Act.

4-33                 (38)  "Redeemed prior service" means prior service

4-34     reinstated in accordance with Section 5(e) of this Act.

4-35                 (39)  "Regular full-time employee" means an individual

4-36     who is employed by the city, a hospital authority, or the board;

4-37     who is not a commissioned civil service police officer or fire

4-38     fighter, a fire or police cadet employed under civil service

4-39     procedures, the mayor, or a member of the governing body; who is

4-40     classified in the annual budget of an employer for employment for

4-41     the full calendar year; and who works 30 hours or more in a normal

4-42     40-hour work week. The term does not include an individual whose

4-43     position is classified as seasonal or temporary by the employer,

4-44     even if the individual works 30 hours or more in a normal 40-hour

4-45     work week in which the individual is employed.

4-46                 (40)  "Retired member" means a person who because of

4-47     creditable service is qualified to receive and who has retired and

4-48     is eligible to continue receiving a retirement allowance as

4-49     provided by this Act.

4-50                 (41)  "Retirement" means the termination of employment

4-51     of a member after the member becomes entitled to receive a

4-52     retirement allowance in accordance with the provisions of this Act.

4-53                 (42) [(41)]  "Retirement allowance" means the life

4-54     annuity (modified cash refund) to which a member may be entitled

4-55     under this Act, including annuities payable on disability

4-56     retirement or on early retirement.

4-57                 (43) [(42)]  "Retirement board" means the board of

4-58     trustees of the retirement and pensioning system herein created for

4-59     the purpose of administering the retirement system.

4-60                 (44) [(43)]  "Retirement system," "retirement and

4-61     pensioning system," "pension system," or "system" means the

4-62     retirement and pensioning system created by this Act for a city

4-63     governed by this Act.

4-64                 (45) [(44)]  "Year of creditable service" means a

4-65     12-month period of creditable service determined in accordance with

4-66     uniform and nondiscriminatory rules established by the retirement

4-67     board.

4-68           Sec. 3.  ESTABLISHMENT AND APPLICABILITY.  Subject

4-69     [(a)  Except as provided by Subsection (b) of this section and

 5-1     subject] to the authority granted the retirement board in Section

 5-2     7(d) of this Act, members who retired, and the beneficiaries of

 5-3     members who died, prior to September 1, 1997 [1993], shall continue

 5-4     to receive the same retirement allowances or benefits they were

 5-5     entitled to receive [receiving] prior to that date, together with

 5-6     any cost of living adjustments authorized and paid in accordance

 5-7     with this Act.

 5-8           [(b)  Members who retired during the calendar years 1962 and

 5-9     1963 shall continue to receive a benefit in accordance with their

5-10     election, if any, and the retirement allowances computed in the

5-11     manner prescribed by an applicable city ordinance in effect as of

5-12     January 1, 1962, or in the manner in which said allowances would

5-13     have been computed under applicable city ordinances existing

5-14     immediately prior to the enactments of January 1, 1962, together

5-15     with any cost of living adjustments authorized and paid in

5-16     accordance with this Act.]

5-17           SECTION 2.  Section 6, Chapter 451, Acts of the 72nd

5-18     Legislature, Regular Session, 1991 (Article 6243n, Vernon's Texas

5-19     Civil Statutes), is amended by amending Subsection (c) and adding

5-20     Subsections (d) through (g) to read as follows:

5-21           (c)  At any time before a member's actual retirement date, a

5-22     member may establish creditable service for uniformed [military]

5-23     service performed that is creditable as provided under this

5-24     subsection according to the following conditions, limitations, and

5-25     restrictions:

5-26                 (1)  Uniformed [Military] service creditable in the

5-27     retirement system is any service required to be credited by the

5-28     Uniformed Services Employment and Reemployment Rights Act of 1994

5-29     (38 U.S.C. Section 4301 et seq.), as amended, and certain active

5-30     federal duty service in the armed forces of the United States

5-31     performed before the commencement of employment with the employer,

5-32     other than service as a student at a service academy, as a member

5-33     of the reserves, or any continuous active military service lasting

5-34     less than 90 days.  To be creditable, the uniformed [military]

5-35     service must have been performed before the beginning of the

5-36     member's most recent period of membership in the retirement system

5-37     or its predecessor system.

5-38                 (2)  A member is not eligible to establish uniformed

5-39     [military] service credit unless the member was released from

5-40     active military duty under conditions other than dishonorable.

5-41                 (3)  A member may not establish creditable service in

5-42     the retirement system for uniformed [military] service for more

5-43     than the greater of the creditable service required under the

5-44     Uniformed Services Employment and Reemployment Rights Act of 1994

5-45     (38 U.S.C. Section 4301 et seq.), as amended, or 48 [24] months of

5-46     creditable service in the retirement system for uniformed

5-47     [military] service under this subsection.

5-48                 (4)  A member may establish creditable service under

5-49     this subsection by contributing to the retirement system a single

5-50     payment equal to 25 percent of the estimated cost of the additional

5-51     projected retirement benefits the member will be entitled to

5-52     receive.  The retirement board will determine the required

5-53     contribution based on a procedure recommended by the actuary and

5-54     approved by the retirement board, provided, however,

5-55     notwithstanding the amount determined under the preceding sentence,

5-56     such contribution may not exceed the amount required under the

5-57     Uniformed Services Employment and Reemployment Rights Act of 1994

5-58     (38 U.S.C. Section 4301 et seq.), as amended, in the case of a

5-59     member who makes such contributions within the time prescribed by

5-60     such act.

5-61                 (5)  After the member makes the deposit required by

5-62     this subsection, the retirement system shall grant the member one

5-63     month of creditable service for each month of creditable uniformed

5-64     [military] service established under this subsection.

5-65           (d)  At any time before the actual retirement date of a

5-66     member who was not at any time a highly compensated employee within

5-67     the meaning of Section 414(q) of the code, a member may be

5-68     considered to qualify for unreduced retirement benefits at the age

5-69     of 55 or, if the member is more than 55 years of age, at the time

 6-1     of the purchase of additional service credit by an employer.  The

 6-2     incremental cost of eligibility under this subsection shall be

 6-3     purchased by the employer at the full actuarial cost of the

 6-4     additional creditable service as determined by the retirement board

 6-5     acting on the advice of the actuary.

 6-6           (e)  At any time before a member's actual retirement date,

 6-7     the member may purchase noncontributory service credit equal in

 6-8     amount to the period the member:

 6-9                 (1)  was on verifiable workers' compensation leave due

6-10     to an injury sustained in the course and scope of employment by an

6-11     employer;

6-12                 (2)  was on an authorized leave of absence from an

6-13     employer; or

6-14                 (3)  performed service for an employer in a position

6-15     the service for which is not otherwise creditable in the retirement

6-16     system.

6-17           (f)  The full actuarial cost of noncontributory creditable

6-18     service purchased as provided by Subsection (e) of this section is

6-19     payable by the member purchasing the credit.

6-20           (g)  In this section, "noncontributory creditable service"

6-21     means creditable service for which an employer contribution is not

6-22     made.

6-23           SECTION 3.  Subsections (a) and (e), Section 7, Chapter 451,

6-24     Acts of the 72nd Legislature, Regular Session, 1991 (Article 6243n,

6-25     Vernon's Texas Civil Statutes), are amended to read as follows:

6-26           (a)  Except as provided by Subsection (b) of this section, a

6-27     member who retires on or after the member's normal retirement date

6-28     and applies in writing for a retirement allowance shall receive a

6-29     life annuity (modified cash refund) beginning on the last day of

6-30     the month after the month in which the member retired.  Unless

6-31     Subsection (e) of this section or Section 8 of this Act applies, a

6-32     member whose employment by the employer terminates before the

6-33     member's normal retirement date is entitled to a distribution of

6-34     the member's accumulated deposits in a single lump sum.  On

6-35     receiving that distribution, a member is not entitled to any other

6-36     benefit under this Act.  If a member has at least five years of

6-37     creditable service and does not withdraw the member's accumulated

6-38     deposits, the member is entitled to a life annuity (modified cash

6-39     refund) beginning on the first day of the month after the month in

6-40     which the member's normal retirement date occurs.  If a member has

6-41     [at least] 20 years of creditable service and does not withdraw the

6-42     member's accumulated deposits, the member is [also] entitled to a

6-43     [elect an early] retirement benefit on attaining age 55.

6-44           (e)  Any member shall be eligible for early retirement if the

6-45     member attains the age of 55 years and completes at least 20 years

6-46     of creditable service.  Such member shall be entitled to a benefit

6-47     equal to a life annuity (modified cash refund) [reduced at the rate

6-48     of five-twelfths of one percent for each month the member was

6-49     retired before the member's normal retirement date].  A member who

6-50     takes early retirement shall begin receiving the benefits provided

6-51     by this subsection beginning on the last day of the month after the

6-52     month in which the member retired.

6-53           SECTION 4.  Section 9, Chapter 451, Acts of the 72nd

6-54     Legislature, Regular Session, 1991 (Article 6243n, Vernon's Texas

6-55     Civil Statutes), is amended by amending Subsections (a), (i), and

6-56     (j) and adding Subsection (p) to read as follows:

6-57           (a)  Notwithstanding any other provisions of this Act, the

6-58     annual benefit provided with respect to any member may not exceed

6-59     [the lesser of:]

6-60                 [(1)]  $90,000[; or]

6-61                 [(2)  100 percent of the member's compensation averaged

6-62     over the three consecutive calendar years during which the member

6-63     had the greatest aggregate compensation from the employer].

6-64           (i)  If a member has less than ten years of creditable

6-65     service at the time the member begins to receive benefits under the

6-66     Act, the $90,000 limitation, as adjusted, shall be reduced by

6-67     multiplying the limitation by a fraction in which the numerator is

6-68     the number of years of creditable service and the denominator is

6-69     10; provided, however, that the fraction may not be less than

 7-1     one-tenth. If the employee has less than 10 years of employment

 7-2     with the employer, the [100 percent limitation of Subsection (a)(2)

 7-3     and the] $10,000 limitation of Subsection (h) shall be reduced in

 7-4     the same manner as provided in the preceding sentence, except the

 7-5     numerator shall be the number of years of employment with the

 7-6     employer rather than the number of years of creditable service.

 7-7           (j)  If a member is or has been a member in one or more

 7-8     defined contribution plans maintained by the employer, the sum of

 7-9     the defined benefit plan fraction and the defined contribution plan

7-10     fraction for any year for which Section 415(e) of the code is in

7-11     effect may not exceed 1.0, as determined in accordance with Section

7-12     415(e) of the code.

7-13           (p)  A retired member who resumes regular full-time

7-14     employment with an employer automatically resumes membership as an

7-15     active contributing member, and the retirement board shall

7-16     terminate the person's retirement allowance.  When the person again

7-17     retires, the retirement system shall compute the benefit based on

7-18     service before and after the initial retirement.  The resulting

7-19     benefit is reduced actuarially to reflect the value of the benefits

7-20     received before the resumption of full-time employment.

7-21           SECTION 5.  Subsection (f), Section 12, Chapter 451, Acts of

7-22     the 72nd Legislature, Regular Session, 1991 (Article 6243n,

7-23     Vernon's Texas Civil Statutes), is repealed.

7-24           SECTION 6.  (a)  A retirement allowance being paid to a

7-25     member of the retirement system created under Chapter 451, Acts of

7-26     the 72nd Legislature, Regular Session, 1991 (Article 6243n,

7-27     Vernon's Texas Civil Statutes), who retired before October 1, 1997,

7-28     or to a beneficiary of such a member of that system, is changed

7-29     beginning with the payments due at the end of October 1997.

7-30           (b)  The amount of change for a member or a beneficiary of

7-31     the member is equal to a percentage multiplied by the retirement

7-32     allowance otherwise due.  The percentage is equal to:

7-33                 (1)  2.6 percent divided by the retirement benefit

7-34     percent in effect on the date of the member's retirement;

7-35                 (2)  minus one; and

7-36                 (3)  multiplied by 100.

7-37           SECTION 7.  Subsection (d), Section 6, Chapter 451, Acts of

7-38     the 72nd Legislature, Regular Session, 1991 (Article 6243n,

7-39     Vernon's Texas Civil Statutes), as added by this Act, takes effect

7-40     on the date the Internal Revenue Service issues the next favorable

7-41     determination letter regarding the qualification of the retirement

7-42     system created by Chapter 451, Acts of the 72nd Legislature,

7-43     Regular Session, 1991 (Article 6243n, Vernon's Texas Civil

7-44     Statutes).

7-45           SECTION 8.  Except as provided by Section 7 of this Act, this

7-46     Act takes effect October 1, 1997.

7-47           SECTION 9.  The importance of this legislation and the

7-48     crowded condition of the calendars in both houses create an

7-49     emergency and an imperative public necessity that the

7-50     constitutional rule requiring bills to be read on three several

7-51     days in each house be suspended, and this rule is hereby suspended.

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