By:  Barrientos                                       S.B. No. 1209

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to participation in the proportionate retirement program

 1-2     for public employees.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 803.0021, Government Code, is amended to

 1-5     read as follows:

 1-6           Sec. 803.0021.  APPLICATION OF CHAPTER.  This chapter applies

 1-7     only to:

 1-8                 (1)  a retirement system for general municipal

 1-9     employees in a municipality with a population of not less than

1-10     460,000 nor more than 500,000; [and]

1-11                 (2)  the Employees Retirement System of Texas, the

1-12     Teacher Retirement System of Texas, the Judicial Retirement System

1-13     of Texas Plan One, the Judicial Retirement System of Texas Plan

1-14     Two, the Texas County and District Retirement System, and the Texas

1-15     Municipal Retirement System; and

1-16                 (3)  a retirement system that makes an election under

1-17     Section 803.101(f).

1-18           SECTION 2.  Section 803.101, Government Code, is amended by

1-19     amending Subsection (a) and adding Subsection (f) to read as

1-20     follows:

1-21           (a)  Except as provided by Subsections [Subsection] (b) and

1-22     (f), each retirement system to which this chapter applies is

1-23     required to participate in the program of proportionate retirement

 2-1     benefits provided by this chapter.

 2-2           (f)  The governing body of a public retirement system in this

 2-3     state for general municipal employees that is a qualified plan

 2-4     under Section 401(a) of the Internal Revenue Code of 1986 (26

 2-5     U.S.C. Section 401) and that is in a municipality with a population

 2-6     of not less than 55,000 may elect to participate in the

 2-7     proportionate retirement program by adopting a resolution to that

 2-8     effect.  A resolution may not be adopted under this subsection

 2-9     without the approval of the governing body of the municipality that

2-10     finances the retirement system.  The governing body of the

2-11     retirement system shall notify all other participating retirement

2-12     systems of the election.  The effective date of participation in

2-13     the proportionate retirement program by a retirement system for

2-14     which an election is made under this subsection is the first day of

2-15     the third month after the month in which notice is given under this

2-16     subsection.

2-17           SECTION 3.  Section 803.103, Government Code, is amended to

2-18     read as follows:

2-19           Sec. 803.103.  LIMITATION OF PARTICIPATION BY RETIREMENT

2-20     SYSTEMS.  (a)  Participation in the proportionate retirement

2-21     program by a subdivision participating in the Texas County and

2-22     District Retirement System or a municipality participating in the

2-23     Texas Municipal Retirement System does not include participation

2-24     with a retirement system described by Section 803.0021(3)

2-25     [803.0021(1)] if the subdivision or municipality elects [has

 3-1     elected] to so limit its participation and has not revoked the

 3-2     election under Subsection (b).

 3-3           (b)  A subdivision or municipality that has elected to limit

 3-4     its participation in the proportionate retirement program may

 3-5     revoke the election and remove the limitation on participation.

 3-6           (c)  An election under this section [subsection] may be made

 3-7     by vote of the governing body of the subdivision or municipality in

 3-8     the manner required for official actions of the governing body.

 3-9     The governing body shall send notice of an election under this

3-10     subsection to the board of trustees of the retirement system in

3-11     which the subdivision or municipality participates.  An election

3-12     under Subsection (a)  must be filed before the effective date of a

3-13     public retirement system's participation in the program, as

3-14     provided by Section 803.101(f), or the right of election under

3-15     Subsection (a) is waived.

3-16           (d) [(c)]  The effective date of a removal of a limitation on

3-17     participation in the proportionate retirement program by a

3-18     subdivision or municipality electing under Subsection (b) is the

3-19     first day of the month after the month in which the appropriate

3-20     board of trustees receives notice of the election.

3-21           SECTION 4.  This Act takes effect September 1, 1997.

3-22           SECTION 5.  The importance of this legislation and the

3-23     crowded condition of the calendars in both houses create an

3-24     emergency and an imperative public necessity that the

3-25     constitutional rule requiring bills to be read on three several

 4-1     days in each house be suspended, and this rule is hereby suspended.