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 municipal employees that is a qualified plan under

 2-4     Section 401(a) of the Internal Revenue Code of 1986 (26 U.S.C.

 2-5     Section 401) may elect to participate in the proportionate

 2-6     retirement program by adopting a resolution to that effect.  A

 2-7     resolution may not be adopted under this subsection without the

 2-8     approval of the governing body of the municipality that finances

 2-9     the retirement system.  The governing body of the retirement system

2-10     shall notify all other participating retirement systems of the

2-11     election.  The effective date of participation in the proportionate

2-12     retirement program by a retirement system for which an election is

2-13     made under this subsection is the first day of the third month

2-14     after the month in which notice is given under this subsection.

2-15           SECTION 3.  Subsection (a), Section 803.103, Government Code,

2-16     is amended to read as follows:

2-17           (a)  Participation in the proportionate retirement program by

2-18     a subdivision participating in the Texas County and District

2-19     Retirement System or a municipality participating in the Texas

2-20     Municipal Retirement System does not include:

2-21                 (1)  participation with a retirement system described

2-22     by Section 803.0021(1) if the subdivision or municipality has

2-23     elected to so limit its participation and has not revoked the

2-24     election under Subsection (b); or

2-25                 (2)  participation with a retirement system described

 3-1     by Section 803.0021(3).

 3-2           SECTION 4.  This Act takes effect September 1, 1997.

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

 3-4     crowded condition of the calendars in both houses create an

 3-5     emergency and an imperative public necessity that the

 3-6     constitutional rule requiring bills to be read on three several

 3-7     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 1209 passed the Senate on

         April 16, 1997, by a viva-voce vote; and that the Senate concurred

         in House amendment on May 29, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 1209 passed the House, with

         amendment, on May 26, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor