1-1     By:  Barrientos                                       S.B. No. 1209

 1-2           (In the Senate - Filed March 12, 1997; March 17, 1997, read

 1-3     first time and referred to Committee on Intergovernmental

 1-4     Relations; April 11, 1997, reported adversely, with favorable

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

 1-6     April 11, 1997, sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1209                 By:  Shapiro

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to participation in the proportionate retirement program

1-11     for public employees.

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

1-13           SECTION 1.  Section 803.0021, Government Code, is amended to

1-14     read as follows:

1-15           Sec. 803.0021.  APPLICATION OF CHAPTER.  This chapter applies

1-16     only to:

1-17                 (1)  a retirement system for general municipal

1-18     employees in a municipality with a population of not less than

1-19     460,000 nor more than 500,000; [and]

1-20                 (2)  the Employees Retirement System of Texas, the

1-21     Teacher Retirement System of Texas, the Judicial Retirement System

1-22     of Texas Plan One, the Judicial Retirement System of Texas Plan

1-23     Two, the Texas County and District Retirement System, and the Texas

1-24     Municipal Retirement System; and

1-25                 (3)  a retirement system that makes an election under

1-26     Section 803.101(f).

1-27           SECTION 2.  Section 803.101, Government Code, is amended by

1-28     amending Subsection (a) and adding Subsection (f) to read as

1-29     follows:

1-30           (a)  Except as provided by Subsections [Subsection] (b) and

1-31     (f), each retirement system to which this chapter applies is

1-32     required to participate in the program of proportionate retirement

1-33     benefits provided by this chapter.

1-34           (f)  The governing body of a public retirement system in this

1-35     state for general municipal employees that is a qualified plan

1-36     under Section 401(a) of the Internal Revenue Code of 1986 (26

1-37     U.S.C. Section 401) and that is in a municipality with a population

1-38     of not less than 55,000 may elect to participate in the

1-39     proportionate retirement program by adopting a resolution to that

1-40     effect.  A resolution may not be adopted under this subsection

1-41     without the approval of the governing body of the municipality that

1-42     finances the retirement system.  The governing body of the

1-43     retirement system shall notify all other participating retirement

1-44     systems of the election.  The effective date of participation in

1-45     the proportionate retirement program by a retirement system for

1-46     which an election is made under this subsection is the first day of

1-47     the third month after the month in which notice is given under this

1-48     subsection.

1-49           SECTION 3.  Section 803.103, Government Code, is amended to

1-50     read as follows:

1-51           Sec. 803.103.  LIMITATION OF PARTICIPATION BY RETIREMENT

1-52     SYSTEMS.  (a)  Participation in the proportionate retirement

1-53     program by a subdivision participating in the Texas County and

1-54     District Retirement System or a municipality participating in the

1-55     Texas Municipal Retirement System does not include participation

1-56     with a retirement system described by Section 803.0021(3)

1-57     [803.0021(1)] if the subdivision or municipality elects [has

1-58     elected] to so limit its participation and has not revoked the

1-59     election under Subsection (b).

1-60           (b)  A subdivision or municipality that has elected to limit

1-61     its participation in the proportionate retirement program may

1-62     revoke the election and remove the limitation on participation.

1-63           (c)  An election under this section [subsection] may be made

1-64     by vote of the governing body of the subdivision or municipality in

 2-1     the manner required for official actions of the governing body.

 2-2     The governing body shall send notice of an election under this

 2-3     subsection to the board of trustees of the retirement system in

 2-4     which the subdivision or municipality participates.  An election

 2-5     under Subsection (a)  must be filed before the effective date of a

 2-6     public retirement system's participation in the program, as

 2-7     provided by Section 803.101(f), or the right of election under

 2-8     Subsection (a)  is waived.

 2-9           (d) [(c)]  The effective date of a removal of a limitation on

2-10     participation in the proportionate retirement program by a

2-11     subdivision or municipality electing under Subsection (b) is the

2-12     first day of the month after the month in which the appropriate

2-13     board of trustees receives notice of the election.

2-14           SECTION 4.  This Act takes effect September 1, 1997.

2-15           SECTION 5.  The importance of this legislation and the

2-16     crowded condition of the calendars in both houses create an

2-17     emergency and an imperative public necessity that the

2-18     constitutional rule requiring bills to be read on three several

2-19     days in each house be suspended, and this rule is hereby suspended.

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