LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 24, 1997
         
         
      TO: Honorable Eddie Lucio, Jr., Chair            IN RE:  House Bill No. 2259, As Engrossed
          Committee on Intergovernmental Relations                              By: Gray
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2259 ( Relating 
to the establishment and administration of a retirement fund 
for police officers in certain municipalities.) this office 
has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2259-As Engrossed
         
No fiscal implication to the State is anticipated.
         

         
 
          
The bill would allow for the establishment of a police pension 
fund with a specified benefit structure by any city whose population 
was between 50,000 and 400,000, has a city manager form of government, 
and has never operated a statutory police retirement plan. The 
cost to a city adopting a plan specified by the provisions of 
the bill would depend on whether the city currently has a police 
pension fund, and the comparative cost of providing benefits 
under the two plan structures. 

The City of Galveston estimates 
that adoption of this plan would have no fiscal impact for Galveston 
since the benefit structure is identical to their current police 
pension plan and the bill would allow them to transfer the assets 
from their current plan. 

          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,TL ,PE ,WM