LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 26, 1997
         
         
      TO: Honorable Barry Telford, Chair            IN RE:  House Bill No. 2259, Committee Report 1st House, Substituted
          Committee on Pensions and Investments                              By: Gray
          House
          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-Committee Report 1st House, Substituted
         
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 ,PE ,WM