SRC-AXB H.B. 1207 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1207
76R9104  GCH-FBy: Naishtat (Barrientos)
Intergovernmental Relations
5/3/1999
Engrossed


DIGEST 

Currently, firefighters in certain municipalities have established benefits
and restrictions in the administration of their retirement systems.  H.B.
1207 expands regulation of certain agreements, including DROP accounts, and
benefit adjustments. 

PURPOSE

As proposed, H.B. 1207 expands regulation of certain agreements, including
DROP accounts, and benefit adjustments. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Article 1, Chapter 183, Article 6243e.1, V.T.C.S., by
adding Section 1.05, as follows: 

Sec.  1.05.  AGREEMENT MAY NOT SUPERSEDE THIS ACT.  Prohibits an agreement
between a public employer and an association from superseding or preempting
any provision of this Act and from altering any right, benefit, privilege,
or obligation. 

SECTION 2.   Amends Section 8.04, Chapter 183, Article 6243e.1, V.T.C.S.,
to require, rather than prohibit, an increase in the amount credited
monthly to the member's DROP account, before the effective date of the
member's retirement. 

SECTION 3.  Amends Section 8.06, Chapter 183, Article 6243e.1, V.T.C.S., by
adding Subsections (d) and (e), to set forth provisions regarding a DROP
account to benefit a surviving spouse of the individual who was eligible
for a DROP account.  Sets forth payments required to be made by the board
of trustees if a surviving spouse makes an election under this subsection.
Sets forth provisions regarding a DROP account to benefit surviving
dependent children.  Sets forth payments required to be made by the board
of trustees if the surviving dependent children make an election under this
subsection. 

SECTION 4.  Amends Section 9.04(b), Chapter 183, Article 6243e.1, V.T.C.S.,
to specify a prohibition against an adjustment which would exceed certain
limits.  Prohibits an adjustment which would be one-half of one percent or
less of a person's benefit from being made, and provides an exception. 

SECTION 5.  Effective date:  September 1, 1999.

SECTION 6.  Emergency clause.