SRC-JXG S.B. 429 76(R)BILL ANALYSIS Senate Research CenterS.B. 429 By: Barrientos Intergovernmental Relations 7/6/1999 Enrolled DIGEST Currently, Texas law controls the Austin Police Retirement System (APRS). S.B. 429 will alter the law governing the APRS by making APRS's statute supersede any meet and confer agreement, alter membership on the governing board, change the amount of time some military retirees could buy back, and change eligibility for the deferred retirement option plan. PURPOSE As enrolled, S.B. 429 sets forth the composition and terms of members of the Austin Police Retirement System. 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 Section 3.02, Article 6243n-1, V.T.C.S., to require the police retirement board (board) to be composed of five elected police officer members, each of whom serves for four years; one legally qualified voter to be appointed by the board to serve for a term of four years; and two retired elected members, rather than one, to serve for a term of four years, with the term of one member expiring each odd-numbered year. Provides that the terms of two members elected as described by Subsection (a)(4) of this section expire in 2001 and every fourth subsequent year, and the terms of three members elected as described by Subsection (a)(4) of this section expire in 2003 and every fourth subsequent year. Requires a vacancy occurring by the death, resignation, or removal of the member appointed under Subsection (a)(5) of this section to be filled by appointment by the remaining members of the board. Deletes text regarding vacancies and a member's successor. Makes conforming changes. SECTION 2. Amends Section 3.03, Article 6243n-1, V.T.C.S., as follows: Sec. 3.03. New heading: POLICE OFFICER AND RETIRED MEMBERS OF BOARD. (a) Requires police officer members of the board to be elected and to serve in accordance with Subsections (b)-(e) of this section. (b) Provides that any police officer member is eligible to run in the election for a position on the board. (c) Requires members to serve during the term for which they are elected, unless they are removed or their active service as police officers is terminated for any reason other than service retirement. (d) Makes conforming changes. (e) Deletes text regarding the election committee. Makes a conforming change. (f) Requires the retired members of the board to be elected and to serve in accordance with Subsections (g)-(j) of this section. (g) Provides that any retired member is eligible to run in the election for a position on the board. (h) Requires retired members to serve during the term for which they are elected and until their successors are elected and qualified. (i) Requires a vacancy occurring by reason of removal, resignation, or death to be filled for the remainder of the term by a retired member appointed by the vote of a majority of the remaining members of the board. (j) Requires an election for retired members to be held during the first week in December of each odd-numbered year. Provides that the retired member receiving the highest number of votes in an election is elected. Requires selection to be by lot, in case of a tie vote. (k) Requires the board to approve written procedures for the conduct of all elections under this Act and to certify and announce the results of each election. SECTION 3. Amends Section 5.02, Article 6243n-1, V.T.C.S., by adding Subsection (c), to prohibit a member from receiving credit under this section for military service for which the person is receiving or is eligible to receive federal retirement payments based on 20 years or more of active military service or its equivalent by the member or for which the member has received credit in any other public retirement system or program established under the laws of this state. SECTION 4. Amends Section 5.04(a), Article 6243n-1, V.T.C.S., to provide that this section does not take effect unless the city council authorizes, rather than irrevocably authorizes, the city to begin making contributions to the police retirement system in accordance with Section 8.01(a) of this Act for police cadets. Makes a conforming change. SECTION 5. Amends Section 6.07, Article 6243n-1, V.T.C.S., by amending Subsections (a) and (b), to provide that the retroactive deferred retirement option plan (RETRO DROP) is an option a member eligible for retirement based on 25 years of creditable service (excluding any military service established under Section 5.02 of this Act), rather than under Section 6.02 of this Act, may elect at retirement. Prohibits RETRO DROP's benefit computation date from preceding the date the member first became eligible for service retirement based on 25 years of creditable service, rather than a normal retirement date as defined by Section 1.02(19) of this Act. SECTION 6. Makes application of this Act prospective. SECTION 7. Effective date: September 1, 1999. SECTION 8. Emergency clause.