1-1                                   AN ACT
 1-2     relating to credit in and benefits and administration of retirement
 1-3     systems for police officers in certain municipalities.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 3.02, Chapter 452, Acts of the 72nd
 1-6     Legislature, Regular Session, 1991 (Article 6243n-1, Vernon's Texas
 1-7     Civil Statutes), is amended to read as follows:
 1-8           Sec. 3.02.  COMPOSITION OF BOARD.  (a)  The police retirement
 1-9     board shall be composed of 11 members as follows:
1-10                 (1)  one council member designated by the city council;
1-11                 (2)  the city manager or the city manager's designee;
1-12                 (3)  the director of finance or the director's
1-13     designee;
1-14                 (4)  five [four] police officer members elected by the
1-15     police officer members of the system, each of whom serves [to
1-16     serve] for a term of four years[.  Vacancies occurring by death,
1-17     resignation, disability retirement, removal, or any other reason
1-18     except retirement shall be filled for the remainder of the term by
1-19     a police officer member appointed by the board;  a police officer
1-20     member who retires, except for disability retirement, will be
1-21     eligible to complete the remainder of the member's term];
1-22                 (5)  one [three] legally qualified voter [voters] of
1-23     the city, resident for the preceding five years, to be appointed by
1-24     the police retirement board to serve for a[.  The] term of [office
 2-1     of citizen members shall be] four years[,] and [each member shall
 2-2     continue to serve] until the member's successor is duly selected
 2-3     and qualified[.  Vacancies occurring by death, resignation, or
 2-4     removal shall be filled by appointment by the remaining members of
 2-5     the police retirement board]; and
 2-6                 (6)  two [one] retired members [member] to be elected
 2-7     by the retired members to serve for a[.  The] term of [office of
 2-8     such member shall be] four years, with the term of one member
 2-9     expiring each odd-numbered year[.  Such member shall continue to
2-10     serve until the member's successor is duly elected and qualified.
2-11     Vacancies occurring by death, resignation, or removal of such
2-12     retired member shall be filled by election by the retired members].
2-13           (b)  The terms of two members elected as described by
2-14     Subsection (a)(4) of this section expire in 2001 and every fourth
2-15     subsequent year, and the terms of three members elected as
2-16     described by Subsection (a)(4) of this section expire in 2003 and
2-17     every fourth subsequent year.
2-18           (c)  A vacancy occurring by the death, resignation, or
2-19     removal of  the member appointed under Subsecton (a)(5) of this
2-20     section shall be filled by appointment by the remaining members of
2-21     the police retirement board.
2-22           SECTION 2.  Section 3.03, Chapter 452, Acts of the 72nd
2-23     Legislature, Regular Session, 1991 (Article 6243n-1, Vernon's Texas
2-24     Civil Statutes), is amended to read as follows:
2-25           Sec. 3.03.  [ELECTION OF] POLICE OFFICER AND RETIRED MEMBERS
2-26     OF BOARD.  (a)  The police officer members of the board shall be
2-27     elected and shall serve in accordance with Subsections (b)-(e) of
 3-1     this section. [the following provisions:]
 3-2           (b) [(1)]  Any police officer member is [shall be] eligible
 3-3     to run in the election for a position on the board.
 3-4           (c) [(2)  Terms of office shall be four years.]  Members
 3-5     shall serve during the term for which they are elected and until
 3-6     their successors are elected and qualified, unless they are removed
 3-7     or their active service as police officers with the city is
 3-8     terminated for any reason other than service retirement.  If a
 3-9     police officer member should elect service retirement under Article
3-10     VI of this Act while serving the term for which the member is
3-11     elected, the member shall continue to serve for the remainder of
3-12     the term.
3-13           (d) [(3)]  A vacancy occurring by reason of removal,
3-14     resignation, death, or any other reason [except retirement] shall
3-15     be filled for the remainder of the term by a police officer member
3-16     appointed by the remaining members of the police retirement board.
3-17           (e) [(4)  No later than the first day of November of each
3-18     odd-numbered year, the board shall appoint an election committee.
3-19     The election committee shall prepare the ballot containing the
3-20     names of all eligible candidates.]
3-21                 [(5)  The election committee shall publish a notice at
3-22     least two weeks prior to the election date, informing all police
3-23     officer members of the election and the names of the police officer
3-24     members who have been certified as candidates.]
3-25                 [(6)]  Elections for police officer members shall be
3-26     held on the first payday in December of each odd-numbered year.
3-27     The police officers receiving the highest number of votes are
 4-1     [shall be deemed] elected.  In case of a tie vote, selection shall
 4-2     be by lot[.]
 4-3                 [(7)  The election committee shall canvass the returns,
 4-4     certify the results, and announce the official results of the
 4-5     election.]
 4-6                 [(8)  The police retirement board shall approve written
 4-7     procedures for the conduct of the election no later than August 1
 4-8     of each odd-numbered year].
 4-9           (f)  The retired members of the board shall be elected and
4-10     shall serve in accordance with Subsections (g)-(j) of this section.
4-11           (g)  Any retired member is eligible to run in the election
4-12     for a position on the board.
4-13           (h)  Retired members shall serve during the term for which
4-14     they are elected and until their successors are elected and
4-15     qualified.
4-16           (i)  A vacancy occurring by reason of removal, resignation,
4-17     or death shall be filled for the remainder of the term by a retired
4-18     member appointed by the vote of a majority of the remaining members
4-19     of the police retirement board.
4-20           (j)  An election for retired members shall be held during the
4-21     first week in December of each odd-numbered year.  The retired
4-22     member receiving the highest number of votes in an election is
4-23     elected.  In case of a tie vote, selection shall be by lot.
4-24           (k)  The police retirement board shall approve written
4-25     procedures for the conduct of all elections under this Act and
4-26     shall certify and announce the results of each election.
4-27           SECTION 3.  Section 5.02, Chapter 452, Acts of the 72nd
 5-1     Legislature, Regular Session, 1991 (Article 6243n-1, Vernon's Texas
 5-2     Civil Statutes), is amended by adding Subsection (c) to read as
 5-3     follows:
 5-4           (c)  A member may not receive credit under this section for
 5-5     military service for which the person is receiving or is eligible
 5-6     to receive federal retirement payments based on 20 years or more of
 5-7     active military service or its equivalent by the member or for
 5-8     which the member has received credit in any other public retirement
 5-9     system or program established under the laws of this state.
5-10           SECTION 4.  Section 5.04(a), Chapter 452, Acts of the 72nd
5-11     Legislature, Regular Session, 1991 (Article 6243n-1, Vernon's Texas
5-12     Civil Statutes), is amended to read as follows:
5-13           (a)  This section does not take effect unless the city
5-14     council [irrevocably] authorizes the city to begin making
5-15     contributions to the police retirement system in accordance with
5-16     Section 8.01(a) of this Act for police cadets during their
5-17     employment as cadets while members of a cadet class.  Police cadets
5-18     whose cadet class begins after the city council makes the
5-19     [irrevocable] authorization shall make deposits to the police
5-20     retirement system in accordance with Section 8.01(a) of this Act,
5-21     and those cadets shall be members of the police retirement system
5-22     and shall receive creditable service for employment as cadets while
5-23     members of a cadet class, notwithstanding Sections 1.02(7), (18),
5-24     and (21) of this Act.
5-25           SECTION 5.  Sections 6.07(a) and (b), Chapter 452, Acts of
5-26     the 72nd Legislature, Regular Session, 1991 (Article 6243n-1,
5-27     Vernon's Texas Civil Statutes), are amended to read as follows:
 6-1           (a)  The retroactive deferred retirement option plan,
 6-2     referred to as RETRO DROP, is an option a member eligible for
 6-3     service retirement based on 25 years of creditable service,
 6-4     excluding any military service established under Section 5.02 of
 6-5     this Act, [under Section 6.02 of this Act] may elect at retirement
 6-6     subject to the conditions of this section.  A member who elects
 6-7     RETRO DROP receives a lump sum and a monthly retirement benefit.
 6-8           (b)  The member shall select the RETRO DROP benefit
 6-9     computation date.  The date:
6-10                 (1)  must be the last day of the month used for the
6-11     purpose of determining the monthly retirement benefit;
6-12                 (2)  may not precede the date the member first became
6-13     eligible for service retirement based on 25 years of creditable
6-14     service, excluding [normal retirement date as defined by Section
6-15     1.02(19) of this Act, except that for purposes of this subsection,
6-16     creditable service does not include] any military service credit
6-17     established under Section 5.02 of this Act; and
6-18                 (3)  may not precede the date of retirement by more
6-19     than 36 months.
6-20           SECTION 6.  The changes in law made by this Act in the
6-21     composition of the police retirement board in certain
6-22     municipalities apply to each vacancy on the board by an elected or
6-23     citizen member of the board that occurs on or after the effective
6-24     date of this Act.
6-25           SECTION 7.  This Act takes effect September 1, 1999.
6-26           SECTION 8.  The importance of this legislation and the
6-27     crowded condition of the calendars in both houses create an
 7-1     emergency and an imperative public necessity that the
 7-2     constitutional rule requiring bills to be read on three several
 7-3     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 3773 was passed by the House on May
         11, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 3773 was passed by the Senate on May
         26, 1999, by the following vote:  Yeas 30, Nays 0.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor