HBA-TBM, CCH H.B. 877 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 877
By: Flores
Appropriations
4/8/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, the Employee Retirement System of Texas (ERS) does not
provide benefits to the surviving spouses and minor children (survivor) of
state peace officers killed in the line of duty, who have not yet vested in
ERS at the time of death.  Providing survivor benefits to the beneficiaries
of deceased peace officers would help to ease the financial burden that
compounds a surviving family's emotional difficulties.  These benefits
could be funded by taxing the sale of bullets by one percent and depositing
the resulting funds in a dedicated account within the state treasury.
House Bill 877 creates a bullet sales tax to provide survivor benefits for
the family of state peace officers killed in the line of duty.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 877 amends the Government and Tax codes relating to the benefits
provided to the surviving spouse or minor children of a peace officer
killed in the line of duty who had not qualified for an annuity under an
employees' retirement plan.  H.B. 877 requires the state to pay for the
deceased peace officer's funeral expenses and the greater of monthly
annuity payments that the deceased peace officer would have received had
the officer survived and retired on the last day of the month in which the
peace officer died, or the minimum monthly annuity payment the deceased
peace officer would have received if the peace officer had been employed by
the state for 10 years, had been paid a salary at the lowest amount
provided by the General Appropriations Act for a peace officer, and had
been eligible to retire under the Employees Retirement System of Texas.
The bill entitles a surviving spouse to receive monthly payments until the
surviving spouse remarries, becomes eligible for retirement under an
employees' retirement plan, or becomes eligible for Social Security
benefits. If an eligible surviving spouse does not exist, the state is
required to pay the funeral expenses of the deceased peace officer to the
guardian or legal representative of any surviving minor children.  These
benefits supplement any other benefits provided under current law.  
To pay for these benefits, H.B. 877 sets forth provisions to impose a tax
on each sale of a bullet in this state at a rate of one percent of the
sales price of the bullet, but does not apply to a sale for resale of a
bullet. This tax supplements any other tax imposed under current law.  The
bill requires the comptroller to allocate the taxes collected other than
penalties and interest to the peace officer survivors account that is part
of the general revenue fund.  Money in the peace officer survivors account
may only be used to pay benefits to the surviving spouse or guardian or
legal representative of the surviving minor children.  The bill also
requires any unobligated amount in the account in excess of $5 million at
the end of each state fiscal year to be transferred to the undedicated part
of the general revenue fund.  This Act applies only to a peace officer
killed in the line of duty on or after September 1, 2001. 

EFFECTIVE DATE

September 1, 2001.