HBA-MPM S.B. 802 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 802 By: Gallegos Pensions & Investments 4/8/2001 Engrossed BACKGROUND AND PURPOSE Current law provides for county employees to take advantage of federal tax savings for qualified benefit plans. Recent federal legislation resulting from the Taxpayer Relief Act of 1997 and the Transportation Equity Act for the 21st Century have expanded the eligible expenses which may qualify for federal tax savings, including the cost of transportation in a commuter highway vehicle, transit passes, and parking expenses. In order to make these benefits available to county employees, it is necessary to modify existing state law. Senate Bill 802 conforms state statutes to new federal legislation which authorizes county employees to take advantage of a tax savings for qualified benefit plans. 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 Senate Bill 802 amends the Local Government Code to include a bona fide compensation reduction arrangement under the federal Internal Revenue Code of 1986 as a benefit that may be offered by the commissioners court of a county to county employees. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.