SRC-JEC S.B. 802 77(R)BILL ANALYSIS


Senate Research CenterS.B. 802
By: Gallegos
Intergovernmental Relations
6/20/2001
Enrolled


DIGEST AND PURPOSE 

Currently, Texas law provides for county employees to take advantage of
federal tax savings for qualified benefit plans.  S.B. 802 conforms state
statutes to new federal legislation regarding the tax savings to allow
county employees to take advantage of tax savings for qualified benefit
plans specifically for transportation expenses. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 155C, Local Government Code, as follows:

SUBCHAPTER C.  New heading:  SALARY REDUCTIONS TO FINANCE CERTAIN BENEFIT
OPTIONS 

Sec. 155.042.  New heading:  BENEFIT PROGRAM.  Authorizes the commissioners
court of a county by order or resolution to establish a program to provide
benefits that qualify for a cafeteria plan or a bona fide compensation
reduction arrangement under the federal Internal Revenue Code of 1986 and
regulations adopted under that code.  Deletes text referencing certain
sections of the Internal Revenue Code. 

Sec. 155.043.  Requires the commissioners court, if it establishes a
program, rather than a cafeteria plan program, under this subchapter, to
authorize county employees to enter into voluntary agreements with the
county to reduce the periodic compensation paid the employees by amounts to
be used to finance benefit options provided under the program.  Makes a
conforming change. 

 Sec. 155.044.  Makes a conforming change.

SECTION 2.   Effective date: upon passage or September 1, 2001.
Provides that the change in law made by this Act applies to a benefit that
is provided before, on, or after the effective date of this Act.