By Mowery                                             H.B. No. 3035
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to requiring voter approval on certain matters related to
 1-3     certain municipal retirement systems.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. APPLICABILITY. This Act applies to a municipality
 1-6     that by an ordinance has established a municipal retirement system
 1-7     that has civil service employees and non-civil service employees
 1-8     and that has 500 or more active and retired firefighters and police
 1-9     officers other than:
1-10                 (1)  a system organized under the Texas Local Fire
1-11     Fighters Retirement Act (Article 624e, Vernon's Texas Civil
1-12     Statutes);
1-13                 (2)  the Texas Municipal Retirement System; or
1-14                 (3)  any retirement system established under any other
1-15     law exclusively for firefighters or police officers or for both
1-16     firefighters and police officers.
1-17           SECTION 2. ELECTION PROCEDURES. (a)  Before the governing
1-18     body of a municipality adopts an ordinance to modify an existing
1-19     municipal retirement system that covers all employees, including
1-20     public safety employees by creating a separate retirement system
1-21     for firefighters or police officers, or for both firefighters and
1-22     police officers, or adopts an ordinance to modify or change the
1-23     board composition of the employee retirement board that exists on
 2-1     October 1, 2001, the governing body must comply with this section.
 2-2           (b)  The governing body shall call an election to vote on
 2-3     creating a separate retirement system or modifying the composition
 2-4     of the employee retirement board if:
 2-5                 (1)  a majority of the members of the governing body
 2-6     vote to call an election; or
 2-7                 (2)  the qualified voters of the municipality submit a
 2-8     petition requesting an election.
 2-9           (c)  A petition under Subsection (b)(2) must:
2-10                 (1)  be in the form prescribed by the governing body;
2-11                 (2)  be signed by a number of qualified voters of the
2-12     municipality equal to at least five percent of the votes cast in
2-13     the municipality for governor at the most recent general election
2-14     at which the office governor was filled; and
2-15                 (3)  comply with Chapter 277, Election Code.
2-16           (d)  Not later than the 40th working day after the date a
2-17     petition under Subsection (b)(2) is presented to the governing
2-18     body, the municipal secretary shall certify to the governing body
2-19     that the petition meets the requirements of Subsection (c).
2-20           (e)  The ballot for an election called under this section
2-21     shall be printed to permit voting for or against the following
2-22     propositions, as applicable:
2-23                 (1)  "Authorizing the (name of the governing body of
2-24     the municipality) to adopt an ordinance to modify or change the
2-25     existing employee retirement system to create a separate retirement
2-26     system for firefighters or police officers, or for both
 3-1     firefighters and police officers, and to fund the separate
 3-2     retirement system created."
 3-3                 (2)  "Authorizing the (name of the governing body of
 3-4     the municipality) to adopt an ordinance to modify or change the
 3-5     composition of the employee retirement board."
 3-6           (f)  An election authorized by this section shall be held,
 3-7     and the returns prepared and canvassed, in conformity with the
 3-8     Election Code.
 3-9           (g)  If a majority of the qualified voters casting ballots in
3-10     an election under this section authorize the governing body to
3-11     create separate retirement funds, the governing body shall provide
3-12     for an equitable division of assets of the existing retirement
3-13     system so that all retirement systems governed by the municipality
3-14     are financially sound.
3-15           SECTION 3.  EFFECTIVE DATE. This Act takes effect immediately
3-16     if it receives a vote of two-thirds of all the members elected to
3-17     each house, as provided by Section 39, Article III, Texas
3-18     Constitution.  If this Act does not receive the vote necessary for
3-19     immediate effect, this Act takes effect September 1, 2001.