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.