By:  King, et al. (Senate Sponsor - Brimer)                     H.J.R. No. 54 
	(In the Senate - Received from the House April 30, 2003; 
May 7, 2003, read first time and referred to Committee on State 
Affairs; May 26, 2003, reported adversely, with favorable 
Committee Substitute by the following vote:  Yeas 6, Nays 0; 
May 26, 2003, sent to printer.)


COMMITTEE SUBSTITUTE FOR H.J.R. No. 54                                   By:  Armbrister


HOUSE JOINT RESOLUTION


proposing a constitutional amendment providing that certain 
benefits in certain public retirement systems may not be reduced or 
impaired.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Article XVI, Texas Constitution, is amended by 
adding Section 66 to read as follows:
	Sec. 66.  PROTECTED BENEFITS UNDER CERTAIN PUBLIC RETIREMENT 
SYSTEMS.  (a)  This section applies only to a public retirement 
system that is not a statewide system and that provides service and 
disability retirement benefits and death benefits to public 
officers and employees.
	(b)  This section does not apply to a public retirement 
system that provides service and disability retirement benefits and 
death benefits to firefighters and police officers employed by the 
City of San Antonio.
	(c)  This section does not apply to benefits that are:                  
		(1)  health benefits;                                                  
		(2)  life insurance benefits; or                                       
		(3)  disability benefits that a retirement system 
determines are no longer payable under the terms of the retirement 
system as those terms existed on the date the retirement system 
began paying the disability benefits.
	(d)  On or after the effective date of this section, a change 
in service or disability retirement benefits or death benefits of a 
retirement system may not reduce or otherwise impair benefits 
accrued by a person if the person:
		(1)  could have terminated employment or has terminated 
employment before the effective date of the change; and
		(2)  would have been eligible for those benefits, 
without accumulating additional service under the retirement 
system, on any date on or after the effective date of the change had 
the change not occurred.
	(e)  Benefits granted to a retiree or other annuitant before 
the effective date of this section and in effect on that date may 
not be reduced or otherwise impaired.
	(f)  The political subdivision or subdivisions and the 
retirement system that finance benefits under the retirement system 
are jointly responsible for ensuring that benefits under this 
section are not reduced or otherwise impaired.
	(g)  This section does not create a liability or an 
obligation to a retirement system for a member of the retirement 
system other than the payment by active members of a required 
contribution or a future required contribution to the retirement 
system.
	(h)  A retirement system described by Subsection (a) and the 
political subdivision or subdivisions that finance benefits under 
the retirement system are exempt from the application of this 
section if:
		(1)  the political subdivision or subdivisions hold an 
election on the date in May 2004 that political subdivisions may use 
for the election of their officers;
		(2)  the majority of the voters of a political 
subdivision voting at the election favor exempting the political 
subdivision and the retirement system from the application of this 
section; and
		(3)  the exemption is the only issue relating to the 
funding and benefits of the retirement system that is presented to 
the voters at the election.
	SECTION 2.  This constitutional amendment shall be submitted 
to the voters at an election to be held September 13, 2003. The 
ballot shall be printed to allow for voting for or against the 
proposition: "The constitutional amendment providing that certain 
benefits under certain local public retirement systems may not be 
reduced or impaired."



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