BILL ANALYSIS

 

 

                                                                                                                                           H.B. 2799

                                                                                                                                  By: McClendon

                                                                                                                      Pensions & Investments

                                                                                                       Committee Report (Unamended)

 

 

 

BACKGROUND AND PURPOSE

 

This legislation amends the Texas Local Fire Fighters Retirement Act (TLFFRA) which provides pension systems for paid fire fighters in many municipalities.  The original statute was enacted in 1937. 

 

In the mid 1990’s, the statute was amended to make the law applicable to other political subdivisions as well as municipalities.  However, due to some unclear language, there is a question as to whether the statute applies to certain political subdivisions.  This bill clarifies that the statute applies to emergency service districts as well as municipalities.

 

RULEMAKING AUTHORITY

 

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. 

 

ANALYSIS

 

This bill clarifies that political subdivisions not located outside the boundaries of a municipality are subject to this statute.  This bill allows for a political subdivision with volunteer and paid members to establish a retirement fund under the provisions of TLFFRA.  This bill allows for a political subdivision's volunteer fire fighters to be members of the Texas Statewide Emergency Services Retirement System, while the paid fire fighters fall under the TLFFRA provisions.

 

Technical changes are made to reference the correct section of the Government Code.

 

EFFECTIVE DATE

 

Upon passage, or, if the Act does not receive the necessary vote, the Act takes effect September 1, 2007.