By: Watson S.B. No. 1626

(In the Senate - Filed March 8, 2007; March 21, 2007, read first time and referred to Committee on State Affairs; April 18, 2007, reported adversely, with favorable Committee Substitute by the following vote: Yeas 4, Nays 0, 1 present not voting; April 18, 2007, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 1626 By: Jackson

A BILL TO BE ENTITLED

AN ACT

relating to participation in the proportionate retirement program by certain public employees.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 803.101, Government Code, is amended by adding Subsections (g) and (h) to read as follows:

(g) The governing body of a municipality described by Section 803.0021(1) that finances a public retirement system for police officers or firefighters may not approve the retirement system's election under Subsection (f) to participate in the proportionate retirement program unless an actuary acting on behalf of the municipality reviews the initial cost to the municipality of making the election.

(h) If the governing body of a public retirement system under Subsection (g) adopts a resolution to participate in the proportionate retirement program, the governing body of the municipality that finances the retirement system shall appropriate and pay to the retirement system, at the same time the municipality makes the municipality's monthly contribution to the retirement system, the additional amount necessary, as determined by the retirement system's actuary, to fund the additional liabilities incurred by the retirement system as a result of participating in the proportionate retirement program.

SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2007.

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