HBA-SEB C.S.H.B. 2522 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2522
By: Greenberg
Pensions and Investments
3/29/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

C.S.H.B. 2522 reflects the suggestions made at a meeting of the Legislative
Committee of the Texas Local Fire Fighters Retirement Act.  This bill
authorizes a local board to swear a witness and to issue a subpoena,
authorizes the fire fighters' pension commissioner to issue a subpoena and
to contract for services, and modifies language regarding a board's
authority to pay costs from the retirement system's fund.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 18(a), Article 6243e, V.T.C.S. (Texas Local Fire
Fighters Retirement Act), to authorize the chairman and vice chairman of a
board of trustees established under this Act (board) to swear witnesses for
the purpose of taking testimony before the board on any matter related to a
trust fund established in conjunction with a fire fighter's retirement
system.  Authorizes the board to issue a subpoena addressed to a sheriff or
constable to require the attendance of a witness or the production of
books, records, or other documents that may be necessary and proper for the
purposes of a proceeding before the board.   

SECTION 2.  Amends Article 6243e, V.T.C.S. (Texas Local Fire Fighters
Retirement Act), by adding Section 18A, as follows: 

Sec. 18A.  ENFORCEMENT OF ACT.  Authorizes the fire fighters' pension
commissioner to issue a subpoena addressed to a sheriff or constable to
require the production of books, records, or other documents that may be
necessary to provide or determine compliance if a board fails or refuses to
comply with an applicable requirement of this Act.  Requires the attorney
general to represent the fire fighters' pension commissioner in the
enforcement of this Act.  Authorizes the attorney general to file an
appropriate pleading or action in a district court in Travis County to
enforce a subpoena or secure a writ of mandamus to compel compliance with
this Act. 

SECTION 3.  Amends Section 21, Article 6243e, V.T.C.S. (Texas Local Fire
Fighters Retirement Act), by adding Subsection (k), as follows: 

(k)  Authorizes the fire fighters' pension commissioner to contract with
the board to provide services relating to the trust fund that the fire
fighters' pension commissioner is not otherwise required by this Act to
perform.  Authorizes the services to include accounting, investment advice,
and auditing.  Requires the fire fighters' pension commissioner to impose a
fee for the services in an amount sufficient in the aggregate to recover
the costs of providing the services.  Requires fees collected to be
deposited to the credit of the fire fighters' pension commissioner account
in the general revenue fund. 

SECTION 4.  Amends Section 25, Article 6243e, V.T.C.S. (Texas Local Fire
Fighters Retirement Act), to authorize a board to pay from assets of the
fund all costs reasonably and lawfully incurred  by the fire fighters'
retirement system, rather than the costs of legal and medical fees, and the
costs of actual expenses incurred by board members in the performance of
their duties on the board. Deletes existing text authorizing payments from
the fund if the expenses are first approved by a majority of participating
members in the fire fighters' retirement system.  Makes conforming changes. 

SECTION 5.Emergency clause.
  Effective date: upon passage.  

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original in SECTION 3, by amending Section 21,
Article 6243e, V.T.C.S. (Texas Local Fire Fighters Retirement Act), by
adding Subsection (k) to authorize the fire fighters' pension commissioner
to contract for services, including investment, accounting, and auditing
services, with a board of trustees established under this Act.  Requires
the fire fighters' pension commissioner to impose a fee for the services
and to deposit the collected fees to the credit of the fire fighters'
pension commissioner account in the general revenue fund. 

The substitute modifies the original in SECTION 4, by amending Section 25,
Article 6243e, V.T.C.S. (Texas Local Fire Fighters Retirement Act), to
specify that the board of trustees may pay from assets of the fund all
costs reasonably and lawfully incurred by the fire fighters' retirement
system. 

The substitute modifies the original by redesignating proposed SECTIONS 3
and 4 of the original to SECTIONS 4 and 5, respectively.