HBA-NMO H.B. 3773 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3773 By: Greenberg Pensions and Investments 3/29/1999 Introduced BACKGROUND AND PURPOSE Under current law, an eleven-member board of trustees governs the Austin Police Retirement System. Three of those members are city officials, four are elected police officers, one is a retired police officer, and three are civilian residents of the city. The law also provides that military service can be used in factoring eligibility for deferred retirement. H.B. 3773 removes two of the civilian positions on the board and replaces one with another elected police officer and the other with another retired police officer. This bill also provides that eligibility for deferred retirement is based on 25 years of service, excluding military service. 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 3.02, Article 6243n-1, V.T.C.S., to require that the eleven-member police retirement board (board) for a municipality with a population of between 460,000 and 500,000 include: _five, rather than four, police officer members. Requires that the terms of two police officer members expire in 2001 and every four years thereafter and requires that the terms of the other three police officer members expire in 2003 and every four years there after; _one, rather than three, legally qualified voter of the city who has been a resident of the city for the preceding five years, to be appointed by the board; and _two, rather than one, retired members to be elected by the retired members, with one term of one such member expiring each odd-numbered year Deletes provisions relating to vacancies to the board occurring by means other than retirement. Makes conforming changes. SECTION 2. Amends Section 3.03, Article 6243n-1, V.T.C.S., as follows: Sec. 3.03. New Title: POLICE OFFICER AND RETIRED MEMBERS OF THE BOARD. (a) Requires the police officer members, in addition to being elected, to serve in accordance with the certain provisions. Deletes language that requires terms of office to be four years. Deletes the exception of retirement, from the requirement that a vacancy be filled for the remainder of the term by a police officer member appointed by the remaining members of the board. Deletes language relating to the election committee and the canvassing of returns. (b) Requires that the retired members of the board be elected and requires them to serve in accordance with the following provisions: (1) Requires that any retired member be eligible to run in the election for a position on the board. (2) Requires retired members to serve during the term for which they are elected and until their successors are elected and qualified. (3) Requires that a vacancy occurring by reason of removal, resignation, or death be filled for the remainder of the term by a retired member appointed by a majority of the remaining members of the board. (4) Requires that elections for retired members be held during the first week in December of each odd-numbered year. Requires that the retired member receiving the highest number of votes in an election be deemed elected. Requires that selection, in case of a tie vote, be by lot. (c) Requires the board to approve written procedures for the conduct of all elections hereunder and to certify and announce the results of the election. SECTION 3. Amends Section 5.02, Article 6243n-1, V.T.C.S., by adding Subsection (c), as follows: (c) Provides that no person can receive credit under this section (Military Service Credit) for military service for which the person is receiving or is eligible to receive federal retirement payments based on 20 years or more of active military service or its equivalent by the member or for which the member has received credit in any other public retirement system or program established under the laws of this state. SECTION 4. Amends Section 5.04(a), Article 6243n-1, V.T.C.S., by deleting reference to the irrevocability of the city council authorization for the city to begin making contributions to the police retirement system. Makes a conforming change. SECTION 5. Amends Section 6.07, Article 6243n-1, V.T.C.S., to provide that the retroactive deferred retirement option plan, referred to as RETRO DROP, is an option a member eligible for service retirement based on 25 years of creditable service, excluding any military service established under Section 5.02., may elect at retirement. Makes conforming changes. SECTION 6. Effective date: September 1, 1999. SECTION 7. Emergency clause.