HBA-SEB, NMO C.S.H.B. 3773 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3773
By: Greenberg
Pensions and Investments
4/14/1999
Committee Report (Substituted)



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.
C.S.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. (Chapter 452,
Acts of the 72nd Legislature, Regular Session, 1991), as follows: 

Sec. 3.02.  COMPOSITION OF BOARD.  (a)  Requires 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, each of whom serves a fouryear term; 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 to serve a four-year
term; and two, rather than one, retired members to be elected by the
retired members to serve for a term of four years, 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. 

(b)  Provides that the terms of two of the five police officers on the
board expire in 2001 and every fourth subsequent year, and the terms of the
remaining three police officers expire in 2003 and every fourth subsequent
year.   

(c)  Requires a vacancy occurring by death, resignation, or removal of the
legally qualified voter appointed under Subsection (a) to be filled by
appointment by the remaining members of the board.   

SECTION 2.  Amends Section 3.03, Article 6243n-1, V.T.C.S. (Chapter 452,
Acts of the 72nd Legislature, Regular Session, 1991), as follows: 

Sec. 3.03.  New Title:  POLICE OFFICER AND RETIRED MEMBERS OF BOARD.  (a)
Requires the police officer members, in addition to being elected, to serve
in accordance with Subsections (b)-(e) of this section.  

(b) Redesignated from Subsection (a)(1).  Provides that any police officer
member is, rather than shall be, eligible to run in the election for a
position on the board.  

 (c)  Redesignated from Subsection (a)(2).  Requires members to serve
during the term for which they are elected and until their successors are
elected and qualified, unless they are removed or their active service as
police officers with the city is terminated for any reason other than
service retirement, rather than retirement.  Deletes the requirement that
terms of office be four years. 

(d)  Redesignated from Subsection (a)(3).  Deletes the exception of a
vacancy due to retirement from the requirement that a vacancy be fixed for
the remainder of the term by a police officer member appointed by the
remaining members of the board.   

(e)  Redesignated from Subsection (a)(6).  Provides that the police
officers receiving the highest number of votes are elected to the board.
Deletes existing text regarding an election committee.   

(f)  Requires the retired members of the board to be elected and to serve
in accordance with Subsections (g)-(j). 

(g)  Provides that any retired member is eligible to run for a position on
the board. 

(h)  Requires retired members to serve during the term for which they are
elected until their successors are elected and qualified.   

(i)  Requires a vacancy occurring by reason of removal, resignation, or
death to be filled for the remainder of the term by a retired member
appointed by the vote of a majority of the remaining members of the board. 

(j)  Requires an election for retired members to be held during the first
week of December of each odd-numbered year.  Establishes that the retired
member receiving the highest number of votes is elected.  Requires
selection to be by lot in case of a tie vote. 

(k)  Requires the board to approve written procedures for the conduct of
all elections under this Act and to certify and announce the results of
each election. 

SECTION 3.  Amends Section 5.02, Article 6243n-1, V.T.C.S. (Chapter 452,
Acts of the 72nd Legislature, Regular Session, 1991), by adding Subsection
(c), as follows: 

(c) Prohibits a person from receiving 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. (Chapter 452,
Acts of the 72nd Legislature, Regular Session, 1991), 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 Sections 6.07(a) and (b), Article 6243n-1, V.T.C.S.
(Chapter 452, Acts of the 72nd Legislature, Regular Session, 1991), as
follows:   

(a)  Provides 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.     

(b)  Prohibits a member's RETRO DROP benefit computation date from
preceding the date the member first became eligible for service retirement
based on 25 years of creditable service, excluding military service credit.
Makes a conforming change.  

 SECTION 6.  Makes application of this Act prospective with respect to the
composition of the board. 

SECTION 7.  Effective date: September 1, 1999.

SECTION 8.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original in SECTION 1 by amending Section 3.02,
Article 6243n-1, V.T.C.S. (Chapter 452, Acts of the 72nd Legislature,
Regular Session, 1991), to delete proposed text from the original regarding
the expiration of terms of the five police officers elected to serve on the
board.  The substitute also deletes proposed text regarding filling
vacancies in a public member's position on the board.  The substitute adds
Subsections (b) and (c), which set forth the expiration of the terms of
office for the five police officers serving on the board and require a
specific vacancy on the board to be filled by appointment by the remaining
members of the board.  The substitute makes nonsubstantive changes.   

The substitute modifies the original in SECTION 2 by amending Section 3.03,
Article 6243n-1, V.T.C.S. (Chapter 452, Acts of the 72nd Legislature,
Regular Session, 1991), to conform to Legislative Council format and to
make nonsubstantive changes.  

The substitute modifies the original in SECTION 3 by modifying proposed
Section 5.02(c), Article 6243n-1, V.T.C.S. (Chapter 452, Acts of the 72nd
Legislature, Regular Session, 1991), to specifically prohibit a member from
receiving credit, rather than to provide that no person can receive credit,
for military service for which the person is eligible to receive specific
federal retirement payments. 

The substitute modifies the original in SECTION 5 by amending Sections
6.07(a) and (b), Article 6243n-1, V.T.C.S. (Chapter 452, Acts of the 72nd
Legislature, Regular Session, 1991), to make nonsubstantive changes.   

The substitute modifies the original in SECTION 6 to add a prospective
clause.  The substitute redesignates SECTIONS 6 and 7 of the original to
SECTIONS 7 and 8 of the substitute.