HBA-MPM H.B. 3471 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3471
By: Bailey
Pensions & Investments
3/25/2001
Introduced



BACKGROUND AND PURPOSE 

Current law provides for county employees to take advantage of federal tax
savings for qualified benefit plans.  Recent federal legislation resulting
from the Taxpayer Relief Act of 1997 and the Transportation Equity Act for
the 21st Century have expanded the eligible expenses which may qualify for
federal tax savings, including the cost of transportation in a commuter
highway vehicle, transit passes, and parking expenses.  In order to make
these benefits available to county employees, it is necessary to modify
existing state law.  House Bill 3471 conforms state statutes to new federal
legislation which authorizes county employees to take advantage of a tax
savings for qualified benefit plans. 

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. 

ANALYSIS

House Bill 3471 amends the Local Government Code to include a bona fide
compensation reduction arrangement under the federal Internal Revenue Code
of 1986 as a benefit that may be offered by the commissioners court of a
county to county employees. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.