HBA-SEB S.B. 429 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 429 By: Barrientos Pensions and Investments 5/14/1999 Engrossed 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. S.B. 429 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.