2017S0005-1 10/20/16     By: Bettencourt S.B. No. 152     A BILL TO BE ENTITLED   AN ACT   relating to municipal control of certain public retirement systems   established for the benefit of municipal employees.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 810, Government Code, is amended by   adding Section 810.002 to read as follows:          Sec. 810.002.  MUNICIPAL CONTROL OF RETIREMENT SYSTEM   PROVISIONS.  (a)  In this section, "public retirement system" has   the meaning assigned by Section 802.001.          (b)  Except as provided by Sections 66 and 67, Article XVI,   Texas Constitution, and notwithstanding any other law, a   municipality that is the sponsoring authority of a public   retirement system that was created under a state statute, but is not   a part of a statewide public retirement system, may adopt by   ordinance or resolution, as applicable, provisions that supplement   or supersede the operative provisions of the public retirement   system.          (c)  Provisions adopted under Subsection (b):                (1)  apply only to a person who becomes eligible for   membership in the public retirement system after December 31, 2017;   and                (2)  subject to Subsection (d), may include or apply   to:                      (A)  the use of a defined contribution plan   instead of a defined benefit plan;                      (B)  any provision relating to benefits,   participation, or eligibility requirements;                      (C)  the source or amount of the funding; and                      (D)  the administration of the system.          (d)  Any plan governed by a provision adopted under   Subsection (b) must be funded 100 percent by the municipality not   later than 180 days after the ending date of the municipality's   fiscal year.          (e)  Contributions by an employee described by Subsection   (c)(1) to a plan that is governed by a provision adopted under   Subsection (b) are deposited with:                (1)  the trustees of any plan for which the employee   would have qualified if not for the municipality's action under   Subsection (b); or                (2)  the custodian of an individual retirement account   designated by the employee.          (f)  In no event shall a municipality retain custody of any   contribution made under Subsection (e) or the ability to determine   the manner in which such contribution shall be invested.          (g)  In the event of a conflict between a statute adopted   before the effective date of the Act enacting this section that   applies to a public retirement system described by Subsection (b)   and a municipal ordinance or resolution adopted by the governing   body of the sponsoring municipality of that retirement system under   this section, the municipal ordinance or resolution prevails.          SECTION 2.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution. If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2017.