Opinions

Opinion #JC-0066. (RQ-1006). Request from the Honorable Kenneth Armbrister Chair, Criminal Justice Committee, Texas State Senate, P.O. Box 12068, Austin, Texas 78711-2068, regarding whether a city may remit payments to Texas Municipal Retirement System that it failed to make more than 20 years ago?

Summary. Section 855.410 of the Government Code, which imposes an interest payment on contributions that are not remitted by a participating municipality to the Texas Municipal Retirement System ("TMRS") by the sixteenth day of each month, does not establish a procedure for correcting errors in municipal employees' retirement accounts. Pursuant to its construction of the statute it administers, TMRS may refuse to accept retirement contributions from a city more than four years after the time they were due the retirement system. Section 852.110 of the Government Code, adopted by the Seventy-sixth Legislature and effective December 31, 1999, will govern the correction of service credit reports that were made or should have been made by participating cities. Pursuant to section 852.110 of the Government Code, corrections may not be made more that four years after the report should have been made.

Opinion #JC-0067. (RQ-1203). Request from Mr. Gary L. Warren, Sr. Executive Director, Texas Commission on Fire Protection, P.O. Box 2286, Austin, Texas 78768-2286, regarding whether the Texas Fire Chiefs' Association, the Texas State Association of Fire Fighters, the State Firemen's and Fire Marshals' Association of Texas, or the Texas Association of Fire Educators is a "trade association" for purposes of section 419.006 of the Government Code.

Summary. Assuming that an organization is not composed of business and professional competitors, it is not a trade association for purposes of section 419.006 of the Government Code.

Opinion #JC-0068. (RQ-1157). Request from the Honorable Jos R. Rodriguez, El Paso County Attorney, County Courthouse, 500 East San Antonio, Room 203, El Paso, Texas 79901, regarding whether a hospital district is authorized to execute a contract to hedge against interest rate fluctuations.

Summary. A hospital district is not authorized to execute an interest rate hedge contract that entitles the district to receive a lump sum if market interest rates rise in relation to the interest rate on certain outstanding district bonds but that requires the district to pay out a lump sum if interest rates fall.

TRD-9903579

Elizabeth Robinson

Assistant Attorney General

Office of the Attorney General

Filed: June 16, 1999