1. (a) The governing body of a participating municipality by ordinance may authorize the granting of prior service credit in the retirement system for service performed in a public hospital, utility, or other public facility currently operated by the municipality, during a time the facility was operated by a unit of government other than the municipality and before:

   1. (1) the effective date of the municipality's participation in the retirement system, if the facility was acquired by the municipality before that date; or
   2. (2) the date of acquisition of the facility, if the facility was acquired after the effective date of the municipality's participation in the retirement system.

2. (b) A member eligible to receive credit under this section after an ordinance is adopted under Subsection (a) is one who was employed by the municipality at a public facility:

   1. (1) on the effective date of the municipality's participation, for service under Subsection (a)(1); or
   2. (2) on the date of acquisition of the facility, for service under Subsection (a)(2).
3. (c) All credit authorized by a municipality under this section is treated as if it were performed for the municipality.

Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1, 1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec. 63.301 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1, 1989.