HBA-TBM H.B. 1503 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1503 By: McCall Pensions & Investments 3/4/2001 Introduced BACKGROUND AND PURPOSE Public pension systems in Texas involve billions of dollars and the financial welfare of thousands of citizens. Upon consideration of the state's vested interest in the successful performance of these funds, the Sunset Advisory Commission (commission) has advised that the state needs the State Pension Review Board (board) as an early warning system to detect and bring to light problems within the pension systems before they become critical. The board is also needed as a neutral and knowledgeable third party to advise the legislature on proposed and often complex legislation affecting the state's pensions systems. To accomplish these goals, the commission has provided recommendations for the improvement of the board. The board is set to be abolished September 1, 2001, unless continued by the legislature. House Bill 1503 provides for the continuance of the board and implements the recommendations provided by the commission. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the State Pension Review Board in SECTION 10 (Section 801.201, Government Code) of this bill. ANALYSIS House Bill 1503 amends the Government Code to continue the State Pension Review Board (board) until September 1, 2013, and to set forth standard Sunset Advisory Commission recommendations regarding equal opportunity representation for the board, grounds for removal from the board, board member training, presiding officer designation, policy implementation for the board, equal employment opportunity policy, standards of conduct, and the written complaint process. The bill requires the board, by rule, to adopt a brief standard form that will assist the board in efficiently determining the actuarial soundness and current financial condition of a public retirement system, and to require that a retirement system submitting information required for review or study include the form with submission. EFFECTIVE DATE September 1, 2001.