HBA-TBM H.B. 3183 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3183
By: Danburg
Pensions & Investments
3/26/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, members of the Employees Retirement System of Texas (ERS) choose
three of the ERS's six trustees through direct democratic elections.  This
gives general state agency employees a clear voice in critical decisions
made about the investment and use of pension funds.  The trustees of the
Teachers Retirement System of Texas (TRS) are appointed by the governor and
thus members of TRS do not have the same opportunity for direct
participation in the pensions board.  House Bill 3183 authorizes members of
TRS to elect four of TRS's trustees.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the board of trustees of the Teacher
Retirement System of Texas in SECTION 2 (Section 825.002, Government Code)
of this bill.   

ANALYSIS

House Bill 3183 amends the Government Code to require the governor to
appoint five rather than nine trustees of the board of trustees of the
Teacher Retirement System of Texas (TRS).  The bill requires the other four
trustees to be elected by members of TRS and sets forth provisions for
their qualification and election.  The bill requires the board of trustees
to adopt rules for the election rather than nomination of trustees.   

The bill requires the executive director of TRS to notify the governor
rather than the appropriate appointing officer of potential grounds for the
removal of a trustee.   

EFFECTIVE DATE

January 1, 2002.