BILL ANALYSIS Civil Practices Committee H.B. 1809 May 2, 1995 04-07-95 Committee Report (Unamended) BACKGROUND The Pension Board currently has the legal authority to purchase fiduciary insurance in order to indemnify itself against legal actions. However, no provision exists for a situation in which the insurance may not be in effect or may not be sufficient. PURPOSE To give the Board of Trustees the ability to self-indemnify if the insurance is insufficient or otherwise inadequate. RULEMAKING AUTHORITY is the opinion of this committee that this bill does not delegate any additional rulemaking authority to any state officer, agency, department, or institution. SECTION-BY-SECTION ANALYSIS SECTION 1. Amends Section 4, Chapter 76, Acts of the 50th Legislature, Police Officers' Pension System in cities of 1,200,000 or more (Article 6243g-1) Vernon's Texas Civil Statutes by adding Subsection (k) to read as follows: (1) Grants the board authority to indemnify itself under certain conditions. (2) Exempts from indemnification liability arising out of the individual's malfeasance. (3) Limits application of Act to actions or omissions occurring after July 1, 1993. SECTION 2. Emergency Clause. Effective immediately. SUMMARY OF COMMITTEE ACTION H.B. 1809 was considered by the Committee on Civil Practices during a public hearing on April 12, 1995. The following individuals testified in support of the bill: Carvel McNeil, Jr., representing the Houston Police Patrolmen's Union. No one testified in opposition to or neutrally on the bill. The bill was left pending. H.B. 1809 was considered during a formal meeting on May 1, 1995. H.B. 1809 was reported favorably without amendment with the recommendation that it do pass, be printed and be sent to the Committee on Local and Consent Calendars, by a record record vote of seven ayes, zero nays, zero pnv and two absent.