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.