BILL ANALYSIS H.B. 1810 By: Turner, S. (Whitmire) Intergovernmental Relations 05-17-95 Senate Committee Report (Amended) BACKGROUND At present, the Houston Police Officers' Pension Board is composed of seven members. Two of the members must be retired pension system members, and legally qualified taxpaying voters of the city. Many retired police officers live outside the city limits. Since the board makes decisions only about pension assets, residence in the city is not relevant. PURPOSE As proposed, H.B. 1810 amends provisions relating to the requirements for candidates for the Police Officers' Pension Board of each city in the state having a population of 1.2 million or more to allow the two board positions reserved for retired members to be filled without regard to residence. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 4(b), Article 6243g-1, V.T.C.S., to require the Police Officers' Pension Board (board) of each city in the state having a population of 1.2 million or more to be composed of seven members, of which two are retired members receiving pensions from the Police Officers' Pension System, rather than two legally qualified taxpaying voters and residents of the city, to be chosen by the elected members of the pension board and confirmed by the board, being neither employees nor officers of the city. SECTION 2. Makes application of this Act prospective. SECTION 3. Amends Article 6243g-1, V.T.C.S., by adding Subsection (k), as follows: (k)(1) Requires the board, except as provided by Subdivision (2) of this subsection, to indemnify a board member or officer or employee of the board for liability imposed as damages because of an alleged act, error, or omission committed in the individual's capacity as a board member or officer of employee of the board and for reasonable costs and expenses incurred in the individual's defense of a claim of an alleged act, error, or omission, if the board has not purchased insurance as described by Subsection (j) of this section for any reason or if the insurance is insufficient or otherwise inadequate. (2) Prohibits the board from indemnifying a board member or officer or employee of the board for liability imposed or expenses incurred because of the individual's dishonesty, fraudulent breach of trust, lack of good faith, intentional fraud or deception, intentional failure to act prudently, or gross negligence. (3) Provides that indemnification under this subsection applies to acts, errors, or omissions by board members, officers or employees of the board, former board members, and former officers or employees of the board that occur or occurred on or after July 1, 1993. SECTION 4. Effective date: September 1, 1995. SECTION 5. Emergency clause.