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.