LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
April 30, 1995
TO: Honorable Ken Armbrister, Chair IN RE: Senate Bill No. 901
Committee on State Affairs By: Henderson
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on Senate Bill No.
901 (Relating to the investments of participants in the optional
retirement program for faculty members employed in state-
supported institutions of higher education.) this office has
determined the following:
The bill would allow the Texas Higher Education Coordinating
Board to establish minimum standards for insurance or annuity
companies with regard to marketing their services to Optional
Retirement Program-eligible participants. The bill would
prohibit the Coordinating Board from restricting the number of
insurance or annuity companies available to ORP-eligible
participants or the type of investments offered by such
companies. Also, institutions of higher education would be
prohibited from restricting the aforementioned choices available
to ORP participants.
The bill would not have a significant fiscal implication for the
Higher Education Coordinating Board because that agency already
possesses considerable expertise with respect to the Optional
Retirement Program.
There may be additional workload for institutions of higher
education, at least with respect to those institutions that
currently restrict the choices of their ORP-eligible employees.
The additional workload would come in the form of increased
accounting activity assuming the number of ORP vendors increases
substantially. However, this additional workload may be offset
by a reduction in workload in that such institutions would no
longer be allowed to regulate the vendor choices of their ORP-
elgibile employees.
No significant fiscal implication to the State or units of local
government is anticipated.
Source: Higher Education Coordinating Board
LBB Staff: JK, RN, DF