SBW S.B. 325 75(R)BILL ANALYSIS


PENSIONS & INVESTMENTS
S.B. 325
By: Armbrister (Kuempel)
-97
Committee Report (Amended)


BACKGROUND

Currently, Texas law specifically states the types of investments that are
authorized by a board of trustees if excess funds from the retirement
account for firefighters are available.  The concern is that as investment
funds become larger, they will require more professional management.  This
bill deletes the provisions that specify the types of instruments to be
used for investments. 

PURPOSE

As proposed, S.B. 325 deletes the provisions that specify the instruments
to be used for investments by the boards of trustees of local retirement
systems for firefighters. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 27(a), Article 6243e, V.T.C.S. (Texas Local Fire
Fighters Retirement Act), to delete certain types of investments in which
a board of trustees of a local retirement system for firefighters may
invest, if the board determines that the retirement system fund contains
an excess of the amount needed. 

SECTION 2. Emergency clause.
  Effective date: upon passage.  



EXPLANATION OF AMENDMENTS

Committee Amendment No. 1 strikes the language requiring the state auditor
to conduct a study to determine if the retirement systems covered under
this Act should be covered under Chapter 2256, Government Code, or similar
statute.