SRC-JRN S.B. 481 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 481
By: Armbrister
Intergovernmental Relations
2-18-97
As Filed


DIGEST 

Currently, surplus funds are authorized to be invested by the state board
of trustees of the Fire Fighters' Relief and Retirement Fund in specific
types of investments for the fire fighters' retirement fund.  A specific
list of investments limits the board in its investment options.  This bill
removes the specified list of investment instruments authorized for use by
the state board of trustees and allows the board to make investments
exercising judgment and care that a "prudent" person would use in
investing personal funds. 

PURPOSE

As proposed, S.B. 481 removes the specified list of investment instruments
authorized for use by the state board of trustees and allows the board to
make investments exercising judgment and care that a "prudent" person
would use in investing personal funds. 

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 Article 6243e.3, V.T.C.S. (Texas Statewide Volunteer
Fire Fighter Retirement Act), to require the fire fighters' pension
commissioner and the state board of trustees of the Fire Fighters' Relief
and Retirement Fund to exercise judgment and care in making investments to
the Fire Fighters' Relief and Retirement Fund.  Deletes specific types of
investments in which surplus funds may be invested. 

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