SRC-MAX S.B. 535 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 535
By: Ellis
State Affairs
4-21-97
As Filed


DIGEST 

Currently,  individual institutions of higher education set their own
minimum standards for vendors who wish to offer optional retirement
packages to faculty. This bill would direct the Texas Higher Education
Coordinating Board to establish uniform statewide minimum standards.  

PURPOSE

As proposed, S.B. 535 sets forth standards for investments of participants
in the optional retirement program for faculty members employed in
state-supported retirement institutions of higher education.   

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Higher Education Coordinating
Board in SECTION 1 (Sec.  830.002(d), Government Code) and to a governing
body in SECTION 2 (Sec.  830.004(a), Government Code) of this bill.  

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 830.002, Government Code, by adding Subsection
(d), as follows: 

(d)  Requires the Texas Higher Education Coordinating Board to establish
minimum standards which comport with the purpose of Section 830.001,
Government Code, that a company, or the investments it offers, must meet
to be eligible to offer a participant in the optional retirement program
an investment authorized under Subsection (a) and Section 830.004,
Government Code, but is prohibited from limiting the investment which a
participant may purchase under the program. 

SECTION 2. Amends Section 830.004(a), Government Code, to authorize a
governing board to arrange the purchase of investments from any company
that is qualified in this state to offer investments which qualify under
this subsection.  Authorizes a governing board to establish minimum
standards, including minimum participation requirements, that a company,
or the investments it offers, must meet to be eligible to offer a
participant in the optional retirement program an investment authorized
under Subsection (a) and Section 830.004, Government Code, but is
prohibited from limiting the investment which a participant may purchase
under the program if the investment is authorized by this subsection and
Section 830.002(a), Government Code, and qualifies under the standards
established under Section 830.002(a). 

SECTION 3. Emergency clause.
  Effective date:  upon passage.