LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 30, 1997
         
         
      TO: Honorable Kenneth Armbrister, Chair            IN RE:  Senate Bill No. 535, Committee Report 1st House, Substituted
          Committee on State Affairs                              By: Ellis
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB535 ( relating 
to the optional retirement program for certain employees of 
public institutions of higher education.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by SB535-Committee Report 1st House, Substituted   FN Revision 1
         
No significant fiscal implication to the State is anticipated.
         

         
 
          
The bill would transfer the current administrative responsibilities 
for the Optional Retirement Program  (ORP) from the Higher Education 
Coordinating Board (HECB) to the Employees Retirement System 
(ERS).  The bill would also expand the administrative duties 
relating to ORP by directing the ERS to establish minimum standards 
for investment options offered under the Optional Retirement 
Program.  Governing boards of the institutions of higher education 
may also establish minimum standards that a company, or the 
investment it offers, must meet.

There would be no net fiscal 
impact to the state relating to the transfer of current administrative 
responsibilities. It is assumed that the increased workload 
resulting from the additional administrative responsibilities 
could be absorbed within current resources.  

No fiscal implication 
is assumed for the higher education institutions because the 
bill does not mandate that they establish standards.  Furthermore, 
higher education institutions currently have the option of implementing 
minimum standards.  The bill would reinforce current practice 
of institutions.


No fiscal implication to units of local 
government is anticipated.
          
   Source:            Agencies:   323   Teacher Retirement System and Optional Retirement Program
                                         781   Higher Education Coordinating Board
                                         
                      LBB Staff:   JK ,JD ,SC