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