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BILL ANALYSIS

 

 

 

C.S.H.B. 3227

By: Hernandez

Pensions

Committee Report (Substituted)

 

 

 

BACKGROUND AND PURPOSE

 

Interested parties note that retired members of the Employees Retirement System of Texas (ERS) may vote for the elected positions on the ERS board of trustees but are not eligible to stand for election themselves. These parties contend that the inability of ERS retirees to serve on the board effectively excludes the retirees from important policymaking decisions that directly affect them and the future of ERS. C.S.H.B. 3227 seeks to address this issue and provide for the proper representation of ERS retirees on the board.

 

CRIMINAL JUSTICE IMPACT

 

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

 

RULEMAKING AUTHORITY

 

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

 

ANALYSIS

 

C.S.H.B. 3227 amends the Government Code to decrease from three to two the number of elected members of the board of trustees of the Employees Retirement System of Texas (ERS) who must hold positions that are included in the employee class of ERS membership and are not with an agency or department with which another trustee holds a position and to require the third elected member of the board to either meet those requirements or be a retiree.

 

EFFECTIVE DATE

 

September 1, 2015.

 

COMPARISON OF ORIGINAL AND SUBSTITUTE

 

While C.S.H.B. 3227 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and formatted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.

 

INTRODUCED

HOUSE COMMITTEE SUBSTITUTE

SECTION 1.  Section 815.003, Government Code, is amended by amending Subsection (b) and adding Subsection (b-1) to read as follows:

(b)  Two elected members [To be eligible to serve as an elected member] of the board[, a person] must be members [a member] of the retirement system and must hold positions [a position] that:

(1)  are [is] included in the employee class of membership; and

(2)  are [is] not with an agency or department with which another trustee holds a position.

(b-1)  One elected member must be a retiree.

 

SECTION 1.  Section 815.003, Government Code, is amended by amending Subsection (b) and adding Subsection (b-1) to read as follows:

(b)  Two of the elected members [To be eligible to serve as an elected member] of the board[, a person] must be members [a member] of the retirement system and must hold positions [a position] that:

(1)  are [is] included in the employee class of membership; and

(2)  are [is] not with an agency or department with which another trustee holds a position.

(b-1)  The third elected member of the board must:

(1)  meet the requirements of Subsection (b); or

(2)  be a retiree.

 

SECTION 2.  The changes in law made by this Act apply only to an election of a member of the board of trustees of the Employees Retirement System of Texas that occurs on or after the effective date of this Act.  At the first election to fill an expiring elected position that occurs on or after the effective date of this Act, members of the retirement system and retirees shall elect a retiree of the Employees Retirement System of Texas as required by Section 815.003(b-1), Government Code, as added by this Act.

 

SECTION 2.  The changes in law made by this Act apply only to an election of a member of the board of trustees of the Employees Retirement System of Texas that occurs on or after the effective date of this Act.

SECTION 3.  This Act takes effect September 1, 2015.

 

SECTION 3. Same as introduced version.