BILL ANALYSIS

H.B. 596

By: Hernandez

Pensions, Investments & Financial Services

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Concerns have been raised with respect to the lack of member retiree representation on the board of trustees of the Employees Retirement System of Texas (ERS) and it has been suggested that excluding this stakeholder group from the board's policymaking decisions may directly affect the future of the retirement system. H.B. 596 seeks to address this concern, among others, by granting ERS member retirees eligibility to stand for election to one elected seat 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

H.B. 596 amends the Government Code to revise the composition of the board of trustees of the Employees Retirement System of Texas (ERS) by requiring two of the three elected members of the board to be ERS members who 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 meet those same requirements or to be a retiree.

EFFECTIVE DATE

September 1, 2019.