HBA-TBM H.B. 3183 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3183 By: Danburg Pensions & Investments 3/26/2001 Introduced BACKGROUND AND PURPOSE Currently, members of the Employees Retirement System of Texas (ERS) choose three of the ERS's six trustees through direct democratic elections. This gives general state agency employees a clear voice in critical decisions made about the investment and use of pension funds. The trustees of the Teachers Retirement System of Texas (TRS) are appointed by the governor and thus members of TRS do not have the same opportunity for direct participation in the pensions board. House Bill 3183 authorizes members of TRS to elect four of TRS's trustees. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the board of trustees of the Teacher Retirement System of Texas in SECTION 2 (Section 825.002, Government Code) of this bill. ANALYSIS House Bill 3183 amends the Government Code to require the governor to appoint five rather than nine trustees of the board of trustees of the Teacher Retirement System of Texas (TRS). The bill requires the other four trustees to be elected by members of TRS and sets forth provisions for their qualification and election. The bill requires the board of trustees to adopt rules for the election rather than nomination of trustees. The bill requires the executive director of TRS to notify the governor rather than the appropriate appointing officer of potential grounds for the removal of a trustee. EFFECTIVE DATE January 1, 2002.