The Texas Legislature is preparing for several interim hearings that could have significant implications for public employee pension systems and the broader state economy. As TEXPERS system members, staying informed on these proceedings is crucial to understanding potential changes affecting retirement funds and financial planning. Here's a breakdown of upcoming Senate and House committee hearings you might find relevant.

1. Ways & Means Committee – Sept. 26, 2024, 10 a.m. (Location: E1.030)

Property tax reform is a pressing issue in Texas, and the Ways & Means Committee is set to review how recent legislation, including the Texas Jobs, Energy, Technology, and Innovation Act (HB 5), can stimulate job creation and enhance state revenue. Public pensions could benefit from the growth of local economies spurred by this legislation.

Topics of interest:

• Property Tax Relief (HJR 2/SB 2): A focus on lowering the tax burden, mainly through appraisal rate compression and homestead exemption increases, could directly affect the disposable income of public employees and retirees.
• Taxable Value Limitation: Reviewing the sustainability of reducing taxable values through 2035 may have long-term implications on property tax revenues.

2. Senate Business & Commerce Committee – Oct. 1, 2024, 9 a.m. (Location: E1.028)

This committee will evaluate the state's response to population growth, focusing on electricity demand and innovative power generation. Given the focus on clean energy technologies and electric grid expansion, pension funds could see potential opportunities in these emerging markets.

Key topics:

• Managing Electricity Demand: Understanding how Texas plans to meet the increased demand from electric vehicles and data centers could help guide pension fund investments.
• Innovative Power Generation: From small modular nuclear reactors to hydrogen and geothermal resources, these developments could be critical areas of future investment for public pensions looking to diversify portfolios.

3. Senate Finance Committee – Oct. 9, 2024, 10 a.m. (Location: E1.036)

The Finance Committee will focus on the trends of the Texas Moving Image Industry Incentive Program (TMIIIP) and post-pandemic school enrollment. While these may seem unrelated to pensions, the impact on job creation and economic development through media production and education funding directly affects the state's economy and, by extension, public retirement systems.

4. Senate State Affairs Committee – Oct. 15-17, 2024, 9 a.m. (Location: E1.028)

This committee is set to tackle several hot-button issues, including impeachment reform, responsible investing, and the impact of ESG (Environmental, Social, and Governance) factors on state public pensions. For TEXPERS members, focusing on fiduciary responsibility in voting and investment practices is crucial as the state monitors its ESG policies and how they align with financial goals.

Of particular importance:

• Responsible Investing: ESG policies are increasingly scrutinized, and this session will focus on whether pension systems are voting and investing in ways that maximize profits while adhering to state laws on energy company boycotts.

Stay Informed

You can view the live streams or access archives of these committee hearings via the following links:

• Upcoming House Committee Meetings
• Upcoming Senate Committee Meetings

Staying engaged with these legislative developments will ensure that you remain informed on potential policy changes impacting public pensions, energy infrastructure, property taxes, and investment opportunities. Monitor the TEXPERS website and updates for any additional coverage on these hearings.

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