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79R85 SGA-D

By:  Wong                                                         H.B. No. 109



A BILL TO BE ENTITLED

AN ACT

relating to the actuarial analysis and other information required 
for statutory changes to certain public retirement systems.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 802.302(h), Government Code, is amended 
to read as follows:
	(h)  Even if a public retirement system prepares an actuarial 
analysis under Subsection (c) or (d), the board may have a second 
actuary prepare a separate actuarial analysis.  The board shall 
have a second actuary prepare a separate actuarial analysis under 
Section 802.3023 if that section is applicable.
	SECTION 2.  Subchapter D, Chapter 802, Government Code, is 
amended by adding Section 802.3023 to read as follows:
	Sec. 802.3023.  ADDITIONAL ACTUARIAL ANALYSIS AND MUNICIPAL 
INFORMATION REQUIRED BEFORE STATUTORY REVISION OF CERTAIN PUBLIC 
RETIREMENT SYSTEMS.  (a)  This section applies only to a bill or 
resolution that, if enacted, could affect the actuarial soundness 
of a public retirement system created for the officers and 
employees of a municipality with a population of 750,000 or more.
	(b)  Notwithstanding Subsection (a), this section does not 
apply to the general appropriations bill.
	(c)  On filing a bill or resolution under this section, the 
author shall attach a statement of the results of a vote taken for 
information purposes by the governing body of the municipality for 
or against the proposed bill or resolution.  A bill or resolution 
filed without the statement may not be referred to committee, and 
the statement must remain with the bill or resolution throughout 
the legislative process, including submission to the governor.
	(d)  In addition to the analysis required by Section 802.302, 
a bill or resolution that proposes to revise the law governing a 
public retirement system as described by Subsection (a) must be 
accompanied by an actuarial analysis prepared by an independent 
actuary appointed by the board.  The analysis must be made available 
to the legislative committee to which the bill or resolution is 
referred before the committee finally votes to report the measure.
	(e)  The board shall adopt deadlines for the provision of an 
independent actuarial analysis under this section to provide the 
most complete information practicable in a timely manner.
	(f)  An independent actuary appointed under this section:               
		(1)  must meet the requirements for an actuary employed 
under Section 802.3021;
		(2)  may not be under contract with the retirement 
system or the municipality to provide actuarial services; and
		(3)  may not have a conflict of interest with the 
retirement system, the municipality, or any member of the governing 
bodies of those entities.
	(g)  The analysis prepared under Subsection (d) must include 
the contents required by Section 802.303, except that the 
projection of costs must be for at least five years.
	(h)  The independent actuary shall prepare and submit the 
actuarial analysis to the board.
	(i)  The board, after conducting an internal review of the 
proposed bill or resolution, the actuarial analysis required by 
Section 802.302, and the independent actuarial analysis, shall 
prepare a report for the Legislative Budget Board.  The report must 
include:
		(1)  both actuarial analyses;                                          
		(2)  the board's comments on whether the bill or 
resolution would affect the actuarial soundness of the public 
retirement system; and
		(3)  the reasons for the board's comments.                             
	(j)  The Legislative Budget Board shall include with any 
actuarial impact statement that it prepares under legislative rules 
for the bill or resolution:
		(1)  the board's entire report, including both 
actuarial analyses;   
		(2)  any actuarial analysis prepared for another bill 
or resolution affecting the same public retirement system in the 
three years preceding the first day of the legislative session for 
which the bill or resolution under this section is filed; and
		(3)  any additional information the Legislative Budget 
Board considers helpful or necessary in understanding how the bill 
or resolution would affect the actuarial soundness of the public 
retirement system.
	(k)  The cost of an independent actuarial analysis prepared 
under this section shall be paid by:
		(1)  the public retirement system for which the 
analysis is prepared;
		(2)  the municipality for which the retirement system 
was created; or
		(3)  jointly by the retirement system and the 
municipality as the governing bodies of each agree.
	SECTION 3.  This Act applies only to a bill or resolution 
filed in the Texas House of Representatives or the Texas Senate on 
or after the effective date of this Act.
	SECTION 4.  This Act takes effect September 1, 2005.