81R16178 TJS-F
 
  By: Truitt H.B. No. 1070
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to audits of certain public retirement system actuarial
  valuations, studies, and reports.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 802.1012(a), (b), and (c), Government
  Code, are amended to read as follows:
         (a)  In this section:
               (1)  "Governmental [, "governmental] entity" means a
  unit of government that is the employer of active members of a
  public retirement system.
               (2)  "Plan year" means the 12-month accounting period
  of the affected pension plan of a public retirement system subject
  to this section.
         (b)  Except as provided by Subsection (k), this section
  applies only to a public retirement system with total assets the
  book value of which, as of the last day of the retirement system's
  preceding plan [fiscal] year, is at least $100 million.
         (c)  Not later than the date six months after the last day of
  the first plan year in which a public retirement system has total
  assets the book value of which as of the last day of that plan year
  is at least $100 million, and, subject to continuing applicability
  under Subsection (b), every [Every] five years after that date, the
  actuarial valuations, studies, and reports of the [a public]
  retirement system most recently prepared for the retirement system
  as required by Section 802.101 or other law under this title or
  under Title 109, Revised Statutes, must be audited by an
  independent actuary who:
               (1)  is engaged for the purpose of the audit by the
  governmental entity; and
               (2)  has the credentials required for an actuary under
  Section 802.101(d).
         SECTION 2.  (a)  The change in law made by this Act applies
  only to a public retirement system to which Section 802.1012,
  Government Code, as amended by this Act, applies and that has a plan
  year, as defined by Section 802.1012(a), Government Code, as
  amended by this Act, that ends on or after September 1, 2009.
         (b)  A governmental entity that has received a final audit
  report under Section 802.1012, Government Code, as added by Chapter
  733 (H.B. 2664), Acts of the 80th Legislature, Regular Session,
  2007, before the effective date of this Act is not required to
  initiate another audit under Section 802.1012, Government Code, as
  amended by this Act, before September 1, 2013.
         (c)  A governmental entity that was required to but has not
  initiated an audit under Section 802.1012, Government Code, as
  added by Chapter 733 (H.B. 2664), Acts of the 80th Legislature,
  Regular Session, 2007, before the effective date of this Act shall
  initiate the audit not later than March 1, 2010.
         (d)  The first audit initiated under Section 802.1012,
  Government Code, as amended by this Act, must include an audit of
  each actuarial valuation, study, and report of the public
  retirement system prepared for that retirement system in the
  preceding five years.  This subsection does not apply to a
  governmental entity that has initiated but has not completed an
  audit under Section 802.1012, Government Code, as added by Chapter
  733 (H.B. 2664), Acts of the 80th Legislature, Regular Session,
  2007, before the effective date of this Act.
         SECTION 3.  This Act takes effect September 1, 2009.