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A BILL TO BE ENTITLED
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AN ACT
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relating to audits of certain public retirement system actuarial |
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valuations, studies, and reports. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 802.1012(a), (b), and (c), Government |
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Code, are amended to read as follows: |
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(a) In this section: |
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(1) "Governmental [, "governmental] entity" means a |
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unit of government that is the employer of active members of a |
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public retirement system. |
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(2) "Plan year" means the 12-month accounting period |
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of the affected pension plan of a public retirement system subject |
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to this section. |
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(b) Except as provided by Subsection (k), this section |
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applies only to a public retirement system with total assets the |
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book value of which, as of the last day of the retirement system's |
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preceding plan [fiscal] year, is at least $100 million. |
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(c) Not later than the date six months after the last day of |
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the first plan year in which a public retirement system has total |
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assets the book value of which as of the last day of that plan year |
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is at least $100 million, and, subject to continuing applicability |
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under Subsection (b), every [Every] five years after that date, the |
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actuarial valuations, studies, and reports of the [a public] |
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retirement system most recently prepared for the retirement system |
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as required by Section 802.101 or other law under this title or |
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under Title 109, Revised Statutes, must be audited by an |
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independent actuary who: |
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(1) is engaged for the purpose of the audit by the |
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governmental entity; and |
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(2) has the credentials required for an actuary under |
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Section 802.101(d). |
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SECTION 2. (a) The change in law made by this Act applies |
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only to a public retirement system to which Section 802.1012, |
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Government Code, as amended by this Act, applies and that has a plan |
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year, as defined by Section 802.1012(a), Government Code, as |
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amended by this Act, that ends on or after September 1, 2009. |
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(b) A governmental entity that has received a final audit |
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report under Section 802.1012, Government Code, as added by Chapter |
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733 (H.B. 2664), Acts of the 80th Legislature, Regular Session, |
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2007, before the effective date of this Act is not required to |
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initiate another audit under Section 802.1012, Government Code, as |
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amended by this Act, before September 1, 2013. |
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(c) A governmental entity that was required to but has not |
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initiated an audit under Section 802.1012, Government Code, as |
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added by Chapter 733 (H.B. 2664), Acts of the 80th Legislature, |
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Regular Session, 2007, before the effective date of this Act shall |
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initiate the audit not later than March 1, 2010. |
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(d) The first audit initiated under Section 802.1012, |
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Government Code, as amended by this Act, must include an audit of |
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each actuarial valuation, study, and report of the public |
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retirement system prepared for that retirement system in the |
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preceding five years. This subsection does not apply to a |
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governmental entity that has initiated but has not completed an |
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audit under Section 802.1012, Government Code, as added by Chapter |
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733 (H.B. 2664), Acts of the 80th Legislature, Regular Session, |
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2007, before the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2009. |