83R5168 TJS-F
 
  By: Duncan S.B. No. 13
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the State Pension Review Board and public retirement
  systems; authorizing a fee.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter C, Chapter 801, Government Code, is
  amended by adding Sections 801.209, 801.210, and 801.211 to read as
  follows:
         Sec. 801.209.  PUBLIC RETIREMENT SYSTEM REPORTS AND
  INFORMATION. (a)  For each public retirement system, the board
  shall post on the board's Internet website, or on a publicly
  available website that is linked to the board's website:
               (1)  the most recent data from each annual financial
  report received by the board;
               (2)  the most recent data from each report on
  investment returns and assumptions received by the board; and
               (3)  the name, business address, and business telephone
  number of the administrator of the public retirement system.
         (b)  On the 60th day after the date a report or information
  required by this chapter or Chapter 802 is due to the board, the
  board shall post on the board's website a list of public retirement
  systems that have not submitted the required reports or
  information.
         (c)  For each retirement system included on the list posted
  under Subsection (b), the board shall notify:
               (1)  the governor and the Legislative Budget Board
  regarding the lack of a timely submission by the Employees
  Retirement System of Texas, the Teacher Retirement System of Texas,
  the Texas County and District Retirement System, the Texas
  Municipal Retirement System, or the Judicial Retirement System of
  Texas Plan Two; or
               (2)  the governing body of the political subdivision of
  which members of the public retirement system are officers or
  employees regarding the lack of a timely submission by a public
  retirement system other than a system listed in Subdivision (1).
         Sec. 801.210.  MODEL ETHICAL STANDARDS AND
  CONFLICT-OF-INTEREST POLICIES.  (a)  The board shall develop and
  make reasonably accessible on the board's Internet website model
  ethical standards and model conflict-of-interest policies,
  including disclosure requirements, for voluntary use by a public
  retirement system.
         (b)  A public retirement system is not required to adopt a
  standard or policy based on the model developed under this section.
         Sec. 801.211.  PUBLIC RETIREMENT SYSTEM EDUCATIONAL
  TRAINING PROGRAM. (a) The board shall develop and administer an
  educational training program for trustees and administrators of
  public retirement systems.
         (b)  The curriculum of the educational training program must
  include minimum training requirements for board members and
  administrators. The board shall develop a system to track
  compliance with the minimum training requirements by board members
  and administrators and shall report the level of compliance in the
  biennial report required by Section 801.203.
         (c)  The curriculum of the educational training program
  under this section may include optional training classes for
  trustees, administrators, and employees of public retirement
  systems.
         (d)  To the extent practicable, the board shall make training
  classes reasonably accessible to trustees and administrators of
  public retirement systems on an Internet website maintained for
  that purpose.
         (e)  The board may adopt rules and appropriate fees to
  administer and provide educational training programs under this
  section. The net proceeds of the fees shall be deposited in the
  State Pension Review Board fund.
         SECTION 2.  The heading to Section 802.107, Government Code,
  is amended to read as follows:
         Sec. 802.107.  GENERAL PROVISIONS RELATING TO REPORTS AND
  CONTACT INFORMATION.
         SECTION 3.  Section 802.107, Government Code, is amended by
  adding Subsections (c), (d), and (e) to read as follows:
         (c)  A public retirement system shall post on a publicly
  available Internet website:
               (1)  the name, business address, and business telephone
  number of the administrator of the public retirement system; and
               (2)  a copy of the most recent edition of each report
  and other information that is required by this chapter or Chapter
  801 to be submitted to the board.
         (d)  A public retirement system that maintains a website or
  for which a website is maintained shall prominently post a link on
  that website to the information required by Subsection (c). All
  other public retirement systems shall:
               (1)  prominently post the information required by
  Subsection (c) on a website that is maintained by the governing body
  of the political subdivision of which members of the public
  retirement system are officers or employees; or
               (2)  post the information required by Subsection (c) on
  a publicly available website that is maintained by a state agency.
         (e)  A report or other information posted under Subsection
  (c) must remain posted until replaced with a more recently
  submitted edition of the report or information.
         SECTION 4.  Subchapter B, Chapter 802, Government Code, is
  amended by adding Section 802.108 to read as follows:
         Sec. 802.108.  REPORT OF INVESTMENT RETURNS AND ASSUMPTIONS.
  A public retirement system shall, before the 211th day after the
  last day of the fiscal year under which the system operates, submit
  to the board an investment returns and assumptions report that
  includes:
               (1)  net investment returns for each of the most recent
  10 fiscal years;
               (2)  the rolling net rate of return for the most recent
  1-year, 3-year, 10-year, and 30-year periods;
               (3)  the net rate of return since inception of the
  system;
               (4)  the current assumed rate of return; and
               (5)  the assumed rates of return for the most recent 10
  fiscal years.
         SECTION 5.  (a) In this section:
               (1)  "Governing body of a public retirement system" and
  "public retirement system" have the meanings assigned by Section
  802.001, Government Code.
               (2)  "Pension review board" means the State Pension
  Review Board established under Chapter 801, Government Code.
         (b)  The pension review board shall conduct a study of the
  financial health of public retirement systems in this state,
  including each system's ability to meet its long-term obligations
  considering the contributions, benefits, and investments made
  under the system.
         (c)  Each public retirement system, including the governing
  bodies, officers, and employees of each retirement system, shall
  fully cooperate with the pension review board in conducting the
  study required under Subsection (b) of this section and timely
  respond to any request for information made by the board for the
  purpose of performing the study.
         (d)  Not later than September 1, 2014, the pension review
  board shall submit to the legislature a written report containing
  the findings of the study conducted under this section and the
  board's recommendations, including the board's recommendations
  regarding how each public retirement system may mitigate any risk
  of not meeting the system's long-term obligations.
         SECTION 6.  (a)  The State Pension Review Board shall develop
  and publish the model ethical standards and conflict-of-interest
  policies required by Section 801.210, Government Code, as added by
  this Act, as soon as practicable after the effective date of this
  Act, but not later than December 31, 2013.
         (b)  The State Pension Review Board shall adopt rules to
  implement the educational training program required by Section
  801.211, Government Code, as added by this Act, as soon as
  practicable after the effective date of this Act, but not later than
  necessary to begin providing training classes on or before
  September 1, 2014.
         (c)  For purposes of reporting the level of compliance with
  the minimum training requirements of the educational training
  program as required by Section 801.211(b), Government Code, as
  added by this Act, the State Pension Review Board may only evaluate
  compliance with the minimum training requirements by trustees and
  administrators of public retirement systems on or after January 1,
  2015.
         SECTION 7.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2013.