TO:	Honorable Dan Patrick, Lieutenant Governor, Senate Honorable Dustin Burrows, Speaker of the House, House of Representatives
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	HB40 by Landgraf (Relating to the business court.), Conference Committee Report

ACTUARIAL EFFECTS AND SYNOPSIS OF PROVISIONS

The bill would amend the Government Code as it relates to the Texas Business Court, including providing additional compensation increases from the state for administrative presiding judges of the business courts and any judge of a business court. 

According to the actuarial analysis for the Judicial Retirement System - Plan II (JRS II), since the additional compensation would be included in pensionable earnings, there would be some impact to JRS II, but it would not be material.

SOURCES:
Actuarial Analysis by Dana Woolfrey, FSA, EA, MAAA, Thomas Bevins, ASA, MAAA, and Joe Newton, FSA, EA, MAAA, Gabriel, Roeder, Smith & Company, April 7, 2025.
Correspondence from Employees Retirement System, May 29, 2025.