Bill Text: TX HB13 | 2013-2014 | 83rd Legislature | Enrolled


Bill Title: Relating to the State Pension Review Board and public retirement systems; authorizing a fee.

Status: (Passed) 2013-05-24 - Effective immediately [HB13 Detail]

Download: Texas-2013-HB13-Enrolled.html
 
 
  H.B. No. 13
 
 
 
 
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.  Section 801.001, Government Code, is amended by
  adding Subdivisions (1-a), (3), and (4) to read as follows:
               (1-a)  "Governing body of a public retirement system"
  has the meaning assigned by Section 802.001.
               (3)  "System administrator" means a person designated
  by the governing body of a public retirement system to supervise the
  day-to-day affairs of the public retirement system.
               (4)  "Trustee" means a member of the governing body of a
  public retirement system.
         SECTION 2.  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, the most
  recent data from reports received under Sections 802.101, 802.103,
  802.104, 802.105, and 802.108.
         (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 public 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, the Texas Emergency Services
  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 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 system
  administrators.
         (b)  The curriculum of the educational training program must
  include minimum training requirements for trustees and system
  administrators. The board shall develop a system to track
  compliance with the minimum training requirements by trustees and
  system 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, system administrators, and other employees of public
  retirement systems.
         (d)  To the extent practicable, the board shall make training
  classes reasonably accessible to trustees and system
  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 fees set by the board must be reasonable to pay the
  actual costs incurred by the board to conduct the training classes.
  The fees must be paid from a source considered appropriate by the
  governing body of the public retirement system. A public retirement
  system may provide its own educational training to its trustees and
  system administrators if the board determines that the system's
  training meets or exceeds the minimum training requirements
  established by the board. A trustee or system administrator who
  participates in that approved educational training fulfills the
  minimum training requirements established by the board.
         SECTION 3.  Section 802.001, Government Code, is amended by
  adding Subdivision (4) to read as follows:
               (4)  "System administrator" means a person designated
  by the governing body of a public retirement system to supervise the
  day-to-day affairs of the public retirement system.
         SECTION 4.  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 5.  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 a system administrator of the public retirement system;
  and
               (2)  a copy of the most recent edition of each report
  and other written 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 6.  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)  A public retirement system shall, before the 211th day after
  the last day of its fiscal year, submit to the board an investment
  returns and actuarial assumptions report that includes:
               (1)  gross investment returns and net investment
  returns for each of the most recent 10 fiscal years;
               (2)  the rolling gross and rolling net investment
  returns for the most recent 1-year, 3-year, and 10-year periods;
               (3)  the rolling gross and rolling net investment
  return for the most recent 30-year period or the gross and net
  investment return since inception of the system, whichever period
  is shorter;
               (4)  the assumed rate of return used in the most recent
  actuarial valuation; and
               (5)  the assumed rate of return used in each of the most
  recent 10 actuarial valuations.
         (b)  For purposes of this section, "net investment return"
  means the gross investment return minus investment expenses. The
  net investment return may be calculated as the money-weighted rate
  of return as required by generally accepted accounting principles.  
  The period basis for each report of investment returns under this
  section must be the fiscal year of the public retirement system
  submitting the report.
         (c)  If any information required to be reported by a public
  retirement system under Subsection (a) is unavailable, the
  governing body of the public retirement system shall, before the
  211th day after the last day of the public retirement system's
  fiscal year, submit to the board a letter certifying that the
  information is unavailable, providing a reason for the
  unavailability of the information, and agreeing to timely submit
  the information to the board if it becomes available.
         SECTION 7.  (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
  taking into account the contributions made to, benefits paid by,
  and investments made by the public retirement system.  The pension
  review board may adopt rules to define the scope of the study under
  this subsection.
         (c)  Each public 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 requests
  for information made by the board for the purpose of performing the
  study.  Confidential information as described by Section
  552.0038(c), Government Code, that is provided by a public
  retirement system under this subsection remains confidential and
  may not be disclosed by the board.
         (d)  Not later than September 1, 2014, the pension review
  board shall prepare a written report containing the findings of the
  study conducted under this section, including the board's
  recommendations regarding how a public retirement system may
  mitigate its risk of not meeting its long-term obligations.
         (e)  The pension review board shall provide each public
  retirement system covered in the report prepared under Subsection
  (d) of this section a reasonable opportunity to review the portion
  of the report and the recommendations applicable to that retirement
  system and an opportunity to submit a response to the board. The
  board may revise its report after considering a response. Not later
  than December 31, 2014, the board shall submit to the legislature
  the final written report, including the board's recommendations,
  and a copy of the responses provided by the public retirement
  systems under this subsection.
         SECTION 8.  (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 9.  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.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 13 was passed by the House on April
  17, 2013, by the following vote:  Yeas 147, Nays 0, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 13 was passed by the Senate on May 9,
  2013, by the following vote:  Yeas 30, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor       
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