Texas 2025 - 89th Regular

Texas House Bill HB3474 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	89R22082 RDR-D
2	1		By: Lambert H.B. No. 3474
3		-	~~Substitute the following for H.B. No. 3474:~~
4		-	~~By: Plesa C.S.H.B. No. 3474~~
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5	4
6	5
7	6		A BILL TO BE ENTITLED
8	7		AN ACT
9	8		relating to the evaluation and reporting of investment practices
10	9		and performance of certain public retirement systems.
11	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	11		SECTION 1. Section 802.109, Government Code, is amended by
13	12		amending Subsections (d), (e), (e-1), (f), and (g) and adding
14		-	Subsections (d-1), (d-2), and (j) to read as follows:
15		-	(d) In accordance with a schedule of deadlines prescribed by
16		-	the board and except as provided by Subsection (e), a [A] public
17		-	retirement system shall conduct an [the] evaluation under
18		-	[described by] Subsection (a):
	13	+	Subsections (d-1) and (d-2) to read as follows:
	14	+	(d) The Pension Review Board shall establish a schedule to
	15	+	ensure that [A] public retirement systems [shall] conduct the
	16	+	evaluation described by Subsection (a):
19	17		(1) once every three years, if the total assets of the
20		-	retirement system as of the date [last day] of the preceding
21		-	evaluation [fiscal year] were at least $100 million; or
22		-	(2) subject to Subsection (d-1), once every six years,
23		-	if the total assets of the retirement system as of the date [last
24		-	day] of the preceding evaluation [fiscal year] were at least $30
25		-	million and less than $100 million.
26		-	(d-1) If a public retirement system is conducting
27		-	evaluations every six years as required by Subsection (d)(2) and
28		-	the system's total pension liability increases to at least $100
29		-	million during a fiscal year, the system shall complete the next
30		-	evaluation under Subsection (a) by the next appropriate deadline,
31		-	as determined by the board, under the evaluation schedule.
32		-	(d-2) Subject to Subsection (d-1) and except as provided by
33		-	Subsection (e), a public retirement system subject to an evaluation
34		-	requirement under Subsection (d)(1) or (2) remains subject to that
35		-	same requirement unless both the total assets and the total pension
36		-	liability of the system decrease to an amount that is below the
37		-	minimum amount prescribed by the applicable requirement.
38		-	(e) A public retirement system is not required to conduct an
39		-	[the] evaluation under [described by] Subsection (a) if the total
40		-	assets of the retirement system were less than $30 million as of the
41		-	last day of the [preceding] fiscal year immediately preceding the
42		-	next evaluation deadline under the evaluation schedule [were less
43		-	than $30 million].
	18	+	retirement system are [as of the last day of the preceding fiscal
	19	+	year were] at least $100 million; or
	20	+	(2) once every six years, if the total assets of the
	21	+	retirement system are [as of the last day of the preceding fiscal
	22	+	year were] at least $30 million and less than $100 million.
	23	+	(d-1) If a public retirement system's total assets increase
	24	+	in a fiscal year to above the threshold specified in Subsection
	25	+	(d)(1) or (d)(2), the public retirement system shall complete the
	26	+	evaluation by the next appropriate due date specified in the
	27	+	schedule established by the Pension Review Board pursuant to
	28	+	Subsection (d).
	29	+	(d-2) A public retirement system that has completed an
	30	+	evaluation pursuant to the requirements of this Section remains
	31	+	subject to the requirement based on total pension liability and
	32	+	shall complete subsequent evaluations:
	33	+	(1) once every three years, if the total pension
	34	+	liability of the retirement system is at least $100 million; or
	35	+	(2) once every six years, if the total pension
	36	+	liability of the retirement system is at least $30 million and less
	37	+	than $100 million.
	38	+	(e) A public retirement system is not required to conduct
	39	+	the evaluation described by Subsection (a) if the total assets of
	40	+	the retirement system as of the last day of the [preceding] fiscal
	41	+	year immediately preceding the next evaluation deadline were less
	42	+	than $30 million.
44	43		(e-1) An [Not later than the 30th day after the date an]
45	44		independent firm that completes an evaluation described by
46	45		Subsection (a)[, the independent firm] shall:
47	46		(1) submit to the public retirement system for
48	47		purposes of discussion and clarification a substantially completed
49		-	[preliminary] draft of the evaluation report; and
	48	+	preliminary draft of the evaluation report; and
50	49		(2) request in writing that the system[, on or before
51	50		the 30th day after the date the system receives the preliminary
52	51		draft,] submit to the firm:
53	52		(A) a description of any action taken or expected
54	53		to be taken in response to a recommendation made in the evaluation;
55	54		and
56	55		(B) any written response of the system that the
57	56		system wants to accompany the final evaluation report.
58	57		(f) The independent firm shall file the final evaluation
59	58		report, including the evaluation results and any response received
60	59		from the public retirement system, with the governing body of the
61		-	system[:
	60	+	system[:]
62	61		[(1) not earlier than the 31st day after the date on
63	62		which the preliminary draft is submitted to the system; and
64		-	[(2) not later than the later of:
65		-	[(A) the 60th day after the date on which the
	63	+	(2) not later than the later of:
	64	+	(A) the 60th day after the date on which the
66	65		preliminary draft is submitted to the system; or
67		-	[(B) May 1 in the year following the year in which
	66	+	(B) May 1 in the year following the year in which
68	67		the system is evaluated under Subsection (a)].
69	68		(g) The [Not later than the 31st day after the date the]
70	69		governing body of a public retirement system that receives a report
71	70		of an evaluation under this section[, the governing body] shall
72	71		submit the report to the board.
73		-	(j) In this section:
74		-	(1) "Evaluation schedule" means the schedule of
75		-	deadlines prescribed by the board under Subsection (d).
76		-	(2) "Total pension liability" means the portion of the
77		-	present value of projected retirement benefit payments to be
78		-	provided through the retirement system to active and inactive
79		-	members that is attributable to those members' past periods of
80		-	service, in compliance with Statement No. 68 of the Governmental
81		-	Accounting Standards Board.
82		-	SECTION 2. Not later than January 1, 2026, the State Pension
83		-	Review Board shall develop the schedule of deadlines required by
84		-	Section 802.109(d), Government Code, as amended by this Act.
85		-	SECTION 3. This Act takes effect September 1, 2025.
	72	+	(h) A governmental entity that is the employer of active
	73	+	members of a public retirement system evaluated under Subsection
	74	+	(a) may pay all or part of the costs of the evaluation. The public
	75	+	retirement system shall pay any remaining unpaid costs of the
	76	+	evaluation.
	77	+	(i) The board shall submit an investment performance report
	78	+	to the governor, the lieutenant governor, the speaker of the house
	79	+	of representatives, and the legislative committees having
	80	+	principal jurisdiction over legislation governing public
	81	+	retirement systems in the biennial report required by Section
	82	+	801.203. The report must compile and summarize the information
	83	+	received under this section by the board during the preceding two
	84	+	fiscal years.
	85	+	(j) Repealed by Acts 2021, 87th Leg., R.S., Ch. 141
	86	+	(H.B. 1585), Sec. 20(1), eff. May 26, 2021.
	87	+	(k) The following reports may be used by the applicable
	88	+	public retirement systems to satisfy the requirement for a report
	89	+	of an evaluation under this section:
	90	+	(1) an investment report under Section 10A, Article
	91	+	6243g-4, Revised Statutes;
	92	+	(2) an investment report under Section 2D, Chapter 88
	93	+	(H.B. 1573), Acts of the 77th Legislature, Regular Session, 2001
	94	+	(Article 6243h, Vernon's Texas Civil Statutes); and
	95	+	(3) a report on a review conducted on the retirement
	96	+	system's investments under Section 2B, Article 6243e.2(1), Revised
	97	+	Statutes.
	98	+	(l) The board may adopt rules necessary to implement this
	99	+	section.
	100	+	SECTION 2. Notwithstanding Section 802.109(d), Government
	101	+	Code, as added by this Act, a report of the first evaluation of a
	102	+	public retirement system, as required by Section 802.109,
	103	+	Government Code, as amended by this Act, must be filed with the
	104	+	Pension Review Board not later than September 1, 2026.
	105	+	SECTION 3. The Pension Review Board shall establish the
	106	+	schedule required by Section 802.109(d), Government Code, as
	107	+	amended by this Act, not later than January 1, 2026.
	108	+	SECTION 4. This Act takes effect September 1, 2025.