Thursday, November 20, 2008

10:00 a.m.

Capitol Extension, Room E1.012






Pursuant to a notice posted in accordance with Senate Rule 11.18, a public hearing of the Senate Committee on State Affairs was held on Thursday, November 20, 2008, in the Capitol Extension, Room E1.012, at Austin, Texas.







Senator Robert Duncan

Senator Troy Fraser

Senator Mike Jackson


Senator Tommy Williams

Senator John Carona

Senator Rodney Ellis

Senator Chris Harris

Senator Eddie Lucio, Jr.

Senator Leticia Van de Putte




The chair called the meeting to order at 10:07 a.m.  The following business was transacted: 


The Committee heard invited testimony regarding the Committee's general oversight authority of the Texas Municipal Retirement System.  The witness testifying is shown on the attached list.


The Committee also heard invited and public testimony regarding the following Interim Charges:


Charge 10:  Analyze the advantages and disadvantages of phasing in a defined-contribution pension for future employees versus the existing defined-benefit pension plan.  Study options for transition or implementations issues and how the phase-in could be structured.  Evaluate the possibility of requiring the state employee contribution rate to meet the annually required contribution for the statewide retirement funds each biennium in order to prevent unfunded liabilities.


Charge 14:  Monitor the implementation of legislation addressed by the State Affairs Committee, 80th Legislature, Regular Session, and make recommendations for any legislation needed to improve, enhance, and/or complete implementation.  In particular, monitor and report on the effect of HB 2365, which allows public entities to report "other post employment benefits" (OPEBs) on a statutory modified accrual basis, including any effect on auditor opinions, bond ratings, or other fiscal issues.


Witnesses testifying and registering on Charge numbers 10 and 14 are shown on the attached list.


At 11:55 a.m. Senator Duncan moved that the committee stand recessed; without objection, it was so ordered.  At 12:04 p.m. the committee reconvened. 


Testimony on Charges 10 and 14 resumed.



There being no further business, at 2:02 p.m. Senator Duncan moved that the Committee stand recessed subject to the call of the chair.  Without objection, it was so ordered. 







Senator Robert Duncan, Chair




Erin Fry, Clerk