S.B. No. 1133

	AN ACT
	relating to contributions to certain fire and police pension funds.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 14, Chapter 101 (H.B. 31), Acts of the
	43rd Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's
	Texas Civil Statutes), is amended to read as follows:
	Sec. 14.  USE OF PUBLIC FUNDS.  Except as provided by Section
	14A of this Act, no [No] funds shall be paid out of the public
	treasury of any such incorporated city or town, in carrying out any
	of the provisions of this law, except on a majority vote of the
	voters of such city or town, and where such funds have been voted on
	as provided by law, said city or town shall contribute such amount.
	SECTION 2.  Subsection (a), Section 14A, Chapter 101 (H.B.
	31), Acts of the 43rd Legislature, 1st Called Session, 1933
	(Article 6243b, Vernon's Texas Civil Statutes), is amended to read
	as follows:
	(a)  If at any time a qualified actuary that meets the
	requirements of Subdivision (1), Subsection (b), Section 10A of
	this Act, determines that the total contribution rate, expressed as
	a percentage of wages, is insufficient to amortize the unfunded
	actuarial accrued liability, as defined under the Governmental
	Accounting Standards Board Statement No. 25, over a 40-year period
	[not to exceed forty (40) years]:
	(1)  the city's or town's governing body may increase
	the city or town contribution rate; and
	(2)  to the extent that the city or town contribution
	rate increases under Subdivision (1) of this subsection, the member
	contribution rate must increase by an amount equal to the member
	contribution rate before the increase multiplied by a fraction:
	(A)  the numerator of which is the increase in the
	amount of the city or town contribution rate; and
	(B)  the denominator of which is the amount of the
	city or town contribution rate before the increase.
	SECTION 3.  Chapter 101 (H.B. 31), Acts of the 43rd
	Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's
	Texas Civil Statutes), is amended by adding Section 14B to read as
	follows:
	Sec. 14B.  CONTRIBUTION DECREASES. (a)  If at any time a
	qualified actuary that meets the requirements of Section 10A(b)(1)
	of this Act determines that the total contribution rate, expressed
	as a percentage of wages, is sufficient to amortize the unfunded
	actuarial accrued liability, as defined under the Governmental
	Accounting Standards Board Statement No. 25, over a 25-year period:
	(1)  the city's or town's governing body may decrease
	the city or town contribution rate; and
	(2)  to the extent that the city or town contribution
	rate decreases under Subdivision (1) of this subsection, the member
	contribution rate must decrease by an amount equal to the member
	contribution rate before the decrease multiplied by a fraction:
	(A)  the numerator of which is the decrease in the
	amount of the city or town contribution rate; and
	(B)  the denominator of which is the amount of the
	city or town contribution rate before the decrease.
	(b)  The sum of the city or town contribution rate and the
	member contribution rate after a decrease under this section may
	not be less than the total contribution rate determined by the
	qualified actuary to be necessary to amortize the unfunded
	actuarial accrued liability over a 25-year period.
	SECTION 4.  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 hereby certify that S.B. No. 1133 passed the Senate on
	April 25, 2013, by the following vote:  Yeas 28, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1133 passed the House on
	May 8, 2013, by the following vote:  Yeas 142, Nays 5, two present
	not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor