The bill establishes a "statutory modified accrual basis" of accounting that "recognizes revenue when it is measurable and available to finance current expenditures and recognizes expenditures when they are normally expected to be liquidated..." The bill specifically addresses accounting for other postemployment benefits by providing "To the extent that generally accepted accounting principles require accounting or reporting of other postemployment benefits at the government-wide or fund level on any basis other than pay-as-you-go, this state and its political subdivisions may account for or report those other postemployment benefits in accordance with the statutory accounting principles in this chapter."
The bill language is permissive, meaning that local government entities can decide for themselves whether or not to comply with GASB Statement No. 45. While the bill's clear objective is to excuse Texas governments from complying with GASB Statement No. 45, the Senate version removed language that explicitly stated that was the only exception from GAAP allowed. This raises the possibility that some government entity might use the bill's language to excuse other GAAP departures. Because the Senate bill is different from the bill passed by the House, it must go back to the House for concurrence before going to the governor. For more about the bill and it's passage, check out this Austin American-Statesman article.