Bill Text: TX HB4853 | 2023-2024 | 88th Legislature | Comm Sub


Bill Title: Relating to the issuance of obligations by certain counties to pay the unfunded liabilities of the county to a public retirement system.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-04-24 - Committee report sent to Calendars [HB4853 Detail]

Download: Texas-2023-HB4853-Comm_Sub.html
  88R21713 JCG-F
 
  By: Jetton H.B. No. 4853
 
  Substitute the following for H.B. No. 4853:
 
  By:  Capriglione C.S.H.B. No. 4853
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the issuance of obligations by certain counties to pay
  the unfunded liabilities of the county to a public retirement
  system.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle I, Title 9, Government Code, is amended
  by adding Chapter 1480 to read as follows:
  CHAPTER 1480. OBLIGATIONS FOR UNFUNDED LIABILITIES OF CERTAIN
  COUNTIES TO PUBLIC RETIREMENT SYSTEMS
         Sec. 1480.001.  DEFINITIONS. In this chapter:
               (1)  "Obligation" includes a bond, certificate, note,
  or book entry obligation.
               (2)  "Public retirement system" has the meaning
  assigned by Section 802.001.
               (3)  "Unfunded liability" means an unfunded, accrued
  liability of a county to a public retirement system as determined by
  actuarial analysis.
         Sec. 1480.002.  APPLICABILITY. This chapter applies only to
  a county with a population of 800,000 or more that is located
  adjacent to a county with a population of four million or more.
         Sec. 1480.003.  OBLIGATIONS AUTHORIZED. (a) A county may
  issue obligations to fund all or any part of an unfunded liability.
         (b)  Before authorizing issuance and delivery of an
  obligation under this section, the commissioners court of the
  county must enter into a written agreement with the governing body
  of the public retirement system that:
               (1)  has fiduciary responsibility for assets of the
  trust fund that is to receive the net proceeds of the obligations to
  be issued; and
               (2)  has the duty to oversee the investment and
  expenditure of the assets of the fund.
         (c)  The written agreement must state the amount of the
  unfunded liability and the date or dates on which the public
  retirement system will accept the net proceeds of the obligations
  to be issued in payment of all or a portion of the unfunded
  liability.
         Sec. 1480.004.  VOTER APPROVAL REQUIRED. A county may issue
  an obligation under this chapter to fund all or any part of the
  unfunded liability of a public retirement system associated with
  the county to which this chapter applies only if the issuance is
  approved by a majority of the qualified voters of the county voting
  at an election held for that purpose.
         Sec. 1480.005.  PROCEEDS OF OBLIGATIONS ISSUED. The county
  shall deposit the net proceeds of obligations issued under this
  chapter to the credit of the public retirement system. The amount
  deposited under this section becomes part of the public retirement
  system's assets.
         Sec. 1480.006.  PAYMENT OF OBLIGATIONS. (a)  An obligation
  issued under this chapter may be made payable by the county from:
               (1)  the fund from which compensation is paid to its
  officers and employees;
               (2)  its general fund; or
               (3)  except as provided by Subsection (b), taxes,
  revenues, both taxes and revenues, or any other source or
  combination of sources of money that the county may use under state
  law to secure or pay any kind of bond or obligation.
         (b)  An obligation issued under this chapter may not be made
  payable by the county from ad valorem taxes.
         (c)  Notwithstanding any provision of the Tax Code, a county
  may pledge anticipated revenue from the imposition of sales and use
  taxes to secure the payment of an obligation authorized by this
  chapter for a period not longer than 30 years.
         Sec. 1480.007.  OBLIGATION AS REFINANCING. An obligation
  issued under this chapter is a complete or partial refinancing of a
  commitment of the county to fund its unfunded liability.
         Sec. 1480.008.  SALE OF OBLIGATIONS; MATURITY. Obligations
  issued under this chapter may be sold at private or public sale and
  must mature not later than the 30th anniversary of the date of
  issuance.
         Sec. 1480.009.  CREDIT AGREEMENTS. (a) In this section,
  "credit agreement" and "obligation" have the meanings assigned by
  Section 1371.001, Government Code.
         (b)  The governing body of a county that issues obligations
  under this chapter may exercise any of the rights or powers of the
  governing body of an issuer under Chapter 1371, Government Code,
  and may enter into a credit agreement under that chapter. An
  obligation issued under this chapter is an obligation under Chapter
  1371, Government Code, but is not required to be rated as required
  by that chapter.
         Sec. 1480.010.  CHAPTER CONTROLLING. To the extent of any
  conflict between this chapter and another law, this chapter
  prevails.
         SECTION 2.  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, 2023.
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