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 | ||
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| 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. | ||
