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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Introduced.html

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By: Jetton H.B. No. 4853

A BILL TO BE ENTITLED
AN ACT
relating to the authority to issue obligations to fund all or any
unfunded liability by certain counties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle B, Title 4, Chapter 130, Local
Government Code, is amended by adding Subchapter B to read as
follows:
SUBCHAPTER B. OBLIGATIONS FOR CERTAIN LIABILITIES TO PUBLIC
PENSION FUNDS OF CERTAIN COUNTIES
Sec. 130.201. APPLICABILITY OF SUBCHAPTER.
This subchapter applies only to a county with a population of
more than 800,000 that borders a county with a population of more
than 3 million.
Sec. 130.202. DEFINITIONS. In this chapter:
(1) "Obligation" includes a bond, certificate, note,
or book entry obligation.
(2) "Unfunded liability" means an unfunded, accrued
liability of a county to a public pension fund as determined by
actuarial analysis.
Sec. 130.203. DEFINITION OF "PUBLIC PENSION FUND". In this
chapter, "public pension fund":
(1) means a continuing, organized program or plan of
service retirement, disability retirement, or death benefits for
officers or employees of a county;
(2) includes a plan qualified under Section 401(a),
Internal Revenue Code of 1986, as amended,; and
(3) does not include:
(A) a program that provides only workers'
compensation benefits;
(B) a program administered by the federal
government;
(C) a plan described by Section 401(d), Internal
Revenue Code of 1986, as amended;
(D) an individual retirement account consisting
of an annuity contract described by Section 403(b), Internal
Revenue Code of 1986, as amended;
(E) an individual retirement account as defined
by Section 408(a), Internal Revenue Code of 1986, as amended;
(F) an individual retirement annuity as defined
by Section 408(b), Internal Revenue Code of 1986, as amended;
(G) an eligible deferred compensation plan as
defined by Section 457(b), Internal Revenue Code of 1986, as
amended; or
(H) a program for which benefits are administered
by a life insurance company or for which the only funding agency is
a life insurance company.
Sec. 130.204. PENSION FUND 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
public pension fund or public pension funds that are 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 public pension fund.
(c) The written agreement must state the amount of the
unfunded liability and the date or dates on which the public pension
fund will accept the net proceeds of the obligations to be issued in
payment of all or a portion of the unfunded liability.
Sec. 130.2045. VOTER APPROVAL REQUIRED FOR CERTAIN PENSION
FUND OBLIGATIONS. (a) This section applies only to a public
pension fund subject to:
(1) Article 6243e.2(1), Revised Statutes;
(2) Chapter 88 (H.B. 1573), Acts of the 77th
Legislature, Regular Session, 2001 (Article 6243h, Vernon's Texas
Civil Statutes); and
(3) Article 6243g-4, Revised Statutes.
(b) A county may issue an obligation under Section 130.204
to fund all or any part of the unfunded liability of a public
pension fund subject to this section 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. 130.205. PROCEEDS OF OBLIGATIONS ISSUED. The county
shall deposit the net proceeds of obligations issued under Section
130.204 to the credit of the public pension fund. The amount
deposited under this section becomes part of the public pension
fund's assets.
Sec. 130.206. PAYMENT OF OBLIGATIONS. (a) An obligation
issued under 130.204 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) sales and use taxes, revenues, both sales and use
taxes and revenues, or any other source or combination of sources of
money that the county may use under state law, except ad valorem
taxes, to secure or pay any kind of bond or obligation.
(b) An obligation issued under 130.204 shall not be made
payable by the county from ad valorem taxes.
Sec. 130.207. OBLIGATION AS REFINANCING. An obligation
issued under Section 130.204 is a complete or partial refinancing
of a commitment of the county to fund its unfunded liability.
Sec. 130.208. SALE OF OBLIGATIONS; MATURITY. Obligations
issued under Section 130.204 may be sold at private or public sale
and must not mature later than the 30th anniversary of the date of
issuance.
Sec. 130.209. ADDITIONAL AUTHORITY; CREDIT AGREEMENTS. (a)
In this section, "credit agreement" and "obligation" have the
meanings assigned by Section 1371.001, Government Code.
Sec. 130.210. CHAPTER CONTROLLING. This subchapter
prevails over any conflict between this subchapter and another law
respecting the issuance of obligations of a county.
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.