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A BILL TO BE ENTITLED
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AN ACT
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relating to the issuance of obligations by certain counties to pay |
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the unfunded liabilities of the county to a public retirement |
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system. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle I, Title 9, Government Code, is amended |
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by adding Chapter 1480 to read as follows: |
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CHAPTER 1480. OBLIGATIONS FOR UNFUNDED LIABILITIES OF CERTAIN |
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COUNTIES TO PUBLIC RETIREMENT SYSTEMS |
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Sec. 1480.001. DEFINITIONS. In this chapter: |
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(1) "Obligation" includes a bond, certificate, note, |
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or book entry obligation. |
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(2) "Public retirement system" has the meaning |
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assigned by Section 802.001. |
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(3) "Unfunded liability" means an unfunded, accrued |
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liability of a county to a public retirement system as determined by |
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actuarial analysis. |
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Sec. 1480.002. APPLICABILITY. This chapter applies only to |
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a county with a population of 800,000 or more that is located |
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adjacent to a county with a population of four million or more. |
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Sec. 1480.003. OBLIGATIONS AUTHORIZED. (a) A county may |
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issue obligations to fund all or any part of an unfunded liability. |
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(b) Before authorizing issuance and delivery of an |
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obligation under this section, the commissioners court of the |
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county must enter into a written agreement with the governing body |
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of the public retirement system that: |
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(1) has fiduciary responsibility for assets of the |
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trust fund that is to receive the net proceeds of the obligations to |
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be issued; and |
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(2) has the duty to oversee the investment and |
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expenditure of the assets of the fund. |
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(c) The written agreement must state the amount of the |
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unfunded liability and the date or dates on which the public |
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retirement system will accept the net proceeds of the obligations |
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to be issued in payment of all or a portion of the unfunded |
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liability. |
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Sec. 1480.004. VOTER APPROVAL REQUIRED. A county may issue |
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an obligation under this chapter to fund all or any part of the |
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unfunded liability of a public retirement system associated with |
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the county to which this chapter applies only if the issuance is |
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approved by a majority of the qualified voters of the county voting |
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at an election held for that purpose. |
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Sec. 1480.005. PROCEEDS OF OBLIGATIONS ISSUED. The county |
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shall deposit the net proceeds of obligations issued under this |
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chapter to the credit of the public retirement system. The amount |
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deposited under this section becomes part of the public retirement |
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system's assets. |
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Sec. 1480.006. PAYMENT OF OBLIGATIONS. (a) An obligation |
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issued under this chapter may be made payable by the county from: |
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(1) the fund from which compensation is paid to its |
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officers and employees; |
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(2) its general fund; or |
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(3) except as provided by Subsection (b), taxes, |
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revenues, both taxes and revenues, or any other source or |
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combination of sources of money that the county may use under state |
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law to secure or pay any kind of bond or obligation. |
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(b) An obligation issued under this chapter may not be made |
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payable by the county from ad valorem taxes. |
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(c) Notwithstanding any provision of the Tax Code, a county |
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may pledge anticipated revenue from the imposition of sales and use |
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taxes to secure the payment of an obligation authorized by this |
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chapter for a period not longer than 30 years. |
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Sec. 1480.007. OBLIGATION AS REFINANCING. An obligation |
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issued under this chapter is a complete or partial refinancing of a |
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commitment of the county to fund its unfunded liability. |
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Sec. 1480.008. SALE OF OBLIGATIONS; MATURITY. Obligations |
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issued under this chapter may be sold at private or public sale and |
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must mature not later than the 30th anniversary of the date of |
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issuance. |
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Sec. 1480.009. CREDIT AGREEMENTS. (a) In this section, |
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"credit agreement" and "obligation" have the meanings assigned by |
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Section 1371.001, Government Code. |
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(b) The governing body of a county that issues obligations |
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under this chapter may exercise any of the rights or powers of the |
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governing body of an issuer under Chapter 1371, Government Code, |
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and may enter into a credit agreement under that chapter. An |
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obligation issued under this chapter is an obligation under Chapter |
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1371, Government Code, but is not required to be rated as required |
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by that chapter. |
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Sec. 1480.010. CHAPTER CONTROLLING. To the extent of any |
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conflict between this chapter and another law, this chapter |
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prevails. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |