| TO: | Honorable Vicki Truitt, Chair, House Committee on Pensions & Investments |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | SB1575 by Wentworth (Relating to the issuance of obligations by political subdivisions to pay unfunded liabilities for certain retirement benefits of officers and employees of the political subdivisions.), As Engrossed |
The bill would add Chapter 1436 to Subtitle H, Title 9 of the Government Code to authorize a political subdivision to issue obligations to fund all or any part of an unfunded liability. Requirements related to this authorization are stipulated in the bill. Obligations may not be issued after December 31, 2011.
The bill would take effect immediately if it were to receive the required two-thirds vote in each house; otherwise, it would take effect September 1, 2007. However, if either or both Senate Bill 1102 and House Bill 2365, Eightieth Legislature, Regular Session, 2007, become law, then a political subdivision may not exercise the authority granted in this bill and Chapter 1436 would expire September 1, 2007.
| Source Agencies: |
| LBB Staff: | JOB, KJG, DB
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