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.