89R15749 JCG-F     By: Morgan H.B. No. 4461       A BILL TO BE ENTITLED   AN ACT   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, 2025.