SB 2904

relating to the issuance of obligations by certain counties to pay
the unfunded liabilities of the county to a public retirement
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,
(2)  "Public retirement system" has the meaning
(3)  "Unfunded liability" means an unfunded, accrued
liability of a county to a public retirement system as determined by
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
(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
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
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
(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
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
Sec. 1480.010.  CHAPTER CONTROLLING.  To the extent of any
conflict between this chapter and another law, this chapter
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.