Bill > HB4461

This bill creates a new law that allows certain large counties (specifically those with a population of 800,000 or more located adjacent to a county with 4 million or more people) to issue financial obligations like bonds or notes to pay off unfunded pension liabilities. Before issuing such obligations, the county must first enter into a written agreement with the public retirement system's governing body specifying the amount of unfunded liability and when the funds will be accepted. The bill requires voter approval through a majority vote in an election before the county can issue these obligations. The funds raised must be deposited directly into the public retirement system's assets, and the obligations can be paid from the county's compensation fund, general fund, or certain revenues, but explicitly cannot be paid using ad valorem (property) taxes. The obligations can be sold publicly or privately and must mature within 30 years. The county can also enter into credit agreements related to these obligations, and the new law takes precedence over any conflicting existing laws. The bill will take effect immediately if it receives a two-thirds vote in the Texas legislature, or on September 1, 2025, if it does not receive the required immediate voting support.

Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4461