| 1 | 1 | | 87R836 JCG-D |
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| 2 | 2 | | By: Bettencourt S.B. No. 1620 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to voter approval of the issuance of certain obligations |
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| 8 | 8 | | by municipalities to pay their unfunded liabilities to a public |
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| 9 | 9 | | pension fund. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 107.003(a), Local Government Code, is |
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| 12 | 12 | | amended to read as follows: |
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| 13 | 13 | | (a) Subject to Section 107.0035, a [A] municipality may |
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| 14 | 14 | | issue obligations to fund all or any part of an unfunded liability. |
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| 15 | 15 | | SECTION 2. Chapter 107, Local Government Code, is amended |
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| 16 | 16 | | by adding Section 107.0035 to read as follows: |
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| 17 | 17 | | Sec. 107.0035. VOTER APPROVAL REQUIRED FOR CERTAIN PENSION |
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| 18 | 18 | | FUND OBLIGATIONS. A municipality may issue an obligation under |
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| 19 | 19 | | Section 107.003 in an amount that exceeds $50 million only if the |
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| 20 | 20 | | issuance is approved by a majority of the qualified voters of the |
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| 21 | 21 | | municipality voting at an election held for that purpose. |
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| 22 | 22 | | SECTION 3. Section 107.0036, Local Government Code, is |
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| 23 | 23 | | repealed. |
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| 24 | 24 | | SECTION 4. Section 107.0035, Local Government Code, as |
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| 25 | 25 | | added by this Act, applies only to obligations for which the |
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| 26 | 26 | | governing body of a municipality executes an agreement under |
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| 27 | 27 | | Section 107.003(b), Local Government Code, on or after the |
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| 28 | 28 | | effective date of this Act. |
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| 29 | 29 | | SECTION 5. This Act takes effect immediately if it receives |
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| 30 | 30 | | a vote of two-thirds of all the members elected to each house, as |
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| 31 | 31 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 32 | 32 | | Act does not receive the vote necessary for immediate effect, this |
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| 33 | 33 | | Act takes effect September 1, 2021. |
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