Bill
SB 151
85(R) - 2017
Senate State Affairs
Senate State Affairs
Elections
Finance
Retirement systems
Vote Recommendation
Yes
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Neutral
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Neutral
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Neutral
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Positive
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Neutral
Author(s)
Paul Bettencourt
Bill Caption
Relating to voter approval of obligations for certain municipal liabilities to a public pension fund.
Fiscal Notes
No fiscal implication to the State is anticipated.
Bill Analysis
Under current law, a municipality may issue obligations to fund all or any part of an unfunded liability. Before authorizing issuance of an obligation, the governing body of the municipality must enter into a written agreement with the governing body of the public retirement system. SB 151 would add to this process by also requiring a municipality to gain majority qualified voter approval before they issue an obligation. The municipality must first hold an election for this purpose.
Vote Recommendation Notes
Texas Action supports this bill. SB 151 upholds our principles of limited government by putting the final decision in the hands of the voters who are affected by this action. Do note, issuing debt obligations to fund unfunded liabilities is simply trading one form of debt for another and is not a direct solution to insolvency, but differing interest rates for each type of debt may make obligations the more attractive type of liability.
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