| 1 | 1 | | 87R3956 SMT-D |
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| 2 | 2 | | By: Schofield H.B. No. 1887 |
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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 the authority of a political subdivision to issue debt |
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| 8 | 8 | | to purchase or lease tangible personal property. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. The heading to Chapter 1253, Government Code, is |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | CHAPTER 1253. PUBLIC SECURITIES [GENERAL OBLIGATION BONDS] |
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| 13 | 13 | | ISSUED BY POLITICAL SUBDIVISIONS |
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| 14 | 14 | | SECTION 2. Section 1253.001, Government Code, is amended to |
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| 15 | 15 | | read as follows: |
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| 16 | 16 | | Sec. 1253.001. DEFINITIONS [DEFINITION]. In this chapter: |
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| 17 | 17 | | (1) "Political [, "political] subdivision" means a |
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| 18 | 18 | | county, municipality, school district, junior college district, |
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| 19 | 19 | | other special district, or other subdivision of state government. |
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| 20 | 20 | | (2) "Public security" has the meaning assigned by |
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| 21 | 21 | | Section 1201.002. |
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| 22 | 22 | | SECTION 3. Chapter 1253, Government Code, is amended by |
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| 23 | 23 | | adding Section 1253.0015 to read as follows: |
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| 24 | 24 | | Sec. 1253.0015. LIMITATION ON AUTHORITY TO ISSUE PUBLIC |
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| 25 | 25 | | SECURITY FOR TANGIBLE PERSONAL PROPERTY. A political subdivision |
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| 26 | 26 | | may not issue a public security to purchase or lease tangible |
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| 27 | 27 | | personal property if the expected useful life of the property ends |
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| 28 | 28 | | before the maturity date of the public security. |
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| 29 | 29 | | SECTION 4. Section 1253.002(b), Government Code, is amended |
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| 30 | 30 | | to read as follows: |
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| 31 | 31 | | (b) Notwithstanding any other provision of law, a political |
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| 32 | 32 | | subdivision may not issue general obligation bonds to purchase, |
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| 33 | 33 | | improve, or construct one or more improvements to real property [, |
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| 34 | 34 | | to purchase one or more items of personal property, or to do both,] |
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| 35 | 35 | | if the weighted average maturity of the issue of bonds exceeds 120 |
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| 36 | 36 | | percent of the reasonably expected weighted average economic life |
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| 37 | 37 | | of the improvements [and personal property] financed with the issue |
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| 38 | 38 | | of bonds. |
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| 39 | 39 | | SECTION 5. This Act takes effect September 1, 2021. |
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