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