| 1 | 1 | | By: Sparks S.B. No. 561 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the authority of a political subdivision to issue debt |
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| 7 | 7 | | to purchase or lease tangible personal property. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. The heading to Chapter 1253, Government Code, is |
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| 10 | 10 | | amended to read as follows: |
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| 11 | 11 | | CHAPTER 1253. PUBLIC SECURITIES [GENERAL OBLIGATION BONDS] |
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| 12 | 12 | | ISSUED BY POLITICAL SUBDIVISIONS |
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| 13 | 13 | | SECTION 2. Section 1253.001, Government Code, is amended to |
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| 14 | 14 | | read as follows: |
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| 15 | 15 | | Sec. 1253.001. DEFINITIONS [DEFINITION]. In this chapter: |
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| 16 | 16 | | (1) "Political [, "political] subdivision" means a |
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| 17 | 17 | | county, municipality, school district, junior college district, |
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| 18 | 18 | | other special district, or other subdivision of state government. |
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| 19 | 19 | | (2) "Public security" has the meaning assigned by |
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| 20 | 20 | | Section 1201.002. |
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| 21 | 21 | | SECTION 3. Chapter 1253, Government Code, is amended by |
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| 22 | 22 | | adding Section 1253.0015 to read as follows: |
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| 23 | 23 | | Sec. 1253.0015. LIMITATION ON AUTHORITY TO ISSUE PUBLIC |
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| 24 | 24 | | SECURITY FOR TANGIBLE PERSONAL PROPERTY. A political subdivision |
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| 25 | 25 | | may not issue a public security to purchase or lease tangible |
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| 26 | 26 | | personal property if the expected useful life of the property, |
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| 27 | 27 | | determined based on the depreciable life of the property under the |
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| 28 | 28 | | Internal Revenue Code of 1986, ends before the maturity date of the |
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| 29 | 29 | | public security. |
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| 30 | 30 | | SECTION 4. Section 1253.002 |
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| 31 | 31 | | , Government Code, is amended to |
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| 32 | 32 | | read as follows: |
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| 33 | 33 | | Sec. 1253.002. LIMITATION ON AUTHORITY TO ISSUE GENERAL |
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| 34 | 34 | | OBLIGATION BONDS FOR IMPROVEMENTS TO REAL PROPERTY. [(a) In this |
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| 35 | 35 | | section, "personal property" has the meaning assigned by Section |
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| 36 | 36 | | 1.04, Tax Code. |
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| 37 | 37 | | [(b)] Notwithstanding any other provision of law, a |
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| 38 | 38 | | political subdivision may not issue general obligation bonds to |
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| 39 | 39 | | purchase, improve, or construct one or more improvements to real |
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| 40 | 40 | | property [, to purchase one or more items of personal property, or |
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| 41 | 41 | | to do both,] if the weighted average maturity of the issue of bonds |
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| 42 | 42 | | exceeds 120 percent of the reasonably expected weighted average |
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| 43 | 43 | | economic life of the improvements [and personal property] financed |
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| 44 | 44 | | with the issue of bonds. |
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| 45 | 45 | | SECTION 5. This Act takes effect September 1, 2023. |
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