Texas 2025 - 89th Regular

Texas Senate Bill SB393 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	89R1488 AMF-D
1	2		By: Sparks S.B. No. 393
2		-	(In the Senate - Filed November 19, 2024; February 3, 2025,
3		-	read first time and referred to Committee on Local Government;
4		-	April 2, 2025, reported adversely, with favorable Committee
5		-	Substitute by the following vote: Yeas 4, Nays 1; April 2, 2025,
6		-	sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR S.B. No. 393 By: Middleton
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11	7		A BILL TO BE ENTITLED
12	8		AN ACT
13	9		relating to the authority of a political subdivision to issue debt
14		-	to purchase or lease property.
	10	+	to purchase or lease tangible personal property.
15	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	12		SECTION 1. The heading to Chapter 1253, Government Code, is
17	13		amended to read as follows:
18	14		CHAPTER 1253. PUBLIC SECURITIES [GENERAL OBLIGATION BONDS]
19	15		ISSUED BY POLITICAL SUBDIVISIONS
20	16		SECTION 2. Section 1253.001, Government Code, is amended to
21	17		read as follows:
22	18		Sec. 1253.001. DEFINITIONS [DEFINITION]. In this chapter:
23	19		(1) "Political [, "political] subdivision" means a
24	20		county, municipality, school district, junior college district,
25	21		other special district, or other subdivision of state government.
26	22		(2) "Public security" has the meaning assigned by
27	23		Section 1201.002.
28	24		SECTION 3. Chapter 1253, Government Code, is amended by
29	25		adding Section 1253.0015 to read as follows:
30	26		Sec. 1253.0015. LIMITATION ON AUTHORITY TO ISSUE PUBLIC
31	27		SECURITY FOR TANGIBLE PERSONAL PROPERTY. A political subdivision
32	28		may not issue a public security to purchase or lease tangible
33	29		personal property if the expected useful life of the property for
34	30		the purpose of calculating depreciation deductions under the
35	31		Internal Revenue Code of 1986 ends before the maturity date of the
36	32		public security.
37	33		SECTION 4. Section 1253.002
38	34		, Government Code, is amended to
39	35		read as follows:
40		-	Sec. 1253.002. LIMITATION ON AUTHORITY TO ISSUE ~~CERTAIN~~
41		-	~~DEBT~~ FOR IMPROVEMENTS TO REAL PROPERTY [~~GENERAL OBLIGATION BONDS].~~
42		-	~~[(a) In this~~ section, "personal property" has the meaning assigned
43		-	~~by Section~~ 1.04, Tax Code.
	36	+	Sec. 1253.002. LIMITATION ON AUTHORITY TO ISSUE GENERAL
	37	+	OBLIGATION BONDS FOR IMPROVEMENTS TO REAL PROPERTY. [(a) In this
	38	+	section, "personal property" has the meaning assigned by Section
	39	+	1.04, Tax Code.
44	40		[(b)] Notwithstanding any other provision of law, a
45		-	political subdivision may not issue general obligation bonds,
46		-	certificates of obligation, or anticipation notes to purchase,
47		-	improve, or construct one or more improvements to real property[,
48		-	to purchase one or more items of personal property, or to do both,]
49		-	if the weighted average maturity of the issue of bonds,
50		-	certificates, or notes exceeds 120 percent of the reasonably
51		-	expected weighted average economic life of the improvements [and
52		-	personal property] financed with the issue of bonds, certificates,
53		-	or notes.
	41	+	political subdivision may not issue general obligation bonds to
	42	+	purchase, improve, or construct one or more improvements to real
	43	+	property [, to purchase one or more items of personal property, or
	44	+	to do both,] if the weighted average maturity of the issue of bonds
	45	+	exceeds 120 percent of the reasonably expected weighted average
	46	+	economic life of the improvements [and personal property] financed
	47	+	with the issue of bonds.
54	48		SECTION 5. This Act takes effect September 1, 2025.
55		-	* * * * *