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A BILL TO BE ENTITLED
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AN ACT
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relating to a prohibition on the issuance of capital appreciation |
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bonds by local governments. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 1201, Government Code, is |
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amended by adding Section 1201.0245 to read as follows: |
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Sec. 1201.0245. CAPITAL APPRECIATION BONDS BY LOCAL |
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GOVERNMENTS PROHIBITED. A county, municipality, special district, |
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school district, junior college district, or other political |
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subdivision of the state may not issue capital appreciation bonds. |
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SECTION 2. The change in law made by this Act does not |
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affect the validity of capital appreciation bonds issued before the |
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effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2013. |