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A BILL TO BE ENTITLED
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AN ACT
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relating to a limitation on the authority of political subdivisions |
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to issue public securities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 1201, Government Code, is |
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amended by adding Section 1201.006 to read as follows: |
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Sec. 1201.006. LIMIT ON LOCAL GOVERNMENT DEBT. |
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Notwithstanding any other law, including a provision in a municipal |
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charter, a political subdivision may not authorize additional debt |
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if the resulting annual debt service exceeds the limitation imposed |
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by this section. The maximum annual debt service in any fiscal year |
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on debt payable from property taxes may not exceed 10 percent of the |
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amount equal to the average of the amount of property tax |
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collections for the three preceding fiscal years. |
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SECTION 2. This Act takes effect on the 91st day after the |
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last day of the legislative session. |