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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of a political subdivision to issue |
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certain public securities to purchase or lease tangible personal |
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property or purchase, improve, or construct an improvement to real |
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property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Chapter 1253, Government Code, is |
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amended to read as follows: |
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CHAPTER 1253. PUBLIC SECURITIES [GENERAL OBLIGATION BONDS] |
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ISSUED BY POLITICAL SUBDIVISIONS |
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SECTION 2. Section 1253.001, Government Code, is amended to |
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read as follows: |
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Sec. 1253.001. DEFINITIONS [DEFINITION]. In this chapter: |
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(1) "Political [, "political] subdivision" means a |
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county, municipality, school district, junior college district, |
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other special district, or other subdivision of state government. |
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(2) "Public security" has the meaning assigned by |
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Section 1201.002. |
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SECTION 3. Chapter 1253, Government Code, is amended by |
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adding Section 1253.0015 to read as follows: |
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Sec. 1253.0015. LIMITATION ON AUTHORITY TO ISSUE PUBLIC |
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SECURITY FOR TANGIBLE PERSONAL PROPERTY. (a) A political |
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subdivision may not issue a public security to purchase or lease |
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tangible personal property if the expected useful life of the |
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property for the purpose of calculating depreciation deductions |
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under the Internal Revenue Code of 1986 ends before the maturity |
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date of the public security. |
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(b) This section does not apply to financing related to a |
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critical infrastructure facility, as defined by Section 59.001, |
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Business & Commerce Code. |
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SECTION 4. Section 1253.002 |
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, Government Code, is amended to |
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read as follows: |
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Sec. 1253.002. LIMITATION ON AUTHORITY TO ISSUE CERTAIN |
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PUBLIC SECURITIES FOR IMPROVEMENTS TO REAL PROPERTY [GENERAL |
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OBLIGATION BONDS]. [(a) In this section, "personal property" has |
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the meaning assigned by Section 1.04, Tax Code. |
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[(b)] Notwithstanding any other provision of law, a |
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political subdivision may not issue general obligation bonds, |
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certificates of obligation, or anticipation notes to purchase, |
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improve, or construct one or more improvements to real property [, |
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to purchase one or more items of personal property, or to do both,] |
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if the weighted average maturity of the issue of bonds, |
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certificates, or notes exceeds 120 percent of the reasonably |
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expected weighted average economic life of the improvements [and |
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personal property] financed with the issue of bonds, certificates, |
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or notes. |
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SECTION 5. This Act takes effect September 1, 2025. |