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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 a |
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public security if the debt-to-asset ratio of the political |
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subdivision exceeds a certain percentage. |
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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] ISSUED |
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BY POLITICAL SUBDIVISIONS |
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SECTION 2. Chapter 1253, Government Code, is amended by |
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adding Section 1253.004 to read as follows: |
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Sec. 1253.004. LIMITATION ON AUTHORITY TO ISSUE PUBLIC |
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SECURITIES WITH HIGH DEBT-TO-ASSET RATIO. (a) In this section, |
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"public security" has the meaning assigned by Section 1201.002. |
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(b) A political subdivision may not issue a public security |
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if the political subdivision has a debt-to-asset ratio of 20 |
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percent or more. |
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SECTION 3. The change in law made by this Act applies only |
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to a public security issued by a political subdivision on or after |
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the effective date of this Act. |
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SECTION 4. This Act takes effect September 1, 2025. |