By: Sparks  S.B. No. 393
         (In the Senate - Filed November 19, 2024; February 3, 2025,
  read first time and referred to Committee on Local Government;
  April 2, 2025, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 4, Nays 1; April 2, 2025,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 393 By:  Middleton
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the authority of a political subdivision to issue debt
  to purchase or lease property.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Chapter 1253, Government Code, is
  amended to read as follows:
  CHAPTER 1253. PUBLIC SECURITIES [GENERAL OBLIGATION BONDS]
  ISSUED BY POLITICAL SUBDIVISIONS
         SECTION 2.  Section 1253.001, Government Code, is amended to
  read as follows:
         Sec. 1253.001.  DEFINITIONS [DEFINITION]. In this chapter:
               (1)  "Political[, "political] subdivision" means a
  county, municipality, school district, junior college district,
  other special district, or other subdivision of state government.
               (2)  "Public security" has the meaning assigned by
  Section 1201.002.
         SECTION 3.  Chapter 1253, Government Code, is amended by
  adding Section 1253.0015 to read as follows:
         Sec. 1253.0015.  LIMITATION ON AUTHORITY TO ISSUE PUBLIC
  SECURITY FOR TANGIBLE PERSONAL PROPERTY. A political subdivision
  may not issue a public security to purchase or lease tangible
  personal property if the expected useful life of the property for
  the purpose of calculating depreciation deductions under the
  Internal Revenue Code of 1986 ends before the maturity date of the
  public security.
         SECTION 4.  Section 1253.002
  , Government Code, is amended to
  read as follows:
         Sec. 1253.002.  LIMITATION ON AUTHORITY TO ISSUE CERTAIN
  DEBT FOR IMPROVEMENTS TO REAL PROPERTY [GENERAL OBLIGATION BONDS].
  [(a) In this section, "personal property" has the meaning assigned
  by Section 1.04, Tax Code.
         [(b)]  Notwithstanding any other provision of law, a
  political subdivision may not issue general obligation bonds,
  certificates of obligation, or anticipation notes to purchase,
  improve, or construct one or more improvements to real property[,
  to purchase one or more items of personal property, or to do both,]
  if the weighted average maturity of the issue of bonds,
  certificates, or notes exceeds 120 percent of the reasonably
  expected weighted average economic life of the improvements [and
  personal property] financed with the issue of bonds, certificates,
  or notes.
         SECTION 5.  This Act takes effect September 1, 2025.
 
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