SB393 - Relating to the authority of a political subdivision to issue debt to purchase or lease property.

      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.     * * * * *