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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 debt |
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to purchase or lease tangible personal 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 political subdivision |
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may not issue a public security to purchase or lease tangible |
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personal property if the expected useful life of the property, |
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determined based on the depreciable life of the property under the |
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Internal Revenue Code of 1986, ends before the maturity date of the |
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public security. |
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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 GENERAL |
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OBLIGATION BONDS FOR IMPROVEMENTS TO REAL PROPERTY. [(a) In this |
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section, "personal property" has the meaning assigned by Section |
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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 to |
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purchase, improve, or construct one or more improvements to real |
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property [, to purchase one or more items of personal property, or |
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to do both,] if the weighted average maturity of the issue of bonds |
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exceeds 120 percent of the reasonably expected weighted average |
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economic life of the improvements [and personal property] financed |
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with the issue of bonds. |
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SECTION 5. This Act takes effect September 1, 2023. |