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89(R) HB 1514 - House Committee Report version - Bill Text
89R28403 JBD-D
By: Schofield
H.B. No. 1514
Substitute the following for H.B. No. 1514:
By: Lambert
C.S.H.B. No. 1514
A BILL TO BE ENTITLED
AN ACT
relating to the authority of a political subdivision to issue
certain public securities to purchase or lease tangible personal
property or purchase, improve, or construct an improvement to real
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)
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.
(b)
This section does not apply to financing related to a
critical infrastructure facility, as defined by Section 59.001,
Business & Commerce Code.
SECTION 4. Section 1253.002
, Government Code, is amended to
read as follows:
Sec. 1253.002. LIMITATION ON AUTHORITY TO ISSUE
CERTAIN
PUBLIC SECURITIES 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.