Bill > SB393

This bill modifies Texas law regarding how political subdivisions (such as counties, municipalities, school districts, and other special districts) can issue public securities for purchasing or leasing tangible personal property. The bill specifically introduces a new restriction that prevents political subdivisions from issuing a public security to purchase or lease tangible personal property if the expected useful life of that property (as calculated for tax depreciation purposes under the Internal Revenue Code) ends before the maturity date of the security. Additionally, the bill expands existing limitations on debt issuance by including certificates of obligation and anticipation notes alongside general obligation bonds, and clarifies that these restrictions apply primarily to improvements to real property. The bill also updates definitions and terminology in the relevant chapter of the Government Code, broadening the scope from just "general obligation bonds" to "public securities" and adding a specific definition for "public security." The changes will take effect on September 1, 2025, giving political subdivisions time to adjust to the new requirements.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB393