87(R) HB 1887 - Introduced version - Bill Text

	87R3956 SMT-D
	By:  Schofield	H.B.  No.  1887

	A BILL TO BE ENTITLED
	AN ACT
	relating to the authority of a political subdivision to issue debt
	to purchase or lease tangible personal 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 ends
	before the maturity date of the public security.
	SECTION  4.    Section 1253.002(b), Government Code, is amended
	to read as follows:
	(b)    Notwithstanding any other provision of law, a political
	subdivision may not issue general obligation bonds 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 exceeds 120
	percent of the reasonably expected weighted average economic life
	of the improvements [and personal property] financed with the issue
	of bonds.
	SECTION  5.    This Act takes effect September 1, 2021.