S.B. No. 393 amends Chapter 1253 of the Government Code to clarify the authority of political subdivisions in Texas to issue debt for purchasing or leasing property. The bill changes the chapter heading from "General Obligation Bonds" to "Public Securities Issued by Political Subdivisions" and updates the definitions within the chapter. Notably, it introduces a new section, 1253.0015, which prohibits political subdivisions from issuing public securities to purchase or lease tangible personal property if the expected useful life of that property, for depreciation purposes under the Internal Revenue Code, ends before the maturity date of the public security.

Additionally, the bill modifies Section 1253.002 to specify that political subdivisions cannot issue certain types of debt, including general obligation bonds, certificates of obligation, or anticipation notes, for improvements to real property if the weighted average maturity of the debt exceeds 120 percent of the expected weighted average economic life of the financed improvements. This aims to ensure that the financial obligations align with the useful life of the assets being financed. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Government Code 1253.001, Government Code 1253.002 (Government Code 1253)
Senate Committee Report: Government Code 1253.001, Government Code 1253.002 (Government Code 1253)