The bill, H.B. No. 1514, amends Chapter 1253 of the Government Code to clarify the authority of political subdivisions in Texas to issue debt for the purchase or lease of tangible personal property. The heading of the chapter is changed to "PUBLIC SECURITIES ISSUED BY POLITICAL SUBDIVISIONS," and definitions are updated to include "public security" as defined in Section 1201.002. A new section, 1253.0015, is added, which prohibits political subdivisions from issuing public securities for 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, Section 1253.002 is amended to specify limitations on issuing general obligation bonds for improvements to real property, removing references to personal property. The bill establishes that a political subdivision cannot issue general obligation bonds if the weighted average maturity exceeds 120 percent of the reasonably expected weighted average economic life of the financed improvements. This legislation is set to take effect on September 1, 2025.

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