Texas HB4295 prohibits political subdivisions from issuing public securities if their debt-to-asset ratio exceeds 20 percent.

Texas HB4295 amends Chapter 1253 of the Government Code to restrict the authority of political subdivisions from issuing public securities when their debt-to-asset ratio reaches or exceeds 20 percent. The bill adds Section 1253.004 to clarify the limitation on issuing public securities under such conditions. This change applies to public securities issued after the effective date of the Act, which is September 1, 2025.

Texas HB4295 prohibits political subdivisions from issuing public securities if their debt-to-asset ratio exceeds 20 percent.

Texas HB4295 amends Chapter 1253 of the Government Code to restrict the authority of political subdivisions from issuing public securities when their debt-to-asset ratio reaches or exceeds 20 percent. The bill adds Section 1253.004 to clarify the limitation on issuing public securities under such conditions. This change applies to public securities issued after the effective date of the Act, which is September 1, 2025.