Texas SB393 amends the authority of political subdivisions to issue debt for tangible personal property purchases or leases.

Texas SB393 modifies the Government Code to restrict political subdivisions from issuing general obligation bonds for improvements to real property or for purchasing personal property if the bonds' maturity exceeds 120% of the property's economic life. Additionally, it prohibits political subdivisions from issuing public securities to purchase or lease tangible personal property if the property's useful life under the Internal Revenue Code ends before the security's maturity. This act takes effect September 1, 2025.

Texas SB393 amends the authority of political subdivisions to issue debt for tangible personal property purchases or leases.

Texas SB393 modifies the Government Code to restrict political subdivisions from issuing general obligation bonds for improvements to real property or for purchasing personal property if the bonds' maturity exceeds 120% of the property's economic life. Additionally, it prohibits political subdivisions from issuing public securities to purchase or lease tangible personal property if the property's useful life under the Internal Revenue Code ends before the security's maturity. This act takes effect September 1, 2025.