HB4295 - Relating to the authority of a political subdivision to issue a public security if the debt-to-asset ratio of the political subdivision exceeds a certain percentage.

  89R13621 JBD-D     By: Shaheen H.B. No. 4295       A BILL TO BE ENTITLED   AN ACT   relating to the authority of a political subdivision to issue a   public security if the debt-to-asset ratio of the political   subdivision exceeds a certain percentage.          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.  Chapter 1253, Government Code, is amended by   adding Section 1253.004 to read as follows:           Sec.   1253.004.     LIMITATION ON AUTHORITY TO ISSUE PUBLIC   SECURITIES WITH HIGH DEBT-TO-ASSET RATIO. (a) In this section,   "public security" has the meaning assigned by Section 1201.002.           (b)     A political subdivision may not issue a public security   if the political subdivision has a debt-to-asset ratio of 20   percent or more.          SECTION 3.  The change in law made by this Act applies only   to a public security issued by a political subdivision on or after   the effective date of this Act.          SECTION 4.  This Act takes effect September 1, 2025.