HB 4295

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
CHAPTER 1253.  PUBLIC SECURITIES [GENERAL OBLIGATION BONDS] ISSUED
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
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.