Texas 2025 - 89th Regular

Texas Senate Bill SB414

Filed
11/21/24  
Out of Senate Committee
3/24/25  
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the text of ballot propositions for bond elections.

Impact

This bill's implementation will significantly affect state laws concerning local governmental finance and voter empowerment. By establishing stricter guidelines for ballot propositions, SB414 ensures that voters receive holistic and straightforward information regarding potential financial liabilities imposed on them through bond approvals. These changes may encourage more informed voting and accountability within local governments as they seek to secure funds for public projects, which could impact their long-term fiscal strategies and obligations.

Summary

Senate Bill 414 addresses the requirements for the text of ballot propositions related to bond elections for political subdivisions such as municipalities, counties, school districts, and special taxing districts. The bill introduces new provisions that mandate a clearly defined presentation of information to voters regarding proposed debt obligations, enhancing transparency during the electoral process. Every proposition for debt issuance must outline a specific purpose, total principal amount, estimated interest, and the total cost of repayment including taxes to be imposed, providing a comprehensive overview for voters before making decisions at the polls.

Sentiment

The sentiment surrounding SB414 appears to be supportive from those advocating for increased financial transparency and accountability in local governance. Proponents argue that the requirements for detailed voter information will empower constituents and enable them to make better-informed decisions regarding local debt. However, some critics express concerns about potential bureaucratic burdens imposed on smaller political subdivisions, questioning whether all entities will have the resources to comply with the more rigorous reporting requirements.

Contention

Notable points of contention regarding this bill include discussions around the potential impact on smaller jurisdictions that may lack the administrative capacity to execute the new regulations effectively. Additionally, there may be apprehensions about the timing and feasibility of implementing these changes, especially since the act is set to take effect on September 1, 2025, which may prompt debates on whether this timeline allows adequate preparation for compliance. As local governments adjust to these new expectations, there may be diverse reactions across various communities on their capability to meet the bill's stipulations.

Texas Constitutional Statutes Affected

Education Code

  • Chapter 11. School Districts
    • Section: 0621

Government Code

  • Chapter 1251. Bond Elections
    • Section: New Section
    • Section: New Section
    • Section: New Section

Companion Bills

No companion bills found.

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TX HB3262

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