| 1 | 1 | | By: Bettencourt S.B. No. 2529 |
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| 2 | 2 | | (In the Senate - Filed March 13, 2025; April 3, 2025, read |
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| 3 | 3 | | first time and referred to Committee on Local Government; |
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| 4 | 4 | | April 22, 2025, reported adversely, with favorable Committee |
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| 5 | 5 | | Substitute by the following vote: Yeas 4, Nays 3; April 22, 2025, |
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| 6 | 6 | | sent to printer.) |
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| 7 | 7 | | Click here to see the committee vote |
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| 8 | 8 | | COMMITTEE SUBSTITUTE FOR S.B. No. 2529 By: Bettencourt |
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| 9 | 9 | | |
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| 10 | 10 | | |
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| 11 | 11 | | |
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| 12 | 12 | | |
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| 13 | 13 | | A BILL TO BE ENTITLED |
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| 14 | 14 | | AN ACT |
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| 15 | 15 | | relating to the vote required by the governing body of a taxing unit |
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| 16 | 16 | | to adopt an ad valorem tax rate that exceeds the voter-approval tax |
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| 17 | 17 | | rate or authorize the issuance of tax bonds. |
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| 18 | 18 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 19 | 19 | | SECTION 1. Chapter 1253, Government Code, is amended by |
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| 20 | 20 | | adding Section 1253.004 to read as follows: |
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| 21 | 21 | | Sec. 1253.004. SUPERMAJORITY VOTE OF GOVERNING BODY |
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| 22 | 22 | | REQUIRED TO APPROVE GENERAL OBLIGATION BONDS. Notwithstanding any |
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| 23 | 23 | | other law, a political subdivision may not issue general obligation |
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| 24 | 24 | | bonds unless at least 60 percent of the members of the governing |
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| 25 | 25 | | body of the political subdivision vote in favor of issuing the bonds |
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| 26 | 26 | | in the manner prescribed by law for official action by the governing |
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| 27 | 27 | | body. |
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| 28 | 28 | | SECTION 2. Chapter 26, Tax Code, is amended by adding |
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| 29 | 29 | | Section 26.0502 to read as follows: |
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| 30 | 30 | | Sec. 26.0502. ADOPTION OF PROPOSED TAX RATE THAT EXCEEDS |
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| 31 | 31 | | VOTER-APPROVAL TAX RATE FOLLOWING ELECTION. (a) This section |
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| 32 | 32 | | applies only to the adoption of an annual tax rate that exceeds the |
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| 33 | 33 | | voter-approval rate by a taxing unit for the tax year following a |
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| 34 | 34 | | tax year in which a proposition to approve a tax rate that exceeds |
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| 35 | 35 | | the voter-approval rate was not approved by the voters in an |
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| 36 | 36 | | election required by Section 26.07 or Section 26.08. |
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| 37 | 37 | | (b) Notwithstanding any other law, a taxing unit may not |
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| 38 | 38 | | adopt an annual tax rate that exceeds the voter-approval tax rate |
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| 39 | 39 | | unless at least 75 percent of the members of the governing body of |
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| 40 | 40 | | the taxing unit by record vote approve the ordinance, resolution, |
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| 41 | 41 | | or order setting the tax rate. |
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| 42 | 42 | | SECTION 3. Subchapter H, Chapter 49, Water Code, is amended |
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| 43 | 43 | | by adding Section 49.23604 to read as follows: |
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| 44 | 44 | | Sec. 49.23604. ADOPTION OF PROPOSED TAX RATE THAT EXCEEDS |
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| 45 | 45 | | VOTER-APPROVAL TAX RATE FOLLOWING ELECTION. (a) This section |
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| 46 | 46 | | applies only to the adoption of an ad valorem tax rate for a |
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| 47 | 47 | | district for the tax year following a tax year in which a |
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| 48 | 48 | | proposition to approve a tax rate for the district was not approved |
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| 49 | 49 | | by the voters in an election required by Section 49.23601, |
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| 50 | 50 | | 49.23602, or 49.23603. |
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| 51 | 51 | | (b) Notwithstanding any other law, unless at least 75 |
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| 52 | 52 | | percent of the members of the board of a district vote in favor of |
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| 53 | 53 | | adopting the tax rate, the board of a district may not adopt a |
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| 54 | 54 | | combined debt service, contract, and operation and maintenance tax |
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| 55 | 55 | | rate that exceeds: |
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| 56 | 56 | | (1) the voter-approval tax rate as determined under |
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| 57 | 57 | | Section 49.23601(a), for a district described by Section |
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| 58 | 58 | | 49.23601(b); |
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| 59 | 59 | | (2) the mandatory tax election rate as determined |
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| 60 | 60 | | under Section 49.23602(a), for a district described by Section |
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| 61 | 61 | | 49.23602(b); or |
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| 62 | 62 | | (3) the voter-approval tax rate as determined under |
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| 63 | 63 | | Section 49.23603(a), for a district described by Section |
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| 64 | 64 | | 49.23603(b). |
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| 65 | 65 | | SECTION 4. Section 1253.004, Government Code, as added by |
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| 66 | 66 | | this Act, applies only to general obligation bonds authorized to be |
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| 67 | 67 | | issued by the governing body of a political subdivision on or after |
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| 68 | 68 | | the effective date of this Act. |
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| 69 | 69 | | SECTION 5. Section 26.0502, Tax Code, and Section 49.23604, |
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| 70 | 70 | | Water Code, as added by this Act, apply only to a tax year that |
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| 71 | 71 | | begins on or after the effective date of this Act. |
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| 72 | 72 | | SECTION 6. This Act takes effect January 1, 2026. |
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| 73 | 73 | | * * * * * |
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