| 1 | 1 | | 2025S0392-2 05/09/25 |
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| 2 | 2 | | By: Bettencourt S.B. No. 3067 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to restrictions on the use of certain ad valorem taxes and |
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| 10 | 10 | | on the issuance of certain bonds supported by ad valorem taxes. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 26.07, Tax Code, is amended by adding |
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| 13 | 13 | | Subsection (h) to read as follows: |
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| 14 | 14 | | (h) Notwithstanding any other law, an increase in a taxing |
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| 15 | 15 | | unit's maintenance and operations tax revenue derived from an |
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| 16 | 16 | | election under this section may not be used or transferred to a |
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| 17 | 17 | | local government corporation to repay a public security in |
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| 18 | 18 | | installment payments or otherwise. |
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| 19 | 19 | | SECTION 2. 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. LIMITATION ON AUTHORITY TO USE AD VALOREM |
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| 22 | 22 | | TAX REVENUE TO PAY PUBLIC SECURITIES. (a) In this section, |
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| 23 | 23 | | "public security" has the meaning assigned by Section 1201.002. |
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| 24 | 24 | | (b) A municipality, county, or local government corporation |
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| 25 | 25 | | may not dedicate, pledge, or otherwise use revenue subject to |
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| 26 | 26 | | annual appropriation and derived wholly or partly from ad valorem |
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| 27 | 27 | | taxes from an election under Chapter 26, Tax Code, for payment of a |
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| 28 | 28 | | public security, including revenue transferred to a local |
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| 29 | 29 | | government corporation, to secure or make payments on a public |
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| 30 | 30 | | security. |
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| 31 | 31 | | SECTION 3. Section 1253.004, Government Code, as added by |
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| 32 | 32 | | this Act, applies only to a public security as defined by that |
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| 33 | 33 | | section issued on or after the effective date of this Act. |
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| 34 | 34 | | SECTION 4. This Act takes effect immediately if it receives |
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| 35 | 35 | | a vote of two-thirds of all the members elected to each house, as |
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| 36 | 36 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 37 | 37 | | Act does not receive the vote necessary for immediate effect, this |
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| 38 | 38 | | Act takes effect September 1, 2025. |
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