2025S0392-2 05/09/25
By: Bettencourt S.B. No. 3067
A BILL TO BE ENTITLED
AN ACT
relating to restrictions on the use of certain ad valorem taxes and
on the issuance of certain bonds supported by ad valorem taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 26.07, Tax Code, is amended by adding
Subsection (h) to read as follows:
(h) Notwithstanding any other law, an increase in a taxing
unit's maintenance and operations tax revenue derived from an
election under this section may not be used or transferred to a
local government corporation to repay a public security in
installment payments or otherwise.
SECTION 2. Chapter 1253, Government Code, is amended by
adding Section 1253.004 to read as follows:
Sec. 1253.004. LIMITATION ON AUTHORITY TO USE AD VALOREM
TAX REVENUE TO PAY PUBLIC SECURITIES. (a) In this section,
"public security" has the meaning assigned by Section 1201.002.
(b) A municipality, county, or local government corporation
may not dedicate, pledge, or otherwise use revenue subject to
annual appropriation and derived wholly or partly from ad valorem
taxes from an election under Chapter 26, Tax Code, for payment of a
public security, including revenue transferred to a local
government corporation, to secure or make payments on a public
security.
SECTION 3. Section 1253.004, Government Code, as added by
this Act, applies only to a public security as defined by that
section issued on or after the effective date of this Act.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.