Honorable Paul Bettencourt, Chair, Senate Committee on Property Tax
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
SB1613 by Hall (Relating to turnout requirements for certain elections authorizing the issuance of bonds or an increase in taxes by a political subdivision.), As Introduced
No fiscal implication to the State is anticipated.
The bill would amend the Election Code to establish certain turnout thresholds of registered voters for a otherwise passed bond proposal to be effective. The provisions of the bill would apply to elections not held on the uniform November election date of an even-numbered year.
Local Government Impact
According to the Texas Municipal League, although the costs cannot be determined, the fiscal impact of the bill could be significant for cities that would be required to seek alternative financing methods for projects that were passed by a majority of voters in an election but did not satisfy the 25 percent threshold requirement.
According to the Texas Association of Counties, the bill would have a potentially significant fiscal impact on counties which could be forced to hold multiple elections in order to obtain authorization to issue bonds for necessary expenditures. Delays in obtaining authorization could result in increased operating costs as counties attempt to maintain aging infrastructure and equipment. The bill could also increase bond cost due changes in interest rates while multiple elections are held as well as increased bond issuance costs.