BILL ANALYSIS

Senate Research Center	S.B. 2205
88R12352 KJE-D	By: Parker
	Education
	4/17/2023
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

As Texas gains new residents by the hour, they have or will soon have children in our public schools. This growth will undoubtedly require growth and expansion planning while having public education stay fiscally responsible and accountable to the voters. 

The need for transparency stems from the fact that voters across the state may face ballot measures that adjust tax rates to increase tax revenue and, thus, further fund public education across the state. These ballot measures may appear confusing or challenging for voters needing clarification about what they are casting their votes for. 

S.B. 2205 makes changes to the Education Code by clarifying to voters who may vote for measures that will raise their taxes by amending the included disclosure language to read "This is a property tax rate increase." This is needed since an increase in tax rate does not necessarily equate to a tax increase. 

S.B. 2205 requires that any school district which has issued bonds and finds that a tax rate increase in the district's interest and the sinking tax rate is necessary for the immediate year following the issuance of the bonds to pay the principal and interest for that tax year include the "This is a property tax increase" disclosure. 

As proposed, S.B. 2205 amends current law relating to the information that must be included in a school district bond election proposition.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 45.003(b-1), Education Code, as follows:

(b-1) Requires that the ballot proposition under Subsection (b) (relating to language required to be asked of voters when a school district is seeking to issue bonds), if the district determines that the issuance of the bonds would require the district to increase the district's interest and sinking fund tax rate for the tax year immediately following the tax year in which the bonds are issued in order to pay the principal of and interest on the bonds for that tax year, include the following statement: "THIS IS A PROPERTY TAX RATE INCREASE."

SECTION 2. Effective date: September 1, 2023.