BILL ANALYSIS

Senate Research Center	S.B. 2539
89R10876 RDS-D	By: Bettencourt
	Economic Development
	4/22/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

S.B. 2539 is a taxpayer notification and protection bill.  Currently, property owners located inside of a tax increment reinvestment zone (TIRZ) are not notified when the TIRZ board has requested authority to issue TIRZ bonds from the municipality in which the TIRZ is located.

S.B. 2539 would require the municipality to provide reasonable written notice to each property owner in the reinvestment zone of the date and time of the public hearing at which the municipality intends to adopt the ordinance.

Additionally, S.B. 2539 would require that the municipal ordinance to approve the issuance of bonds receive an affirmative vote of at least a majority of the members of the governing body of the municipality voting only on the question of the adoption.  The ordinance approving the issuance of new TIRZ bonds may not be approved as part of a municipality's consent agenda.

As proposed, S.B. 2539 amends current law relating to the adoption of an ordinance issuing a tax increment bond by certain municipalities that have designated a tax increment reinvestment zone.

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 311.015, Tax Code, by amending Subsection (c) and adding Subsection (c-1), as follows:

(c)� Provides that, subject to Subsection (c-1), tax increment bond are issued by ordinance of the municipality without any additional approval other than that of the attorney general.

(c-1) Provides that a municipality is authorized to adopt an ordinance to issue a tax increment bond under Subsection (c) only if the municipality provides reasonable written notice to each property owner in the reinvestment zone of the date and time of the public hearing at which the municipality intends to adopt the ordinance and the ordinance receives an affirmative vote of at least a majority of the members of the governing body of the municipality voting only on the question of the adoption.

SECTION 2. Makes application of this Act prospective.

SECTION 3. Effective date: upon passage or September 1, 2025.