| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to restrictions on the use of certain ad valorem tax |
|
|
revenue for the payment of public securities. |
|
|
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. The heading to Chapter 1253, Government Code, is |
|
|
amended to read as follows: |
|
|
CHAPTER 1253. PUBLIC SECURITIES [GENERAL OBLIGATION BONDS] ISSUED |
|
|
BY LOCAL ENTITIES [POLITICAL SUBDIVISIONS] |
|
|
SECTION 3. 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 4. 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 5. 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. |