BILL ANALYSIS

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Currently, a county or municipality may not issue bonds, other debt, or tax increases without an election by the qualified voters of the political subdivision. However, no requirement exists that these elections be conducted on a uniform election date. Thus, it is not uncommon in Texas for massive proposals that increase bond debt, other debt, or taxes to be put on the ballot during off-peak periods.

Such examples, all of elections held in May, include an ISD seeking voter approval for a $1.8 million bond (which was passed with the input of just 4.65 percent of voters), another ISD seeking approval for a bond proposition worth $849 million (passed with just 1.86 percent of voters in favor of the measure), and another ISD seeking to approve a $750 million bond (which passed with 1.82 percent of voters in favor).

As a matter of sound public policy, bond propositions are best decided when the most number of voters engage in the decision-making process. S.B. 946 requires that elections pertaining to bonds, other debt, or tax increases be held on the November uniform election date.

Key Provisions:

• Requires bonds, other debt, or tax increases to be held on the November uniform election date.
• Recognizes public policy of this state to encourage citizen participation in elections.
• Provides that if a law outside the Election Code requires an election to issue bonds, other debt, or tax increases, the authority administering the election shall set the election date to the November uniform election date.
• Restricts these types of elections from being held for emergency purposes unless the governor determines that an emergency warrants holding a special election before the uniform November date.

As proposed, S.B. 946 amends current law relating to the election date for the authorization of the issuance of bonds or a tax increase.

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 Subchapter A, Chapter 41, Election Code, by adding Section 41.0051, as follows:

Sec. 41.0051. ELECTION TO ISSUE BONDS OR INCREASE TAXES. (a) Requires that an election for the issuance of bonds or other debt or a tax increase be held on the November uniform election date.

(b) Prohibits an election described by Subsection (a), notwithstanding Section 41.0011 (Emergency Requiring Early Election), from being held as an emergency election under that section.

(c) Requires the authority administering the election, if a law outside this code requires an election described by Subsection (a) to be held on a date other than the November uniform election date, to set the election date to comply with this section.

SECTION 2. Makes application of this Act prospective.

SECTION 3. Effective date: September 1, 2023.