The bill, H.B. No. 540, introduces a new subchapter to the Texas Election Code that allows for the use of preferential voting in nonpartisan elections for municipal or independent school district officers. The governing body of these entities can authorize this voting method by a majority vote. The bill outlines the procedures for implementing preferential voting, which enables voters to rank candidates in order of preference. If no candidate receives a majority of the highest favorable rankings, the candidate with the fewest votes is eliminated, and their votes are reassigned to the next preferred candidate until a majority is achieved.

Additionally, the bill specifies that no primary elections will be held for offices utilizing this preferential voting system, and the Secretary of State will set the filing deadlines for candidates. It also states that runoff elections will not be conducted for these offices. The provisions of this act are set to take effect on September 1, 2025.

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