H.B. No. 19 is a legislative bill aimed at improving the financial practices of local governments in Texas, particularly concerning the issuance and repayment of debt. The bill amends sections of the Education Code and Government Code to enhance transparency by requiring public meeting notices to include detailed comparisons of proposed budgets with previous years, total appraised and taxable values, and outstanding bonded indebtedness. A significant provision limits local government debt by stating that annual debt service cannot exceed 20% of the average property tax collections from the previous three years. Additionally, the bill mandates that elections for general obligation bonds or tax rate increases must occur on the November uniform election date, prohibiting emergency elections for these purposes.

The bill also updates the Local Government Code and Tax Code regarding the issuance of certificates of obligation and debt management. Key changes include reducing the maximum maturity period for certificates from 40 to 30 years and requiring a governing body to adopt a resolution during public health emergencies when authorizing certain certificates. It stipulates that a governing body can only approve a tax rate exceeding the determined rate with a 60% majority vote and clarifies that any increase in maintenance and operations tax revenue from elections cannot be used for debt repayment. The bill repeals outdated provisions and specifies that the changes will apply only to taxes and certificates issued after the effective date of the Act, set for September 1, 2025, with some provisions taking effect on January 1, 2026.

Statutes affected:
Introduced: Education Code 44.004, Government Code 1431.001, Government Code 1431.002, Government Code 271.045, Local Government Code 271.043, Local Government Code 271.045, Local Government Code 271.0461, Local Government Code 271.047, Local Government Code 271.049, Local Government Code 271.0525, Local Government Code 271.057, Local Government Code 271.059, Tax Code 26.012, Tax Code 26.04, Tax Code 26.05, Tax Code 26.07 (Tax Code 26, Government Code 271, Government Code 1431, Education Code 44, Local Government Code 271)