H.B. No. 19 is a legislative measure aimed at regulating local government debt issuance and repayment in Texas, with a strong emphasis on transparency and fiscal responsibility. The bill amends the Education Code to require detailed public notices during budget discussions, which must include comparisons with previous budgets, total appraised and taxable values, and outstanding bonded indebtedness. It also stipulates that any proposed tax rate cannot exceed previously proposed rates without a revised notice and public meeting. Additionally, the bill introduces new sections in the Government and Election Codes that limit local government debt and mandate that elections for bond issuance or tax rate increases occur on the November uniform election date.

Key provisions of the bill include a cap on annual debt service for local governments, set at 20% of the average property tax collections over the past three years, and a requirement for bond proceeds to be allocated as specified in the ballot proposition. The bill also reduces the percentage limit for issuing certificates based on contractual obligations from 25% to 15% and establishes new requirements for contracts related to public works. Furthermore, it requires a 60% majority for any proposed tax rate that exceeds the established rate and clarifies the definition of "current debt service." Several sections of existing law are repealed, and the changes will apply only to taxes imposed and certificates issued after the effective date of the Act, which is September 1, 2025, with certain 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 (Government Code 271, Government Code 1431, Tax Code 26, Education Code 44, Local Government Code 271)