H.B. No. 111 amends the Government Code by adding a new section, 1253.004, which establishes that a political subdivision cannot issue general obligation bonds unless at least two-thirds of the voters approve the issuance in an election. This requirement for a supermajority vote is a significant change from previous laws, which did not specify such a high threshold for approval.
The new provision applies only to general obligation bonds authorized by the governing body of a political subdivision on or after the effective date of the Act. The Act will take effect immediately if it receives a two-thirds vote from all elected members of both houses; otherwise, it will become effective 91 days after the end of the legislative session.
Statutes affected: Introduced: ()