H.B. No. 221 introduces significant changes to the election process for authorizing the issuance of general obligation bonds and increasing ad valorem tax rates in Texas. The bill mandates that such elections must be held on the November uniform election date and prohibits them from being conducted as emergency elections. Additionally, it establishes that a political subdivision cannot issue general obligation bonds unless at least two-thirds of the voters approve the issuance. This requirement for a supermajority vote is also reflected in amendments to various sections of the Health and Safety Code and the Tax Code, which replace the previous majority vote requirement with the new two-thirds threshold.

The bill further modifies the notice requirements for proposed tax rates, ensuring that voters are informed about the implications of the proposed rates and the necessity of their approval. It clarifies that if a proposed tax rate exceeds the voter-approval tax rate, an election must be held, and again, at least two-thirds of voters must accept the proposed rate for it to be adopted. The changes will take effect on January 1, 2026, unless a related constitutional amendment requiring a supermajority vote for issuing general obligation bonds is not approved by voters, in which case certain provisions of the bill will not take effect.

Statutes affected:
Introduced: Health and Safety Code 281.124, Special District Local Laws Code 1101.254, Tax Code 26.063, Tax Code 26.07, Tax Code 26.08 (Tax Code 26, Special District Local Laws Code 1101, Health and Safety Code 281)