2025S0230-1 03/12/25     By: Bettencourt S.B. No. 2519     A BILL TO BE ENTITLED   AN ACT   relating to restrictions on the levy and use of certain ad valorem   taxes and on the issuance of certain bonds supported by ad valorem   taxes.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 26.012, Tax Code, is amended by adding   Subdivision (16-a) to read as follows:                (16-a)  "Materially deviate" means to make a   significant change in carrying out the purpose stated to voters on a   ballot proposition, stated in any order or resolution calling for   an election required under this chapter, or stated in resolutions   adopted to accompany or supplement a ballot proposition, including:                      (A)  a significant change in purpose;                      (B)  a significant change in the financing   structure for the purpose;                      (C)  an increase of more than 33 percent in actual   or projected costs of the purpose;                      (D)  a significant reduction in scope or scale of   the purpose;                      (E)  a legal determination, including a finding   under Chapter 1202 or 1205, Government Code, that the purpose   stated on the ballot proposition or any order or resolution calling   for an election required under this chapter was not in conformity   with law; or                      (F)  any other attempt to substantially impair the   rights and expectations of the voters as they existed at the time of   the election.          SECTION 2.  Section 26.05, Tax Code, is amended by adding   Subsection (e-2) to read as follows:          (e-2)  A person who owns taxable property is entitled to an   injunction restraining the collection of taxes by a taxing unit in   which the property is taxable if the taxing unit materially   deviates from the purpose stated at the time the voters approved a   tax rate under this chapter.  An action to enjoin the collection of   taxes must be filed not later than the 15th day after the date the   taxing unit adopts a tax rate. A property owner is not required to   pay the taxes imposed by a taxing unit on the owner's property while   an action filed by a property owner under this subsection is   pending.  If the property owner pays the taxes and subsequently   prevails in the action, the property owner is entitled to a refund   of the taxes paid, together with reasonable attorney's fees and   court costs.  The property owner is not required to apply to the   collector for the taxing unit to receive the refund.          SECTION 3.  Section 26.07, Tax Code, is amended by adding   Subsection (h) to read as follows:          (h)  Notwithstanding any other law, an increase in a taxing   unit's maintenance and operations tax revenue derived from an   election under this section may not be used or transferred to a   local government corporation to repay a public security in   installment payments or otherwise.          SECTION 4.  The heading to Chapter 1253, Government Code, is   amended to read as follows:   CHAPTER 1253. PUBLIC SECURITIES [GENERAL OBLIGATION BONDS] ISSUED   BY LOCAL ENTITIES [POLITICAL SUBDIVISIONS]          SECTION 5.  Chapter 1253, Government Code, is amended by   adding Section 1253.004 to read as follows:          Sec. 1253.004.  LIMITATION ON AUTHORITY TO USE AD VALOREM   TAX REVENUE TO PAY PUBLIC SECURITIES.  (a)  In this section,   "public security" has the meaning assigned by Section 1201.002.          (b)  A municipality, county, or local government corporation   may not dedicate, pledge, or otherwise use revenue subject to   annual appropriation and derived wholly or partly from ad valorem   taxes from an election under Chapter 26, Tax Code, for payment of a   public security, including revenue transferred to a local   government corporation, to secure or make payments on a public   security.          SECTION 6.  Section 26.05(e-2), Tax Code, as added by this   Act, applies only to an ad valorem tax rate adopted on or after the   effective date of this Act.          SECTION 7.  Section 1253.004, Government Code, as added by   this Act, applies only to a public security as defined by that   section issued on or after the effective date of this Act.          SECTION 8.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.