Initial review · graded Oct 22, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade
Caption
relating to the adoption of an ordinance issuing a tax increment
bond by certain municipalities that have designated a tax increment
reinvestment zone.
The bill puts two conditions on a city that wants to pass an ordinance issuing tax increment bonds for a tax increment reinvestment zone. The city must first give reasonable written notice of the hearing date and time to every property owner in the zone, and the ordinance must pass by a majority of the council members voting on that question alone. This applies to ordinances adopted after the bill takes effect, and bonds already issued stay valid.
Labels
Labels: GOT HALFWAY. Passed the Senate on May 9, 2025. Died in the House: voted out of the Ways & Means committee 9-0, no floor vote.
relating to the adoption of an ordinance issuing a tax increment
bond by certain municipalities that have designated a tax increment
reinvestment zone.
WHAT IT DOES
Two conditions before a city can issue them.
The bill puts two conditions on a city that wants to pass an ordinance issuing tax increment bonds for a tax increment reinvestment zone. The city must first give reasonable written notice of the hearing date and time to every property owner in the zone, and the ordinance must pass by a majority of the council members voting on that question alone. This applies to ordinances adopted after the bill takes effect, and bonds already issued stay valid.
CHARGES
[ ] NONE FOUND
TOTAL
No fiscal implication to the State is anticipated.
The bill adds notice and a stand-alone vote before a city can issue tax increment bonds in a reinvestment zone, which limits that debt power rather than expanding it.
SIGNED FOR BY
Senate · 31 yea · 0 nay
Sources
Senate: Final passage · May 9, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.
Names were not printed. No individual positions are inferred.
The journal row lists three votes in order: passage to engrossment, suspension of the three-day rule, and final passage. This entry records final passage. Repeated tallies belong to separate votes.
Sources
SB 2539 (Bettencourt) Relating to the adoption of an ordinance issuing a tax increment bond by certain municipalities that have designated a tax increment reinvestment zone. (viva voce vote) (31-0) (31-0)
Published stock of positions for this vote, except where marked derived.
Yea: 31 (published)
Nay: 0 (published)
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed
Senate journal. Source snapshot 2026-10-19, Central time.
Names were not printed. No individual positions are inferred.
The journal row lists three votes in order: passage to engrossment, suspension of the three-day rule, and final passage. This entry records suspension of the three-day rule. Repeated tallies belong to separate votes.
Sources
SB 2539 (Bettencourt) Relating to the adoption of an ordinance issuing a tax increment bond by certain municipalities that have designated a tax increment reinvestment zone. (viva voce vote) (31-0) (31-0)
Published stock of positions for this vote, except where marked derived.
Yea: 31 (published)
Nay: 0 (published)
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed
Senate journal. Source snapshot 2026-10-19, Central time.
Names were not printed. No individual positions are inferred.
The journal row lists three votes in order: passage to engrossment, suspension of the three-day rule, and final passage. This entry records passage to engrossment. Repeated tallies belong to separate votes.
Voice vote. No numeric tally or individual yeas are inferred.
Sources
SB 2539 (Bettencourt) Relating to the adoption of an ordinance issuing a tax increment bond by certain municipalities that have designated a tax increment reinvestment zone. (viva voce vote) (31-0) (31-0)
Published stock of positions for this vote, except where marked derived.
Yea: Not printed
Nay: Not printed
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed
Senate journal. Source snapshot 2026-10-19, Central time.
Witnesses4
For
3
Against
1
On
0
Names
For
Self; Americans for Prosperity1 registration
Self; The LIBRE Initiative1 registration
Texas Public Policy Foundation1 registration
Against
City of Austin1 registration
Sources
4 parsed registrations across the loaded witness lists.
Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.
House committee · Ways & Means · Committee vote 9 aye, 0 nay, 4 absent · Out of committee
Senate committee · Economic Development · Committee vote 5 aye, 0 nay · Out of committee
Subjects
City Government--Land Use & Zoning
Taxation--Sales
REINVESTMENT ZONES
Text
The text as introduced · 285 words
89R10876 RDS-D
By: Bettencourt
S.B. No. 2539
A BILL TO BE ENTITLED
AN ACT
relating to the adoption of an ordinance issuing a tax increment
bond by certain municipalities that have designated a tax increment
reinvestment zone.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 311.015, Tax Code, is amended by
amending Subsection (c) and adding Subsection (c-1) to read as
follows:
(c) Subject to Subsection (c-1), tax [ Tax ] increment bonds
are issued by ordinance of the municipality without any additional
approval other than that of the attorney general.
(c-1) A municipality may adopt an ordinance to issue a tax
increment bond under Subsection (c) only if:
(1) the municipality provides reasonable written
notice to each property owner in the reinvestment zone of the date
and time of the public hearing at which the municipality intends to
adopt the ordinance; and
(2) the ordinance receives an affirmative vote of at
least a majority of the members of the governing body of the
municipality voting only on the question of the adoption.
SECTION 2. The changes in law made by this Act apply only to
an ordinance adopted by a municipality on or after the effective
date of this Act and do not affect the validity of a bond or other
obligation issued by a municipality under Chapter 311, Tax Code,
before the effective date of this Act.
SECTION 3. 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.
Monitoring 