Government Relations

The constitutional amendment protecting the right to engage in farming, ranching, timber production, horticulture, and wildlife management.

 

Farm and ranch land in this state is being impacted by the growth of urban areas and increasing municipal regulation. Prop 1 provides constitutional protection to farmers and ranchers engaged in normal practices of agricultural operations on property they own or lease.

The legislature would maintain the authority to enact laws authorizing the regulation of these agricultural practices under circumstances when it is necessary to: 

1. protect the public health and safety from imminent danger;

2. prevent danger to animal health or crop production; and/or

3. conserve the natural resources of the state. 

Prop 1 would not affect the legislature’s authority to enact laws authorizing the use of the power of eminent domain. 

 

• As the state’s population continues to grow and the demand for food increases, it is important to prevent municipal overregulation that threatens agricultural production.

• Helps avoid some of the conflict that happens when suburban expansion and development encroaches on working farmland or ranchland.

 

• Limiting local government’s or the legislature’s ability to set reasonable standards regarding food safety, water pollution, and animal welfare could enable bad actors to operate with less accountability. 

The constitutional amendment authorizing a local option exemption from ad valorem taxation by a county or municipality of all or part of the appraised value of real property used to operate a child-care facility.

 

The Texas Constitution requires all real and tangible personal property be taxed in proportion to its value unless the property is exempt as required or permitted by the constitution. 

Prop 2 authorizes the governing body of a county or municipality to adopt a property tax exemption of at least 50 percent for a qualifying child-care facility. Additionally, the proposition authorizes the legislature to define “child-care facility” and prescribe eligibility requirements for the exemption.

Through SB 1145 (88th legislature, Regular Session) a “child-care facility” would qualify for the exemption if the owner/operator of the facility participates in the Texas Rising Star Program and at least 20 percent of the children enrolled receive subsidized child-care services through a program administered through the Texas Workforce Commission. A person may not claim an exemption for property they lease to another for purposes of operating a child-care facility if they claim the property as their residence homestead or lease any part of the property for use as a primary residence.

 

• Inflation has made it hard for child-care facilities to stay in business. A tax exemption may free up resources that could be used to hire and retain staff

• Help to reduce the prevalence of childcare deserts in Texas communities. 

• Savings from an exemption may also be passed down to consumers, which would address child-care affordability.

 

• No opposition to the proposed constitutional amendment was expressed during legislative consideration of the proposal.

The constitutional amendment prohibiting the imposition of an individual wealth or net worth tax, including a tax on the difference between the assets and liabilities of an individual or family.

 

Currently, the state is authorized to tax both tangible and intangible property. Therefor, a tax on a person’s wealth or net worth, such as stock holdings or bank accounts, could be imposed.

Currently, the state has no such tax.

 

• Enacting the ban will prevent a future legislature from imposing a wealth tax without consent of the voters.

• A wealth tax ban sends a message to Texans that they will not be penalized for working to create wealth.

• Wealth taxes discourage economic innovation and investment. European countries who enacted wealth taxes are repealing them.

 

• The legislature can’t see into the future, how can it know what taxes will be needed over time. A constitutional ban means that even if a majority of voters wanted a wealth tax in the future, a minority of the legislature could block it.

• No one has ever proposed a wealth tax. This is unnecessary.

The constitutional amendment to authorize the legislature to establish a temporary limit on the maximum appraised value of real property other than a residence homestead for ad valorem tax purposes; to increase the amount of the exemption from ad valorem taxation by a school district applicable to residence homesteads from $40,000 to $100,000; to adjust the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in certain exemption amounts; to except certain appropriations to pay for ad valorem tax relief from the constitutional limitation on the rate of growth of appropriations; and to authorize the legislature to provide for a four-year term of office for a member of the board of directors of certain appraisal districts.

 

Neither the legislature nor a local government that imposes property taxes may exempt property from ad valorem taxation or otherwise limit the amount of taxes a property owner is required to pay without constitutional authority.

As originally adopted in 1978, Section 1-b(c) included a homestead exemption of $5,000 from school district taxes. Subsequent constitutional amendments have increased the amount of the school tax homestead exemption from $5,000 to $15,000 in 1997, from $15,000 to $25,000 in 2015, and from $25,000 to $40,000 in 2022.

5 Parts of the proposition

1. Authorizes the legislature to establish a temporary limit on the maximum appraised value of real property other than a residence homestead of 120 percent of the appraised value of the property for the preceding tax year. The expiration date means that this new appraisal limit may be in effect only for the 2024, 2025, and 2026 tax years.

2. The proposed amendment increases the homestead exemption from property taxation for public school purposes from $40,000 to $100,000. 

3. The proposed amendment gives further relief to Texans who had/have a ”tax freeze” on their public school taxes. The amendment allows them to receive a benefit from the 2022 or earlier homestead increases that was not provided for at the time.

4. Allows the state to appropriate funds beyond the spending limit for purposes of property tax relief. 

5. Currently, any public office not created by the constitution may not have a term exceeding two years. The proposed amendment authorizes the legislature to provide for four-year terms for members of the governing body of an appraisal district established for a county with a population of 75,000 or more

 

• Taxpayers created the surplus, so surplus funds should be returned to the taxpayers.

• Rapidly increasing property tax burdens need this amount of relief.

• Owners of moderately-priced homes have the greatest need for property tax relief.

• By making some positions on the appraisal district’s board elected, those districts will have greater accountability to the local taxpayers

 

• Increasing the residence homestead exemption by such a large amount could result in a shift of the tax burden from homeowners to business owners, which could result in higher prices for consumers.

• Because the tax rate compression may be only temporary if state funding at the increased levels is not maintained, not 19 much actual relief is being provided. Any property tax relief needs to be permanent.

• Nearly four million Texans are renters, and the proposed amendment does nothing to provide them any direct financial relief.• Individuals running for the elected seats on an appraisal district’s board of directors may not be focused enough on the overall business of the board and instead focus too heavily on reducing property values.

The constitutional amendment relating to the Texas University Fund, which provides funding to certain institutions of higher education to achieve national prominence as major research universities and drive the state economy.

 

In 2009 voters approved a constitutional amendment to establish the national research university fund to provide a dedicated, independent, and equitable source of funding to enable emerging research universities in this state to achieve national prominence as major research universities.

The national research university fund is constrained by the constitutional spending limits, and A&M and UT are excluded.

Prop 5 renames the national research university fund as the Texas University Fund. The Texas University Fund also excludes universities drawing from the Permanent University Fund (PUF.) The Texas University Fund will use interest income, dividends, and investment income from the economic stabilization fund (rainy day fund) up to $100 million per fiscal year as adjusted for inflation as a dedicated source of revenue for the universities supported by the fund.

Because this expenditure will be constitutionally dedicated, Prop 5 also allows the TUF to be exempted from the constitutional spending limits.

University Systems expected to benefit include: UH, Texas State, Texas Tech, and UNT

 

• Providing a predictable and sustainable source of funding for high-quality research at universities in Texas that do not have access to the Permanent University Fund

• Helps ensure that the future workforce needs of the state are met and that the state’s economy continues to grow.

• Increased investment in cutting-edge research at universities in Texas is key to the state remaining competitive with other states making similar investments.

• Local Investment in research will help attract federal and private research funding

• Improve students and faculty recruitment

 

• No opposition to the proposed constitutional amendment was expressed during legislative consideration of the proposal. However, a review of other sources indicates concern about the use of money from the “rainy day fund” to fund higher education initiatives since that fund was not designed for such purposes.

The proposed constitutional amendment would create the Texas Water Fund to assist in financing water projects across the state. These projects would be aimed at addressing inefficiencies caused by persistent drought, continued population growth, and aging and deteriorating water infrastructure. 

 

Texas’ water systems have grown overburdened and depleted over time due to pressure from population growth and drought. Water loss and declining water quality has been a consistent result of aging infrastructure. All of these factors impact the quality of water delivered to customers. 

Prop 6 creates the New Water Supply for Texas Fund, the statewide water public awareness account, and the Texas Water Fund to address these critical water challenges across the state and improve our water system for generations to come.

Upon voter approval, $1 Billion would go into the Texas Water Fund. At least 25% of the fund must be allocated to the New Water Supply for Texas Fund to be used for water supply projects.

 

• Texas is in need of this financial investment to address significant water loss due to aging infrastructure. 

• The Texas Water Fund would give the TWDB flexibility in allocating financial assistance through existing and new funds to address aging infrastructure and securing new water supply. 

• This would provide extra support to rural and small water systems to ensure quality water is consistently delivered to customers, making them less reliant on property taxes.

 

• The Texas Water Fund could fund potentially unsafe water projects. Among these are recycling “produced water” derived from oil well wastewater, which could have public health risks that are not yet fully understood. 

• The $1 billion appropriation is not enough to meet Texas’ estimated long-term water needs. 

The constitutional amendment providing for the creation of the Texas energy fund to support the construction, maintenance, modernization, and operation of electric generating facilities

 

Prop 7 would create the Texas Energy Fund and authorize the Public Utility Commission to administer and the fund to provide loans and grants to incentivize the construction, maintenance, modernization, and operation of electric generating facilities, including associated infrastructure, to ensure the reliability of an electric power grid in Texas.

The proposed amendment would require the Public Utility Commission of Texas to allocate money from the fund for electric generating facilities that serve as backup power sources and for projects in each region of the state that is part of an electric power grid in proportion to that region’s load share.

The enabling legislation would authorize the Texas Energy Fund for the construction of new and to finance upgrades to existing dispatchable electric generating facilities in the ERCOT power region. The bill would also require the Public Utility Commission of Texas to provide completion bonus grants. The total amount of these loans and grants to equal not more than $7.2 billion.

The bill also authorizes the Public Utility Commission of Texas to provide up to $1 billion in grants for transmission and distribution infrastructure and electric generating facilities in Texas outside the ERCOT power region, and up to $1.8 billion in grants or loans for the operation of stand-alone, behind-the-meter, multiday backup power sources in any part of Texas.

 

• Additional state funding is needed to increase the reliability of the state’s electric market, particularly with regard to dispatchable generation.

• Enables the Public Utility Commission of Texas to provide loans and grants to finance or incentivize the construction, maintenance, modernization, and operation of electric generating facilities, including associated infrastructure. 

• These expenditures are necessary to ensure the reliability of the state’s electric power grid.

 

• Providing funding to increase the reliability of the Texas grid would be more appropriate through the rate payer system as opposed to providing state subsidies funded by all taxpayers.

The constitutional amendment creating the broadband infrastructure fund to expand high-speed broadband access and assist in the financing of connectivity projects.

 

Prop 8 creates the broadband infrastructure fund only for the expansion of access to and adoption of broadband and telecommunications services, including the development, construction, reconstruction, expansion, operation, and provision of broadband and telecommunications infrastructure or services.

The proposed amendment takes effect January 1, 2024, and expires on September 1, 2035, unless extended for 10 years by the legislature. The legislature has appropriated $1.5 billion to the proposed fund contingent on voter approval of the proposed amendment.

 

• Provides resources to close the digital divide in Texas, which could help to improve quality of life and lead to increased economic growth.

• Connects millions of Texans to employment opportunities and certain educational and health care services that are increasingly going virtual.

• By investing state dollars, the state would be well positioned to draw down federal funds from the federal Broadband Equity, Access, and Deployment (BEAD) Program, which matches state dollars on a four-to-one basis.

• A state funding source for broadband expansion will provide much-needed flexibility in achieving broadband attainment goals that is lacking with stringent federal programs

 

• The broadband infrastructure fund should be required to prioritize projects that develop fiber optic broadband infrastructure, which may be faster, safer, and more durable and reliable than wireless broadband.

• Texas has previously allocated $600 million for broadband purposes, and the state is likely to receive billions of dollars from the federal BEAD program for these purposes. Creating a costly new broadband fund with state taxpayer dollars is excessive and fiscally irresponsible.

The constitutional amendment to authorize the legislature to provide a cost-of-living-adjustment (COLA) to eligible annuitants of the Teacher Retirement System of Texas (TRS). 

 

Prop 9 would authorize the legislature to (1) provide a cost-of-living adjustment to annuitants of the Teacher Retirement System of Texas who are eligible for the adjustment as determined by that general law, and (2) appropriate an amount of money from the general revenue fund to the comptroller of public accounts for deposit to the system’s trust fund to pay the adjustment. 

The 2023 General Appropriations Act appropriates $3.355 billion in fiscal year 2024 from the general revenue fund to provide a cost-of-living adjustment for certain annuitants of the Teacher Retirement System of Texas. The one-time COLA would be based on the retired teacher’s retirement date:

• 9/1/2013 through 8/31/2020: 2% COLA 

• 9/1/2001 through 8/31/2013: 4% COLA 

• On or before 8/31/01: 6% COLA 

 

• Because the vast majority of school districts in Texas do not participate in the federal social security, the annuity from the Teacher Retirement System of Texas (TRS) is the only retirement benefit most retired teachers receive. Having not received a cost of living adjustment (COLA) in nearly 20 years, retired teachers have lost considerable purchasing power with their TRS annuity due to cost increases and high inflation.

 

 

 

• No opposition to the proposed constitutional amendment was expressed during legislative consideration of the proposal.

The constitutional amendment to authorize the legislature to exempt from ad valorem taxation equipment or inventory held by a manufacturer of medical or biomedical products to protect the Texas healthcare network and strengthen our medical supply chain.

 

The legislature may not exempt real or tangible personal property from property taxation unless the exemption is required or authorized by the constitution. Previously, Texas voters have approved constitutional amendments excepting various forms of commercial personal property from taxation, including agricultural equipment and products, pollution control equipment, goods held temporarily for manufacturing or export, and marine oil drilling equipment in storage.

Prop 10 authorizes the legislature to exempt from ad valorem taxation the tangible personal property held by a manufacturer of medical or biomedical products as a finished good or used in the manufacturing or processing of medical or biomedical products.

 

• Compared to other states, Texas has a high effective tax rate for medical manufacturers which discourages capital investment and the expansion of this industry in Texas.

• The cost to ship medical supplies to the United States increased more than 50 percent in 2021, causing Texans to pay more for vital supplies. Encouraging local manufacturing would eliminate the added shipping costs.

• Supply chain constraints further contribute to the need to regionalize manufacturing.

• Since 2020, Texas has missed opportunities for billions of dollars in private investment for biomedical manufacturing because it lacks tax incentives that other states provide.

• The proposed tax exemption would strengthen Texas’ medical supply chain and create jobs.

 

• No opposition to the proposed constitutional amendment was expressed during legislative consideration of the proposal.

The constitutional amendment authorizing the legislature to permit conservation and reclamation districts in El Paso County to issue bonds supported by ad valorem taxes to fund the development and maintenance of parks and recreational facilities.

 

In 2003, voters approved a limited constitutional amendment to allow the development and financing of parks and recreational facilities by conservation and reclamation districts in certain counties. The amendment clarified that conservation and reclamation districts may develop parks and recreational facilities to be financed with taxes.

Section 59(c-1), Article XVI, Texas Constitution, applies only to conservation and reclamation districts located in one of 10 listed populous counties (Bexar, Bastrop, Waller, Travis, Williamson, Harris, Galveston, Brazoria, Fort Bend, and Montgomery Counties) and to the Tarrant County Regional Water District. Prop 11 adds El Paso County to this list.

A previous constitutional amendment in 2011, would have amended the Texas Constitution to make the same change in law, but that amendment was not approved by the voters at the election held on November 8, 2011.

 

• Passage would help to address the need for more parks and open spaces in El Paso county and improve the quality of life for county residents.

• It could make El Paso County more competitive for Texans considering moving to El Paso.

• The decision to assess property taxes to support the issuance of bonds for that purpose is left to the discretion of each district and its voters. The assessment of property taxes would not be mandatory.

• The proposed amendment would not impair any district’s contract with the federal government regarding per-acre assessments since it does not create a mandate.

 

• This would give certain conservation and reclamation districts in El Paso County the unnecessary authority to assess property taxes.

• Under Section 55.364, Water Code, certain conservation and reclamation districts in the county have federal contracts that require that any land within the districts be assessed on a per-acre basis. These districts should be excluded from the applicability of the resolution’s property tax provisions to avoid additional tax burdens.

The constitutional amendment providing for the abolition of the office of the county treasurer in Galveston County.

 

Prop 12 abolishes the position of Galveston County Treasurer.

The commissioners court of Galveston County could employ or contract with a qualified person or designate another county officer to perform the functions that would have been performed by the county treasurer.

The amendment would take effect January 1, 2024, if approved by the voters statewide including a majority of the voters in Galveston County. 

 

• Galveston County is well suited to operate without a county treasurer, as the county has a number of other officers, including an auditor, CFO, and purchasing agent, who perform duties performed by county treasurer in other counties.

• Nine other counties have eliminated their county treasurer position and have been able to continue operating efficient county governments. 

 

• A stand-alone office of county treasurer, headed by a person directly elected by county voters, provides essential checks and balances in county government operations.

• Eliminating one county office and absorbing its functions into other departments could set a bad precedent regarding concentration of power within a county.

The constitutional amendment to increase the mandatory age of retirement for state justices and judges. 

 

The Texas Constitution currently requires justices and judges of appellate courts, district courts, and criminal district courts to retire on the expiration of the term during which the justice reaches the age of 75, or at least 70 if prescribed by the legislature. If a justice or judge turns 75 during the first four years of a six year term, they must retire by December 31 of the fourth year of the term.

Prop 13 would require certain judge or justices to retire on the expiration of the term during which they reach the age of 79, rather than 75. The legislature could also prescribe an earlier retirement age of at least 75, rather than of at least 70. 

Additionally, the proposition would remove the provision requiring justices and judges to retire on December 31 of their fourth year in office if they turned 75 during the first four years of a six year term. 

 

• The proposed constitutional amendment would allow experienced and competent justices and judges who were still willing and capable to continue to serve.

• Allowing judges and justices to serve longer could decrease turnover and ensure a stable judicial system.

 

• The proposition would be unnecessary because there are many competent, younger attorneys available to fill the positions of retiring judges.

The constitutional amendment providing for the creation of the Centennial Parks Conservation Fund to be used for the creation and improvement of parks. 

 

The Texas state parks system has traditionally been funded by a combination of user fees and legislative appropriations. In 2019, Texas voters approved a constitutional amendment dedicating a portion of the state sales taxes on sporting goods to provide a revenue stream to the Parks and Wildlife Department. 

Prop 14 would create the Centennial Parks Conservation Fund, named in recognition of the 100th anniversary of the establishment of the state park system, as a trust fund outside the treasury with authorized use of the fund only for the creation and improvement of state parks, and for payment of reasonable expenses for managing the fund and its assets.

The 2023 General Appropriations Act appropriates $1 billion to the Parks and Wildlife Department for the Centennial Parks Conservation Fund, contingent upon voter approval. 

 

• Provides a stable and long-term funding source that will empower the state to protect Texas’ unique natural resources and cultural history while making them accessible to our growing population.

• Texas has lower park acreage per capita than many other states, and visitation to Texas’ parks has grown significantly in recent years.

• State parks are a driver of economic activity and provide recreational, educational, and conservation opportunities.

 

No opposition to the proposed constitutional amendment was expressed during legislative consideration of the proposal.