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Texas HB 105 restricts local government debt issuance by excluding hospital districts, limiting public works definitions, and shortening certificate maturity periods

Original title: Relating to the issuance of certificates of obligation by certain local governments.

Last action · July 17, 2025: FiledSponsor: Carl Tepper

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

Texas HB 105 narrows the definition of local governments permitted to issue by removing hospital districts, scales back eligible projects, and prohibits the issuance of certificates for historic structure restoration or hotel facilities. The measure also shortens the maximum maturity period for these certificates from 40 to 30 years and lowers the voter petition threshold required to trigger a mandatory bond election from five percent to two percent of registered voters.

Why it matters

Local municipalities and counties face stricter statutory boundaries and shorter repayment timelines when financing public projects through debt certificates, while local residents gain a lower signature threshold to force public referendums on proposed debt issuances.

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Municipalities and Counties

Local governments face stricter limitations on project types, shorter repayment periods, and lower voter petition thresholds for issuing debt certificates.

Directly affected

Hospital Districts

Hospital districts are completely removed from the legal definition of issuers, stripping them of the authority to issue certificates of obligation.

Directly affected

Registered Voters and Local Taxpayers

Residents gain an easier pathway to challenge local debt issuances by lowering the required petition signature threshold from five percent to two percent.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Which local governments are affected by this bill?
Municipalities and counties are affected, while hospital districts are entirely removed from the authority to issue .
How does the bill change the rules for public voter petitions?
It reduces the percentage of registered voters required to sign a petition protesting a certificate issuance from five percent to two percent, which forces an election before the certificates can be authorized.
Can certificates of obligation still be used to build or renovate sports stadiums or hotels?
No. The bill removes sports stadiums, arenas, convention centers, civic complexes, and hotels from the eligible definition of s.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died at adjournment · introduced in the House.

Procedural history

1 action
  1. Jul 17, 2025HouseIntroduced
    Filed

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Restriction of Local Debt Scope

The legislation systematically narrows the types of facilities local governments can build using certificates of obligation by removing administrative buildings, recreational spaces, and commercial venues.

Connected Entities

Carl Tepper, Government Code, Health and Safety Code and 1 more
PersonCarl Tepper“Bill author in the lower house”Map →
OrganizationGovernment Code“Reference code for interest rates and bond elections”Map →
OrganizationHealth and Safety Code“Reference code for hospital districts”Map →
OrganizationLocal Government Code“Statutory code being amended”Map →

Sources

Open source document

capitol.texas.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 75)
  • Controversy45
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz20
    Current news / social attention level

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