Texas Proposition 2, Authorize Counties to Issue Infrastructure Bonds in Blighted Areas Amendment (2021)

Texas Proposition 2
Election date November 2, 2021
Topic Bond issues and Transportation
Status a Approved
Type Constitutional amendment	Origin State legislature

2021 measures
November 2
Texas Proposition 1
Texas Proposition 2
Texas Proposition 3
Texas Proposition 4
Texas Proposition 5
Texas Proposition 6
Texas Proposition 7
Texas Proposition 8
Polls
Voter guides
Campaign finance
Signature costs

Texas Proposition 2, the Authorize Counties to Issue Infrastructure Bonds in Blighted Areas Amendment, was on the ballot in Texas as a legislatively referred constitutional amendment on November 2, 2021. It was approved.

A "yes" vote supported amending the state constitution to: authorize counties to issue bonds to fund transportation and infrastructure projects in blighted areas; prohibit counties from allocating more than 65% of property tax revenue increases annually to repay the bonds; and prohibit counties from using the funds from the issuance of the bonds to build a toll road.

A "no" vote opposed amending the state constitution, thereby maintaining that only cities and towns may issue bonds to fund transportation and infrastructure projects in blighted areas.

Election results

Texas Proposition 2
Result		Votes	Percentage
Yes		931,453	63.09%
No		544,834	36.91%

Results are officially certified.

Source

Aftermath

  

Lawsuit overview
Issue: Whether Proposition 2 was misleading and missing key information
Court: Filed in 53rd District Court; appealed to the Texas Seventh District Court of Appeals
Plaintiff(s): Texans Uniting for Reform and Freedom (TURF), Grassroots America, We the People, and True Texas Project (TTP)	Defendant(s): Texas Secretary of State Jane Nelson (R)
Plaintiff argument: The ballot language for Proposition 2 was misleading because it did not include language informing voters about the use of taxes to pay bonds issued by the county in the transportation reinvestment zones.	Defendant argument: The court does not have the authority to review the language drafted by the state legislature for Proposition 2 and doing so would violate the separation of powers.

  Source: The Texan

Texans Uniting for Reform and Freedom (TURF), Grassroots America, We the People, and True Texas Project (TTP) filed a lawsuit against Texas Secretary of State Jane Nelson (R) arguing that the election results for Proposition 2 were invalid because the ballot language was misleading to voters because it did not contain language regarding taxes being used to pay bonds issued by the county in the transportation reinvestment zones. The case was appealled to the Seventh District Court of Appeals.

On January 26, 2024, the Seventh District Court of Appeals ruled in favor of the plaintiffs that the judiciary has jurisdiction over reviewing the ballot language and that the ballot question should have included language stating that the newly created districts would levy taxes to fund projects. The court's ruling sends the case back to the trial court.

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Overview

What did Proposition 2 do?

See also: Text of measure

Proposition 2 amended the Texas Constitution to authorize counties to issue bonds to fund the development of transportation and infrastructure projects in blighted areas. The amendment prohibited counties that issue bonds for such purposes from pledging more than 65% of the increase in ad valorem tax revenues to repay the bonds. It also prohibited the funds from the bond issue to be used for constructing, operating, maintaining, or acquiring a toll road.

At the time of the election, the state constitution authorized incorporated cities and towns to issue bonds for infrastructure and transportation projects in blighted areas. Cities and towns were first authorized to issue bonds for such purposes in 1981 with the passage of Proposition 1.

How did the amendment get on the ballot?

See also: Path to the ballot

This amendment was filed as House Joint Resolution 99 (HJR 99) on February 24, 2021. On May 13, 2021, the state House passed HJR 99 in a vote of 127-15, with eight absent or not voting. On May 26, the Senate approved an amended version of HJR 99 by a vote of 27-4. On March 28, the House voted to pass the amended version of HJR 99 by a vote of 126-13 with 11 absent or not voting.

How often do amendments pass in Texas?

See also: Historical facts

Between 1995 and 2019, voters approved 91% (154 of 169) and rejected 9% (15 of 169) of the constitutional amendments that appeared on statewide ballots in Texas. An average of 13 measures appeared on odd-year statewide ballots. The number of ballot measures on odd-year statewide ballots ranged from 7 to 22.

Text of measure

Ballot title

The ballot tile for the amendment was as follows:

“

The constitutional amendment authorizing a county to finance the development or redevelopment of transportation or infrastructure in unproductive, underdeveloped, or blighted areas in the county.

”

Constitutional changes

See also: Article 8, Texas Constitution

The measure amended section 1-g of Article 8 of the state constitution. The following underlined text was added: Note: Hover over the text and scroll to see the full text.

Text of Section 1-g: Development or Redevelopment of Property; Ad Valorem Tax Relief and Issuance of Bonds and Notes

(b) The legislature by general law may authorize a county or an incorporated city or town to issue bonds or notes to finance the development or redevelopment of an unproductive, underdeveloped, or blighted area within the county, city, or town and to pledge for repayment of those bonds or notes increases in ad valorem tax revenues imposed on property in the area by the county, city, or town and other political subdivisions. A county that issues bonds or notes for transportation improvements under a general law authorized by this subsection may not:

(1) pledge for the repayment of those bonds or notes more than 65 percent of the increases in ad valorem tax revenues each year; or

(2) use proceeds from the bonds or notes to finance the construction, operation, maintenance, or acquisition of rights-of-way of a toll road.

Readability score

See also: Ballot measure readability scores, 2021

Using the Flesch-Kincaid Grade Level (FKGL and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title and summary for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The state legislature wrote the ballot language for this measure. The FKGL for the ballot title is grade level 22, and the FRE is -18. The word count for the ballot title is 25, and the estimated reading time is 6 seconds.

Support

Texas Infrastructure Now led the campaign in support of Proposition 2.

Supporters

Officials

• State Senator Robert Nichols (R)
• State Representative Trent Ashby (R)
• State Representative Terry Canales (D)
• State Representative Charlie Geren (R)
• State Representative Ken King (R)
• State Representative John Kuempel (R)
• State Representative Armando Martinez (D)
• State Representative Eddie Morales Jr. (D)
• State Representative Glenn Rogers (R)
• State Representative Ed Thompson (R)

Organizations

• Progress Texas

Arguments

• Adam Haynes, policy director for the Texas Conference of Urban Counties: Using Loop 1604 as an example of how the financing will work, Haynes said, "As Loop 1604 lengthened and expanded, the property tax and the valuation out there went … skyward. And so that’s what you do. You do the financing and then you reclaim the value to pay off those bonds."
• State Representative Charlie Geren (R): "Proposition 2 is critically important for the future of Texas. Prop. 2 is our opportunity to make infrastructure a priority at the county level without raising any new taxes, additional fees, or money for toll roads. I encourage you to join me in voting YES on Prop 2."

Opposition

Texans Uniting for Reform and Freedom (TURF) and Texans for Toll-free Highways led the campaign in opposition to Proposition 2.

Opponents

Officials

• State Representative Bryan Slaton (R)

Organizations

• Texas Freedom Caucus

Arguments

• Terri Hall, founder and director of TexasTURF.org and TollfreeHighways.com: "Prop 2 is the result of House Joint Resolution 99, authored by Rep. Terry Canales, D-Edinburg, to give counties the ability to issue new road debt using an unpopular method backed by property tax increases called Transportation Reinvestment Zones. ... Since voters don’t get the chance to vote for or against any future transportation reinvestment zones established by a county if Prop 2 passes in November, voting against Prop 2 is voters’ only chance to say 'no' to more property tax increases, blank checks for property rights abuses and deceptive ballot language."
• Brad Botkin: "Prop 2 is an attempt by the State Legislature to avoid responsibility for rural transportation prioritization and funding decisions by providing a mechanism to push this responsibility to counties. Currently, [Texas Department of Transportation] has the responsibility to install, maintain, and improve Texas county roads. ... Prop 2 is simply a state legislature sponsored attempt to avoid responsibility for prioritizing and funding county road improvements by telling counties they can do it themselves with tax-funded bond issuances."

Campaign finance

The campaign finance information on this page reflects the most recent scheduled reports that Ballotpedia has processed, which covered through October 25, 2021.

See also: Campaign finance requirements for Texas ballot measures

There is one ballot measure committee, Texas Infrastructure Now, registered in support of Proposition 2 that have raised $370,000.00. There is one ballot measure committee, Texans for Toll-free Highways , registered in opposition to Proposition 2. It reported $160.00 in contributions.

	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Support	$370,000.00	$0.00	$370,000.00	$223,138.88	$223,138.88
Oppose	$160.00	$0.00	$160.00	$308.87	$308.87
Total	$370,160.00	$0.00	$370,160.00	$223,447.75	$223,447.75

Support

The following table includes contribution and expenditure totals for the committee in support of the ballot measure.

Committees in support of Proposition 2
Committee	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Texas Infrastructure Now	$370,000.00	$0.00	$370,000.00	$223,138.88	$223,138.88
Total	$370,000.00	$0.00	$370,000.00	$223,138.88	$223,138.88

Opposition

The following table includes contribution and expenditure totals for the committee in opposition to the ballot measure.

Committees in opposition to Proposition 2
Committee	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Texans for Toll-free Highways	$160.00	$0.00	$160.00	$308.87	$308.87
Total	$160.00	$0.00	$160.00	$308.87	$308.87

Methodology

To read Ballotpedia's methodology for covering ballot measure campaign finance information, click here.

Media editorials

See also: 2021 ballot measure media endorsements

Ballotpedia identified the following media editorial boards as taking positions on Proposition 2.

Ballotpedia lists the positions of media editorial boards that support or oppose ballot measures. This does not include opinion pieces from individuals or groups that do not represent the official position of a newspaper or media outlet. Ballotpedia includes editorials from newspapers and outlets based on circulation and readership, political coverage within a state, and length of publication. You can share media editorial board endorsements with us at editor@ballotpedia.org.

Support

• The Dallas Morning News Editorial Board: "Recommendation: Yes. This provision would allow counties to issue debt to fund roads or other infrastructure and to use the resulting property tax revenue growth in the area to pay for the project. It’s a method of financing infrastructure without raising the property tax rate. Cities already have this authority. For Texas to continue to grow, counties need additional tools to fund infrastructure."
• Austin American-Statesman Editorial Board: "We urge voters to give Prop 2 the green light. The measure would give counties a valuable financing tool to pay for roads and infrastructure in blighted or under-developed areas. Importantly, this would be done without raising taxes countywide. As the county builds roads or other amenities, the properties nearby typically become more useful and desirable. Empty buildings are renovated; empty lots draw new construction. As the appraised value of those properties goes up, so does their tax bill. Under Prop 2, counties could channel some of that increased tax revenue — only from the nearby properties benefitting from the project — to repay the debt on that project."
• The Austin Chronicle Editorial Board: "Proposition 2: FOR. We generally believe in giving more power to Texas counties, allowing them to do what cities can, and that they and their voters can decide whether and how to use it. This is a perfect example; in many places in Texas the county is the only local government that should or could be in the infrastructure business, and this measure eliminates barriers that keep counties from using debt financing to build infrastructure in the same ways cities do routinely."
• The Fort Worth Star-Telegram Editorial Board: "It’s not a tax increase. Toll-road projects are excluded. And the proposition would allow targeted improvements that could spur economic development and eventually more tax revenue. We have some concern about layering more complications onto property taxes. But this is a good tool for counties to have. Our recommendation: Yes."
• The Houston Chronicle Editorial Board: "We urge voters to give Texas counties another tool, already long used by cities, to keep investing in their infrastructure. There may be no county in Texas that has better need for just that option than Harris County."
• The San Antonio Express-News Editorial Board: "For: Since 1981, the Texas Constitution has allowed cities and towns to finance transportation and infrastructure projects with bonds and notes. It’s only reasonable for that right to be expanded to counties to address their infrastructure needs. But the proposition, should it pass, would also place reasonable restrictions on counties."
• El Paso Times Editorial Board: "We urge voters to give Prop 2 the green light. The measure would give counties a valuable financing tool to pay for roads and infrastructure in blighted or under-developed areas. Importantly, this would be done without raising taxes countywide."

Opposition

Ballotpedia did not identified media editorial boards in opposition to the ballot measure.

Background

Texas Municipal Development Tax Relief and Bonds, Proposition 1 (1981)

See also: Proposition 1 (1981)

Proposition 1 was approved by Texas voters in 1981 by a margin of 58.25% to 41.75%. Proposition 1 added section 1-g to Article 8 of the Texas Constitution. The amendment authorized cities, towns, and other taxing units to grant property tax exemptions or limits in reinvestment zones and issue bonds for construction and redevelopment in an "unproductive, underdeveloped, or blighted area." The amendment did not explicitly grant the authority to issue bonds for such purposes to counties.

At the time of the election, a blighted area was defined in Texas statute as:

“

An area that is not a slum area, but that, because of deteriorating buildings, structures, or other improvements; defective or inadequate streets, street layout, or accessibility; unsanitary conditions; or other hazardous conditions, adversely affects the public health, safety, morals, or welfare of the municipality and its residents, substantially retards the provision of a sound and healthful housing environment, or results in an economic or social liability to the municipality. The term includes an area certified as a disaster area.

”

Texas Proposition 4 (2011)

See also: Texas County Redevelopment Bond Amendment, Proposition 4 (2011)

In 2011, the Texas State Legislature referred Proposition 4 to the ballot where it was defeated by a margin of 59.71% to 40.28%. The amendment was similar to Proposition 2 (2021) because it would have amended the state constitution to allow counties to issue redevelopment bonds pledged by tax revenues from the increased property values in the redevelopment area.

Transportation reinvestment zones (TRZs)

Texas state statute authorizes cities, counties, or port authorities to establish transportation reinvestment zones. To designate an area as a transportation reinvestment zone, it must be deemed underdeveloped by the city or county; promote public safety; facilitate the redevelopment of property; facilitate the movement of traffic; and enhance a local government's ability to fund a transportation project. After holding a public meeting to present the boundaries and projects of the zone, the local government must pass an ordinance establishing the zone, the base year for tax collection for the project, and the funding mechanism (e.g. bonds).

Referred amendments on the ballot

See also: List of Texas ballot measures

The following statistics are based on ballot measures between 1995 and 2020 in Texas:

• Ballots featured 169 constitutional amendments.
• An average of 13 measures appeared on odd-year statewide ballots.
• The number of ballot measures on odd-year statewide ballots ranged from 7 to 22.
• Voters approved 91% (154 of 169) and rejected 9% (15 of 169) of the constitutional amendments.

Legislatively-referred constitutional amendments, 1995-2020
Total number	Approved	Percent approved	Defeated	Percent defeated	Odd-year average	Odd-year median	Odd-year minimum	Odd-year maximum
169	154	91.1%	15	8.9%	12.8	11	7	22

During the 2021 regular and first special legislative sessions, 251 constitutional amendments were filed in the Texas State Legislature. In the regular session, legislators filed 218 amendments, and in the first special session, legislators filed 33 amendments. Between 2009 and 2020, an average of 192 constitutional amendments were filed during regular legislative sessions. The state legislature approved an average of nine constitutional amendments during regular legislative sessions. Therefore, the average rate of certification during regular legislative sessions was 4.7%. In 2021, eight of the 218 proposed constitutional amendments were certified for the ballot during the regular session, meaning the rate of certification was 3.7%, down from 4.6% in 2019.

Path to the ballot

See also: Amending the Texas Constitution

To put a legislatively referred constitutional amendment before voters, a two-thirds (66.67%) vote is required in both the Texas State Senate and the Texas House of Representatives.

This amendment was filed as House Joint Resolution 99 (HJR 99) on February 24, 2021. On May 13, 2021, the state House passed HJR 99 in a vote of 127-15, with eight absent or not voting. On May 26, the Senate approved an amended version of HJR 99 by a vote of 27-4. On March 28, the House voted to pass the amended version of HJR 99 by a vote of 126-13 with 11 absent or not voting.

Vote in the Texas State Senate May 26, 2021
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 21  a
	Yes	No	Not voting
Total	27	4	0
Total percent	87.1%	12.9%	0.0%
Democrat	13	0	0
Republican	14	4	0

Vote in the Texas House of Representatives May 28, 2021
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 100  a
	Yes	No	Not voting
Total	126	13	11
Total percent	84.0%	0.7%	7.3%
Democrat	62	0	5
Republican	64	13	6

How to cast a vote

See also: Voting in Texas

Click "Show" to learn more about voter registration, identification requirements, and poll times in Texas.

How to cast a vote in Texas

The information below covers regular voting policies in the state. Information may have not applied to the election on November 3, 2020, because of temporary changes in response to coronavirus. Click here to read about changes made for the 2020 elections. Poll times In Texas, all polling places are open from 7:00 a.m. to 7:00 p.m. local time. Texas is divided between the Central and Mountain time zones. An individual who is in line at the time polls close must be allowed to vote. Registration Check your voter registration status here. To register to vote in Texas, an applicant must be a United States citizen, a resident of the county in which he or she is registering, and at least 17 years and 10 months old. The deadline to register to vote is 30 days before the election. Prospective voters can request a postage-paid voter registration form online or complete the form online and return it to the county voter registrar. Applications are also available at a variety of locations including the county voter registrar’s office, the secretary of state’s office, libraries, and high schools. Voter registration certificates are mailed to newly registered voters. Automatic registration Texas does not practice automatic voter registration. Online registration See also: Online voter registration Texas does not permit online voter registration. Same-day registration Texas does not allow same-day voter registration. Residency requirements Prospective voters must reside in the county in which they are registering to vote. Verification of citizenship See also: Laws permitting noncitizens to vote in the United States Texas does not require proof of citizenship for voter registration. An individual applying to register to vote must attest that they are a U.S. citizen under penalty of perjury. State law requires election officials to conduct a check of registered voters' citizenship status. Section 18.068 of the Texas Election Code says the following: “ The secretary of state shall quarterly compare the information received under Section 16.001 of this code and Section 62.113, Government Code, to the statewide computerized voter registration list. If the secretary determines that a voter on the registration list is deceased or has been excused or disqualified from jury service because the voter is not a citizen, the secretary shall send notice of the determination to the voter registrar of the counties considered appropriate by the secretary. ” —Section 18.068, Texas Election Code In January 2019, the Texas secretary of state’s office announced that it would be providing local election officials with a list of registered voters who obtained driver’s licenses or IDs with documentation such as work visas or green cards. Counties would then be able to require voters on the list to provide proof of citizenship within 30 days. The review was halted by a federal judge in February 2019, and Secretary of State David Whitley rescinded the advisory in April. A news release from Whitley’s office stated that “... going forward, the Texas Secretary of State's office will send to county voter registrars only the matching records of individuals who registered to vote before identifying themselves as non-U.S. citizens to DPS when applying for a driver's license or personal identification card. This will ensure that naturalized U.S. citizens who lawfully registered to vote are not impacted by this voter registration list maintenance process.” All 49 states with voter registration systems require applicants to declare that they are U.S. citizens in order to register to vote in state and federal elections, under penalty of perjury or other punishment. Seven states — Alabama, Arizona, Georgia, Kansas, Louisiana, New Hampshire, and Wyoming — have laws requiring verification of citizenship at the time of voter registration, whether in effect or not. In three states — California, Maryland, and Vermont — at least one local jurisdiction allows noncitizens to vote in some local elections. Noncitizens registering to vote in those elections must complete a voter registration application provided by the local jurisdiction and are not eligible to register as state or federal voters. Verifying your registration The Texas Secretary of State’s office allows residents to check their voter registration status online by visiting this website. Voter ID requirements Texas requires voters to present photo identification while voting. The following list of accepted ID was current as of February 2023. Click here for the Texas Secretary of State's page on accepted ID to ensure you have the most current information. Texas driver’s license issued by the Texas Department of Public Safety (DPS) Texas Election Identification Certificate issued by DPS Texas Personal Identification Card issued by DPS Texas handgun license issued by DPS United States Military Identification Card containing the person’s photograph United States Citizenship Certificate containing the person’s photograph United States passport (book or card) Identification provided by voters aged 18-69 may be expired for no more than four years before the election date. Voters aged 70 and older can use an expired ID card regardless of how long ago the ID expired. Voters who are unable to provide one of the ID options listed above can sign a Reasonable Impediment Declaration and provide one of the following supporting documents: Copy or original of a government document that shows the voter’s name and an address, including the voter’s voter registration certificate Copy of or original current utility bill Copy of or original bank statement Copy of or original government check Copy of or original paycheck Copy of or original of (a) a certified domestic (from a U.S. state or territory) birth certificate or (b) a document confirming birth admissible in a court of law which establishes the voter’s identity (which may include a foreign birth document) The following voters are exempt from showing photo ID: Voters with a disability Voters with a disability "may apply with the county voter registrar for a permanent exemption to presenting an acceptable photo identification or following the Reasonable Impediment Declaration procedure in the county." Voters who have a religious objection to being photographed Voters who do not have a photo ID can obtain a Texas Election Identification Certificate (EIC) at any Texas driver’s license office during regular business hours. Voters can also obtain an Election Identification Certificate from a mobile station. Locations are listed here.

See also

2021 measures

• 2021 ballot measures
• Bond issues on the ballot
• Transportation on the ballot

Texas

• Texas ballot measures
• Texas ballot measure laws

News and analysis

• Ballot measure lawsuits
• Ballot measure readability
• Ballot measure polls

External links

• Full text of HJR 99
• Official State Voter Guide