JD Key Consulting Logo
SB506

Regular Session

Relating to requirements for certain ballot propositions and to related procedures and provisions.

Moderate
Medium Cost
Effective:2025-09-01
SB506
Moderate
Relating to requirements for certain ballot propositions and to related procedures and provisions.
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Medium
Effective
2025-09-01
Enforcing Agencies
Texas Civil CourtsTexas Secretary of State
Primary Author: Sen. Paul Bettencourt
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: January 1, 2026 (The protections and requirements apply specifically to petitions submitted on or after this date. Petitions submitted between Sept 1, 2025, and Dec 31, 2025, remain under the old regime.)
  • Agency Rulemaking: While no specific deadline is mandated, the SOS must operationalize a review process to handle the statutory 7-day turnaround for challenged language. Expect guidance memos regarding "facial neutrality" standards in Q4 2025.

Immediate Action Plan

  • 1. Audit Active Campaigns: If you are currently gathering signatures, determine if you can delay submission until January 2, 2026, to gain the protections of SB506.
  • 2. Check the "Penalty Box": Before launching a campaign, verify if your target City is currently under the 4-year mandatory SOS oversight due to prior violations. This changes your engagement strategy.
  • 3. Draft Defensive Language: Do not wait for the City to draft the ballot proposition. Have your legal team draft "neutral" language immediately to submit to the SOS as the standard for comparison.
  • 4. Establish Monitoring: Assign a specific team member to monitor City Council election orders. The 7-day clock for SOS review is absolute and begins upon the City's publication of the language.

Operational Changes Required

Contracts

  • Litigation Strategy: If you are litigating against a city regarding ballot language, your legal counsel must demand discovery on the City’s legal billing. The law prohibits cities from accepting pro bono or below-market legal services for these specific disputes; they must pay "fair market value."
  • Vendor Agreements: Update agreements with petition management firms to require strict timestamping of submission receipts, as this data point is now legally dispositive for the 180-day "poison pill" protection period.

Hiring/Training

  • Government Affairs Staff: Personnel monitoring City Council agendas must be trained on the 7-day SOS filing window. If a City publishes objectionable ballot language, your team has exactly one week to file a request for review with the SOS. Missing this window waives administrative remedies.
  • Legal Counsel: In-house counsel must be briefed on the waiver of governmental immunity for attorney’s fees in mandamus actions involving ballot language.

Reporting & Record-Keeping

  • Petition Receipt Certification: You must obtain and archive certified proof of the exact date and time the City Secretary receives your petition. This triggers a 180-day blackout period during which the City is prohibited from placing a conflicting measure on the ballot.
  • Cost Segregation: Accounting must segregate legal fees specifically related to challenging ballot language (Mandamus actions) from general campaign funds. Commingled funds may jeopardize your ability to recover costs under Sec. 273.102(b).

Fees & Costs

  • Litigation Budget: While the law allows for cost recovery, you must budget for upfront litigation expenses.
  • Fee Recovery: If you prevail in a mandamus action proving the City’s language was misleading, the court is authorized to award reasonable attorney’s fees, expenses, and court costs.

Strategic Ambiguities & Considerations

  • "Facially Neutral": The statute requires language to be "facially neutral," but does not define the term. This will be the primary battleground. Businesses should prepare for the SOS to apply a strict interpretation initially, but court rulings will eventually define the boundaries.
  • "Same Subject Matter": The ban on conflicting city measures applies if they address the "same subject matter." Cities will likely attempt to draft competing measures that are technically distinct but practically conflicting to bypass the 180-day ban.
  • SOS Capacity: The law grants the SOS only 7 days to review challenged language. It is unclear how the agency will handle a high volume of challenges simultaneously, or if a "failure to rule" constitutes approval of the City's language.

Need Help Understanding Implementation?

Our government affairs experts can walk you through this bill's specific impact on your operations.

Schedule Consultation

Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Nov 25, 2024
Passed Senate
Apr 30, 2025
Passed House
May 28, 2025
Signed
Jun 20, 2025
TopicsCity GovernmentCity Government--generalElectionsElections--initiative, Referendum & RecallSecretary of State
03

Senate Authors

Sen. Paul BettencourtRepublican · Primary Author
Joint Authors
Coauthors (1)

House Sponsors

Rep. Dennis PaulRepublican · Primary Sponsor
Joint Sponsors

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

Explore more bills from this author and on related topics

More from Sen. Paul Bettencourt

View all bills by Sen. Paul Bettencourt

Related by Topic

View more City Government legislation
Quick Reference

Frequently Asked Questions

Common questions about SB506

Q

What does Texas SB506 do?

SB506 fundamentally shifts the balance of power in local governance by preventing Home-Rule Cities from using misleading ballot language or conflicting measures to defeat business-initiated petitions. The law establishes a strict administrative review process via the Secretary of State (SOS) and introduces fee-shifting provisions that allow private entities to recover legal costs when challenging non-compliant municipal ballot language. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: January 1, 2026 (The protections and requirements apply specifically to petitions submitted on or after this date.

Q

Who authored SB506?

SB506 was authored by Texas Senator Paul Bettencourt during the Regular Session.

Q

When was SB506 signed into law?

SB506 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB506?

SB506 is enforced by Texas Civil Courts and Texas Secretary of State.

Q

How urgent is compliance with SB506?

The compliance urgency for SB506 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of SB506?

The cost impact of SB506 is estimated as "medium". This may vary based on industry and implementation requirements.

Q

What topics does SB506 address?

SB506 addresses topics including city government, city government--general, elections, elections--initiative, referendum & recall and secretary of state.

Legislative data provided by LegiScanLast updated: November 25, 2025

Need Strategic Guidance on This Bill?

Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.