87R10019 TYPED
 
  By: Harris, Goldman, et al. H.B. No. 2362
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to municipalities and counties that adopt budgets that
  defund law enforcement agencies.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 140, Local Government Code, is amended
  by adding Sections 140.013 and 140.014 to read as follows:
         Sec. 140.013.  DEFUNDING LOCAL GOVERNMENT. (a) A defunding
  local government is a municipality or county:
               (1)  that adopts a budget for a fiscal year that, in
  comparison to the local government's preceding fiscal year,
  reduces:
                     (A)  the appropriation to the local government's
  law enforcement agency;
                     (B)  the number of peace officers the local
  government's law enforcement agency is authorized to employ;
                     (C)  funding for peace officer overtime
  compensation for the local government's law enforcement agency; or
                     (D)  funding for the recruitment and training of
  new peace officers to fill each vacant peace officer position in the
  local government's law enforcement agency; and
               (2)  for which the criminal justice division of the
  governor's office issues a written determination finding that the
  local government has taken an action described by Subdivision (1).
         (a-1)  In making a determination of whether a local
  government is a defunding local government according to the budget
  adopted for the first fiscal year beginning on or after September 1,
  2021, the criminal justice division of the governor's office shall
  compare the funding and personnel in that budget to the funding and
  personnel in the budget of the preceding fiscal year or the second
  preceding fiscal year, whichever is greater. This subsection
  expires September 1, 2023.
         (b)  A local government is considered to be a defunding local
  government until the criminal justice division of the governor's
  office issues a written determination finding that the local
  government has reversed the reductions, adjusted for inflation,
  described in Subsection (a)(1).
         (c)  The criminal justice division of the governor's office
  shall:
               (1)  compute the inflation rate used to make
  determinations under Subsection (b) each state fiscal year using a
  price index that accurately reports changes in the purchasing power
  of the dollar for local governments in this state; and
               (2)  publish the inflation rate in the Texas Register.
         Sec. 140.014.  LIMIT ON ANNUAL EXPENDITURES BY DEFUNDING
  LOCAL GOVERNMENT. (a) This section applies to a defunding local
  government under Section 140.013.
         (b)  A defunding local government's total expenditures from
  all available sources of revenue in a fiscal year may not exceed the
  defunding local government's total expenditures from all available
  sources of revenue in the defunding local government's fiscal year
  immediately preceding the fiscal year during which the criminal
  justice division of the governor's office issued the written
  determination declaring the local government to be a defunding
  local government under Section 140.013.
         (c)  A local government is no longer considered to be a
  defunding local government for purposes of this section when the
  criminal justice division of the governor's office issues a written
  determination in accordance with Section 140.013(b) finding that
  the local government has reversed the reductions described by
  Section 140.013(a)(1).
         (d)  Revenue received from the issuance of bonds approved by
  voters or from a grant, donation, or gift is not considered an
  available source of revenue for purposes of this section.
         SECTION 2.  Section 140.013, Local Government Code, as added
  by this Act, applies only to the adoption of a budget by a
  municipality or county for a fiscal year that begins on or after the
  effective date of this Act.
         SECTION 3.  This Act takes effect September 1, 2021.