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A BILL TO BE ENTITLED
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AN ACT
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relating to municipalities and counties that adopt budgets that |
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defund law enforcement agencies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 4, Local Government Code, is |
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amended by adding Chapter 109 to read as follows: |
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CHAPTER 109. MISCELLANEOUS FINANCIAL PROVISIONS AFFECTING |
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MUNICIPALITIES |
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Sec. 109.001. REVENUE CAP ON DEFUNDING MUNICIPALITY. (a) |
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In this section: |
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(1) "Combined revenues" means the combined revenues of |
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a municipality's general fund, enterprise funds, and special |
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revenue funds. The term does not include: |
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(A) grant monies and other revenues received from |
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other governmental entities; and |
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(B) transfers between funds of the municipality. |
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(2) "Defunding municipality" means a municipality |
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that is a defunding local government under Section 140.013. |
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(3) "Revenues" has the definition assigned to the term |
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for cities by the Governmental Accounting Standards Board and the |
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Government Finance Officers Association. The term includes both |
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operating and non-operating revenues. |
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(b) Except as provided by Subsection (c), a defunding |
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municipality may not increase their combined revenues for a fiscal |
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year above their combined revenues for the immediately preceding |
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fiscal year. |
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(c) The limitation in Subsection (b) does not apply to |
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revenues used to repay voter approved bonded indebtedness, |
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excluding certificates of obligation. |
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(d) Before the governing body of a defunding municipality |
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may adopt a budget for a fiscal year, the chief fiscal officer for |
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the defunding municipality must verify in writing that the budget |
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complies with Subsection (b). If a defunding municipality adopts a |
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budget that exceeds the combined revenues allowed under Subsection |
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(b), a taxpayer of the defunding municipality may bring a lawsuit, |
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not later than the 30th day after the date the defunding |
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municipality adopts the budget, to obtain an injunction against the |
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budget or the property tax rate adopted for the same fiscal year. |
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It is a defense in a lawsuit for an injunction under this subsection |
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that the municipality does not qualify as a defunding municipality |
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or is no longer considered to be a defunding municipality for |
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purposes of this section. |
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(e) A municipality is no longer considered to be a defunding |
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municipality for purposes of this section when the criminal justice |
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division of the governor's office issues a written determination in |
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accordance with Section 140.013(b) finding that the municipality |
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has reversed the reductions described by Section 140.013(a)(1). |
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SECTION 2. Chapter 140, Local Government Code, is amended |
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by adding Section 140.013 to read as follows: |
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Sec. 140.013. DEFUNDING LOCAL GOVERNMENT. (a) A defunding |
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local government is a municipality or county: |
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(1) that adopts a budget for a fiscal year that, in |
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comparison to the local government's preceding fiscal year, |
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reduces: |
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(A) the appropriation to the local government's |
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law enforcement agency; |
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(B) the number of peace officers the local |
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government's law enforcement agency is authorized to employ; |
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(C) funding for peace officer overtime |
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compensation for the local government's law enforcement agency; or |
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(D) funding for the recruitment and training of |
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new peace officers to fill each vacant peace officer position in the |
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local government's law enforcement agency; and |
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(2) for which the criminal justice division of the |
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governor's office issues a written determination finding that the |
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local government has taken an action described by Subdivision (1). |
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(a-1) In making a determination of whether a local |
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government is a defunding local government according to the budget |
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adopted for the first fiscal year beginning on or after September 1, |
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2021, the criminal justice division of the governor's office shall |
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compare the funding and personnel in that budget to the funding and |
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personnel in the budget of the preceding fiscal year or the second |
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preceding fiscal year, whichever is greater. This subsection |
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expires September 1, 2023. |
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(b) A local government is considered to be a defunding local |
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government until the criminal justice division of the governor's |
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office issues a written determination finding that the local |
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government has reversed the reductions, adjusted for inflation, |
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described in Subsection (a)(1). |
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(c) The criminal justice division of the governor's office |
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shall: |
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(1) compute the inflation rate used to make |
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determinations under Subsection (b) each state fiscal year using a |
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price index that accurately reports changes in the purchasing power |
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of the dollar for local governments in this state; and |
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(2) publish the inflation rate in the Texas Register. |
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SECTION 3. Section 140.013, Local Government Code, as added |
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by this Act, applies only to the adoption of a budget by a |
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municipality or county for a fiscal year that begins on or after the |
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effective date of this Act. |
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SECTION 4. This Act takes effect September 1, 2021. |