By: Cuellar, H. H.B. No. 44 73R552 SHS-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to requiring state funding of legislative mandates on 1-3 local governments. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subtitle B, Title 3, Government Code, is amended 1-6 by adding Chapter 320 to read as follows: 1-7 CHAPTER 320. LEGISLATIVE MANDATES ON LOCAL GOVERNMENTS 1-8 Sec. 320.001. SHORT TITLE. This chapter may be cited as the 1-9 State Mandates Act. 1-10 Sec. 320.002. DEFINITIONS. In this chapter: 1-11 (1) "Political subdivision" means a municipality, 1-12 county, or other subdivision of state government that has 1-13 jurisdiction over a portion of the state, has a governing body 1-14 composed of elected officials, and has the power to assess and 1-15 collect taxes. 1-16 (2) "State mandate" means a statutory provision that 1-17 requires a political subdivision to establish, expand, or modify an 1-18 activity in a way that requires the expenditure of revenue by the 1-19 political subdivision that would not have been required in the 1-20 absence of the statutory provision, a rule adopted by a state 1-21 agency to implement a statutory state mandate, or a judicial 1-22 decision interpreting or applying a state mandate established by 1-23 statute or rule. 1-24 Sec. 320.003. ENTITLEMENT TO REIMBURSEMENT. (a) A 2-1 political subdivision of this state is entitled to be reimbursed 2-2 from the general revenue fund in the state treasury for all or part 2-3 of the cost incurred in a calendar year or part of a calendar year 2-4 by the political subdivision to comply with any state mandate 2-5 enacted on or after January 1, 1994. 2-6 (b) The state shall appropriate or otherwise provide for the 2-7 payment or reimbursement for all or part of the cost incurred in a 2-8 calendar year or part of a calendar year by the political 2-9 subdivision in complying with a state mandate. 2-10 (c) This section does not apply to a state mandate: 2-11 (1) not included in the appropriate list of mandates 2-12 published by the comptroller under Section 320.004; 2-13 (2) imposed by the legislature or a state agency to 2-14 comply with a requirement of the Texas Constitution or federal law; 2-15 (3) creating a new criminal offense or changing the 2-16 elements of a criminal offense; or 2-17 (4) approved by the voters of this state at a general 2-18 election. 2-19 Sec. 320.004. LIST OF MANDATES. (a) On or before the next 2-20 September 1 following a regular session of the legislature or the 2-21 90th day after the last day of a special session of the 2-22 legislature, the comptroller of public accounts shall publish a 2-23 list of the mandates enacted by the legislature during that 2-24 legislative session the costs of which are reimbursable under 2-25 Section 320.003. By that same date the comptroller shall remove 2-26 from the list of reimbursable mandates for a previous legislative 2-27 session those mandates that are no longer in effect. 3-1 (b) Not later than the 60th day after the last day on which 3-2 the comptroller is authorized to publish the list for a legislative 3-3 session, a political subdivision may petition the comptroller to 3-4 include on the list additional provisions enacted at the applicable 3-5 legislative session or to retain a mandate on the list from a 3-6 previous legislative session. 3-7 (c) If the comptroller refuses to grant the petition of a 3-8 political subdivision, the political subdivision, not later than 3-9 the 60th day after the date on which it submitted the petition to 3-10 the comptroller, may bring an action in the district court of 3-11 Travis County to require the comptroller to act in accordance with 3-12 the petition. 3-13 (d) The court may not reverse the comptroller's action 3-14 unless the political subdivision establishes by clear and 3-15 convincing evidence that the decision of the comptroller is 3-16 erroneous. The decision of the district court may be appealed in 3-17 the manner provided by law for civil suits generally. 3-18 Sec. 320.005. APPLICATION FOR REIMBURSEMENT. (a) To 3-19 receive a reimbursement to which it is entitled under Section 3-20 320.003, the governing body of a political subdivision must apply 3-21 to the comptroller of public accounts not later than March 1 of the 3-22 year following the year in which the reimbursable expense was 3-23 incurred. The application must provide evidence of the costs 3-24 incurred by the political subdivision in complying with the 3-25 mandate. 3-26 (b) A political subdivision is not eligible for 3-27 reimbursement under this subsection unless it complies or in good 4-1 faith attempts to comply with the mandate in the year for which the 4-2 reimbursement is sought. 4-3 (c) The comptroller shall pay the amount of the costs the 4-4 comptroller determines were directly incurred in complying with the 4-5 mandate not later than the end of the calendar year in which the 4-6 governing body applies for reimbursement. 4-7 (d) Reimbursements to school districts under this section 4-8 shall be provided through equalized allotments if necessary to 4-9 comply with Article VII, Section 1, of the Texas Constitution. 4-10 (e) Not later than March 1 of the year after the year in 4-11 which application is made, the political subdivision may appeal a 4-12 decision of the comptroller not to pay an amount applied for, or to 4-13 pay less than the amount applied for, to the district court of 4-14 Travis County. 4-15 (f) The court may not reverse the comptroller's decision 4-16 unless the political subdivision establishes by clear and 4-17 convincing evidence that the decision of the comptroller is 4-18 erroneous. The decision of the district court may be appealed in 4-19 the manner provided by law for civil suits generally. 4-20 SECTION 2. The importance of this legislation and the 4-21 crowded condition of the calendars in both houses create an 4-22 emergency and an imperative public necessity that the 4-23 constitutional rule requiring bills to be read on three several 4-24 days in each house be suspended, and this rule is hereby suspended.