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.