By Cuellar of Webb H.B. No. 142 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. 2-1 Sec. 320.003. ENTITLEMENT TO REIMBURSEMENT. (a) A 2-2 political subdivision of this state is entitled to be reimbursed 2-3 from the general revenue fund in the state treasury for all or part 2-4 of the cost incurred in a calendar year or part of a calendar year 2-5 by the political subdivision to comply with any state mandate 2-6 enacted on or after January 1, 1994. 2-7 (b) The state shall appropriate or otherwise provide for the 2-8 payment or reimbursement for all or part of the cost incurred in a 2-9 calendar year or part of a calendar year by the political 2-10 subdivision in complying with a state mandate. 2-11 (c) This section does not apply to a state mandate: 2-12 (1) not included in the appropriate list of mandates 2-13 published by the comptroller under Section 320.004; 2-14 (2) imposed by the legislature or a state agency to 2-15 comply with a requirement of the Texas Constitution or federal law; 2-16 (3) creating a new criminal offense or changing the 2-17 elements of a criminal offense; or 2-18 (4) approved by the voters of this state at a general 2-19 election. 2-20 Sec. 320.004. LIST OF MANDATES. (a) On or before the next 2-21 September 1 following a regular session of the legislature or the 2-22 90th day after the last day of a special session of the 2-23 legislature, the comptroller of public accounts shall publish a 2-24 list of the mandates enacted by the legislature during that 2-25 legislative session the costs of which are reimbursable under 3-1 Section 320.003. By that same date the comptroller shall remove 3-2 from the list of reimbursable mandates for a previous legislative 3-3 session those mandates that are no longer in effect. 3-4 (b) Not later than the 60th day after the last day on which 3-5 the comptroller is authorized to publish the list for a legislative 3-6 session, a political subdivision may petition the comptroller to 3-7 include on the list additional provisions enacted at the applicable 3-8 legislative session or to retain a mandate on the list from a 3-9 previous legislative session. 3-10 (c) If the comptroller refuses to grant the petition of a 3-11 political subdivision, the political subdivision, not later than 3-12 the 60th day after the date on which it submitted the petition to 3-13 the comptroller, may bring an action in the district court of 3-14 Travis County to require the comptroller to act in accordance with 3-15 the petition. 3-16 (d) The court may not reverse the comptroller's action 3-17 unless the political subdivision establishes by clear and 3-18 convincing evidence that the decision of the comptroller is 3-19 erroneous. The decision of the district court may be appealed in 3-20 the manner provided by law for civil suits generally. 3-21 Sec. 320.005. APPLICATION FOR REIMBURSEMENT. (a) To 3-22 receive a reimbursement to which it is entitled under Section 3-23 320.003, the governing body of a political subdivision must apply 3-24 to the comptroller of public accounts not later than March 1 of the 3-25 year following the year in which the reimbursable expense was 4-1 incurred. The application must provide evidence of the costs 4-2 incurred by the political subdivision in complying with the 4-3 mandate. 4-4 (b) A political subdivision is not eligible for 4-5 reimbursement under this subsection unless it complies or in good 4-6 faith attempts to comply with the mandate in the year for which the 4-7 reimbursement is sought. 4-8 (c) The comptroller shall pay the amount of the costs the 4-9 comptroller determines were directly incurred in complying with the 4-10 mandate not later than the end of the calendar year in which the 4-11 governing body applies for reimbursement. 4-12 (d) Reimbursements to school districts under this section 4-13 shall be provided through equalized allotments if necessary to 4-14 comply with Article VII, Section 1, of the Texas Constitution. 4-15 (e) Not later than March 1 of the year after the year in 4-16 which application is made, the political subdivision may appeal a 4-17 decision of the comptroller not to pay an amount applied for, or to 4-18 pay less than the amount applied for, to the district court of 4-19 Travis County. 4-20 (f) The court may not reverse the comptroller's decision 4-21 unless the political subdivision establishes by clear and 4-22 convincing evidence that the decision of the comptroller is 4-23 erroneous. The decision of the district court may be appealed in 4-24 the manner provided by law for civil suits generally. 4-25 SECTION 2. The importance of this legislation and the 5-1 crowded condition of the calendars in both houses create an 5-2 emergency and an imperative public necessity that the 5-3 constitutional rule requiring bills to be read on three several 5-4 days in each house be suspended, and this rule is hereby suspended.