By Pitts                                               H.B. No. 734
       74R1119 CAG-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to requiring adequate state funding of mandates on
    1-3  political subdivisions.
    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.  MANDATES ON LOCAL GOVERNMENTS
    1-8        Sec. 320.001.  DEFINITIONS.  In this chapter:
    1-9              (1)  "Mandate" means:
   1-10                    (A)  a state statutory provision that requires a
   1-11  political subdivision to establish, expand, modify, or review an
   1-12  activity in a way that requires the expenditure of revenue by the
   1-13  political subdivision that would not have been required in the
   1-14  absence of the statutory provision;
   1-15                    (B)  a rule adopted by a state agency to
   1-16  implement a statutory state mandate; or
   1-17                    (C)  a judicial decision interpreting or applying
   1-18  a state mandate established by statute or rule.
   1-19              (2)  "Political subdivision" means a municipality,
   1-20  county, or other subdivision of state government that has
   1-21  jurisdiction over a portion of the state, has a governing body
   1-22  composed of elected officials, and has the power to assess and
   1-23  collect taxes.
   1-24        Sec. 320.002.  ENFORCEMENT OF ADEQUATELY FUNDED STATE
    2-1  MANDATE.    (a)  A political subdivision does not have to comply
    2-2  with or otherwise enforce a mandate if the comptroller determines
    2-3  that the level of funding provided by the state or the federal
    2-4  government is not adequate to provide for the establishment,
    2-5  expansion, modification, or review of an activity that is the
    2-6  subject of the mandate.
    2-7        (b)  The level of funding provided by the state or federal
    2-8  government is presumed adequate if the comptroller determines that
    2-9  the amount of funding allows a political subdivision to effectively
   2-10  undertake the activity that is the subject of the mandate without
   2-11  an additional expenditure of funds from any other source by the
   2-12  political subdivision.
   2-13        (c)  This section does not apply to a mandate:
   2-14              (1)  not included in the appropriate list of mandates
   2-15  published by the comptroller under Section 320.003;
   2-16              (2)  imposed by the legislature or a state agency to
   2-17  comply with a requirement of the Texas Constitution or federal law;
   2-18              (3)  creating a new criminal offense or changing the
   2-19  elements of a criminal offense; or
   2-20              (4)  approved by the voters of this state at a general
   2-21  election.
   2-22        Sec. 320.003.  LIST OF MANDATES.  (a)  On or before the next
   2-23  September 1 following a regular session of the legislature or the
   2-24  90th day after the last day of a special session of the
   2-25  legislature, the comptroller shall publish a list of the mandates
   2-26  enacted by the legislature during that legislative session with
   2-27  which a political subdivision does not have to comply under Section
    3-1  320.002(a).   By that same date the comptroller shall remove from
    3-2  the list of mandates for a previous legislative session those
    3-3  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        SECTION 2.  The importance of this legislation and the
   3-22  crowded condition of the calendars in both houses create an
   3-23  emergency and an imperative public necessity that the
   3-24  constitutional rule requiring bills to be read on three several
   3-25  days in each house be suspended, and this rule is hereby suspended.