By Bivins S.J.R. No. 8 74R885 CAG-F A JOINT RESOLUTION 1-1 proposing a constitutional amendment to provide for state funding 1-2 of new legislative mandates on local governments. 1-3 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Article III of the Texas Constitution is amended 1-5 by adding Section 66 to read as follows: 1-6 Sec. 66. (a) A political subdivision of this state is 1-7 entitled to be reimbursed from the general revenue fund in the 1-8 state treasury for the costs incurred in a calendar year by the 1-9 political subdivision to comply with any state mandate enacted on 1-10 or after January 1, 1996, unless the legislature: 1-11 (1) by statute enacted by a record vote of two-thirds 1-12 of the members elected to each house expressly provides that the 1-13 mandate is not subject to reimbursement under this section; or 1-14 (2) appropriates or otherwise provides for the payment 1-15 or reimbursement from a source other than revenue of the political 1-16 subdivision of the costs incurred in the calendar year by the 1-17 political subdivision in complying with the state mandate. 1-18 (b) In this section, "state mandate" means a requirement 1-19 made by a statute enacted by the legislature that requires a 1-20 political subdivision to establish, expand, or modify an activity 1-21 in a way that requires the expenditure of revenue by the political 1-22 subdivision that would not have been required in the absence of the 1-23 statutory provision. 1-24 (c) On or before the next September 1 following a regular 2-1 session of the legislature or the 90th day after the last date of a 2-2 special session of the legislature, the comptroller of public 2-3 accounts shall publish a list of the mandates enacted by the 2-4 legislature during that legislative session the costs of which are 2-5 reimbursable under Subsection (a) of this section. By that same 2-6 date the comptroller shall remove from the list of reimbursable 2-7 mandates for a previous legislative session those mandates for 2-8 which the legislature has provided for reimbursement under 2-9 Subsection (g) of this section, those that the legislature has 2-10 provided are no longer subject to reimbursement, or those that are 2-11 no longer in effect. Not later than the 60th day after the last 2-12 date on which the comptroller is authorized to publish the list for 2-13 a legislative session, a political subdivision may petition the 2-14 comptroller to include on the list additional provisions enacted at 2-15 the applicable legislative session or to retain a mandate on the 2-16 list from a previous legislative session. If the comptroller 2-17 refuses to grant the petition of a political subdivision, the 2-18 political subdivision, not later than the 60th day after the date 2-19 on which it submitted the petition to the comptroller, may bring an 2-20 action in the district court of Travis County to require the 2-21 comptroller to act in accordance with the petition. The court may 2-22 not reverse the comptroller's action unless the political 2-23 subdivision establishes by clear and convincing evidence that the 2-24 decision of the comptroller is erroneous. The decision of the 2-25 district court may be appealed in the manner provided by law for 2-26 civil suits generally. 2-27 (d) For purposes of this section, costs incurred to comply 3-1 with a rule adopted by a state agency to implement a state mandate 3-2 or a judicial decision interpreting or applying a state mandate are 3-3 reimbursable in the same manner as other costs incurred to comply 3-4 with that state mandate, if those costs are required to be 3-5 reimbursed under this section. 3-6 (e) This section does not apply to a state mandate: 3-7 (1) not included in the appropriate list of mandates 3-8 published by the comptroller of public accounts under this section; 3-9 (2) imposed by the legislature or a state agency to 3-10 comply with a requirement of the Texas Constitution or federal law; 3-11 (3) creating a new criminal offense or changing the 3-12 elements of a criminal offense; or 3-13 (4) approved by the voters of this state at a general 3-14 election. 3-15 (f) To receive a reimbursement to which it is entitled under 3-16 Subsection (a) of this section, the governing body of the political 3-17 subdivision must apply to the comptroller of public accounts not 3-18 later than March 1 of the year following the year in which the 3-19 reimbursable expense was incurred. The application must provide 3-20 evidence of the costs incurred by the political subdivision in 3-21 complying with the mandate. A political subdivision is not 3-22 eligible for reimbursement under this subsection unless it complies 3-23 or in good faith attempts to comply with the mandate in the year 3-24 for which the reimbursement is sought. The comptroller shall pay 3-25 the amount of the costs the comptroller determines were directly 3-26 incurred in complying with the mandate not later than the end of 3-27 the calendar year in which the governing body applies for 4-1 reimbursement. Not later than March 1 of the year after the year 4-2 in which application is made, the political subdivision may appeal 4-3 a decision of the comptroller not to pay an amount applied for, or 4-4 to pay less than the amount applied for, to the district court of 4-5 Travis County. The court may not reverse the comptroller's 4-6 decision unless the political subdivision establishes by clear and 4-7 convincing evidence that the decision of the comptroller is 4-8 erroneous. The decision of the district court may be appealed in 4-9 the manner provided by law for civil suits generally. 4-10 (g) The legislature by general law may provide for the 4-11 payment of reimbursements required by this section according to 4-12 formulas or other methods that eliminate the requirement that each 4-13 political subdivision apply for an annual reimbursement. If the 4-14 legislature provides for reimbursement of a mandate under this 4-15 section, the amount of the reimbursement paid to a political 4-16 subdivision is not subject to legal challenge or judicial review. 4-17 SECTION 2. This proposed constitutional amendment shall be 4-18 submitted to the voters at an election to be held November 7, 1995. 4-19 The ballot shall be printed to permit voting for or against the 4-20 proposition: "The constitutional amendment to require the 4-21 legislature to provide revenue to local governments to pay for new 4-22 programs and duties imposed by the legislature in order to reduce 4-23 the need for local tax increases."