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."