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A BILL TO BE ENTITLED
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AN ACT
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relating to the procedural requirements for the adoption of a |
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municipal regulation, limitation, or prohibition on the |
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production, storage, or transportation of oil or natural gas; |
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authorizing a fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 7, Local Government Code, is |
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amended by adding Chapter 218 to read as follows: |
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CHAPTER 218. MUNICIPAL REGULATION OF PRODUCTION, STORAGE, OR |
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TRANSPORTATION OF OIL OR NATURAL GAS |
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Sec. 218.001. DEFINITIONS. In this chapter: |
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(1) "Affected area" means a geographic area impacted |
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by an oil or gas measure. |
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(2) "Gas" means natural gas. |
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(3) "Oil" means crude oil or crude petroleum oil. |
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(4) "Oil or gas measure" means a municipal ordinance |
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or other municipal measure, including a measure requiring approval |
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by voters, to regulate, limit, or prohibit the production, storage, |
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or transportation of oil or gas. |
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(5) "Political subdivision" means a municipality, |
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county, school district, junior college district, other special |
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district, or other subdivision of state government. |
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Sec. 218.002. ADDITIONAL PROCEDURAL REQUIREMENTS. A |
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municipality with authority to adopt an oil or gas measure may not |
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adopt an oil or gas measure unless the municipality complies with |
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the requirements of this chapter, in addition to other requirements |
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prescribed by law. |
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Sec. 218.003. PREPARATION OF FISCAL NOTES AND EQUALIZED |
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EDUCATION FUNDING IMPACT STATEMENTS. (a) A municipality must |
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submit any request for the preparation of a fiscal note and an |
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equalized education funding impact statement for an oil or gas |
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measure required under this chapter in writing and addressed to the |
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director of the Legislative Budget Board. |
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(b) The Legislative Budget Board shall prepare a fiscal note |
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and an equalized education funding impact statement if requested by |
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a municipality. |
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(c) A municipality shall pay the cost to prepare a fiscal |
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note and an equalized education funding impact statement and any |
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administrative fee determined by the director of the Legislative |
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Budget Board to be necessary to administer the preparation of |
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documents requested under this section. |
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(d) In preparing a fiscal note and an equalized education |
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funding impact statement, the director of the Legislative Budget |
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Board may use information or data supplied by any person, agency, |
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organization, or governmental unit that the director considers |
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reliable. |
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Sec. 218.004. CONTENTS OF FISCAL NOTES. (a) In preparing a |
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fiscal note for an oil or gas measure, the Legislative Budget Board |
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shall identify: |
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(1) the fiscal implications of the measure to the |
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state and local governments of the state; |
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(2) the probable cost to the state that will result |
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from the measure, including: |
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(A) the loss of tax revenue from all sources; |
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(B) the loss of revenue from fees, licenses, |
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penalties, or other charges; |
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(C) the loss of royalty income; and |
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(D) the diversion of state funds for a purpose |
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other than one provided for in the state general appropriations |
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bill; |
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(3) the probable cost to political subdivisions in the |
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affected area that will result from the measure, including: |
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(A) the loss of tax revenue from all sources; |
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(B) the loss of revenue from fees, licenses, |
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penalties, or other charges; and |
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(C) the loss of royalty income; and |
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(4) the amount of money the municipality adopting the |
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measure will be required to annually remit to the state as |
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reimbursement for the cost to the state resulting from the measure, |
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calculated as the sum of: |
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(A) the probable cost identified in Subdivision |
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(2); and |
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(B) the amount of the applicable difference |
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calculated under Section 218.005. |
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(b) A fiscal note must state whether costs or diversions |
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identified in Subsection (a) will be involved after the projected |
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five-year period as determined under Subsection (c). |
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(c) In preparing a fiscal note, the Legislative Budget Board |
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must project the implications, costs, and amounts identified in |
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Subsection (a) for each year of a five-year period. For a fiscal |
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note requested before the oil or gas measure is adopted, the |
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Legislative Budget Board must use the five-year period beginning on |
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January 1 of the year following the year in which the request is |
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made. For a fiscal note requested after a measure is adopted, the |
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Legislative Budget Board must use the five-year period beginning on |
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the date the measure takes effect. |
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Sec. 218.005. CONTENTS OF EQUALIZED EDUCATION FUNDING |
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IMPACT STATEMENTS. (a) In preparing an equalized education funding |
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impact statement for an oil or gas measure, the Legislative Budget |
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Board shall determine the applicable difference calculated under |
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this section that will result from the measure. |
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(b) For a school district in the affected area that is |
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required to take action to achieve the equalized wealth level under |
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Chapter 41, Education Code, the Legislative Budget Board, based on |
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the comptroller's projection under Subsection (f), shall determine |
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the difference between the anticipated total cost of attendance |
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credits for the district under Section 41.093, Education Code, and |
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the total cost of attendance credits under that section that would |
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result if the district's maintenance and operations tax revenue |
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were not reduced as a result of the oil or gas measure. |
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(c) For a school district in the affected area that is not |
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required to take action to achieve the equalized wealth level under |
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Chapter 41, Education Code, the Legislative Budget Board, based on |
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the comptroller's projection under Subsection (f), shall |
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determine: |
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(1) the difference between the district's anticipated |
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local share under Section 42.252, Education Code, and the local |
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share that would result if the district's taxable value of property |
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were not reduced as a result of the oil or gas measure; |
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(2) if applicable, the difference between the amount |
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of state revenue to which the district is anticipated to be entitled |
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under Section 42.2516, Education Code, and the amount of state |
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revenue to which the district would be entitled under that section |
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if the district's taxable value of property were not reduced as a |
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result of the measure; and |
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(3) the difference between the anticipated guaranteed |
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yield amount of state funds to be allocated to the district under |
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Section 42.302, Education Code, and the amount that would be |
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allocated to the district if the district's taxable value of |
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property were not reduced as a result of the measure. |
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(d) For purposes of making the determinations required by |
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Subsections (b) and (c), the Legislative Budget Board shall assume |
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for each year of the projected five-year period, as determined |
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under Subsection (e), that a district's maintenance and operations |
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tax rate and number of students in weighted average daily |
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attendance is the same as the district's maintenance and operations |
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tax rate and number of students in weighted average daily |
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attendance for the school year during which the determinations are |
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made. |
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(e) In preparing an equalized education funding impact |
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statement, the Legislative Budget Board must project the |
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differences calculated under this section for each year of a |
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five-year period, as determined in the same manner as the five-year |
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period is determined for a fiscal note under Section 218.004(c). |
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(f) For each school district in the affected area, the |
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comptroller shall project for each year of the five-year period, as |
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determined under Subsection (e), the anticipated reduction in the |
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district's taxable value of property determined under Subchapter M, |
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Chapter 403, Government Code, resulting from the oil or gas |
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measure. |
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Sec. 218.006. NOTICE OF HEARING. For each hearing at which |
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an oil or gas measure will be considered, a municipality must |
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provide public notice that includes the following documents and |
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statements: |
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(1) a current copy of: |
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(A) the measure; |
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(B) a fiscal note prepared by the Legislative |
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Budget Board for the measure; and |
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(C) an equalized education funding impact |
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statement prepared by the Legislative Budget Board for the measure; |
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(2) a statement that the municipality will be required |
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to reimburse the state for the cost to the state for a five-year |
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period resulting from the measure as determined by the fiscal note |
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prepared by the Legislative Budget Board; |
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(3) a separate statement of the amount specified in |
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the current fiscal note that the municipality will be required to |
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annually remit to the state as reimbursement for the cost described |
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by Subdivision (2); and |
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(4) a statement describing in detail the source or |
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sources of money that the municipality will use to reimburse the |
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state for the cost described by Subdivision (2), including if |
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applicable: |
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(A) the type and amount of each new tax or fee the |
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municipality will enact or adopt and the revenue projected to be |
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raised from the new tax or fee; |
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(B) the type of each existing tax or fee that the |
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municipality will increase the rate or amount of, the amount of the |
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increase, and the revenue projected to be raised from the increase; |
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and |
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(C) the specific expenses for the maintenance and |
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operation of the municipality that will be reduced, and the revenue |
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projected to be saved from those reductions. |
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Sec. 218.007. CONTENTS OF BALLOT PROPOSITION. The |
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governing body of a municipality must ensure that an oil or gas |
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measure submitted to municipal voters at an election for approval |
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includes a copy of the documents and statements described by |
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Section 218.006. |
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Sec. 218.008. NOTICE OF ADOPTED OIL OR GAS MEASURE. (a) |
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Before a municipality may begin to enforce an oil or gas measure, |
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the municipality must provide public notice of the adoption of the |
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measure. The notice must include the documents and statements |
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described by Section 218.006 for the adopted version of the |
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measure. |
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(b) Notice under this section must be: |
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(1) published in a newspaper of general circulation in |
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the municipality; |
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(2) posted continuously on the municipality's Internet |
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website, if the municipality maintains a website, until the first |
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anniversary of the date the oil or gas measure takes effect; and |
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(3) made available for public inspection. |
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(c) The notice required by this section is in addition to a |
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notice required by other law. |
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Sec. 218.009. REIMBURSEMENT FOR COST TO STATE. (a) If a |
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municipality adopts an oil or gas measure, the municipality shall |
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reimburse the state for the cost to the state for a five-year period |
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resulting from the measure as determined by the fiscal note |
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prepared under this chapter. |
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(b) The municipality shall notify the comptroller in |
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writing that the oil or gas measure has been adopted not later than |
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the 10th day after the date the measure is adopted. |
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(c) By the dates and in the manner determined by the |
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comptroller, the municipality shall remit five annual payments to |
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the comptroller in the amount calculated under Section |
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218.004(a)(4) as specified in the fiscal note for the oil or gas |
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measure. |
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(d) The comptroller shall deposit the portion of the amount |
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remitted by the municipality described by Section 218.004(a)(4)(A) |
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in the general revenue fund and the amount described by Section |
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218.004(a)(4)(B) in the foundation school fund. |
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SECTION 2. Chapter 218, Local Government Code, as added by |
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this Act, applies only to an oil or gas measure, as defined by |
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Section 218.001(4), Local Government Code, as added by this Act, |
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that is adopted on or after the effective date of this Act. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2015. |