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A BILL TO BE ENTITLED
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AN ACT
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relating to a limit on local government expenditures. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 140, Local Government Code, is amended |
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by adding Section 140.012 to read as follows: |
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Sec. 140.012. LIMIT ON ANNUAL EXPENDITURES. (a) In this |
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section, "local government" means a municipality or county. |
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(b) Unless additional expenditures are authorized by a |
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majority of the local government's voters voting at an election |
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called for that purpose, a local government's total expenditures |
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from all available sources of revenue in a fiscal year may not |
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exceed the greater of: |
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(1) the amount of total expenditures for the preceding |
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fiscal year; or |
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(2) an amount determined by multiplying the amount of |
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total expenditures from all available sources of revenue in the |
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preceding fiscal year by the product of: |
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(A) the sum of one and the estimated average rate |
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of projected growth of the population that resides in the local |
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government's geographic boundaries during the period ending on the |
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last day of the fiscal year and beginning the first day of the |
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preceding fiscal year; and |
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(B) the sum of one and the estimated average rate |
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of monetary inflation in this state during the period described by |
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Paragraph (A). |
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(c) For purposes of determining the amount of total |
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expenditures described by Subsection (b): |
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(1) a local government shall use, as available, data |
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published by the United States Census Bureau as a basis for |
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estimating projected population growth; |
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(2) not later than May 1 of each year, the comptroller |
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of public accounts shall make available on the comptroller's |
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Internet website and submit to the secretary of state for |
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publication in the Texas Register the rate of monetary inflation in |
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this state for the preceding year; and |
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(3) as soon as practicable after receipt of the rate |
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described by Subdivision (2) from the comptroller, the secretary of |
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state shall publish that rate in the Texas Register. |
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(d) This section does not apply to a local government that |
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does not impose taxes or incur debt. |
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SECTION 2. The changes in law made by this Act apply only to |
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a fiscal year of a municipality or county that begins on or after |
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December 1, 2017. |
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SECTION 3. This Act takes effect December 1, 2017. |