By: Hancock S.B. No. 737

(In the Senate - Filed February 3, 2017; February 21, 2017, read first time and referred to Committee on Intergovernmental Relations; March 27, 2017, reported favorably by the following vote: Yeas 6, Nays 0; March 27, 2017, sent to printer.) Click here to see the committee vote

A BILL TO BE ENTITLED

AN ACT

relating to requirements for new or increased municipal fees.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 102, Local Government Code, is amended by adding Section 102.0001 to read as follows:

Sec. 102.0001. DEFINITION. In this chapter, "fee" has the meaning assigned by Section 109.001.

SECTION 2. Section 102.005, Local Government Code, is amended by adding Subsection (b-1) to read as follows:

(b-1) A proposed budget that includes estimated revenue from a new fee or the increase of an existing fee must contain a cover page with the following statement in 18-point or larger type: "This budget includes estimated revenue from the following new or increased fees: (include a description of each new or increased fee, the dollar amount of each new fee, and the dollar amount of and percentage of increase of each increased fee)."

SECTION 3. Section 102.006(c), Local Government Code, is amended to read as follows:

(c) The governing body shall provide for public notice of the date, time, and location of the hearing. The notice must include, in type of a size at least equal to the type used for other items in the notice, any statement required to be included in the proposed budget under Section 102.005(b) or (b-1).

SECTION 4. Section 102.0065(d), Local Government Code, is amended to read as follows:

(d) Notice under this section must include, in type of a size at least equal to the type used for other items in the notice, any statement required to be included in the proposed budget under Section 102.005(b) or (b-1).

SECTION 5. Section 102.007, Local Government Code, is amended by adding Subsection (c-1) and amending Subsection (d) to read as follows:

(c-1) Adoption of a budget that includes estimated revenue from a new fee or the increase of an existing fee requires a separate vote of the governing body to ratify the use of that revenue. A vote under this subsection is in addition to and separate from the vote to adopt the budget or a vote to adopt or increase the fee.

(d) An adopted budget must contain a cover page that includes:

(1) one of the following statements in 18-point or larger type that accurately describes the adopted budget:

(A) "This budget will raise more revenue from property taxes than last year's budget by an amount of (insert total dollar amount of increase), which is a (insert percentage increase) percent increase from last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is (insert amount computed by multiplying the proposed tax rate by the value of new property added to the roll).";

(B) "This budget will raise less revenue from property taxes than last year's budget by an amount of (insert total dollar amount of decrease), which is a (insert percentage decrease) percent decrease from last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is (insert amount computed by multiplying the proposed tax rate by the value of new property added to the roll)."; or

(C) "This budget will raise the same amount of revenue from property taxes as last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is (insert amount computed by multiplying the proposed tax rate by the value of new property added to the roll).";

(2) if applicable, the following statement in 18-point or larger type: "This budget includes estimated revenue from the following new or increased fees: (include a description of each new or increased fee, the dollar amount of each new fee, and the dollar amount of and percentage of increase of each increased fee).";

(3) the record vote of each member of the governing body by name voting on the adoption of the budget;

(4) [(3)] the municipal property tax rates for the preceding fiscal year, and each municipal property tax rate that has been adopted or calculated for the current fiscal year, including:

(A) the property tax rate;

(B) the effective tax rate;

(C) the effective maintenance and operations tax rate;

(D) the rollback tax rate; and

(E) the debt rate; and

(5) [(4)] the total amount of municipal debt obligations.

SECTION 6. Section 102.008, Local Government Code, is amended to read as follows:

Sec. 102.008. APPROVED BUDGET FILED WITH MUNICIPAL CLERK: POSTING ON INTERNET. (a) On final approval of the budget by the governing body of the municipality, the governing body shall:

(1) file the budget with the municipal clerk; and

(2) if the municipality maintains an Internet website, take action to ensure that:

(A) a copy of the budget, including the cover page, is posted on the website; and

(B) the record vote described by Section 102.007(d)(3) [102.007(d)(2)] is posted on the website at least until the first anniversary of the date the budget is adopted.

(b) The governing body shall take action to ensure that the cover page of the budget is amended to include the property tax rates required by Section 102.007(d)(4) [102.007(d)(3)] for the current fiscal year if the rates are not included on the cover page when the budget is filed with the municipal clerk. The governing body shall file an amended cover page with the municipal clerk and take action to ensure that the amended cover page is posted on the municipality's website.

SECTION 7. Subtitle A, Title 4, Local Government Code, is amended by adding Chapter 109 to read as follows:

CHAPTER 109. NOTIFICATION OF NEW OR INCREASED MUNICIPAL FEES

Sec. 109.001. DEFINITION. In this chapter, "fee" means any fee, charge, assessment, or similar payment required by a municipality for a privilege, service, authorization, permit, license, registration, certification, filing, or other municipal action or approval.

Sec. 109.002. E-MAIL NOTIFICATION SERVICE. (a) Each municipality shall establish and maintain an e-mail notification service to which any person may electronically subscribe to receive information regarding new or increased municipal fees.

(b) The e-mail notification service must:

(1) allow a subscriber to request notification of each:

(A) new fee proposed to be adopted by the municipality;

(B) existing fee proposed to be increased by the municipality;

(C) proposed budget of the municipality that includes use of revenue from a fee described by Paragraph (A) or (B);

(D) adopted budget of the municipality that includes use of revenue from a fee described by Paragraph (A) or (B); or

(E) public hearing scheduled to be held at which a fee or budget described by Paragraphs (A)-(D) is scheduled to be discussed;

(2) include a link in the notification to any web page maintained by the municipality on which the fee or budget may be viewed; and

(3) notify the subscriber by e-mail not later than the day:

(A) the municipality provides public notice of a public hearing at which a proposed new or increased fee or a proposed budget is scheduled to be discussed, for notification of a public hearing for a proposed fee or budget;

(B) the budget officer files a proposed budget with the municipal clerk as required by Section 102.005, for notification of a proposed budget; or

(C) the governing body files an adopted budget with the municipal clerk as required by Section 102.008, for notification of an adopted budget.

SECTION 8. The changes in law made by Sections 102.005, 102.006, 102.0065, 102.007, and 102.008, Local Government Code, as amended by this Act, apply only to a proposed or adopted budget for a fiscal year beginning on or after January 1, 2018.

SECTION 9. This Act takes effect September 1, 2017.

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