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A BILL TO BE ENTITLED
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AN ACT
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relating to municipalities that adopt budgets that defund municipal |
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police departments. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 4, Local Government Code, is |
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amended by adding Chapter 109 to read as follows: |
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CHAPTER 109. DETERMINATION OF DEFUNDING MUNICIPALITIES |
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Sec. 109.001. DEFINITION. In this chapter, "division" |
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means the criminal justice division of the office of the governor. |
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Sec. 109.002. APPLICABILITY OF CHAPTER. This chapter |
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applies only to a municipality with a population of more than |
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250,000. |
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Sec. 109.003. DEFUNDING DETERMINATION. Except as provided |
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by Section 109.004, a defunding municipality is a municipality: |
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(1) that adopts a budget for a fiscal year that, in |
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comparison to the municipality's preceding fiscal year, reduces the |
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appropriation to the municipality's police department; and |
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(2) for which the division issues a written |
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determination finding that the municipality has made the reduction |
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described by Subdivision (1). |
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Sec. 109.0035. INITIAL DETERMINATION. In making a |
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determination of whether a municipality is a defunding municipality |
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under Section 109.003 according to the budget adopted for the first |
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fiscal year beginning on or after September 1, 2021, the division |
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shall compare the appropriation to the municipality's police |
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department in that budget to the appropriation to that department |
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in the budget of the preceding fiscal year or the second preceding |
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fiscal year, whichever is greater. This section expires September |
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1, 2023. |
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Sec. 109.004. EXCEPTIONS. A municipality is not considered |
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to be a defunding municipality under Section 109.003 if: |
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(1) for a fiscal year in which the municipality adopts |
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a budget that is less than the budget for the preceding fiscal year, |
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the percentage reduction to the appropriation to the municipality's |
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police department does not exceed the percentage reduction to the |
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total budget; or |
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(2) before the adoption of a budget, the municipality |
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applies for and is granted approval from the division for a |
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reduction to the appropriation to the municipality's police |
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department to account for: |
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(A) capital expenditures related to law |
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enforcement during the preceding fiscal year; |
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(B) the municipality's response to a state of |
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disaster declared under Section 418.014, Government Code; or |
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(C) another reason approved by the division. |
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Sec. 109.005. TERMINATION OF DEFUNDING DETERMINATION. A |
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municipality's defunding determination under Section 109.003 |
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continues until the division issues a written determination finding |
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that the municipality has reversed the reduction, adjusted for |
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inflation, described by Section 109.003(1). |
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Sec. 109.006. DIVISION DUTIES. (a) The division shall: |
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(1) compute the inflation rate used to make |
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determinations under Section 109.005 each state fiscal year using a |
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price index that accurately reports changes in the purchasing power |
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of the dollar for municipalities in this state; and |
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(2) publish the inflation rate in the Texas Register. |
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(b) The division shall adopt rules establishing the |
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criteria the division uses to approve reductions under Section |
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109.004(2). |
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Sec. 109.007. REVENUE CAP ON DEFUNDING MUNICIPALITY. (a) |
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In this section: |
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(1) "Combined revenues" means the combined revenues of |
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a municipality's general fund, enterprise funds, and special |
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revenue funds. The term does not include: |
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(A) grant money and other revenue received from |
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other governmental entities; or |
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(B) transfers between funds of the municipality. |
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(2) "Revenue" has the meaning assigned for |
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municipalities by the Governmental Accounting Standards Board and |
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the Government Finance Officers Association as of April 1, 2021, |
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and to the extent the meanings do not conflict. The term includes |
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operating and nonoperating revenue. |
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(b) Except as provided by Subsection (c), a defunding |
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municipality's combined revenues for a fiscal year may not exceed |
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the municipality's combined revenues for the preceding fiscal year. |
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(c) Subsection (b) does not apply to revenues used to repay |
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voter-approved bonded indebtedness, excluding certificates of |
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obligation. |
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(d) Before the governing body of a defunding municipality |
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may adopt a budget for a fiscal year, the chief fiscal officer for |
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the defunding municipality must verify in writing that the budget |
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complies with Subsection (b). |
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(e) If a defunding municipality adopts a budget that |
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violates Subsection (b), a property tax payer of the defunding |
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municipality may bring an action, not later than the 30th day after |
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the date the defunding municipality adopts the budget, to obtain an |
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injunction to prevent implementation of the budget or the property |
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tax rate adopted for the fiscal year for which the budget was |
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adopted. It is a defense in the action that the municipality does |
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not qualify as a defunding municipality or is no longer considered |
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to be a defunding municipality under Section 109.005. |
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SECTION 2. Chapter 109, Local Government Code, as added by |
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this Act, applies only to a budget adopted for a fiscal year that |
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begins on or after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2021. |