| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the distribution of municipal sales and use tax revenue |
|
|
to a municipality that reduces the funding allocated to law |
|
|
enforcement agencies. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter F, Chapter 321, Tax Code, is amended |
|
|
by adding Section 321.5025 to read as follows: |
|
|
Sec. 321.5025. DISTRIBUTION OF TRUST FUNDS TO DEFUNDING |
|
|
MUNICIPALITIES. (a) For purposes of this section, "defunding |
|
|
municipality" means a municipality: |
|
|
(1) that adopts a budget for a fiscal year that, |
|
|
compared to the budget adopted by the municipality for the |
|
|
preceding fiscal year, reduces the total amount of funding for use |
|
|
by the municipality's law enforcement agency, adjusted for |
|
|
inflation; and |
|
|
(2) for which the criminal justice division of the |
|
|
governor's office issues a written determination finding that: |
|
|
(A) the municipality has taken the action |
|
|
described by Subdivision (1); and |
|
|
(B) the action creates a public safety hazard |
|
|
that requires the state to intervene and provide additional law |
|
|
enforcement services for the municipality. |
|
|
(b) Notwithstanding Section 321.502, the comptroller may |
|
|
not, before July 1 of each state fiscal year, send to a defunding |
|
|
municipality its share of the taxes collected by the comptroller |
|
|
under this chapter during the state fiscal year. Before sending the |
|
|
municipality its share of the taxes, the comptroller shall deduct |
|
|
150 percent of the amount reported to the comptroller for the |
|
|
municipality under Subsection (c) and credit that deducted amount |
|
|
to the general revenue fund. Money credited to the general revenue |
|
|
fund under this subsection may be appropriated only to the |
|
|
Department of Public Safety. |
|
|
(c) Not later than August 1 of each state fiscal year, the |
|
|
criminal justice division of the governor's office shall report to |
|
|
the comptroller for each defunding municipality the amount of money |
|
|
the state spent in that state fiscal year to provide law enforcement |
|
|
services in that defunding municipality. |
|
|
(d) A municipality is no longer considered to be a defunding |
|
|
municipality for purposes of this section when the criminal justice |
|
|
division of the governor's office issues a written determination |
|
|
finding that the municipality has adopted a budget that reverses |
|
|
the funding reductions, adjusted for inflation. |
|
|
(e) The criminal justice division of the governor's office |
|
|
shall: |
|
|
(1) compute the inflation rate used to make |
|
|
determinations under this section each state fiscal year using a |
|
|
price index that accurately reports changes in the purchasing power |
|
|
of the dollar for municipalities in this state; and |
|
|
(2) publish the inflation rate in the Texas Register. |
|
|
SECTION 2. The change in law made by this Act applies only |
|
|
to a distribution of municipal sales and use tax revenue to a |
|
|
municipality under Subchapter F, Chapter 321, Tax Code, in a state |
|
|
fiscal year that begins on or after the effective date of this Act. |
|
|
SECTION 3. Notwithstanding Section 321.5025(a)(1), Tax |
|
|
Code, as added by this Act, in determining whether a municipality is |
|
|
a defunding municipality for purposes of the distribution of |
|
|
municipal sales and use tax revenue during the 2022 state fiscal |
|
|
year, the criminal justice division of the governor's office shall |
|
|
compare the applicable level of funding in the budget adopted by the |
|
|
municipality for the municipality's 2021 fiscal year to the |
|
|
applicable level of funding in the budget adopted by the |
|
|
municipality for the municipality's 2020 or 2019 fiscal year, |
|
|
whichever is greater. |
|
|
SECTION 4. This Act takes effect September 1, 2021. |