By: Parker  S.B. No. 767
         (In the Senate - Filed February 7, 2023; March 1, 2023, read
  first time and referred to Committee on Local Government;
  March 29, 2023, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 7, Nays 0; March 29, 2023,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 767 By:  Parker
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to notice requirements for certain municipal fees and the
  process to adopt a municipal budget that includes the use of revenue
  from those 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 110.001.
         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 underlined or boldfaced
  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).  The governing body of a municipality
  may include in the notice the exact Internet location or uniform
  resource locator (URL) address of the location on an Internet
  website maintained by the municipality where the information
  required to be included in the statement prescribed by Section
  102.005(b-1) may be viewed instead of publishing that information
  in the notice.
         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 the total
  amount of the revenue from all new or increased fees. 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 underlined
  [18-point] or boldfaced [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
  underlined or boldfaced type: "This budget includes estimated
  revenue from the following new or increased fees, and a list of
  those fees is available at (insert exact Internet location or
  uniform resource locator (URL) address on an Internet website
  maintained by the municipality).";
               (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 no-new-revenue tax rate;
                     (C)  the no-new-revenue maintenance and
  operations tax rate;
                     (D)  the voter-approval 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 110 to read as follows:
  CHAPTER 110. NOTIFICATION OF NEW OR INCREASED MUNICIPAL FEES
         Sec. 110.001.  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. 110.002.  E-MAIL NOTIFICATION SERVICE IN CERTAIN
  MUNICIPALITIES. (a) This section does not apply to a municipality
  with a population of less than 20,000.
         (b)  Except as provided by Subsection (c), 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.
         (c)  A municipality that does not maintain an e-mail
  notification service for any purpose on January 1, 2023, shall post
  the notifications described by Subsection (d)(1) on the Internet
  website of the municipality that are accessible from a prominently
  displayed link on the home page of that website instead of
  establishing an e-mail notification service as prescribed by this
  section.
         (d)  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
  second day after the date:
                     (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.
         Sec. 110.003.  LIST OF MUNICIPAL FEES.  The governing body of
  a municipality shall designate an individual in the city manager's,
  city secretary's, or city budget director's office who can provide a
  comprehensive list of municipal fees to a person on request.
         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, 2024.
         SECTION 9.  This Act takes effect September 1, 2023.
 
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