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A BILL TO BE ENTITLED
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AN ACT
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relating to a limit on political subdivision 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 140.015 to read as follows: |
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Sec. 140.015. LIMIT ON ANNUAL EXPENDITURES. (a) In this |
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section: |
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(1) "Consumer price index" means the average over a |
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calendar year of the index a political subdivision making a |
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calculation under Subsection (d) considers to most accurately |
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report changes in the purchasing power of the dollar for consumers |
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in this state. |
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(2) "Disaster relief cost" has the meaning assigned by |
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Section 26.042(a-1), Tax Code. |
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(3) "Inflation rate" means the amount, expressed in |
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decimal form rounded to the nearest thousandth, computed by |
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determining the percentage change in the consumer price index |
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applicable to the political subdivision making a calculation under |
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Subsection (d) for the preceding calendar year as compared to the |
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consumer price index for the calendar year preceding that calendar |
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year. |
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(4) "Political subdivision" means a county, |
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municipality, school district, junior college district, hospital |
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district, other special district, or other subdivision of state |
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government. |
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(5) "Population growth rate" means the rate of growth |
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of a political subdivision's population during the preceding |
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calendar year, expressed in decimal form rounded to the nearest |
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thousandth, determined by the political subdivision using the most |
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recent population estimates available from the United States Census |
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Bureau or, if the United States Census Bureau does not publish |
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population estimates for the political subdivision, other reliable |
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data sources or estimation methods determined by the political |
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subdivision. |
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(b) This section applies only to a political subdivision |
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that is authorized by law to impose an ad valorem tax or issue |
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bonds. |
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(c) Except as provided by Subsection (e), a political |
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subdivision's total expenditures from all available sources of |
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revenue in a fiscal year may not exceed the greater of: |
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(1) the political subdivision's total expenditures |
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from all available sources of revenue in the preceding fiscal year; |
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or |
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(2) an amount determined by multiplying: |
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(A) the political subdivision's total |
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expenditures from all available sources of revenue in the preceding |
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fiscal year; and |
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(B) the sum of one and the rate most recently |
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determined by the political subdivision under Subsection (d). |
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(d) Not later than January 31 of each year, a political |
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subdivision shall calculate and post on an Internet website |
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maintained by the political subdivision a rate equal to the product |
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of the population growth rate and the inflation rate using a form |
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prescribed by the comptroller. |
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(e) A political subdivision's total expenditures from all |
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available sources of local revenue in a fiscal year may exceed the |
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amount described by Subsection (c) if at least two-thirds of the |
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political subdivision's voters approve the additional expenditures |
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for that fiscal year at an election called for that purpose and held |
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on a uniform election date. |
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(f) For purposes of this section: |
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(1) a grant, donation, or gift is not considered an |
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available source of revenue; and |
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(2) a disaster relief cost is not considered an |
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expenditure. |
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(g) The attorney general may bring an action in Travis |
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County or a county in which a political subdivision is wholly or |
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partially located to enforce this section. |
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(h) In an action under Subsection (g), the attorney general |
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may seek: |
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(1) injunctive relief to prohibit the political |
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subdivision from violating this section; |
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(2) a writ of mandamus compelling the political |
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subdivision to comply with this section; or |
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(3) a declaratory judgment determining the rights and |
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obligations of the political subdivision under this section. |
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SECTION 2. Section 140.015, Local Government Code, as added |
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by this Act, applies only to a fiscal year of a political |
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subdivision that begins on or after December 1, 2025. |
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SECTION 3. As soon as practicable after the effective date |
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of this Act, the comptroller of public accounts shall prescribe a |
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form for the publication of the information required by Section |
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140.015(d), Local Government Code, as added by this Act. |
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SECTION 4. This Act takes effect January 1, 2026. |