1 | 1 | | 84R4184 TJB-D |
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2 | 2 | | By: King of Parker H.B. No. 539 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the procedural requirements for the adoption of a |
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8 | 8 | | municipal regulation, limitation, or prohibition on the |
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9 | 9 | | production, storage, or transportation of oil or natural gas; |
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10 | 10 | | authorizing a fee. |
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11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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12 | 12 | | SECTION 1. Subtitle A, Title 7, Local Government Code, is |
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13 | 13 | | amended by adding Chapter 218 to read as follows: |
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14 | 14 | | CHAPTER 218. MUNICIPAL REGULATION OF PRODUCTION, STORAGE, OR |
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15 | 15 | | TRANSPORTATION OF OIL OR NATURAL GAS |
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16 | 16 | | Sec. 218.001. DEFINITIONS. In this chapter: |
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17 | 17 | | (1) "Affected area" means a geographic area impacted |
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18 | 18 | | by an oil or gas measure. |
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19 | 19 | | (2) "Gas" means natural gas. |
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20 | 20 | | (3) "Oil" means crude oil or crude petroleum oil. |
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21 | 21 | | (4) "Oil or gas measure" means a municipal ordinance |
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22 | 22 | | or other municipal measure, including a measure requiring approval |
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23 | 23 | | by voters, to regulate, limit, or prohibit the production, storage, |
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24 | 24 | | or transportation of oil or gas. |
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25 | 25 | | (5) "Political subdivision" means a municipality, |
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26 | 26 | | county, school district, junior college district, other special |
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27 | 27 | | district, or other subdivision of state government. |
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28 | 28 | | Sec. 218.002. ADDITIONAL PROCEDURAL REQUIREMENTS. A |
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29 | 29 | | municipality with authority to adopt an oil or gas measure may not |
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30 | 30 | | adopt an oil or gas measure unless the municipality complies with |
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31 | 31 | | the requirements of this chapter, in addition to other requirements |
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32 | 32 | | prescribed by law. |
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33 | 33 | | Sec. 218.003. PREPARATION OF FISCAL NOTES AND EQUALIZED |
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34 | 34 | | EDUCATION FUNDING IMPACT STATEMENTS. (a) A municipality must |
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35 | 35 | | submit any request for the preparation of a fiscal note and an |
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36 | 36 | | equalized education funding impact statement for an oil or gas |
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37 | 37 | | measure required under this chapter in writing and addressed to the |
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38 | 38 | | director of the Legislative Budget Board. |
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39 | 39 | | (b) The Legislative Budget Board shall prepare a fiscal note |
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40 | 40 | | and an equalized education funding impact statement if requested by |
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41 | 41 | | a municipality. |
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42 | 42 | | (c) A municipality shall pay the cost to prepare a fiscal |
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43 | 43 | | note and an equalized education funding impact statement and any |
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44 | 44 | | administrative fee determined by the director of the Legislative |
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45 | 45 | | Budget Board to be necessary to administer the preparation of |
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46 | 46 | | documents requested under this section. |
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47 | 47 | | (d) In preparing a fiscal note and an equalized education |
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48 | 48 | | funding impact statement, the director of the Legislative Budget |
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49 | 49 | | Board may use information or data supplied by any person, agency, |
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50 | 50 | | organization, or governmental unit that the director considers |
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51 | 51 | | reliable. |
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52 | 52 | | Sec. 218.004. CONTENTS OF FISCAL NOTES. (a) In preparing a |
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53 | 53 | | fiscal note for an oil or gas measure, the Legislative Budget Board |
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54 | 54 | | shall identify: |
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55 | 55 | | (1) the fiscal implications of the measure to the |
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56 | 56 | | state and local governments of the state; |
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57 | 57 | | (2) the probable cost to the state that will result |
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58 | 58 | | from the measure, including: |
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59 | 59 | | (A) the loss of tax revenue from all sources; |
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60 | 60 | | (B) the loss of revenue from fees, licenses, |
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61 | 61 | | penalties, or other charges; |
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62 | 62 | | (C) the loss of royalty income; and |
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63 | 63 | | (D) the diversion of state funds for a purpose |
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64 | 64 | | other than one provided for in the state general appropriations |
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65 | 65 | | bill; |
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66 | 66 | | (3) the probable cost to political subdivisions in the |
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67 | 67 | | affected area that will result from the measure, including: |
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68 | 68 | | (A) the loss of tax revenue from all sources; |
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69 | 69 | | (B) the loss of revenue from fees, licenses, |
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70 | 70 | | penalties, or other charges; and |
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71 | 71 | | (C) the loss of royalty income; and |
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72 | 72 | | (4) the amount of money the municipality adopting the |
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73 | 73 | | measure will be required to annually remit to the state as |
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74 | 74 | | reimbursement for the cost to the state resulting from the measure, |
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75 | 75 | | calculated as the sum of: |
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76 | 76 | | (A) the probable cost identified in Subdivision |
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77 | 77 | | (2); and |
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78 | 78 | | (B) the amount of the applicable difference |
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79 | 79 | | calculated under Section 218.005. |
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80 | 80 | | (b) A fiscal note must state whether costs or diversions |
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81 | 81 | | identified in Subsection (a) will be involved after the projected |
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82 | 82 | | five-year period as determined under Subsection (c). |
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83 | 83 | | (c) In preparing a fiscal note, the Legislative Budget Board |
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84 | 84 | | must project the implications, costs, and amounts identified in |
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85 | 85 | | Subsection (a) for each year of a five-year period. For a fiscal |
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86 | 86 | | note requested before the oil or gas measure is adopted, the |
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87 | 87 | | Legislative Budget Board must use the five-year period beginning on |
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88 | 88 | | January 1 of the year following the year in which the request is |
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89 | 89 | | made. For a fiscal note requested after a measure is adopted, the |
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90 | 90 | | Legislative Budget Board must use the five-year period beginning on |
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91 | 91 | | the date the measure takes effect. |
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92 | 92 | | Sec. 218.005. CONTENTS OF EQUALIZED EDUCATION FUNDING |
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93 | 93 | | IMPACT STATEMENTS. (a) In preparing an equalized education funding |
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94 | 94 | | impact statement for an oil or gas measure, the Legislative Budget |
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95 | 95 | | Board shall determine the applicable difference calculated under |
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96 | 96 | | this section that will result from the measure. |
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97 | 97 | | (b) For a school district in the affected area that is |
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98 | 98 | | required to take action to achieve the equalized wealth level under |
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99 | 99 | | Chapter 41, Education Code, the Legislative Budget Board, based on |
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100 | 100 | | the comptroller's projection under Subsection (f), shall determine |
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101 | 101 | | the difference between the anticipated total cost of attendance |
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102 | 102 | | credits for the district under Section 41.093, Education Code, and |
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103 | 103 | | the total cost of attendance credits under that section that would |
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104 | 104 | | result if the district's maintenance and operations tax revenue |
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105 | 105 | | were not reduced as a result of the oil or gas measure. |
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106 | 106 | | (c) For a school district in the affected area that is not |
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107 | 107 | | required to take action to achieve the equalized wealth level under |
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108 | 108 | | Chapter 41, Education Code, the Legislative Budget Board, based on |
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109 | 109 | | the comptroller's projection under Subsection (f), shall |
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110 | 110 | | determine: |
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111 | 111 | | (1) the difference between the district's anticipated |
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112 | 112 | | local share under Section 42.252, Education Code, and the local |
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113 | 113 | | share that would result if the district's taxable value of property |
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114 | 114 | | were not reduced as a result of the oil or gas measure; |
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115 | 115 | | (2) if applicable, the difference between the amount |
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116 | 116 | | of state revenue to which the district is anticipated to be entitled |
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117 | 117 | | under Section 42.2516, Education Code, and the amount of state |
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118 | 118 | | revenue to which the district would be entitled under that section |
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119 | 119 | | if the district's taxable value of property were not reduced as a |
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120 | 120 | | result of the measure; and |
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121 | 121 | | (3) the difference between the anticipated guaranteed |
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122 | 122 | | yield amount of state funds to be allocated to the district under |
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123 | 123 | | Section 42.302, Education Code, and the amount that would be |
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124 | 124 | | allocated to the district if the district's taxable value of |
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125 | 125 | | property were not reduced as a result of the measure. |
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126 | 126 | | (d) For purposes of making the determinations required by |
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127 | 127 | | Subsections (b) and (c), the Legislative Budget Board shall assume |
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128 | 128 | | for each year of the projected five-year period, as determined |
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129 | 129 | | under Subsection (e), that a district's maintenance and operations |
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130 | 130 | | tax rate and number of students in weighted average daily |
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131 | 131 | | attendance is the same as the district's maintenance and operations |
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132 | 132 | | tax rate and number of students in weighted average daily |
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133 | 133 | | attendance for the school year during which the determinations are |
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134 | 134 | | made. |
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135 | 135 | | (e) In preparing an equalized education funding impact |
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136 | 136 | | statement, the Legislative Budget Board must project the |
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137 | 137 | | differences calculated under this section for each year of a |
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138 | 138 | | five-year period, as determined in the same manner as the five-year |
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139 | 139 | | period is determined for a fiscal note under Section 218.004(c). |
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140 | 140 | | (f) For each school district in the affected area, the |
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141 | 141 | | comptroller shall project for each year of the five-year period, as |
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142 | 142 | | determined under Subsection (e), the anticipated reduction in the |
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143 | 143 | | district's taxable value of property determined under Subchapter M, |
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144 | 144 | | Chapter 403, Government Code, resulting from the oil or gas |
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145 | 145 | | measure. |
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146 | 146 | | Sec. 218.006. NOTICE OF HEARING. For each hearing at which |
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147 | 147 | | an oil or gas measure will be considered, a municipality must |
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148 | 148 | | provide public notice that includes the following documents and |
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149 | 149 | | statements: |
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150 | 150 | | (1) a current copy of: |
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151 | 151 | | (A) the measure; |
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152 | 152 | | (B) a fiscal note prepared by the Legislative |
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153 | 153 | | Budget Board for the measure; and |
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154 | 154 | | (C) an equalized education funding impact |
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155 | 155 | | statement prepared by the Legislative Budget Board for the measure; |
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156 | 156 | | (2) a statement that the municipality will be required |
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157 | 157 | | to reimburse the state for the cost to the state for a five-year |
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158 | 158 | | period resulting from the measure as determined by the fiscal note |
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159 | 159 | | prepared by the Legislative Budget Board; |
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160 | 160 | | (3) a separate statement of the amount specified in |
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161 | 161 | | the current fiscal note that the municipality will be required to |
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162 | 162 | | annually remit to the state as reimbursement for the cost described |
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163 | 163 | | by Subdivision (2); and |
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164 | 164 | | (4) a statement describing in detail the source or |
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165 | 165 | | sources of money that the municipality will use to reimburse the |
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166 | 166 | | state for the cost described by Subdivision (2), including if |
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167 | 167 | | applicable: |
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168 | 168 | | (A) the type and amount of each new tax or fee the |
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169 | 169 | | municipality will enact or adopt and the revenue projected to be |
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170 | 170 | | raised from the new tax or fee; |
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171 | 171 | | (B) the type of each existing tax or fee that the |
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172 | 172 | | municipality will increase the rate or amount of, the amount of the |
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173 | 173 | | increase, and the revenue projected to be raised from the increase; |
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174 | 174 | | and |
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175 | 175 | | (C) the specific expenses for the maintenance and |
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176 | 176 | | operation of the municipality that will be reduced, and the revenue |
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177 | 177 | | projected to be saved from those reductions. |
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178 | 178 | | Sec. 218.007. CONTENTS OF BALLOT PROPOSITION. The |
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179 | 179 | | governing body of a municipality must ensure that an oil or gas |
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180 | 180 | | measure submitted to municipal voters at an election for approval |
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181 | 181 | | includes a copy of the documents and statements described by |
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182 | 182 | | Section 218.006. |
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183 | 183 | | Sec. 218.008. NOTICE OF ADOPTED OIL OR GAS MEASURE. (a) |
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184 | 184 | | Before a municipality may begin to enforce an oil or gas measure, |
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185 | 185 | | the municipality must provide public notice of the adoption of the |
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186 | 186 | | measure. The notice must include the documents and statements |
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187 | 187 | | described by Section 218.006 for the adopted version of the |
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188 | 188 | | measure. |
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189 | 189 | | (b) Notice under this section must be: |
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190 | 190 | | (1) published in a newspaper of general circulation in |
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191 | 191 | | the municipality; |
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192 | 192 | | (2) posted continuously on the municipality's Internet |
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193 | 193 | | website, if the municipality maintains a website, until the first |
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194 | 194 | | anniversary of the date the oil or gas measure takes effect; and |
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195 | 195 | | (3) made available for public inspection. |
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196 | 196 | | (c) The notice required by this section is in addition to a |
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197 | 197 | | notice required by other law. |
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198 | 198 | | Sec. 218.009. REIMBURSEMENT FOR COST TO STATE. (a) If a |
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199 | 199 | | municipality adopts an oil or gas measure, the municipality shall |
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200 | 200 | | reimburse the state for the cost to the state for a five-year period |
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201 | 201 | | resulting from the measure as determined by the fiscal note |
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202 | 202 | | prepared under this chapter. |
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203 | 203 | | (b) The municipality shall notify the comptroller in |
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204 | 204 | | writing that the oil or gas measure has been adopted not later than |
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205 | 205 | | the 10th day after the date the measure is adopted. |
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206 | 206 | | (c) By the dates and in the manner determined by the |
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207 | 207 | | comptroller, the municipality shall remit five annual payments to |
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208 | 208 | | the comptroller in the amount calculated under Section |
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209 | 209 | | 218.004(a)(4) as specified in the fiscal note for the oil or gas |
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210 | 210 | | measure. |
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211 | 211 | | (d) The comptroller shall deposit the portion of the amount |
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212 | 212 | | remitted by the municipality described by Section 218.004(a)(4)(A) |
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213 | 213 | | in the general revenue fund and the amount described by Section |
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214 | 214 | | 218.004(a)(4)(B) in the foundation school fund. |
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215 | 215 | | SECTION 2. Chapter 218, Local Government Code, as added by |
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216 | 216 | | this Act, applies only to an oil or gas measure, as defined by |
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217 | 217 | | Section 218.001(4), Local Government Code, as added by this Act, |
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218 | 218 | | that is adopted on or after the effective date of this Act. |
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219 | 219 | | SECTION 3. This Act takes effect immediately if it receives |
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220 | 220 | | a vote of two-thirds of all the members elected to each house, as |
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221 | 221 | | provided by Section 39, Article III, Texas Constitution. If this |
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222 | 222 | | Act does not receive the vote necessary for immediate effect, this |
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223 | 223 | | Act takes effect September 1, 2015. |
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