| 1 | 1 | | 85S10890 JCG-D |
|---|
| 2 | 2 | | By: Villalba H.B. No. 206 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to a limit on local government expenditures. |
|---|
| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 9 | 9 | | SECTION 1. Chapter 140, Local Government Code, is amended |
|---|
| 10 | 10 | | by adding Section 140.012 to read as follows: |
|---|
| 11 | 11 | | Sec. 140.012. LIMIT ON ANNUAL EXPENDITURES. (a) In this |
|---|
| 12 | 12 | | section, "local government" means a municipality or county. |
|---|
| 13 | 13 | | (b) Unless additional expenditures are authorized by a |
|---|
| 14 | 14 | | majority of the local government's voters voting at an election |
|---|
| 15 | 15 | | called for that purpose, a local government's total expenditures |
|---|
| 16 | 16 | | from all available sources of revenue in a fiscal year may not |
|---|
| 17 | 17 | | exceed the greater of: |
|---|
| 18 | 18 | | (1) the amount of total expenditures for the preceding |
|---|
| 19 | 19 | | fiscal year; or |
|---|
| 20 | 20 | | (2) an amount determined by multiplying the amount of |
|---|
| 21 | 21 | | total expenditures from all available sources of revenue in the |
|---|
| 22 | 22 | | preceding fiscal year by the product of: |
|---|
| 23 | 23 | | (A) the sum of one and the estimated average rate |
|---|
| 24 | 24 | | of projected growth of the population that resides in the local |
|---|
| 25 | 25 | | government's geographic boundaries during the period ending on the |
|---|
| 26 | 26 | | last day of the fiscal year and beginning the first day of the |
|---|
| 27 | 27 | | preceding fiscal year; and |
|---|
| 28 | 28 | | (B) the sum of one and the estimated average rate |
|---|
| 29 | 29 | | of monetary inflation in this state during the period described by |
|---|
| 30 | 30 | | Paragraph (A). |
|---|
| 31 | 31 | | (c) For purposes of determining the amount of total |
|---|
| 32 | 32 | | expenditures described by Subsection (b): |
|---|
| 33 | 33 | | (1) a local government shall use, as available, data |
|---|
| 34 | 34 | | published by the United States Census Bureau as a basis for |
|---|
| 35 | 35 | | estimating projected population growth; |
|---|
| 36 | 36 | | (2) not later than May 1 of each year, the comptroller |
|---|
| 37 | 37 | | of public accounts shall make available on the comptroller's |
|---|
| 38 | 38 | | Internet website and submit to the secretary of state for |
|---|
| 39 | 39 | | publication in the Texas Register the rate of monetary inflation in |
|---|
| 40 | 40 | | this state for the preceding year; and |
|---|
| 41 | 41 | | (3) as soon as practicable after receipt of the rate |
|---|
| 42 | 42 | | described by Subdivision (2) from the comptroller, the secretary of |
|---|
| 43 | 43 | | state shall publish that rate in the Texas Register. |
|---|
| 44 | 44 | | (d) This section does not apply to a local government that |
|---|
| 45 | 45 | | does not impose taxes or incur debt. |
|---|
| 46 | 46 | | SECTION 2. The changes in law made by this Act apply only to |
|---|
| 47 | 47 | | a fiscal year of a municipality or county that begins on or after |
|---|
| 48 | 48 | | December 1, 2017. |
|---|
| 49 | 49 | | SECTION 3. This Act takes effect December 1, 2017. |
|---|