| 7 | 3 | | |
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| 8 | 4 | | |
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| 9 | 5 | | A BILL TO BE ENTITLED |
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| 10 | 6 | | AN ACT |
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| 11 | 7 | | relating to a limit on local government expenditures. |
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| 12 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 9 | | SECTION 1. Chapter 140, Local Government Code, is amended |
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| 14 | 10 | | by adding Section 140.012 to read as follows: |
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| 15 | 11 | | Sec. 140.012. LIMIT ON ANNUAL EXPENDITURES. (a) In this |
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| 16 | 12 | | section, "local government" means a municipality or county. |
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| 17 | 13 | | (b) Except as provided by Subsection (d), a local |
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| 18 | 14 | | government's total expenditures from all available sources of |
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| 19 | 15 | | revenue in a fiscal year may not exceed the greater of: |
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| 20 | 16 | | (1) the local government's total expenditures from all |
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| 21 | 17 | | available sources of revenue in the preceding fiscal year; or |
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| 22 | 18 | | (2) an amount determined by multiplying: |
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| 23 | 19 | | (A) the local government's total expenditures |
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| 24 | 20 | | from all available sources of revenue in the preceding fiscal year; |
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| 25 | 21 | | and |
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| 26 | 22 | | (B) the sum of one and the rate most recently |
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| 27 | 23 | | published by the Legislative Budget Board under Subsection (c). |
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| 28 | 24 | | (c) Not later than January 31 of each year, the staff of the |
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| 29 | 25 | | Legislative Budget Board shall publish a rate equal to the product |
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| 30 | 26 | | of: |
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| 31 | 27 | | (1) the rate of growth of this state's population |
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| 32 | 28 | | during the preceding calendar year, using the most recent estimates |
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| 33 | 29 | | published by the United States Census Bureau; and |
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| 34 | 30 | | (2) the rate of monetary inflation in this state |
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| 35 | 31 | | during the preceding calendar year, using the effective consumer |
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| 36 | 32 | | price index for all items for this state as determined by the |
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| 37 | 33 | | Legislative Budget Board based on information published by the |
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| 38 | 34 | | Bureau of Labor Statistics of the United States Department of |
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| 39 | 35 | | Labor. |
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| 40 | 36 | | (d) A local government's total expenditures from all |
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| 41 | 37 | | available sources of local revenue in a fiscal year may exceed the |
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| 42 | 38 | | amount described by Subsection (b) if: |
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| 43 | 39 | | (1) the local government's voters approve the |
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| 44 | 40 | | additional expenditures for that fiscal year at an election called |
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| 45 | 41 | | for that purpose and held on a uniform election date; or |
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| 46 | 42 | | (2) the governor declares or renews a declaration of a |
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| 47 | 43 | | state of disaster under Section 418.014, Government Code, in that |
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| 48 | 44 | | fiscal year, and the governor's designation of the area threatened |
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| 49 | 45 | | includes all or part of the geographic territory of the local |
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| 50 | 46 | | government. |
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| 51 | 47 | | (e) Revenue received from the issuance of bonds approved by |
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| 52 | 48 | | the voters or from a grant, donation, or gift is not considered an |
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| 53 | 49 | | available source of revenue for the purposes of this section. |
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| 54 | 50 | | SECTION 2. Section 140.012, Local Government Code, as added |
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| 55 | 51 | | by this Act, applies only to a fiscal year of a municipality or |
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| 56 | 52 | | county that begins on or after December 1, 2017. |
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| 57 | 53 | | SECTION 3. This Act takes effect December 1, 2017. |
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