Texas 2019 - 86th Regular

Texas Senate Bill SB1315 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Bettencourt S.B. No. 1315
	2	+	(In the Senate - Filed February 28, 2019; March 7, 2019,
	3	+	read first time and referred to Committee on Property Tax;
	4	+	April 15, 2019, reported favorably by the following vote: Yeas 5,
	5	+	Nays 0; April 15, 2019, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
4	9		A BILL TO BE ENTITLED
5	10		AN ACT
6	11		relating to periodic zero-based budgeting for certain political
7	12		subdivisions.
8	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	14		SECTION 1. Subchapter A, Chapter 44, Education Code, is
10	15		amended by adding Section 44.0025 to read as follows:
11	16		Sec. 44.0025. PERIODIC ZERO-BASED BUDGET REQUIRED FOR
12	17		CERTAIN SCHOOL DISTRICTS AND COUNTY DEPARTMENTS OF EDUCATION;
13	18		CONTENTS. (a) This section applies only to:
14	19		(1) a school district with a student enrollment of
15	20		50,000 or more; and
16	21		(2) a county department of education in a county with a
17	22		population of 3.3 million or more.
18	23		(b) In addition to the required annual budget under Section
19	24		44.002, the superintendent of the school district or county
20	25		department of education shall prepare, in plain language and an
21	26		easily readable and understandable format, a zero-based budget
22	27		every 12th year that contains:
23	28		(1) a description of the discrete activities the
24	29		district or department conducts or performs with:
25	30		(A) a justification for each activity by
26	31		reference to a statute, rule, or other legal authority; and
27	32		(B) an evaluation of the effectiveness and
28	33		efficiency of the district's or department's policies, management,
29	34		fiscal affairs, and operations in relation to each activity;
30	35		(2) for each activity identified under Subdivision
31	36		(1):
32	37		(A) a quantitative estimate of any adverse
33	38		effects that may reasonably be expected to result if the activity
34	39		were discontinued, with a description of the methods by which the
35	40		adverse effects were estimated;
36	41		(B) an itemized account of expenditures required
37	42		to maintain the activity at any minimum level of service required by
38	43		statute, rule, or other legal authority, with a concise statement
39	44		of the quantity and quality of service required at that minimum
40	45		level; and
41	46		(C) an itemized account of expenditures required
42	47		to maintain the activity at the current level of service, with a
43	48		concise statement of the quantity and quality of service provided
44	49		at that level;
45	50		(3) a ranking of activities identified under
46	51		Subdivision (1) that illustrates the relative importance of each
47	52		activity to the overall goals and purposes of the district or
48	53		department at current service levels; and
49	54		(4) recommendations to the board of trustees of the
50	55		district or department regarding whether the district or department
51	56		should continue funding each activity identified under Subdivision
52	57		(1) and, if so, at what level.
53	58		(c) The total amount of expenditures attributable to
54	59		property tax revenue in the zero-based budget may not exceed the
55	60		amount calculated by multiplying the effective tax rate, as defined
56	61		by Section 26.04, Tax Code, of the school district or county
57	62		department of education by last year's total value, as defined by
58	63		Section 26.012, Tax Code, for the district or department.
59	64		(d) In preparing the zero-based budget, the superintendent
60	65		of the school district or county department of education may
61	66		require any district or department officer or employee to provide
62	67		information necessary to properly prepare the budget.
63	68		(e) The superintendent of the school district or county
64	69		department of education shall file a copy of the zero-based budget
65	70		with the agency on or before the date the proposed annual budget is
66	71		filed, and the copy of the zero-based budget shall be available for
67	72		public inspection in the district's or department's central
68	73		administrative office. If the district or department maintains an
69	74		Internet website, the district or department shall ensure that the
70	75		zero-based budget is posted on the website.
71	76		(f) At a public meeting held to adopt an annual budget, the
72	77		board of trustees of the school district or county department of
73	78		education shall consider information presented in the zero-based
74	79		budget in addition to the proposed annual budget.
75	80		SECTION 2. Chapter 102, Local Government Code, is amended
76	81		by adding Section 102.0035 to read as follows:
77	82		Sec. 102.0035. PERIODIC ZERO-BASED BUDGET REQUIRED;
78	83		CONTENTS. (a) This section applies only to a municipality with a
79	84		population of 225,000 or more.
80	85		(b) In addition to the annual itemized budget required under
81	86		Section 102.003, the budget officer shall prepare, in plain
82	87		language and an easily readable and understandable format, a
83	88		zero-based budget every 12th year that contains:
84	89		(1) a description of the discrete activities the
85	90		municipality conducts or performs with:
86	91		(A) a justification for each activity by
87	92		reference to a statute, charter provision, ordinance, or other
88	93		legal authority; and
89	94		(B) an evaluation of the effectiveness and
90	95		efficiency of the municipality's policies, management, fiscal
91	96		affairs, and operations in relation to each activity;
92	97		(2) for each activity identified under Subdivision
93	98		(1):
94	99		(A) a quantitative estimate of any adverse
95	100		effects that may reasonably be expected to result if the activity
96	101		were discontinued, with a description of the methods by which the
97	102		adverse effects were estimated;
98	103		(B) an itemized account of expenditures required
99	104		to maintain the activity at any minimum level of service required by
100	105		statute, charter provision, ordinance, or other legal authority,
101	106		with a concise statement of the quantity and quality of service
102	107		required at that minimum level; and
103	108		(C) an itemized account of expenditures required
104	109		to maintain the activity at the current level of service, with a
105	110		concise statement of the quantity and quality of service provided
106	111		at that level;
107	112		(3) a ranking of activities identified under
108	113		Subdivision (1) that illustrates the relative importance of each
109	114		activity to the overall goals and purposes of the municipality at
110	115		current service levels; and
111	116		(4) recommendations to the governing body of the
112	117		municipality regarding whether the municipality should continue
113	118		funding each activity identified under Subdivision (1) and, if so,
114	119		at what level.
115	120		(c) The total amount of expenditures attributable to
116	121		property tax revenue in the zero-based budget may not exceed the
117	122		amount calculated by multiplying the effective tax rate, as defined
118	123		by Section 26.04, Tax Code, of the municipality by last year's total
119	124		value, as defined by Section 26.012, Tax Code, for the
120	125		municipality.
121	126		(d) In preparing the zero-based budget, the budget officer
122	127		may require any municipal officer or board to provide information
123	128		necessary for the budget officer to properly prepare the budget.
124	129		(e) The budget officer shall file a copy of the zero-based
125	130		budget with the municipal clerk on or before the date the proposed
126	131		annual itemized budget is filed, and the copy of the zero-based
127	132		budget shall be available for public inspection. If the
128	133		municipality maintains an Internet website, the municipal clerk
129	134		shall ensure that the zero-based budget is posted on the website.
130	135		(f) At a public hearing held to adopt an annual itemized
131	136		budget under this chapter, the governing body of the municipality
132	137		shall consider information presented in the zero-based budget in
133	138		addition to the proposed annual itemized budget.
134	139		SECTION 3. Subchapter B, Chapter 111, Local Government
135	140		Code, is amended by adding Section 111.0345 to read as follows:
136	141		Sec. 111.0345. PERIODIC ZERO-BASED BUDGET REQUIRED;
137	142		CONTENTS. (a) In addition to the annual itemized budget required
138	143		under Section 111.034, the county auditor shall prepare, in plain
139	144		language and an easily readable and understandable format, a
140	145		zero-based budget every 12th year that contains:
141	146		(1) a description of the discrete activities the
142	147		county conducts or performs with:
143	148		(A) a justification for each activity by
144	149		reference to a statute, order, or other legal authority; and
145	150		(B) an evaluation of the effectiveness and
146	151		efficiency of the county's policies, management, fiscal affairs,
147	152		and operations in relation to each activity;
148	153		(2) for each activity identified under Subdivision
149	154		(1):
150	155		(A) a quantitative estimate of any adverse
151	156		effects that may reasonably be expected to result if the activity
152	157		were discontinued, with a description of the methods by which the
153	158		adverse effects were estimated;
154	159		(B) an itemized account of expenditures required
155	160		to maintain the activity at any minimum level of service required by
156	161		statute, order, or other legal authority, with a concise statement
157	162		of the quantity and quality of service required at that minimum
158	163		level; and
159	164		(C) an itemized account of expenditures required
160	165		to maintain the activity at the current level of service, with a
161	166		concise statement of the quantity and quality of service provided
162	167		at that level;
163	168		(3) a ranking of activities identified under
164	169		Subdivision (1) that illustrates the relative importance of each
165	170		activity to the overall goals and purposes of the county at current
166	171		service levels; and
167	172		(4) recommendations to the commissioners court of the
168	173		county regarding whether the county should continue funding each
169	174		activity identified under Subdivision (1) and, if so, at what
170	175		level.
171	176		(b) The total amount of expenditures attributable to
172	177		property tax revenue in the zero-based budget may not exceed the
173	178		amount calculated by multiplying the effective tax rate, as defined
174	179		by Section 26.04, Tax Code, of the county by last year's total
175	180		value, as defined by Section 26.012, Tax Code, for the county.
176	181		(c) In preparing the zero-based budget, the county auditor
177	182		may require any district, county, or precinct officer of the county
178	183		to provide information necessary for the auditor to properly
179	184		prepare the budget.
180	185		(d) The county auditor shall file a copy of the zero-based
181	186		budget with the county clerk on or before the date the proposed
182	187		annual itemized budget is filed, and the copy of the zero-based
183	188		budget shall be available for public inspection. If the county
184	189		maintains an Internet website, the county clerk shall ensure that
185	190		the zero-based budget is posted on the website.
186	191		(e) At a public hearing held to adopt an annual itemized
187	192		budget under this subchapter, the commissioners court shall
188	193		consider information presented in the zero-based budget in addition
189	194		to the proposed annual itemized budget.
190	195		SECTION 4. Subchapter C, Chapter 111, Local Government
191	196		Code, is amended by adding Section 111.0635 to read as follows:
192	197		Sec. 111.0635. PERIODIC ZERO-BASED BUDGET REQUIRED;
193	198		CONTENTS. (a) This section applies only to a county with a
194	199		population of 225,000 or more.
195	200		(b) In addition to the annual itemized budget required under
196	201		Section 111.063, the budget officer shall prepare, in plain
197	202		language and an easily readable and understandable format, a
198	203		zero-based budget every 12th year that contains:
199	204		(1) a description of the discrete activities the
200	205		county conducts or performs with:
201	206		(A) a justification for each activity by
202	207		reference to a statute, order, or other legal authority; and
203	208		(B) an evaluation of the effectiveness and
204	209		efficiency of the county's policies, management, fiscal affairs,
205	210		and operations in relation to each activity;
206	211		(2) for each activity identified under Subdivision
207	212		(1):
208	213		(A) a quantitative estimate of any adverse
209	214		effects that may reasonably be expected to result if the activity
210	215		were discontinued, together with a description of the methods by
211	216		which the adverse effects were estimated;
212	217		(B) an itemized account of expenditures required
213	218		to maintain the activity at any minimum level of service required by
214	219		statute, order, or other legal authority, with a concise statement
215	220		of the quantity and quality of service required at that minimum
216	221		level; and
217	222		(C) an itemized account of expenditures required
218	223		to maintain the activity at the current level of service, with a
219	224		concise statement of the quantity and quality of service provided
220	225		at that level;
221	226		(3) a ranking of activities identified under
222	227		Subdivision (1) that illustrates the relative importance of each
223	228		activity to the overall goals and purposes of the county at current
224	229		service levels; and
225	230		(4) recommendations to the commissioners court of the
226	231		county regarding whether the county should continue funding each
227	232		activity identified under Subdivision (1) and, if so, at what
228	233		level.
229	234		(c) The total amount of expenditures attributable to
230	235		property tax revenue in the zero-based budget may not exceed the
231	236		amount calculated by multiplying the effective tax rate, as defined
232	237		by Section 26.04, Tax Code, of the county by last year's total
233	238		value, as defined by Section 26.012, Tax Code, for the county.
234	239		(d) In preparing the zero-based budget, the budget officer
235	240		may require the county auditor or any other district, county, or
236	241		precinct officer of the county to provide information necessary for
237	242		the budget officer to properly prepare the budget.
238	243		(e) The budget officer shall file a copy of the zero-based
239	244		budget with the county clerk and county auditor on or before the
240	245		date the proposed annual itemized budget is filed, and the copy of
241	246		the zero-based budget shall be available for public inspection. If
242	247		the county maintains an Internet website, the county clerk shall
243	248		ensure that the zero-based budget is posted on the website.
244	249		(f) At a public hearing held to adopt an annual itemized
245	250		budget under this subchapter, the commissioners court shall
246	251		consider information presented in the zero-based budget in addition
247	252		to the proposed annual itemized budget.
248	253		SECTION 5. The superintendent of a school district or
249	254		county department of education, the budget officer of a
250	255		municipality, or the county auditor or budget officer of a county,
251	256		as applicable, shall prepare an initial zero-based budget as
252	257		described by Section 44.0025, Education Code, or Section 102.0035,
253	258		111.0345, or 111.0635, Local Government Code, as added by this Act,
254	259		as applicable, for the fiscal year beginning on or after September
255	260		1, 2021.
256	261		SECTION 6. This Act takes effect September 1, 2019.
	262	+	* * * * *