TX
Texas House Bill HB2438

Texas 2021 - 87th Regular

Texas House Bill HB2438 Compare Versions

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1-87R17893 MP-F
1+87R11728 TYPED
22 By: Meyer H.B. No. 2438
3- Substitute the following for H.B. No. 2438:
4- By: Noble C.S.H.B. No. 2438
53
64
75 A BILL TO BE ENTITLED
86 AN ACT
9- relating to a limitation on property tax rates for municipalities
10- that adopt budgets that defund municipal police departments.
7+ relating to municipalities and counties that adopt budgets that
8+ defund law enforcement agencies.
119 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12- SECTION 1. Subtitle A, Title 4, Local Government Code, is
13- amended by adding Chapter 109 to read as follows:
14- CHAPTER 109. DETERMINATION OF DEFUNDING MUNICIPALITIES
15- Sec. 109.001. DEFINITION. In this chapter, "division"
16- means the criminal justice division of the office of the governor.
17- Sec. 109.002. APPLICABILITY OF CHAPTER. This chapter
18- applies only to a municipality with a population of more than
19- 250,000.
20- Sec. 109.003. DEFUNDING DETERMINATION. Except as provided
21- by Section 109.004, a defunding municipality is a municipality:
10+ SECTION 1. Chapter 140, Local Government Code, is amended
11+ by adding Section 140.013 to read as follows:
12+ Sec. 140.013. DEFUNDING LOCAL GOVERNMENT. (a) A defunding
13+ local government is a municipality or county:
2214 (1) that adopts a budget for a fiscal year that, in
23- comparison to the municipality's preceding fiscal year, reduces the
24- appropriation to the municipality's police department; and
25- (2) for which the division issues a written
26- determination finding that the municipality has made the reduction
27- described by Subdivision (1).
28- Sec. 109.0035. INITIAL DETERMINATION. In making a
29- determination of whether a municipality is a defunding municipality
30- under Section 109.003 according to the budget adopted for the first
31- fiscal year beginning on or after September 1, 2021, the division
32- shall compare the appropriation to the municipality's police
33- department in that budget to the appropriation to that department
34- in the budget of the preceding fiscal year or the second preceding
35- fiscal year, whichever is greater. This section expires September
36- 1, 2023.
37- Sec. 109.004. EXCEPTIONS. A municipality is not considered
38- to be a defunding municipality under Section 109.003 if:
39- (1) for a fiscal year in which the municipality adopts
40- a budget that is less than the budget for the preceding fiscal year,
41- the percentage reduction to the appropriation to the municipality's
42- police department does not exceed the percentage reduction to the
43- total budget; or
44- (2) before the adoption of a budget, the municipality
45- applies for and is granted approval from the division for a
46- reduction to the appropriation to the municipality's police
47- department to account for:
48- (A) capital expenditures related to law
49- enforcement during the preceding fiscal year;
50- (B) the municipality's response to a state of
51- disaster declared under Section 418.014, Government Code; or
52- (C) another reason approved by the division.
53- Sec. 109.005. TERMINATION OF DEFUNDING DETERMINATION. A
54- municipality's defunding determination under Section 109.003
55- continues until the division issues a written determination finding
56- that the municipality has reversed the reduction, adjusted for
57- inflation, described by Section 109.003(1).
58- Sec. 109.006. DIVISION DUTIES. (a) The division shall:
15+ comparison to the local government's preceding fiscal year,
16+ reduces:
17+ (A) the appropriation to the local government's
18+ law enforcement agency;
19+ (B) the number of peace officers the local
20+ government's law enforcement agency is authorized to employ;
21+ (C) funding for peace officer overtime
22+ compensation for the local government's law enforcement agency; or
23+ (D) funding for the recruitment and training of
24+ new peace officers to fill each vacant peace officer position in the
25+ local government's law enforcement agency; and
26+ (2) for which the criminal justice division of the
27+ governor's office issues a written determination finding that the
28+ local government has taken an action described by Subdivision (1).
29+ (a-1) In making a determination of whether a local
30+ government is a defunding local government according to the budget
31+ adopted for the first fiscal year beginning on or after September 1,
32+ 2021, the criminal justice division of the governor's office shall
33+ compare the funding and personnel in that budget to the funding and
34+ personnel in the budget of the preceding fiscal year or the second
35+ preceding fiscal year, whichever is greater. This subsection
36+ expires September 1, 2023.
37+ (b) A local government is considered to be a defunding local
38+ government until the criminal justice division of the governor's
39+ office issues a written determination finding that the local
40+ government has reversed the reductions, adjusted for inflation,
41+ described in Subsection (a)(1).
42+ (c) The criminal justice division of the governor's office
43+ shall:
5944 (1) compute the inflation rate used to make
60- determinations under Section 109.005 each state fiscal year using a
45+ determinations under Subsection (b) each state fiscal year using a
6146 price index that accurately reports changes in the purchasing power
62- of the dollar for municipalities in this state; and
47+ of the dollar for local governments in this state; and
6348 (2) publish the inflation rate in the Texas Register.
64- (b) The division shall adopt rules establishing the
65- criteria the division uses to approve reductions under Section
66- 109.004(2).
6749 SECTION 2. Chapter 26, Tax Code, is amended by adding
6850 Section 26.0501 to read as follows:
69- Sec. 26.0501. LIMITATION ON TAX RATE OF DEFUNDING
70- MUNICIPALITY. (a) In this section, "defunding municipality" means
71- a municipality that is considered to be a defunding municipality
72- for the current tax year under Chapter 109, Local Government Code.
51+ Sec. 26.0501. LIMITATION ON TAX RATE OF DEFUNDING TAXING
52+ UNIT. (a) For purposes of this section, a "defunding taxing unit"
53+ means a county or municipality that is a defunding local government
54+ under Section 140.013, Local Government Code.
7355 (b) Notwithstanding any other provision of this chapter or
74- other law, the governing body of a defunding municipality may not
56+ other law, the governing body of a defunding taxing unit may not
7557 adopt a tax rate for the current tax year that exceeds the lesser of
76- the defunding municipality's no-new-revenue tax rate or
58+ the defunding taxing unit's no-new-revenue tax rate or
7759 voter-approval tax rate for that tax year.
78- (b-1) Notwithstanding Subsection (b), if a municipality is
79- determined to be a defunding municipality according to the budget
80- adopted by the municipality for the first fiscal year beginning on
81- or after September 1, 2021, the governing body of the defunding
82- municipality may not adopt a tax rate for the current year that
83- exceeds the least of the defunding municipality's no-new-revenue
84- tax rate or voter-approval tax rate for that tax year, the preceding
85- tax year, or the second preceding tax year. This subsection expires
86- September 1, 2023.
8760 (c) For purposes of making the calculation required under
88- Section 26.013, in a tax year in which a municipality is a defunding
89- municipality, the difference between the municipality's actual tax
90- rate and voter-approval tax rate is considered to be zero.
91- SECTION 3. Chapter 109, Local Government Code, as added by
92- this Act, applies only to a budget adopted for a fiscal year that
93- begins on or after the effective date of this Act.
61+ Section 26.013, in a tax year in which a county or municipality is a
62+ defunding taxing unit, the difference between the taxing unit's
63+ actual tax rate and voter-approval tax rate is considered to be
64+ zero.
65+ (d) A county or municipality is no longer considered to be a
66+ defunding taxing unit for purposes of this section in the first tax
67+ year for which the criminal justice division of the governor's
68+ office issues a written determination in accordance with Section
69+ 140.013(b), Local Government Code, finding that the county or
70+ municipality has reversed the reductions described by Section
71+ 140.013(a)(1), Local Government Code.
72+ SECTION 3. Section 140.013, Local Government Code, as added
73+ by this Act, applies only to the adoption of a budget by a
74+ municipality or county for a fiscal year that begins on or after the
75+ effective date of this Act.
9476 SECTION 4. Section 26.0501, Tax Code, as added by this Act,
9577 applies beginning with the 2021 tax year.
9678 SECTION 5. This Act takes effect September 1, 2021.