By: Burns H.B. No. 3021
A BILL TO BE ENTITLED
AN ACT
relating to municipalities and counties that adopt budgets that
defund law enforcement agencies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 140, Local Government Code, is amended
by adding Section 140.013 to read as follows:
Sec. 140.013. DEFUNDING LOCAL GOVERNMENT. (a) A defunding
local government is a municipality or county:
(1) that adopts a budget for a fiscal year that, in
comparison to the local government's preceding fiscal year,
reduces:
(A) the appropriation to the local government's
law enforcement agency;
(B) the number of peace officers the local
government's law enforcement agency is authorized to employ;
(C) funding for peace officer overtime
compensation for the local government's law enforcement agency; or
(D) funding for the recruitment and training of
new peace officers to fill each vacant peace officer position in the
local government's law enforcement agency; and
(2) for which the criminal justice division of the
governor's office issues a written determination finding that the
local government has taken an action described by Subdivision (1).
(a-1) In making a determination of whether a local
government is a defunding local government according to the budget
adopted for the first fiscal year beginning on or after September 1,
2021, the criminal justice division of the governor's office shall
compare the funding and personnel in that budget to the funding and
personnel in the budget of the preceding fiscal year or the second
preceding fiscal year, whichever is greater. This subsection
expires September 1, 2023.
(b) A local government is considered to be a defunding local
government until the criminal justice division of the governor's
office issues a written determination finding that the local
government has reversed the reductions, adjusted for inflation,
described in Subsection (a)(1).
(c) The criminal justice division of the governor's office
shall:
(1) compute the inflation rate used to make
determinations under Subsection (b) each state fiscal year using a
price index that accurately reports changes in the purchasing power
of the dollar for local governments in this state; and
(2) publish the inflation rate in the Texas Register.
SECTION 2. Subchapter F, Chapter 321, Tax Code, is amended
by adding Section 321.5025 to read as follows:
Sec. 321.5025. DISTRIBUTION OF TRUST FUNDS TO DEFUNDING
MUNICIPALITY. (a) For purposes of this section, a "defunding
municipality" means a municipality that is a defunding local
government under Section 140.013, Local Government Code.
(b) Notwithstanding Section 321.502, the comptroller may
not, before July 1 of each state fiscal year, send to a defunding
municipality its share of the taxes collected by the comptroller
under this chapter during the state fiscal year. Before sending the
defunding municipality its share of the taxes, the comptroller
shall deduct the amount reported to the comptroller for the
defunding municipality under Subsection (c) and credit that
deducted amount to the general revenue fund. Money credited to the
general revenue fund under this subsection may be appropriated only
to the Department of Public Safety.
(c) Not later than August 1 of each state fiscal year, the
criminal justice division of the governor's office shall report to
the comptroller for each defunding municipality the amount of money
the state spent in that state fiscal year to provide law enforcement
services in that defunding municipality.
(d) A municipality is no longer considered to be a defunding
municipality for purposes of this section when the criminal justice
division of the governor's office issues a written determination in
accordance with Section 140.013(b), Local Government Code, finding
that the municipality has reversed the reductions described by
Section 140.013(a)(1), Local Government Code.
SECTION 3. Section 140.013, Local Government Code, as added
by this Act, applies only to the adoption of a budget by a
municipality or county for a fiscal year that begins on or after the
effective date of this Act.
SECTION 4. Section 321.5025, Tax Code, as added by this Act,
applies only to a distribution of municipal sales and use tax
revenue to a municipality in a state fiscal year that begins on or
after the effective date of this Act.
SECTION 5. This Act takes effect September 1, 2021.