TX
Texas House Bill HB3021

Texas 2021 - 87th Regular

Texas House Bill HB3021 Compare Versions

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1-87R18420 MP-F
21 By: Burns H.B. No. 3021
3- Substitute the following for H.B. No. 3021:
4- By: Sanford C.S.H.B. No. 3021
52
63
74 A BILL TO BE ENTITLED
85 AN ACT
9- relating to sales and use tax revenue of municipalities that adopt
10- budgets that defund municipal police departments.
6+ relating to municipalities and counties that adopt budgets that
7+ defund law enforcement agencies.
118 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:
9+ SECTION 1. Chapter 140, Local Government Code, is amended
10+ by adding Section 140.013 to read as follows:
11+ Sec. 140.013. DEFUNDING LOCAL GOVERNMENT. (a) A defunding
12+ local government is a municipality or county:
2213 (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:
14+ comparison to the local government's preceding fiscal year,
15+ reduces:
16+ (A) the appropriation to the local government's
17+ law enforcement agency;
18+ (B) the number of peace officers the local
19+ government's law enforcement agency is authorized to employ;
20+ (C) funding for peace officer overtime
21+ compensation for the local government's law enforcement agency; or
22+ (D) funding for the recruitment and training of
23+ new peace officers to fill each vacant peace officer position in the
24+ local government's law enforcement agency; and
25+ (2) for which the criminal justice division of the
26+ governor's office issues a written determination finding that the
27+ local government has taken an action described by Subdivision (1).
28+ (a-1) In making a determination of whether a local
29+ government is a defunding local government according to the budget
30+ adopted for the first fiscal year beginning on or after September 1,
31+ 2021, the criminal justice division of the governor's office shall
32+ compare the funding and personnel in that budget to the funding and
33+ personnel in the budget of the preceding fiscal year or the second
34+ preceding fiscal year, whichever is greater. This subsection
35+ expires September 1, 2023.
36+ (b) A local government is considered to be a defunding local
37+ government until the criminal justice division of the governor's
38+ office issues a written determination finding that the local
39+ government has reversed the reductions, adjusted for inflation,
40+ described in Subsection (a)(1).
41+ (c) The criminal justice division of the governor's office
42+ shall:
5943 (1) compute the inflation rate used to make
60- determinations under Section 109.005 each state fiscal year using a
44+ determinations under Subsection (b) each state fiscal year using a
6145 price index that accurately reports changes in the purchasing power
62- of the dollar for municipalities in this state; and
46+ of the dollar for local governments in this state; and
6347 (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).
6748 SECTION 2. Subchapter F, Chapter 321, Tax Code, is amended
6849 by adding Section 321.5025 to read as follows:
6950 Sec. 321.5025. DISTRIBUTION OF TRUST FUNDS TO 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 state fiscal year under Chapter 109, Local
73- Government Code.
51+ MUNICIPALITY. (a) For purposes of this section, a "defunding
52+ municipality" means a municipality that is a defunding local
53+ government under Section 140.013, Local Government Code.
7454 (b) Notwithstanding Section 321.502, the comptroller may
7555 not, before July 1 of each state fiscal year, send to a defunding
7656 municipality its share of the taxes collected by the comptroller
7757 under this chapter during the state fiscal year. Before sending the
7858 defunding municipality its share of the taxes, the comptroller
7959 shall deduct the amount reported to the comptroller for the
8060 defunding municipality under Subsection (c) and credit that
8161 deducted amount to the general revenue fund. Money credited to the
8262 general revenue fund under this subsection may be appropriated only
8363 to the Department of Public Safety.
8464 (c) Not later than August 1 of each state fiscal year, the
8565 criminal justice division of the governor's office shall report to
8666 the comptroller for each defunding municipality the amount of money
8767 the state spent in that state fiscal year to provide law enforcement
8868 services in that defunding municipality.
89- SECTION 3. Chapter 109, Local Government Code, as added by
90- this Act, applies only to a budget adopted for a fiscal year that
91- begins on or after the effective date of this Act.
69+ (d) A municipality is no longer considered to be a defunding
70+ municipality for purposes of this section when the criminal justice
71+ division of the governor's office issues a written determination in
72+ accordance with Section 140.013(b), Local Government Code, finding
73+ that the municipality has reversed the reductions described by
74+ Section 140.013(a)(1), Local Government Code.
75+ SECTION 3. Section 140.013, Local Government Code, as added
76+ by this Act, applies only to the adoption of a budget by a
77+ municipality or county for a fiscal year that begins on or after the
78+ effective date of this Act.
9279 SECTION 4. Section 321.5025, Tax Code, as added by this Act,
9380 applies only to a distribution of municipal sales and use tax
9481 revenue to a municipality in a state fiscal year that begins on or
9582 after the effective date of this Act.
9683 SECTION 5. This Act takes effect September 1, 2021.