| 1 | 1 | | By: Cain H.B. No. 17 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to a limit on municipal and county expenditures. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Chapter 140, Local Government Code, is amended |
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| 9 | 9 | | by adding Section 140.014 to read as follows: |
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| 10 | 10 | | Sec. 140.014. LIMIT ON ANNUAL EXPENDITURES. (a) In this |
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| 11 | 11 | | section: |
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| 12 | 12 | | (1) "Board" means the Legislative Budget Board. |
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| 13 | 13 | | (2) "Consumer price index" means the average over a |
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| 14 | 14 | | calendar year of the index the board considers to most accurately |
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| 15 | 15 | | report changes in the purchasing power of the dollar for consumers |
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| 16 | 16 | | in this state. |
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| 17 | 17 | | (3) "Inflation rate" means the amount, expressed in |
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| 18 | 18 | | decimal form rounded to the nearest thousandth, computed by |
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| 19 | 19 | | determining the percentage change in the consumer price index for |
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| 20 | 20 | | the preceding calendar year as compared to the consumer price index |
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| 21 | 21 | | for the calendar year preceding that calendar year. |
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| 22 | 22 | | (4) "Population growth rate" means the rate of growth |
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| 23 | 23 | | of the state's population during the preceding calendar year, |
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| 24 | 24 | | expressed in decimal form rounded to the nearest thousandth, |
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| 25 | 25 | | determined by the board in accordance with the most recent |
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| 26 | 26 | | population estimates published by the United States Census Bureau. |
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| 27 | 27 | | (b) This section applies only to a political subdivision |
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| 28 | 28 | | that is a municipality or county. |
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| 29 | 29 | | (c) Except as provided by Subsection (e), a political |
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| 30 | 30 | | subdivision's total expenditures from all available sources of |
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| 31 | 31 | | revenue in a fiscal year may not exceed the greater of: |
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| 32 | 32 | | (1) the political subdivision's total expenditures |
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| 33 | 33 | | from all available sources of revenue in the preceding fiscal year; |
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| 34 | 34 | | or |
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| 35 | 35 | | (2) an amount determined by multiplying: |
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| 36 | 36 | | (A) the political subdivision's total |
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| 37 | 37 | | expenditures from all available sources of revenue in the preceding |
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| 38 | 38 | | fiscal year; and |
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| 39 | 39 | | (B) the sum of one and the rate most recently |
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| 40 | 40 | | published by the board under Subsection (d). |
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| 41 | 41 | | (d) Not later than January 31 of each year, the board shall |
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| 42 | 42 | | publish a rate equal to the product of the population growth rate |
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| 43 | 43 | | and the inflation rate. |
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| 44 | 44 | | (e) A political subdivision's total expenditures from all |
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| 45 | 45 | | available sources of local revenue in a fiscal year may exceed the |
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| 46 | 46 | | amount described by Subsection (c) if: |
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| 47 | 47 | | (1) the political subdivision's voters approve the |
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| 48 | 48 | | additional expenditures for that fiscal year at an election called |
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| 49 | 49 | | for that purpose and held on a uniform election date; or |
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| 50 | 50 | | (2) the governor declares or renews a declaration of a |
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| 51 | 51 | | state of disaster under Section 418.014, Government Code, in that |
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| 52 | 52 | | fiscal year, and the governor's designation of the area threatened |
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| 53 | 53 | | includes all or part of the geographic territory of the political |
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| 54 | 54 | | subdivision. |
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| 55 | 55 | | (f) For purposes of this section, the following are not |
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| 56 | 56 | | considered an available source of revenue: |
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| 57 | 57 | | (1) money received from the issuance of bonds approved |
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| 58 | 58 | | by the voters; or |
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| 59 | 59 | | (2) a grant, donation, or gift. |
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| 60 | 60 | | SECTION 2. Section 140.014, Local Government Code, as added |
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| 61 | 61 | | by this Act, applies only to a fiscal year of a municipality or |
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| 62 | 62 | | county that begins on or after December 1, 2023. |
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| 63 | 63 | | SECTION 3. This Act takes effect December 1, 2023. |
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