Signed by Governor Greg Abbott

Vote Smart's Synopsis:

Vote to pass a bill that establishes penalties for municipalities with a population of over 250,000 that reduce police funding in the municipal budget.

Highlights:

• Specifies a defunding municipality is a municipality (Sec. 109.003):

• That adopts a budget for a fiscal year that, in comparison to the municipality's preceding fiscal year, reduces the appropriation to the municipality's police department; and

• For which the division issues a written determination finding that the municipality has made the reduction.

• Specifies a municipality is not a defunct municipality if (Sec. 109.004):

• For a fiscal year in which the municipality adopts a budget that is less than the budget for the preceding fiscal year, the percentage reduction to the appropriation to the municipality's police department does not exceed the percentage reduction to the total budget; or

• Before the adoption of a budget, the municipality applies for and is granted approval from the division for a reduction to the appropriation to the municipality's police department to account for:

• Capital expenditures related to law enforcement during the preceding fiscal year;

• The municipality's response to a state of disaster; or

• Another reason approved by the division.

• Prohibits a defunding municipality from annexing an area during the period beginning on the date that the criminal justice division of the governor's office issues the written determination that the municipality is a defunding municipality and ending on the 10th anniversary of the date on which the criminal justice division of the governor's office issues a written determination finding that the defunding municipality has reversed the reduction (Sec. 201.b).

• Requires a defunding municipality to provide a notice of the decrease in the no-new-revenue maintenance and operations rate (Sec. 26.0444.c).

• Specifies if a municipality is determined to be a defunding municipality according to the budget adopted by the municipality for the first fiscal year beginning on or after September 1, 2021, the governing body of the defunding municipality may not adopt a tax rate for the current year that exceeds the least of the defunding municipality's no-new-revenue tax rate or voter-approval tax rate for that tax year, the preceding tax year, or the second preceding tax year (Sec. 26.0501.b-1).

• Requires the criminal justice division of the governor's office to 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 (Sec. 321.5025.c).

• Prohibits the governing body of a municipally-owned utility under the control of a defunding municipality from charging a customer (Sec. 33.0211.b):

• At a rate higher than the rate the customer was charged or would have been charged on January 1 of the year that the municipality was determined to be a defunding municipality;

• Any customer fees in amounts higher than the customer fees the customer was charged or would have been charged on January 1 of the year that the municipality was determined to be a defunding municipality; or

• Any types of customer fees that the customer was not charged or would not have been charged on January 1 of the year that the municipality was determined to be a defunding municipality.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes penalties for municipalities with a population of over 250,000 that reduce police funding in the municipal budget.

Highlights:

• Specifies a defunding municipality is a municipality (Sec. 109.003):

• That adopts a budget for a fiscal year that, in comparison to the municipality's preceding fiscal year, reduces the appropriation to the municipality's police department; and

• For which the division issues a written determination finding that the municipality has made the reduction.

• Specifies a municipality is not a defunct municipality if (Sec. 109.004):

• For a fiscal year in which the municipality adopts a budget that is less than the budget for the preceding fiscal year, the percentage reduction to the appropriation to the municipality's police department does not exceed the percentage reduction to the total budget; or

• Before the adoption of a budget, the municipality applies for and is granted approval from the division for a reduction to the appropriation to the municipality's police department to account for:

• Capital expenditures related to law enforcement during the preceding fiscal year;

• The municipality's response to a state of disaster; or

• Another reason approved by the division.

• Prohibits a defunding municipality from annexing an area during the period beginning on the date that the criminal justice division of the governor's office issues the written determination that the municipality is a defunding municipality and ending on the 10th anniversary of the date on which the criminal justice division of the governor's office issues a written determination finding that the defunding municipality has reversed the reduction (Sec. 201.b).

• Requires a defunding municipality to provide a notice of the decrease in the no-new-revenue maintenance and operations rate (Sec. 26.0444.c).

• Specifies if a municipality is determined to be a defunding municipality according to the budget adopted by the municipality for the first fiscal year beginning on or after September 1, 2021, the governing body of the defunding municipality may not adopt a tax rate for the current year that exceeds the least of the defunding municipality's no-new-revenue tax rate or voter-approval tax rate for that tax year, the preceding tax year, or the second preceding tax year (Sec. 26.0501.b-1).

• Requires the criminal justice division of the governor's office to 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 (Sec. 321.5025.c).

• Prohibits the governing body of a municipally-owned utility under the control of a defunding municipality from charging a customer (Sec. 33.0211.b):

• At a rate higher than the rate the customer was charged or would have been charged on January 1 of the year that the municipality was determined to be a defunding municipality;

• Any customer fees in amounts higher than the customer fees the customer was charged or would have been charged on January 1 of the year that the municipality was determined to be a defunding municipality; or

• Any types of customer fees that the customer was not charged or would not have been charged on January 1 of the year that the municipality was determined to be a defunding municipality.

Full Bill Text