HB 46

89S20074 DNC-D
		By: Tepper
  H.B. No. 46
  A BILL TO BE ENTITLED
  AN ACT
  relating to a limit on political subdivision expenditures.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 140, Local Government Code, is amended
  by adding Section 140.015 to read as follows:
         Sec. 140.015.  LIMIT ON ANNUAL EXPENDITURES.  (a)  In this
  section:
               (1)  "Consumer price index" means the average over a
  calendar year of the index a political subdivision making a
  calculation under Subsection (d) considers to most accurately
  report changes in the purchasing power of the dollar for consumers
  in this state.
               (2)  "Disaster relief cost" has the meaning assigned by
  Section 26.042(a-1), Tax Code.
               (3)  "Inflation rate" means the amount, expressed in
  decimal form rounded to the nearest thousandth, computed by
  determining the percentage change in the consumer price index
  applicable to the political subdivision making a calculation under
  Subsection (d) for the preceding calendar year as compared to the
  consumer price index for the calendar year preceding that calendar
  year.
               (4)  "Political subdivision" means a county,
  municipality, school district, junior college district, hospital
  district, other special district, or other subdivision of state
  government.
               (5)  "Population growth rate" means the rate of growth
  of a political subdivision's population during the preceding
  calendar year, expressed in decimal form rounded to the nearest
  thousandth, determined by the political subdivision using the most
  recent population estimates available from the United States Census
  Bureau or, if the United States Census Bureau does not publish
  population estimates for the political subdivision, other reliable
  data sources or estimation methods determined by the political
  subdivision.
         (b)  This section applies only to a political subdivision
  that is authorized by law to impose an ad valorem tax or issue
  bonds.
         (c)  Except as provided by Subsection (e), a political
  subdivision's total expenditures from all available sources of
  revenue in a fiscal year may not exceed the greater of:
               (1)  the political subdivision's total expenditures
  from all available sources of revenue in the preceding fiscal year;
  or
               (2)  an amount determined by multiplying:
                     (A)  the political subdivision's total
  expenditures from all available sources of revenue in the preceding
  fiscal year; and
                     (B)  the sum of one and the rate most recently
  determined by the political subdivision under Subsection (d).
         (d)  Not later than January 31 of each year, a political
  subdivision shall calculate and post on an Internet website
  maintained by the political subdivision a rate equal to the product
  of the population growth rate and the inflation rate using a form
  prescribed by the comptroller.
         (e)  A political subdivision's total expenditures from all
  available sources of local revenue in a fiscal year may exceed the
  amount described by Subsection (c) if at least two-thirds of the
  political subdivision's voters approve the additional expenditures
  for that fiscal year at an election called for that purpose and held
  on a uniform election date.
         (f)  For purposes of this section:
               (1)  a grant, donation, or gift is not considered an
  available source of revenue; and
               (2)  a disaster relief cost is not considered an
  expenditure.
         (g)  The attorney general may bring an action in Travis
  County or a county in which a political subdivision is wholly or
  partially located to enforce this section.
         (h)  In an action under Subsection (g), the attorney general
  may seek:
               (1)  injunctive relief to prohibit the political
  subdivision from violating this section;
               (2)  a writ of mandamus compelling the political
  subdivision to comply with this section; or
               (3)  a declaratory judgment determining the rights and
  obligations of the political subdivision under this section.
         SECTION 2.  Section 140.015, Local Government Code, as added
  by this Act, applies only to a fiscal year of a political
  subdivision that begins on or after January 1, 2026.
         SECTION 3.  As soon as practicable after the effective date
  of this Act, the comptroller of public accounts shall prescribe a
  form for the publication of the information required by Section
  140.015(d), Local Government Code, as added by this Act.
         SECTION 4.  This Act takes effect February 1, 2026.