Sec. 109.004.  EXCEPTIONS.  (a)  A municipality is not considered to be a defunding municipality under Section 109.003 if:
(1)  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
(2)  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:
(A)  capital expenditures related to law enforcement during the preceding fiscal year;
(B)  the municipality's response to a state of disaster declared under Section 418.014, Government Code; or
(C)  another reason approved by the division.
(b)  For purposes of making a determination of whether a municipality is a defunding municipality under this chapter, a municipality's appropriation to the municipality's police department does not include:
(1)  any grant money received by the municipality during any fiscal year; or
(2)  any sales and use tax revenue received by the municipality for the purpose of financing a crime control and prevention district under Chapter 363.
Added by Acts 2021, 87th Leg., R.S., Ch. 199 (H.B. 1900), Sec. 1.01, eff. September 1, 2021.