1-1  By:  Junell (Senate Sponsor - Sims)                    H.B. No. 155
    1-2        (In the Senate - Received from the House March 11, 1993;
    1-3  March 15, 1993, read first time and referred to Committee on
    1-4  Finance; April 19, 1993, reported adversely, with favorable
    1-5  Committee Substitute by the following vote:  Yeas 13, Nays 0;
    1-6  April 19, 1993, sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Montford           x                               
   1-10        Turner             x                               
   1-11        Armbrister         x                               
   1-12        Barrientos         x                               
   1-13        Bivins             x                               
   1-14        Ellis              x                               
   1-15        Haley              x                               
   1-16        Moncrief           x                               
   1-17        Parker             x                               
   1-18        Ratliff            x                               
   1-19        Sims               x                               
   1-20        Truan              x                               
   1-21        Zaffirini          x                               
   1-22  COMMITTEE SUBSTITUTE FOR H.B. No. 155                     By:  Sims
   1-23                         A BILL TO BE ENTITLED
   1-24                                AN ACT
   1-25   relating to submission and publication of ad valorem tax rates.
   1-26        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-27        SECTION 1.  Chapter 26, Tax Code, is amended by adding
   1-28  Section 26.052 to read as follows:
   1-29        Sec. 26.052.  SIMPLIFIED TAX RATE NOTICE FOR SMALL TAXING
   1-30  UNITS.  (a)  This section applies only to a taxing unit for which
   1-31  the total tax rate proposed for the current tax year:
   1-32              (1)  is five cents or less on each $100 valuation of
   1-33  taxable property;
   1-34              (2)  would impose taxes of $150,000 or less when
   1-35  applied to the total taxable value of property taxable by the
   1-36  taxing unit according to the appraisal roll for the current tax
   1-37  year; and
   1-38              (3)  is greater than 103% of the effective tax rate
   1-39  calculated as provided by Section 26.04.
   1-40        (b)  A taxing unit to which this section applies is exempt
   1-41  from the publication requirements of Section 26.04(e) and is not
   1-42  subject to an injunction under Section 26.04(g) for failure to
   1-43  comply with those publication requirements.
   1-44        (c)  A taxing unit to which this section applies may provide
   1-45  public notice of its proposed tax rate in either of the following
   1-46  methods not later than the seventh day before the date on which the
   1-47  tax rate is adopted:
   1-48              (1)  mailing a notice of the proposed tax rate to each
   1-49  owner of taxable property in the taxing unit; or
   1-50              (2)  publishing notice of the proposed tax rate in the
   1-51  legal notices section of a newspaper having general circulation in
   1-52  the taxing unit.
   1-53        (d)  A taxing unit that provides notice of a proposed tax
   1-54  rate under Subsection (c) is exempt from Sections 26.05(d) and
   1-55  26.06 and is not subject to an injunction under Section 26.05(e)
   1-56  for failure to comply with Section 26.05(d).  A taxing unit that
   1-57  provides notice of a proposed tax rate under Subsection (c) may not
   1-58  adopt a tax rate that exceeds the rate set out in the notice unless
   1-59  the taxing unit provides additional notice under Subsection (c) of
   1-60  the higher rate or complies with Sections 26.05(d) and 26.06 in
   1-61  adopting the higher rate.
   1-62        (e)  Public notice provided under Subsection (c) must
   1-63  specify:
   1-64              (1)  the tax rate that the governing body proposes to
   1-65  adopt;
   1-66              (2)  the date, time, location of the meeting of the
   1-67  governing body of the taxing unit at which the governing body will
   1-68  consider adopting the proposed tax rate; and
    2-1              (3)  if the proposed tax rate for the taxing unit
    2-2  exceeds 103% of the unit's effective tax rate calculated as
    2-3  provided by this chapter, a statement substantially identical to
    2-4  the following:  "The proposed tax rate would increase total taxes
    2-5  in (name of taxing unit) by (percentage by which the proposed tax
    2-6  rate exceeds the effective tax rate)."
    2-7        SECTION 2.  Section 26.04(d), Tax Code, is amended to read as
    2-8  follows:
    2-9        (e)  By August 7 or as soon thereafter as practicable, the
   2-10  designated officer or employee shall submit the rates to the
   2-11  governing body.  He shall deliver by mail to each property owner in
   2-12  the unit or publish in a newspaper in the form prescribed by the
   2-13  comptroller:
   2-14              (1)  the effective tax rate, the rollback tax rate, and
   2-15  an explanation of how they were calculated;
   2-16              (2)  the estimated amount of interest and sinking fund
   2-17  balances and the estimated amount of maintenance and operation or
   2-18  general fund balances remaining at the end of the current fiscal
   2-19  year that are not encumbered with or by corresponding existing debt
   2-20  obligation, except that for a school district, estimated funds
   2-21  necessary for the operation of the district prior to the receipt of
   2-22  the first state education aid payment in the succeeding school year
   2-23  shall be subtracted from the estimated fund balances;
   2-24              (3)  a schedule of the unit's debt obligations showing:
   2-25                    (A)  the amount of principal and interest that
   2-26  will be paid to service the unit's debts in the next year from
   2-27  property tax revenue, including payments of lawfully incurred
   2-28  contractual obligations providing security for the payment of the
   2-29  principal of and interest on bonds and other evidences of
   2-30  indebtedness issued on behalf of the unit by another political
   2-31  subdivision;
   2-32                    (B)  the amount by which taxes imposed for debt
   2-33  are to be increased because of the unit's anticipated collection
   2-34  rate; and
   2-35                    (C)  the total of the amounts listed in
   2-36  Paragraphs (A)-(B), less any amount collected in excess of the
   2-37  previous year's anticipated collections certified as provided in
   2-38  Subsection (b) of this section; and
   2-39              (4)  the amount of additional sales and use tax revenue
   2-40  anticipated in calculations under Section 26.041 of this code.
   2-41        SECTION 3.  The importance of this legislation and the
   2-42  crowded condition of the calendars in both houses create an
   2-43  emergency and an imperative public necessity that the
   2-44  constitutional rule requiring bills to be read on three several
   2-45  days in each house be suspended, and this rule is hereby suspended,
   2-46  and that this Act take effect and be in force from and after its
   2-47  passage, and it is so enacted.
   2-48                               * * * * *
   2-49                                                         Austin,
   2-50  Texas
   2-51                                                         April 19, 1993
   2-52  Hon. Bob Bullock
   2-53  President of the Senate
   2-54  Sir:
   2-55  We, your Committee on Finance to which was referred H.B. No. 155,
   2-56  have had the same under consideration, and I am instructed to
   2-57  report it back to the Senate with the recommendation that it do not
   2-58  pass, but that the Committee Substitute adopted in lieu thereof do
   2-59  pass and be printed.
   2-60                                                         Montford,
   2-61  Chairman
   2-62                               * * * * *
   2-63                               WITNESSES
   2-64                                                  FOR   AGAINST  ON
   2-65  ___________________________________________________________________
   2-66  Name:  Scott K. Joslove                          x
   2-67  Representing:  Texas Municipal League
   2-68  City:  Austin
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