By:  Greenberg                                        H.B. No. 2655
       73R4240 JD-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the ad valorem tax rate of certain taxing units.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 26.04, Tax Code, is amended by adding
    1-5  Subsections (k) and (l) to read as follows:
    1-6        (k)  This subsection applies to a taxing unit that
    1-7  discontinues operating a distinct department, function, or activity
    1-8  if the operation of that department, function, or activity in all
    1-9  or a majority of the territory of the taxing unit is continued by
   1-10  another existing taxing unit or by a new taxing unit.  The rollback
   1-11  tax rate of a taxing unit to which this subsection applies in the
   1-12  first tax year in which a budget is adopted that does not allocate
   1-13  revenue to the discontinued department, function, or activity is
   1-14  calculated as otherwise provided by this section, except that last
   1-15  year's levy used to calculate the effective maintenance and
   1-16  operations rate of the unit is reduced by the amount of maintenance
   1-17  and operations tax revenue spent by the taxing unit to operate the
   1-18  department, function, or activity in the last fiscal year in which
   1-19  the taxing unit operated that department, function, or activity for
   1-20  the entire fiscal year.
   1-21        (l)  This subsection applies to a taxing unit that operates a
   1-22  distinct department, function, or activity if the operation of a
   1-23  substantially similar department, function, or activity in all or a
   1-24  majority of the territory of the taxing unit has been discontinued
    2-1  by another taxing unit, including a dissolved taxing unit.  The
    2-2  rollback tax rate of a taxing unit to which this subsection applies
    2-3  in the first tax year after the other taxing unit discontinued the
    2-4  substantially similar department, function, or activity in which a
    2-5  budget is adopted that allocates revenue to the department,
    2-6  function, or activity is calculated as otherwise provided by this
    2-7  section, except that last year's levy used to calculate the
    2-8  effective maintenance and operations rate of the unit is increased
    2-9  by the amount of maintenance and operations tax revenue spent by
   2-10  the taxing unit that discontinued operating the substantially
   2-11  similar department, function, or activity to operate that
   2-12  department, function, or activity in the last fiscal year in which
   2-13  that taxing unit operated the discontinued department, function, or
   2-14  activity for the entire fiscal year.
   2-15        SECTION 2.  The change in law made by this Act applies only
   2-16  to a taxing unit that adopts its tax rate on or after the effective
   2-17  date of this Act.
   2-18        SECTION 3.  The importance of this legislation and the
   2-19  crowded condition of the calendars in both houses create an
   2-20  emergency and an imperative public necessity that the
   2-21  constitutional rule requiring bills to be read on three several
   2-22  days in each house be suspended, and this rule is hereby suspended,
   2-23  and that this Act take effect and be in force from and after its
   2-24  passage, and it is so enacted.