By: Barrientos S.B. No. 668 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.