By:  Duncan                                           S.B. No. 1090
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the treatment of certain contracts for purposes of
 1-2     determining the rollback tax rate of a taxing unit.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 271.005, Local Government Code, is
 1-5     amended by adding Subsections (e) and (f) to read as follows:
 1-6           (e)  The aggregate ad valorem tax rate of a school district
 1-7     levied for maintenance and operations purposes and pledged to the
 1-8     payment of contracts that have terms longer than one year, up to a
 1-9     maximum of $0.05 per $100 of valuation, is considered debt for
1-10     purposes of Section 26.012(7), Tax Code, if, before adopting a tax
1-11     rate that includes a portion of the tax rate levied for maintenance
1-12     and operations purposes as a tax levied for debt purposes, the
1-13     board of trustees of the district publishes a notice of the board's
1-14     intention to consider a portion of the tax rate levied for
1-15     maintenance and operations purposes as a tax levied for debt
1-16     purposes.
1-17           (f)  The notice required by Subsection (e) must:
1-18                 (1)  be published in a newspaper of general circulation
1-19     in the district not later than the 15th day before the date set for
1-20     the board meeting at which the tax rate is to be adopted; and
1-21                 (2)  contain a statement in the following form:
1-22                "NOTICE OF INTENTION TO TREAT SCHOOL DISTRICT
1-23               MAINTENANCE AND OPERATIONS TAXES AS DEBT TAXES
1-24           "The board of trustees of (name of school district), in
 2-1     adopting a tax rate, will consider a proposal to treat maintenance
 2-2     and operations taxes as taxes levied for the payment of a debt.
 2-3     This will have the effect of raising the district's rollback tax
 2-4     rate, which is the limit on the amount of a tax rate increase over
 2-5     the previous year's rate that the district may adopt without
 2-6     holding an election."
 2-7           SECTION 2.  The importance of this legislation and the
 2-8     crowded condition of the calendars in both houses create an
 2-9     emergency and an imperative public necessity that the
2-10     constitutional rule requiring bills to be read on three several
2-11     days in each house be suspended, and this rule is hereby suspended,
2-12     and that this Act take effect and be in force from and after its
2-13     passage, and it is so enacted.