76R16037 JD-F                          
         By Armbrister                                         S.B. No. 1118
         Substitute the following for S.B. No. 1118:
         By Oliveira                                       C.S.S.B. No. 1118
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the adoption by the governing body of a taxing unit of
 1-3     an ad valorem tax rate.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subsections (a) and (c), Section 26.05, Tax Code,
 1-6     are amended to read as follows:
 1-7           (a)  The [Except as provided by Subsection (c), the]
 1-8     governing body of each taxing unit, before the later of September
 1-9     30 [1] or the 60th day after the date the certified appraisal roll
1-10     is received by the taxing unit, [as soon thereafter as practicable]
1-11     shall adopt a tax rate for the current tax year and shall notify
1-12     the assessor for the unit of the rate adopted.  The tax rate
1-13     consists of two components, each of which must be approved
1-14     separately.  The components are:
1-15                 (1)  the rate that, if applied to the total taxable
1-16     value, will impose the total amount published under Section
1-17     26.04(e)(3)(C) [of this code], less any amount of additional sales
1-18     and use tax revenue that will be used to pay debt service; and
1-19                 (2)  the rate that, if applied to the total taxable
1-20     value, will impose the amount of taxes needed to fund maintenance
1-21     and operation expenditures of the unit for the next year.
1-22           (c)  If the governing body of a taxing unit does not adopt a
1-23     tax rate before the date required by Subsection (a) [appraisal roll
 2-1     is delivered to a county after August 22, the county must adopt a
 2-2     tax rate not later than the 30th day after the date on which the
 2-3     appraisal roll is received.  If a tax rate is not adopted during
 2-4     this 30-day period], the tax rate for the taxing unit for that tax
 2-5     year is the lower of the effective tax rate calculated for that tax
 2-6     year or the tax rate adopted by the taxing unit for the preceding
 2-7     tax year.  A tax rate established by this subsection [That rate] is
 2-8     treated as an adopted tax rate.  Before the fifth day after [Within
 2-9     five days of] the establishment [adoption] of a tax rate by
2-10     [pursuant to] this subsection, the governing body of the taxing
2-11     unit [county] must ratify the applicable [such] tax rate in the
2-12     manner required [as provided] by Subsection (b) [of this section].
2-13           SECTION 2.  This Act takes effect January 1, 2000, and
2-14     applies to the ad valorem tax rate of a taxing unit for a tax year
2-15     that begins on or after that date.
2-16           SECTION 3.  The importance of this legislation and the
2-17     crowded condition of the calendars in both houses create an
2-18     emergency and an imperative public necessity that the
2-19     constitutional rule requiring bills to be read on three several
2-20     days in each house be suspended, and this rule is hereby suspended.