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A BILL TO BE ENTITLED
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AN ACT
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relating to compensation to be paid to an emergency services |
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district for a municipality's annexation of the district's |
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territory. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 775.022, Health and Safety Code, is |
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amended by amending Subsections (c) and (e) and adding Subsection |
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(e-1) to read as follows: |
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(c) If a municipality removes territory from a district that |
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the municipality has annexed, the municipality shall compensate the |
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district immediately after disannexation of the territory under |
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Subsection (a) in an amount equal to the annexed territory's pro |
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rata share of the district's bonded and other indebtedness as |
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computed according to the formula in Subsection (e) or (e-1), |
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whichever yields the greater amount. The district shall apply |
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compensation received from a municipality under this subsection |
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exclusively to the payment of the annexed territory's pro rata |
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share of the district's bonded and other indebtedness. |
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(e) Unless Subsection (e-1) would yield a greater amount, |
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the [The] amount of compensation under Subsection (c) shall be |
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determined by multiplying the district's total indebtedness at the |
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time of the annexation by a fraction the numerator of which is the |
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assessed value of the property to be annexed based on the most |
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recent certified county property tax rolls at the time of |
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annexation and the denominator of which is the total assessed value |
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of the property of the district based on the most recent certified |
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county property tax rolls at the time of annexation. |
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(e-1) Unless Subsection (e) would yield a greater amount, |
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the amount of compensation under Subsection (c) shall be determined |
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by multiplying the district's total indebtedness at the time of the |
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annexation by a fraction: |
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(1) the numerator of which is the assessed value of the |
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property to be annexed based on the most recent certified county |
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property tax rolls at the time of annexation plus the total amount |
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of the district's sales and use tax revenue collected by retailers |
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located in the property to be annexed in the 12 months preceding the |
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date of annexation, as reported by the comptroller; and |
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(2) the denominator of which is the total assessed |
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value of the property of the district based on the most recent |
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certified county property tax rolls at the time of annexation plus |
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the total amount of the district's sales and use tax revenue |
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collected by retailers located in the district in the 12 months |
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preceding the date of annexation, as reported by the comptroller. |
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SECTION 2. Section 8437.002(d), Special District Local Laws |
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Code, is amended to read as follows: |
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(d) Sections 775.022(b), (c), (d), (e), (e-1), and (f), |
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Health and Safety Code, apply to a disannexation under this |
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section, as if the disannexation occurred under the provisions of |
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Section 775.022(a), Health and Safety Code. |
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SECTION 3. Section 9036.002(d), Special District Local Laws |
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Code, is amended to read as follows: |
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(d) Sections 775.022(b), (c), (d), (e), (e-1), and (f), |
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Health and Safety Code, apply to a disannexation under this |
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section, as if the disannexation occurred under the provisions of |
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Section 775.022(a), Health and Safety Code. |
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SECTION 4. Section 9042.002(d), Special District Local Laws |
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Code, is amended to read as follows: |
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(d) Sections 775.022(b), (c), (d), (e), (e-1), and (f), |
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Health and Safety Code, apply to a disannexation under this |
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section, as if the disannexation occurred under the provisions of |
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Section 775.022(a), Health and Safety Code. |
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SECTION 5. This Act takes effect September 1, 2019. |