By: Zaffirini S.B. No. 1083
(In the Senate - Filed February 25, 2019; March 7, 2019,
read first time and referred to Committee on Intergovernmental
Relations; April 15, 2019, reported favorably by the following
vote: Yeas 6, Nays 0; April 15, 2019, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to compensation to be paid to an emergency services
district for a municipality's annexation of the district's
territory.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 775.022, Health and Safety Code, is
amended by amending Subsections (c) and (e) and adding Subsection
(e-1) to read as follows:
(c) If a municipality removes territory from a district that
the municipality has annexed, the municipality shall compensate the
district immediately after disannexation of the territory under
Subsection (a) in an amount equal to the annexed territory's pro
rata share of the district's bonded and other indebtedness as
computed according to the formula in Subsection (e) or (e-1),
whichever yields the greater amount. The district shall apply
compensation received from a municipality under this subsection
exclusively to the payment of the annexed territory's pro rata
share of the district's bonded and other indebtedness.
(e) Unless Subsection (e-1) would yield a greater amount,
the [The] amount of compensation under Subsection (c) shall be
determined by multiplying the district's total indebtedness at the
time of the annexation by a fraction the numerator of which is the
assessed value of the property to be annexed based on the most
recent certified county property tax rolls at the time of
annexation and the denominator of which is the total assessed value
of the property of the district based on the most recent certified
county property tax rolls at the time of annexation.
(e-1) Unless Subsection (e) would yield a greater amount,
the amount of compensation under Subsection (c) shall be determined
by multiplying the district's total indebtedness at the time of the
annexation by a fraction:
(1) the numerator of which is the assessed value of the
property to be annexed based on the most recent certified county
property tax rolls at the time of annexation plus the total amount
of the district's sales and use tax revenue collected by retailers
located in the property to be annexed in the 12 months preceding the
date of annexation, as reported by the comptroller; and
(2) the denominator of which is the total assessed
value of the property of the district based on the most recent
certified county property tax rolls at the time of annexation plus
the total amount of the district's sales and use tax revenue
collected by retailers located in the district in the 12 months
preceding the date of annexation, as reported by the comptroller.
SECTION 2. Section 8437.002(d), Special District Local Laws
Code, is amended to read as follows:
(d) Sections 775.022(b), (c), (d), (e), (e-1), and (f),
Health and Safety Code, apply to a disannexation under this
section, as if the disannexation occurred under the provisions of
Section 775.022(a), Health and Safety Code.
SECTION 3. Section 9036.002(d), Special District Local Laws
Code, is amended to read as follows:
(d) Sections 775.022(b), (c), (d), (e), (e-1), and (f),
Health and Safety Code, apply to a disannexation under this
section, as if the disannexation occurred under the provisions of
Section 775.022(a), Health and Safety Code.
SECTION 4. Section 9042.002(d), Special District Local Laws
Code, is amended to read as follows:
(d) Sections 775.022(b), (c), (d), (e), (e-1), and (f),
Health and Safety Code, apply to a disannexation under this
section, as if the disannexation occurred under the provisions of
Section 775.022(a), Health and Safety Code.
SECTION 5. This Act takes effect September 1, 2019.
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