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  S.B. No. 1083
 
 
 
 
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 Subsections
  (e-1) and (g) 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.
         (g)  The amount of compensation under Subsection (c) shall be
  determined under Subsection (e) regardless of whether Subsection
  (e-1) would yield a greater amount if:
               (1)  the municipality is a municipality described by
  Section 775.014(h); and
               (2)  the municipality and the district enter into an
  agreement on or before September 1, 2019, regarding the district's
  bonded and other indebtedness.
         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.
 
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1083 passed the Senate on
  April 26, 2019, by the following vote: Yeas 30, Nays 0; and that
  the Senate concurred in House amendment on May 25, 2019, by the
  following vote: Yeas 30, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1083 passed the House, with
  amendment, on May 22, 2019, by the following vote: Yeas 143,
  Nays 0, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor