BILL ANALYSIS

H.B. 2908

By: Murr

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Appraisal districts are unique among political subdivisions both in the way they operate and are governed, but also in the manner in which they are authorized to finance property acquisitions. The 70th Texas Legislature, through S.B. 312, authorized appraisal districts to purchase or lease property for their administrative operations. While it is clear that districts are able to purchase or lease property, current statute is unclear as to whether they can incur debt to finance the construction of new property or improvements to existing buildings. H.B. 2908 seeks to bring greater transparency and eliminate the practice of districts establishing nonprofit holding corporations to finance transactions by clarifying that an appraisal district's board of directors may finance the purchase of real property or the construction of improvements.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 2908 amends the Tax Code to authorize the board of directors of an appraisal district to finance the purchase of real property or finance the construction of improvements as necessary to establish and operate the appraisal office or a branch appraisal office.

H.B. 2908 revises provisions regarding the approval of the acquisition or conveyance of real property or the construction or renovation of a building or other improvement by an appraisal district by the governing bodies of the taxing units entitled to vote on the appointment of the district's board members as follows:

· establishes that the financing of the acquisition of real property or of the construction or renovation of a building or other improvement is not subject to approval by the taxing units; and

· with respect to the provision establishing that a board-proposed action requiring taxing unit approval is treated as if it were disapproved by a governing body if the governing body fails to act or file its resolution approving or disapproving the proposal within the prescribed time, changes the default treatment to the proposal being treated as if it were approved by the governing body.

These provisions apply only to a proposed property transaction or other action for which a chief appraiser sends notification on or after the bill's effective date.

EFFECTIVE DATE

September 1, 2023.