By Solis                                              H.B. No. 2746
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the consolidation of ad valorem tax assessment and
    1-3  collection.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Effective January 1, 1994, Section 6.26, Tax Code
    1-6  is amended to read as follows:
    1-7        (a)  An election by all taxing entities in an appraisal
    1-8  district must be called within one hundred (120) days of January 1,
    1-9  1994, to determine who will be the assessor-collector of ad valorem
   1-10  taxes for all taxing entities within the appraisal district.  <The
   1-11  qualified voters residing in an appraisal district by petition
   1-12  submitted to the county clerk of the county principally served by
   1-13  the appraisal district may require that an election be held to
   1-14  determine whether or not to require the appraisal district, the
   1-15  county assessor-collector, or a specified taxing unit within the
   1-16  appraisal district to assess, collect, or assess and collect
   1-17  property taxes on property appraised by the district for all taxing
   1-18  units.>
   1-19        (b)  Candidates for assessing and collecting taxes are the
   1-20  county assessor-collector, the appraisal district, or any specified
   1-21  taxing entity within the Appraisal District.  Taxing entities
   1-22  nominate candidates to the county clerk of the county principally
   1-23  served by the appraisal district.  All nominated candidates will be
    2-1  on the ballot.  <The qualified voters of a taxing unit that
    2-2  assesses, collects, or assesses and collects its own property taxes
    2-3  by petition submitted to the governing body of the taxing unit may
    2-4  require that an election be held to determine whether or not to
    2-5  require the appraisal district, the county assessor-collector, or
    2-6  another taxing unit that is assessing and collecting property taxes
    2-7  to assess, collect, or assess and collect the unit's property
    2-8  taxes.>
    2-9        <(c)  A petition is valid if:>
   2-10              <(1)  it states that it is intended to require an
   2-11  election in the appraisal district or taxing unit on the question
   2-12  of consolidation of assessing or collecting functions or both;>
   2-13              <(2)  it states the functions to be consolidated and
   2-14  identifies the entity or office that will be required to perform
   2-15  the functions; and>
   2-16              <(3)  it is signed by a number of qualified voters
   2-17  equal to at least 10 percent of the number of qualified voters,
   2-18  according to the most recent official list of qualified voters,
   2-19  residing in the appraisal district, if the petition is authorized
   2-20  by Subsection (a) of this section, or in the taxing unit, if the
   2-21  petition is authorized by Subsection (b) of this section, or by
   2-22  10,000 qualified voters, whichever number is less.>
   2-23        <(d)  Not later than the 10th day after the day the petition
   2-24  is submitted, the commissioners court, if the petition is
   2-25  authorized by Subsection (a) of this section, or the governing body
    3-1  of the taxing unit, if the petition is authorized by Subsection (b)
    3-2  of this section, shall determine whether the petition is valid and
    3-3  pass a resolution stating its finding.  The signature of a person
    3-4  may not be counted for purposes of validating the petition under
    3-5  Subsection (c)(3) of this section if:>
    3-6              <(1)  the person does not enter beside his signature at
    3-7  the time of his signing the date on which he signs the petition; or>
    3-8              <(2)  the person signs the petition more than 90 days
    3-9  before the date on which the petition is submitted to the county
   3-10  clerk or the governing body.>
   3-11        <(e)  If the commissioners court or the governing body finds
   3-12  that the petition is valid, it shall order that an election be held
   3-13  in the district or taxing unit on the next uniform election date
   3-14  prescribed by the Texas Election Code that is more than 60 days
   3-15  after the last day on which it could have acted to approve or
   3-16  disapprove the petition.  At the election, the ballots shall be
   3-17  prepared to permit voting for or against the proposition:
   3-18  "Requiring the (name of entity or office) to (assess, collect, or
   3-19  assess and collect, as applicable) property taxes for (all taxing
   3-20  units in the appraisal district for _____________ county or name of
   3-21  taxing unit or units, as applicable).">
   3-22        <(f)> (c)  <If a majority of the qualified voters voting on
   3-23  the question in the election favor the proposition,> The person,
   3-24  the entity or office named by the ballot shall perform the
   3-25  functions <named by the ballot> of consolidated assessor-collector
    4-1  beginning with the next time property taxes are assessed and
    4-2  collected. <as applicable, that is more than 90 days after the date
    4-3  of the election.  If the governing bodies (and appraisal district
    4-4  board of directors when the district is involved) agree, a function
    4-5  may be consolidated when performance of the function begins in less
    4-6  than 90 days after the date of the election.>
    4-7        <(g)> (d)  <A taxing unit> All taxing entities within the
    4-8  appraisal district shall pay the actual cost or <performance of the
    4-9  functions to the office or entity that performs functions for it
   4-10  pursuant to an election as provided by the section>
   4-11  assessing-collecting of taxes.
   4-12        <(h)  If a taxing unit is required by election pursuant to
   4-13  Subsection (b) of this section to assess, collect, or assess and
   4-14  collect property taxes for another taxing unit, it also shall
   4-15  perform the functions for all taxing units for which the other unit
   4-16  previously performed those functions pursuant to law or
   4-17  intergovernmental contract.>
   4-18        <(i)> (e)  If <the functions are consolidated by an election,
   4-19  a taxing unit may not terminate the consolidation within two years
   4-20  after the date of the consolidation> the performance of the
   4-21  elected, consolidated assessor-collector is unsatisfactory to
   4-22  majority of taxing entities, the entities may, at anytime after two
   4-23  years, call for a new election.
   4-24        <(j)> (f)  <An appraisal district> The consolidated
   4-25  assessor-collector may not be required by an election to, but may,
    5-1  assess<,> and collect<, or assess and collect> taxes on property
    5-2  outside the district's boundaries.  <A taxing unit may not be
    5-3  required by an election to assess, collect, or assess and collect
    5-4  taxes on property outside the boundaries of the appraisal district
    5-5  that appraises property for the unit.>
    5-6        SECTION 2.  Effective May 1, 1994, Section 6.23 of the Tax
    5-7  Code is amended to read as follows, to wit:
    5-8        (a)  The consolidated assessor-collector shall assess and
    5-9  collect all ad valorem taxes for all taxing entities within the
   5-10  appraisal district.  <The county assessor-collector shall assess
   5-11  and collect taxes on property in the county for the county.  He
   5-12  shall also assess and collect taxes on property for another taxing
   5-13  unit if:>
   5-14              <(1)  the law creating or authorizing creation of the
   5-15  unit requires it to use the county assessor-collector for the taxes
   5-16  the unit imposes in the county;>
   5-17              <(2)  the law creating or authorizing creation of the
   5-18  unit imposes taxes in the county;>
   5-19              <(3)  the governing body of the unit requires the
   5-20  county to assess and collect its taxes as provided by Subsection
   5-21  (c) of Section 6.22 of the code; or>
   5-22              <(4)  required by an intergovernmental contract.>
   5-23        <(b)  The assessor collector for a taxing unit other than a
   5-24  county shall assess, collect, or assess and collect taxes, as
   5-25  applicable, for the unit.  He shall also assess, collect, or assess
    6-1  and collect taxes, as applicable, for another unit if:>
    6-2              <(1)  required by or pursuant to the law creating or
    6-3  authorizing creation of the other unit; or>
    6-4              <(2)  required by an intergovernmental contract.>
    6-5        SECTION 3.  Effective May 1, 1994, Section 6.275 is amended
    6-6  to read as follows:
    6-7  Release of Assessor from Liability.  An assessor-collector or
    6-8  consolidated assessor-collector is not personally liable for the
    6-9  loss of public funds in the custody of the assessor-collector's or
   6-10  consolidated assessor-collector's <or the assessor-collector's>
   6-11  office if a district court enters a declaratory judgment that the
   6-12  loss is due to a reason other than the negligence or misconduct of
   6-13  the assessor-collector.
   6-14        SECTION 4.  Bonds for all Taxes.
   6-15        (a)  To qualify for office, a person or entity elected or
   6-16  appointed as county tax assessor-collector or consolidated
   6-17  assessor-collector must, within 20 days after receiving notice of
   6-18  his election or appointment, give bonds to the state<, and to the>
   6-19  county, and to all other political subdivisions for which taxes are
   6-20  being collected, conditioned on the faithful performance of his
   6-21  duties as such assessor-collector.
   6-22        (b)  The bond for state taxes must be payable to the governor
   6-23  and his successors in office in an amount equal to five percent of
   6-24  the net state collections from motor vehicle sales and use taxes
   6-25  and motor vehicle registration fees in the county during the year
    7-1  ending August 31 preceding the date bond is given, except that the
    7-2  amount of bond may not be less than $2,500 or more than $100,000.
    7-3  To be effective, the bond must be approved by the commissioners
    7-4  court and the state comptroller of public accounts.
    7-5        (c)  The bond for county taxes and all other political
    7-6  subdivision must be payable to <commissioners court> the respective
    7-7  agencies or political subdivisions in the amount equal to 10
    7-8  percent of the total amount of <county> taxes imposed in the
    7-9  preceding tax year, except that the amount of the bond may not be
   7-10  more than $100,000.  To be effective the bond must be approved by
   7-11  the commissioners court or other consolidated assessor-collector
   7-12  governing body.
   7-13        (d)  The state comptroller of public accounts or the
   7-14  commissioners court may require a new bond for state taxes at any
   7-15  time.  <The commissioners court may require a new bond for county
   7-16  taxes at any time.>  However, the total amount of bonds requires of
   7-17  assessor-collector may not exceed $100,000 at any one time.  The
   7-18  commissioners court shall suspend the assessor-collector from
   7-19  office and begin removal proceedings if he fails to give bond
   7-20  within a reasonable time after demand.
   7-21        (e)  The assessor-collector's official oath and bonds <for
   7-22  state and county taxes> shall be recorded in the office of the
   7-23  county clerk, and the county judge shall submit the bond for state
   7-24  taxes to the state comptroller of public accounts<.>  and all other
   7-25  bonds to the respective taxing entity or agency for their approval.
    8-1        (f)  <A county> Each taxing entity or agency shall pay a
    8-2  reasonable premium for the consolidated assessor-collector's bonds
    8-3  <for state and county taxes out of the county general revenue fund>
    8-4  as called for herein on presentation <to the commissioners court>
    8-5  to it of a bill for the premium authenticated as required by law
    8-6  for other claims against the <county> taxing entity.  A court of
    8-7  competent jurisdiction may determine the reasonableness of any
    8-8  amount claimed as a premium.
    8-9        SECTION 5.  Effective May 1, 1994, Section 6.30 is amended as
   8-10  follows:
   8-11        (a)  The consolidated assessor-collector shall, with the
   8-12  advice and consent of his governing body, contract for the
   8-13  collection of delinquent taxes for all taxing entities in the
   8-14  appraisal district.  The attorney's compensation is set in the
   8-15  contract, but the total amount of compensation provided may not
   8-16  exceed 20 percent of the amount of delinquent taxes, penalty, and
   8-17  interest collected.  <The county attorney or, if there is no county
   8-18  attorney, the district attorney shall represent the county to
   8-19  enforce the collection of delinquent taxes if the commissioners
   8-20  court does not contract with a private attorney as provided by
   8-21  Subsection (c) of this section.>
   8-22        <(b)  The governing body of a taxing unit other than a county
   8-23  may determine who represents the unit to enforce the collection of
   8-24  delinquent taxes.  If a taxing unit collects taxes for another
   8-25  taxing unit, the attorney representing the unit to enforce the
    9-1  collection of delinquent taxes may represent the other unit with
    9-2  consent of its governing body.>
    9-3        <(c)  The governing body of a taxing unit may contract with
    9-4  any competent attorney to represent the unit to enforce the
    9-5  collection of delinquent taxes.  The attorney's compensation is set
    9-6  in the contract, but the total amount of compensation provided may
    9-7  not exceed 20 percent of the amount of delinquent tax, penalty, and
    9-8  interest collected.>
    9-9        <(d)  Repealed in 1983.>
   9-10        <(e)> (b)  A contract with an attorney that does not conform
   9-11  to the requirements of this section is void.
   9-12        SECTION 6.  The importance of this legislation and the
   9-13  crowded condition of the calendars in both houses create an
   9-14  emergency and an imperative public necessity that the
   9-15  constitutional rule requiring bills to be read on three several
   9-16  days in each house be suspended, and this rule is hereby suspended.