By:  Lucio                                            S.B. No. 1248
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the consolidation of ad valorem tax assessment and
    1-2  collection.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Effective January 1, 1994, Section 6.26, Tax
    1-5  Code, is amended to read as follows:
    1-6        (a)  An election by all taxing entities in an appraisal
    1-7  district must be called within one hundred (120) days of January 1,
    1-8  1994, to determine who will be the assessor-collector of ad valorem
    1-9  taxes for all taxing entities within the appraisal district.  <The
   1-10  qualified voters residing in an appraisal district by petition
   1-11  submitted to the county clerk of the county principally served by
   1-12  the appraisal district may require that an election be held to
   1-13  determine whether or not to require the appraisal district, the
   1-14  county assessor-collector, or a specified taxing unit within the
   1-15  appraisal district to assess, collect, or assess and collect
   1-16  property taxes on property appraised by the district for all taxing
   1-17  units.>
   1-18        (b)  Candidates for assessing and collecting taxes are the
   1-19  county assessor-collector, the appraisal district, or any specified
   1-20  taxing entity within the Appraisal District.  Taxing entities
   1-21  nominate candidates to the county clerk of the county principally
   1-22  served by the appraisal district.  All nominated candidates will be
   1-23  on the ballot.  <The qualified voters of a taxing unit that
    2-1  assesses, collects, or assesses and collects its own property taxes
    2-2  by petition submitted to the governing body of the taxing unit may
    2-3  require that an election be held to determine whether or not to
    2-4  require the appraisal district, the county assessor-collector, or
    2-5  another taxing unit that is assessing and collecting property taxes
    2-6  to assess, collect, or assess and collect the unit's property
    2-7  taxes.>
    2-8        <(c)  A petition is valid if:>
    2-9              <(1)  it states that it is intended to require an
   2-10  election in the appraisal district or taxing unit on the question
   2-11  of consolidation of assessing or collecting functions or both;>
   2-12              <(2)  it states the functions to be consolidated and
   2-13  identifies the entity or office that will be required to perform
   2-14  the functions; and>
   2-15              <(3)  it is signed by a number of qualified voters
   2-16  equal to at least 10 percent of the number of qualified voters,
   2-17  according to the most recent official list of qualified voters,
   2-18  residing in the appraisal district, if the petition is authorized
   2-19  by Subsection (a) of this section, or in the taxing unit, if the
   2-20  petition is authorized by Subsection (b) of this section, or by
   2-21  10,000 qualified voters, whichever number is less.>
   2-22        <(d)  Not later than the 10th day after the day the petition
   2-23  is submitted, the commissioners court, if the petition is
   2-24  authorized by Subsection (a) of this section, or the governing body
   2-25  of the taxing unit, if the petition is authorized by Subsection (b)
    3-1  of this section, shall determine whether the petition is valid and
    3-2  pass a resolution stating its finding.  The signature of a person
    3-3  may not be counted for purposes of validating the petition under
    3-4  Subsection (c)(3) of this section if:>
    3-5              <(1)  the person does not enter beside his signature at
    3-6  the time of his signing the date on which he signs the petition; or>
    3-7              <(2)  the person signs the petition more than 90 days
    3-8  before the date on which the petition is submitted to the county
    3-9  clerk or the governing body.>
   3-10        <(e)  If the commissioners court or the governing body finds
   3-11  that the petition is valid, it shall order that an election be held
   3-12  in the district or taxing unit on the next uniform election date
   3-13  prescribed by the Texas Election Code that is more than 60 days
   3-14  after the last day on which it could have acted to approve or
   3-15  disapprove the petition.  At the election, the ballots shall be
   3-16  prepared to permit voting for or against the proposition:
   3-17  "Requiring the (name of entity or office) to (assess, collect, or
   3-18  assess and collect, as applicable) property taxes for (all taxing
   3-19  units in the appraisal district for _____________ county or name of
   3-20  taxing unit or units, as applicable).">
   3-21        <(f)> (c)  <If a majority of the qualified voters voting on
   3-22  the question in the election favor the proposition,> The person,
   3-23  the entity or office named by the ballot shall perform the
   3-24  functions <named by the ballot> of consolidated assessor-collector
   3-25  beginning with the next time property taxes are assessed and
    4-1  collected. <as applicable, that is more than 90 days after the date
    4-2  of the election.  If the governing bodies (and appraisal district
    4-3  board of directors when the district is involved) agree, a function
    4-4  may be consolidated when performance of the function begins in less
    4-5  than 90 days after the date of the election.>
    4-6        <(g)> (d)  <A taxing unit> All taxing entities within the
    4-7  appraisal district shall pay the actual cost or <performance of the
    4-8  functions to the office or entity that performs the function for it
    4-9  pursuant to an election as provided by this section>
   4-10  assessing-collecting of taxes.
   4-11        <(h)  If a taxing unit is required by election pursuant to
   4-12  Subsection (b) of this section to assess, collect, or assess and
   4-13  collect property taxes for another taxing unit, it also shall
   4-14  perform the functions for all taxing units for which the other unit
   4-15  previously performed those functions pursuant to law or
   4-16  intergovernmental contract.>
   4-17        <(i)> (e)  If <the functions are consolidated by an election,
   4-18  a taxing unit may not terminate the consolidation within two years
   4-19  after the date of the consolidation> the performance of the
   4-20  elected, consolidated assessor-collector is unsatisfactory to
   4-21  majority of taxing entities, the entities may, at any time after
   4-22  two years, call for a new election.
   4-23        <(j)> (f)  <An appraisal district> The consolidated
   4-24  assessor-collector may not be required by an election to, but may,
   4-25  assess<,> and collect<, or assess and collect> taxes on property
    5-1  outside the district's boundaries.  <A taxing unit may not be
    5-2  required by an election to assess, collect, or assess and collect
    5-3  taxes on property outside the boundaries of the appraisal district
    5-4  that appraises property for the unit.>
    5-5        SECTION 2.  Effective May 1, 1994, Section 6.23 of the Tax
    5-6  Code is amended to read as follows, to wit:
    5-7        (a)  The consolidated assessor-collector shall assess and
    5-8  collect all ad valorem taxes for all taxing entities within the
    5-9  appraisal district.  <The county assessor-collector shall assess
   5-10  and collect taxes on property in the county for the county.  He
   5-11  shall also assess and collect taxes on property for another taxing
   5-12  unit if:>
   5-13              <(1)  the law creating or authorizing creation of the
   5-14  unit requires it to use the county assessor-collector for the taxes
   5-15  the unit imposes in the county;>
   5-16              <(2)  the law creating or authorizing creation of the
   5-17  unit imposes taxes in the county;>
   5-18              <(3)  the governing body of the unit requires the
   5-19  county to assess and collect its taxes as provided by Subsection
   5-20  (c) of Section 6.22 of this code; or>
   5-21              <(4)  required by an intergovernmental contract.>
   5-22        <(b)  The assessor-collector for a taxing unit other than a
   5-23  county shall assess, collect, or assess and collect taxes, as
   5-24  applicable, for the unit.  He shall also assess, collect, or assess
   5-25  and collect taxes, as applicable, for another unit if:>
    6-1              <(1)  required by or pursuant to the law creating or
    6-2  authorizing creation of the other unit; or>
    6-3              <(2)  required by an intergovernmental contract.>
    6-4        SECTION 3.  Effective May 1, 1994, Section 6.275 is amended
    6-5  to read as follows:
    6-6  Release of Assessor From Liability.  An assessor-collector or
    6-7  consolidated assessor-collector is not personally liable for the
    6-8  loss of public funds in the custody of the assessor-collector's or
    6-9  consolidated assessor-collector's <or the assessor-collector's>
   6-10  office if a district court enters a declaratory judgment that the
   6-11  loss is due to a reason other than the negligence or misconduct of
   6-12  the assessor-collector.
   6-13        SECTION 4.  Bonds for all Taxes.  (a)  To  qualify for
   6-14  office, a person or entity elected or appointed as county tax
   6-15  assessor-collector or consolidated assessor-collector must, within
   6-16  20 days after receiving notice of his election or appointment, give
   6-17  bonds to the state<, and to the> county, and to all other political
   6-18  subdivisions for which taxes are being collected, conditioned on
   6-19  the faithful performance of his duties as such assessor-collector.
   6-20        (b)  The bond for state taxes must be payable to the governor
   6-21  and his successors in office in an amount equal to five percent of
   6-22  the net state collections from motor vehicle sales and use taxes
   6-23  and motor vehicle registration fees in the count during the year
   6-24  ending August 31 preceding the date the bond is given, except that
   6-25  the amount of bond may not be less than $2,500 or more than
    7-1  $100,000.  To be effective, the bond must be approved by the
    7-2  commissioners court and the state comptroller of public accounts.
    7-3        (c)  The bond for county taxes and all other political
    7-4  subdivision must be payable to <commissioners court> the respective
    7-5  agencies or political subdivisions in the amount equal to 10
    7-6  percent of the total amount of <county> taxes imposed in the
    7-7  preceding tax year, except that the amount of the bond may not be
    7-8  more than $100,000.  To be effective the bond must be approved by
    7-9  the commissioners court or other consolidated assessor-collector
   7-10  governing body.
   7-11        (d)  The state comptroller of public accounts or the
   7-12  commissioners court may require a new bond for state taxes at any
   7-13  time.  <The commissioners court may require a new bond for county
   7-14  taxes at any time.>  However, the total amount of bonds required of
   7-15  assessor-collector may not exceed $100,000 at any one time.  The
   7-16  commissioners court shall suspend the assessor-collector from
   7-17  office and begin removal proceedings if he fails to give bond
   7-18  within a reasonable time after demand.
   7-19        (e)  The assessor-collector's official oath and bonds <for
   7-20  state and county taxes> shall be recorded in the office of the
   7-21  county clerk, and the county judge shall submit the bond for state
   7-22  taxes to the state comptroller of public accounts<.>  and all other
   7-23  bonds to the respective taxing entity or agency for their approval.
   7-24        (f)  <A county> Each taxing entity or agency shall pay a
   7-25  reasonable premium for the consolidated assessor-collector's bonds
    8-1  <for state and county taxes out of the county general revenue fund>
    8-2  as called for herein on presentation <to the commissioners court>
    8-3  to it of a bill for the premium authenticated as required by law
    8-4  for other claims against the <county> taxing entity.  A court of
    8-5  competent jurisdiction may determine the reasonableness of any
    8-6  amount claimed as a premium.
    8-7        SECTION 5.  Effective May 1, 1994, Section 6.30 is amended as
    8-8  follows:
    8-9        (a)  The consolidated assessor-collector shall, with the
   8-10  advice and consent of his governing body, contract for the
   8-11  collection of delinquent taxes for all taxing entities in the
   8-12  appraisal district.  The attorney's compensation is set in the
   8-13  contract, but the total amount of compensation provided may not
   8-14  exceed 20 percent of the amount of delinquent taxes, penalty, and
   8-15  interest collected.  <The county attorney or, if there is no county
   8-16  attorney, the district attorney shall represent the county to
   8-17  enforce the collection of delinquent taxes if the commissioners
   8-18  court does not contract with a private attorney as provided by
   8-19  Subsection (c) of this section.>
   8-20        <(b)  The governing body of a taxing unit other than a county
   8-21  may determine who represents the unit to enforce the collection of
   8-22  delinquent taxes.  If a taxing unit collects taxes for another
   8-23  taxing unit, the attorney representing the unit to enforce the
   8-24  collection of delinquent taxes may represent the other unit with
   8-25  consent of its governing body.>
    9-1        <(c)  The governing body of a taxing unit may contract with
    9-2  any competent attorney to represent the unit to enforce the
    9-3  collection of delinquent taxes.  The attorney's compensation is set
    9-4  in the contract, but the total amount of compensation provided may
    9-5  not exceed 20 percent of the amount of delinquent tax, penalty, and
    9-6  interest collected.>
    9-7        <(d)  Repealed in 1983.>
    9-8        <(e)> (b)  A contract with an attorney that does not conform
    9-9  to the requirements of this section is void.
   9-10        SECTION 6.  The importance of this legislation and the
   9-11  crowded condition of the calendars in both houses create an
   9-12  emergency and an imperative public necessity that the
   9-13  constitutional rule requiring bills to be read on three several
   9-14  days in each house be suspended, and this rule is hereby suspended.