BILL ANALYSIS


                                                    C.S.S.B. 1614
                                                     By: Whitmire
                                                          Finance
                                                         04-10-95
                                   Committee Report (Substituted)
BACKGROUND

The Texas Legislature has supported districts giving homestead tax
exemptions.  A large number of homeowners in Texas are elderly and
living on a fixed income.  Repeals of homestead tax exemptions may
threaten home security for the elderly who sometimes encounter
problems meeting their property tax obligations without public
notice of a tax repeal.  However, school districts can repeal
homestead tax exemptions without voter approval.  

PURPOSE

As proposed, C.S.S.B. 1614 requires a governing body of a taxing
unit to hold a public hearing and an election prior to repealing an
existing homestead exemption.

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 11.13(f), Tax Code, to authorize an
exemption provided by Subsection (d) of this section to be
increased, rather than repealed or decreased, in amount by the
governing body of the taxing unit or by the procedure authorized by
Subdivision (2) of Subsection (d) of this section and to be
repealed or reduced in amount only in the manner prescribed by
Section 11.135. 

SECTION 2. Amends Chapter 11B, Tax Code, by adding Section 11.135,
as follows:

     Sec.  11.135.  REPEAL OR REDUCTION OF AMOUNT OF CERTAIN
     RESIDENCE HOMESTEAD EXEMPTIONS.  (a)  Prohibits the governing
     body of a taxing unit from repealing or reducing the amount of
     an exemption adopted under Section 11.13(d) or (n) without
     first receiving a majority vote in favor of the repeal or
     reduction at an election held in the taxing unit.  Requires
     the governing body to hold a public hearing on the reduction
     or repeal before calling the election.  Requires the governing
     body to give notice of the hearing before a certain date.   
            (b)  Prohibits the notice of the hearing from being smaller
       than a certain size, and requires the headline on the notice
       to be in 18-point or larger type.  Requires the notice to be
       in a certain form.
       
       (c)  Requires the notice to be delivered by mail to each
       property owner in the taxing unit receiving such exemption
       according to the current appraisal roll, or published in a
       part of a newspaper other than the part in which legal
       notices and classified advertisements appear.
       
       (d)  Requires the hearing to be on a weekday that is not a
       holiday; and in the taxing unit in a publicly owned building
       or, if a suitable publicly owned building is not available,
       in a suitable building to which the public normally has
       access.
       
       (e)  Requires the body to afford adequate opportunity for
       proponents and opponents of the reduction or repeal to
       present their views; and announce the date, time, and place
       of the meeting at which it will vote on the proposed
       reduction or repeal.   
       
       (f)  Requires the governing body to give notice of the
       meeting at which it will vote to repeal or reduce the amount
       of the exemption.  Prohibits the notice of the meeting from
       being smaller than a certain size, and requires the headline
       on the notice to be in 18-point or larger type.  Requires
       the notice to be in a certain form.
       
       (g)  Prohibits the meeting to vote on the exemption
       reduction or repeal from being earlier than a certain date. 
       Requires the meeting to be held in a publicly owned building
       or in a suitable building to which the public normally has
       access.  Requires the governing body to give new notice
       under Subdivision (e)(2) before it may vote on the repeal or
       reduction if the governing body does not vote to repeal or
       reduce the amount of the exemption before the 15th day after
       the date of the public hearing.
       
       (h)  Requires the governing body to order the election to be
       held in the taxing unit on a certain date on which it voted
       to repeal or reduce the amount of the exemption if the
       governing body votes to repeal or reduce the amount of the
       exemption.  Sets forth the required language of the ballot.
       
       (i)  Provides that the repeal or reduction in the amount of
       the residence homestead exemption takes effect on January 1
       of the succeeding year if the majority of the votes cast in
       the election favor the proposition.    SECTION 3.    Effective date:  September 1, 1995.

SECTION 4. Emergency clause.