By Kubiak                                       H.B. No. 2441

      75R8580 SMH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the election of the board of directors of an appraisal

 1-3     district.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 5.12(b), Tax Code, is amended to read as

 1-6     follows:

 1-7           (b)  At the written request of the governing bodies of a

 1-8     majority of all the taxing units participating in an appraisal

 1-9     district or of a majority of the group of taxing units composed of

1-10     the municipalities, school districts, and county participating in

1-11     the district [entitled to vote on the appointment of appraisal

1-12     district directors], the comptroller shall audit the performance of

1-13     the appraisal district.  The governing bodies may request a general

1-14     audit of the performance of the appraisal district or may request

1-15     an audit of only one or more particular duties, practices,

1-16     functions, departments, or other appraisal district matters.

1-17           SECTION 2.  Section 5.13(h), Tax Code, is amended to read as

1-18     follows:

1-19           (h)  At any time after the request for an audit is made, the

1-20     comptroller may discontinue the audit in whole or part if requested

1-21     to do so by:

1-22                 (1)  the governing bodies of a majority of all the

1-23     taxing units participating in the district, if the audit was

1-24     requested by a majority of those units;

 2-1                 (2)  the governing bodies of a majority of the group of

 2-2     taxing units composed of the municipalities, school districts, and

 2-3     county participating in the district [entitled to vote on the

 2-4     appointment of appraisal district directors], if the audit was

 2-5     requested by a majority of those units; or

 2-6                 (3)  if the audit was requested under Section 5.12(c)

 2-7     of this code, by the taxpayers who requested the audit.

 2-8           SECTION 3.  Section 6.03, Tax Code, is amended to read as

 2-9     follows:

2-10           Sec. 6.03.  Board of Directors.  (a)  The appraisal district

2-11     is governed by a board of five directors.  One director is elected

2-12     from each of the four commissioners precincts in the county for

2-13     which the appraisal district is established and one director is

2-14     elected at large from the county.  The directors are elected at the

2-15     general election for state and county officers and serve two-year

2-16     terms beginning on January 1 of odd-numbered years.

2-17           (b)  To be eligible to serve on the board of directors, an

2-18     individual must:

2-19                 (1)  be a resident of the precinct from which the

2-20     director is elected or, in the case of the director-at-large, a

2-21     resident of the county; [district] and

2-22                 (2)  [must] have resided in the district for at least

2-23     two years immediately preceding the date the individual takes

2-24     office.

2-25           (c)  A [To be eligible to serve on the board of an appraisal

2-26     district established for a county having a population of at least

2-27     200,000 bordering a county having a population of at least

 3-1     2,000,000 and the Gulf of Mexico, an individual must be a member of

 3-2     the governing body or an elected officer of a taxing unit entitled

 3-3     to vote on the appointment of board members under this section.

 3-4     However, an employee of a taxing unit that participates in the

 3-5     district is not eligible to serve on the board unless the

 3-6     individual is also a member of the governing body or an elected

 3-7     official of a taxing unit that participates in the district.]

 3-8           [(b)  Members of the board of directors serve two-year terms

 3-9     beginning on January 1 of even-numbered years.]

3-10           [(c)  Members of the board of directors are appointed by vote

3-11     of the governing bodies of the incorporated cities and towns, the

3-12     school districts, and, if entitled to vote, the conservation and

3-13     reclamation districts that participate in the district and of the

3-14     county.  A governing body may cast all its votes for one candidate

3-15     or distribute them among candidates for any number of

3-16     directorships.  Conservation and reclamation districts are not

3-17     entitled to vote unless at least one conservation and reclamation

3-18     district in the district delivers to the chief appraiser a written

3-19     request to nominate and vote on the board of directors by June 1 of

3-20     each odd-numbered year.  On receipt of a request, the chief

3-21     appraiser shall certify a list by June 15 of all eligible

3-22     conservation and reclamation districts that are imposing taxes and

3-23     that participate in the district.]

3-24           [(d)  The voting entitlement of a taxing unit that is

3-25     entitled to vote for directors is determined by dividing the total

3-26     dollar amount of property taxes imposed in the district by the

3-27     taxing unit for the preceding tax year by the sum of the total

 4-1     dollar amount of property taxes imposed in the district for that

 4-2     year by each taxing unit that is entitled to vote, by multiplying

 4-3     the quotient by 1,000, and by rounding the product to the nearest

 4-4     whole number.  That number is multiplied by the number of

 4-5     directorships to be filled. A taxing unit participating in two or

 4-6     more districts is entitled to vote in each district in which it

 4-7     participates, but only the taxes imposed in a district are used to

 4-8     calculate voting entitlement in that district.]

 4-9           [(e)  The chief appraiser shall calculate the number of votes

4-10     to which each taxing unit other than a conservation and reclamation

4-11     district is entitled and shall deliver written notice to each of

4-12     those units of its voting entitlement before October 1 of each

4-13     odd-numbered year.  The chief appraiser shall deliver the notice:]

4-14                 [(1)  to the county judge and each commissioner of the

4-15     county served by the appraisal district;]

4-16                 [(2)  to the presiding officer of the governing body of

4-17     each city or town participating in the appraisal district, to the

4-18     city manager of each city or town having a city manager, and to the

4-19     city secretary or clerk, if there is one, of each city or town that

4-20     does not have a city manager; and]

4-21                 [(3)  to the presiding officer of the governing body of

4-22     each school district participating in the district and to the

4-23     superintendent of those school districts.]

4-24           [(f)  The chief appraiser shall calculate the number of votes

4-25     to which each conservation and reclamation district entitled to

4-26     vote for district directors is entitled and shall deliver written

4-27     notice to the presiding officer of each conservation and

 5-1     reclamation district of its voting entitlement and right to

 5-2     nominate a person to serve as a director of the district before

 5-3     July 1 of each odd-numbered year.]

 5-4           [(g)  Each taxing unit other than a conservation and

 5-5     reclamation district that is entitled to vote may nominate by

 5-6     resolution adopted by its governing body one candidate for each

 5-7     position to be filled on the board of directors.  The presiding

 5-8     officer of the governing body of the unit shall submit the names of

 5-9     the unit's nominees to the chief appraiser before October 15.]

5-10           [(h)  Each conservation and reclamation district entitled to

5-11     vote may nominate by resolution adopted by its governing body one

5-12     candidate for the district's board of directors.  The presiding

5-13     officer of the conservation and reclamation district's governing

5-14     body shall submit the name of the district's nominee to the chief

5-15     appraiser before July 15 of each odd-numbered year.  Before August

5-16     1, the chief appraiser shall prepare a nominating ballot, listing

5-17     all the nominees of conservation and reclamation districts

5-18     alphabetically by surname, and shall deliver a copy of the

5-19     nominating ballot to the presiding officer of the board of

5-20     directors of each district.  The board of directors of each

5-21     district shall determine its vote by resolution and submit it to

5-22     the chief appraiser before August 15.  The nominee on the ballot

5-23     with the most votes is the nominee of the conservation and

5-24     reclamation districts in the appraisal district if the nominee

5-25     received more than 10 percent of the votes entitled to be cast by

5-26     all of the conservation and reclamation districts in the appraisal

5-27     district, and shall be named on the ballot with the candidates

 6-1     nominated by the other taxing units.  The chief appraiser shall

 6-2     resolve a tie vote by any method of chance.]

 6-3           [(i)  If no nominee of the conservation and reclamation

 6-4     districts receives more than 10 percent of the votes entitled to be

 6-5     cast under Subsection (h), the chief appraiser, before September 1,

 6-6     shall notify the presiding officer of the board of directors of

 6-7     each conservation and reclamation district of the failure to select

 6-8     a nominee.  Each conservation and reclamation district may submit a

 6-9     nominee by September 15 to the chief appraiser as provided by

6-10     Subsection (h).  The chief appraiser shall submit a second

6-11     nominating ballot by October 1 to the conservation and reclamation

6-12     districts as provided by Subsection (h).  The conservation and

6-13     reclamation districts shall submit their votes for nomination

6-14     before October 15 as provided by Subsection (h).  The nominee on

6-15     the second nominating ballot with the most votes is the nominee of

6-16     the conservation and reclamation districts in the appraisal

6-17     district and shall be named on the ballot with the candidates

6-18     nominated by the other taxing units.  The chief appraiser shall

6-19     resolve a tie vote by any method of chance.]

6-20           [(j)  Before October 30, the chief appraiser shall prepare a

6-21     ballot, listing the candidates alphabetically according to the

6-22     first letter in each candidate's surname, and shall deliver a copy

6-23     of the ballot to the presiding officer of the governing body of

6-24     each taxing unit that is entitled to vote.]

6-25           [(k)  The governing body of each taxing unit entitled to vote

6-26     shall determine its vote by resolution and submit it to the chief

6-27     appraiser before November 15.  The chief appraiser shall count the

 7-1     votes, declare the five candidates who receive the largest

 7-2     cumulative vote totals elected, and submit the results before

 7-3     December 1 to the governing body of each taxing unit in the

 7-4     district and to the candidates. For purposes of determining the

 7-5     number of votes received by the candidates, the candidate receiving

 7-6     the most votes of the conservation and reclamation districts is

 7-7     considered to have received all of the votes cast by conservation

 7-8     and reclamation districts and the other candidates are considered

 7-9     not to have received any votes of the conservation and reclamation

7-10     districts. The chief appraiser shall resolve a tie vote by any

7-11     method of chance.]

7-12           [(l)  If a] vacancy [occurs] on the board of directors is

7-13     filled for the remainder of the unexpired term by appointment by

7-14     the commissioners court of the county for which the appraisal

7-15     district is established[, each taxing unit that is entitled to vote

7-16     by this section may nominate by resolution adopted by its governing

7-17     body a candidate to fill the vacancy.  The unit shall submit the

7-18     name of its nominee to the chief appraiser within 10 days after

7-19     notification from the board of directors of the existence of the

7-20     vacancy, and the chief appraiser shall prepare and deliver to the

7-21     board of directors within the next five days a list of the

7-22     nominees.  The board of directors shall elect by majority vote of

7-23     its members one of the nominees to fill the vacancy].

7-24           (d)  If as a result of a change in the boundaries of

7-25     commissioners precincts an individual serving as a director no

7-26     longer resides in the precinct from which the director is elected,

7-27     the individual is not for that reason disqualified from office

 8-1     during the remainder of the term of office being served at the time

 8-2     the boundary change takes effect.  If as a result of a change in

 8-3     the boundaries of commissioners precincts an individual elected as

 8-4     a director before the boundary change to a term that begins after

 8-5     the boundary change no longer resides in the precinct from which

 8-6     elected, the individual is not for that reason disqualified from

 8-7     serving the term to which elected.

 8-8           [(m)  If a school district participates in an appraisal

 8-9     district in which the only property of the school district located

8-10     in the appraisal district is property annexed to the school

8-11     district under Subchapter C or G, Chapter 36, Education Code, an

8-12     individual who does not meet the residency requirements of

8-13     Subsection (a) is eligible to be appointed to the board of

8-14     directors of the appraisal district if:]

8-15                 [(1)  the individual is a resident of the school

8-16     district; and]

8-17                 [(2)  the individual is nominated as a candidate for

8-18     the board of directors by the school district or, if the taxing

8-19     units have adopted a change in the method of appointing board

8-20     members that does not require a nomination, the school district

8-21     appoints or participates in the appointment of the individual.]

8-22           SECTION 4.  Section 6.051(b), Tax Code, is amended to read as

8-23     follows:

8-24           (b)  The acquisition or conveyance of real property or the

8-25     construction or renovation of a building or other improvement by an

8-26     appraisal district must be approved by the governing bodies of

8-27     three-fourths of the group of taxing units composed of the

 9-1     municipalities, school districts, and county participating in the

 9-2     district [entitled to vote on the appointment of board members].

 9-3     The board of directors by resolution may propose a property

 9-4     transaction or other action for which this subsection requires

 9-5     approval of those [the] taxing units.  The chief appraiser shall

 9-6     notify the presiding officer of each governing body entitled to

 9-7     vote on the approval of the proposal by delivering a copy of the

 9-8     board's resolution, together with information showing the costs of

 9-9     other available alternatives to the proposal.  On or before the

9-10     30th day after the date the presiding officer receives notice of

9-11     the proposal, the governing body of a taxing unit by resolution may

9-12     approve or disapprove the proposal.  If a governing body fails to

9-13     act on or before that 30th day or fails to file its resolution with

9-14     the chief appraiser on or before the 10th day after that 30th day,

9-15     the proposal is treated as if it were disapproved by the governing

9-16     body.

9-17           SECTION 5.  Sections 6.06(b) and (i), Tax Code, are amended

9-18     to read as follows:

9-19           (b)  The board of directors shall hold a public hearing to

9-20     consider the budget.  The secretary of the board shall deliver to

9-21     the presiding officer of the governing body of each taxing unit

9-22     participating in the district not later than the 10th day before

9-23     the date of the hearing a written notice of the date, time, and

9-24     place fixed for the hearing.  The board shall complete its

9-25     hearings, make any amendments to the proposed budget it desires,

9-26     and finally approve a budget before September 15.  If governing

9-27     bodies of a majority of the group of taxing units composed of the

 10-1    municipalities, school districts, and county participating in the

 10-2    district [taxing units entitled to vote on the appointment of board

 10-3    members] adopt resolutions disapproving a budget and file them with

 10-4    the secretary of the board within 30 days after its adoption, the

 10-5    budget does not take effect, and the board shall adopt a new budget

 10-6    within 30 days of the disapproval.

 10-7          (i)  The fiscal year of an appraisal district is the calendar

 10-8    year unless the governing bodies of three-fourths of the group of

 10-9    taxing units composed of the municipalities, school districts, and

10-10    county participating in the district [taxing units entitled to vote

10-11    on the appointment of board members] adopt resolutions proposing a

10-12    different fiscal year and file them with the secretary of the board

10-13    not more than 12 and not less than eight months before the first

10-14    day of the fiscal year proposed by the resolutions.  If the fiscal

10-15    year of an appraisal district is changed under this subsection, the

10-16    chief appraiser shall prepare a proposed budget for the fiscal year

10-17    as provided by Subsection (a) of this section before the 15th day

10-18    of the seventh month preceding the first day of the fiscal year

10-19    established by the change, and the board of directors shall adopt a

10-20    budget for the fiscal year as provided by Subsection (b) of this

10-21    section before the 15th day of the fourth month preceding the first

10-22    day of the fiscal year established by the change.  Unless the

10-23    appraisal district adopts a different method of allocation under

10-24    Section 6.061 of this code, the allocation of the budget to each

10-25    taxing unit shall be calculated as provided by Subsection (d) of

10-26    this section using the amount of property taxes imposed by each

10-27    participating taxing unit in the most recent tax year preceding the

 11-1    fiscal year established by the change for which the necessary

 11-2    information is available.  Each taxing unit shall pay its

 11-3    allocation as provided by Subsection (e) of this section, except

 11-4    that the first payment shall be made before the first day of the

 11-5    fiscal year established by the change and subsequent payments shall

 11-6    be made quarterly.  In the year in which a change in the fiscal

 11-7    year occurs, the budget that takes effect on January 1 of that year

 11-8    may be amended as necessary as provided by Subsection (c) of this

 11-9    section in order to accomplish the change in fiscal years.

11-10          SECTION 6.  Sections 6.061(b) and (e), Tax Code, are amended

11-11    to read as follows:

11-12          (b)  The taxing units participating in an appraisal district

11-13    may adopt a different method of allocating the costs of operating

11-14    the district if the governing bodies of three-fourths of the group

11-15    of taxing units composed of the municipalities, school districts,

11-16    and county participating in the district [taxing units that are

11-17    entitled to vote on the appointment of board members] adopt

11-18    resolutions providing for the other method.  However, a change

11-19    under this subsection is not valid if it requires any taxing unit

11-20    to pay a greater proportion of the appraisal district's costs than

11-21    the unit would pay under Section 6.06 of this code without the

11-22    consent of the governing body of that unit.

11-23          (e)  A change in allocation of district costs made as

11-24    provided by this section remains in effect until changed in a

11-25    manner provided by this section or rescinded by resolution of a

11-26    majority of the governing bodies of the group of taxing units

11-27    composed of the municipalities, school districts, and county

 12-1    participating in the district [that are entitled to vote on

 12-2    appointment of board members under Section 6.03 of this code].

 12-3          SECTION 7.  Section 6.063(b), Tax Code, is amended to read as

 12-4    follows:

 12-5          (b)  The report of the audit is a public record.  A copy of

 12-6    the report shall be delivered to the presiding officer of the

 12-7    governing body of each municipality, each school district, and the

 12-8    county participating in the district [taxing unit eligible to vote

 12-9    on the appointment of district directors], and a reasonable number

12-10    of copies shall be available for inspection at the appraisal

12-11    office.

12-12          SECTION 8.  Section 52.092(d), Election Code, is amended to

12-13    read as follows:

12-14          (d)  District offices of the state government shall be listed

12-15    in the following order:

12-16                (1)  member, State Board of Education;

12-17                (2)  state senator;

12-18                (3)  state representative;

12-19                (4)  chief justice, court of appeals;

12-20                (5)  justice, court of appeals;

12-21                (6)  district judge;

12-22                (7)  criminal district judge;

12-23                (8)  family district judge;

12-24                (9)  district attorney;

12-25                (10)  criminal district attorney;

12-26                (11)  appraisal district director.

12-27          SECTION 9.  Section 172.024, Election Code, is amended by

 13-1    adding Subsection (c) to read as follows:

 13-2          (c)  For the office of appraisal district director, the

 13-3    filing fee for a candidate for nomination in the general primary

 13-4    election is:

 13-5                (1)  county with a population of 200,000 or more.. $400

 13-6                (2)  county with a population under 200,000 ....  200. 

 13-7          SECTION 10.  The following provisions of the Tax Code are

 13-8    repealed:

 13-9                (1)  Section 6.031;

13-10                (2)  Section 6.033;

13-11                (3)  Section 6.034;

13-12                (4)  Section 6.037; and

13-13                (5)  Section 6.10.

13-14          SECTION 11.  (a)  Except as otherwise provided by this

13-15    section, this Act takes effect September 1, 1997.

13-16          (b)  Sections 1-7 and 10 of this Act take effect January 1,

13-17    1999.

13-18          (c)  Appraisal district directors shall be elected under this

13-19    Act beginning with the primary and general elections conducted in

13-20    1998.  Members then elected take office January 1, 1999.

13-21          (d)  The change in the manner of selection of appraisal

13-22    district directors made by this Act does not affect the selection

13-23    of directors who serve on the board before January 1, 1999.

13-24          (e)  The term of an appraisal district director serving on

13-25    December 31, 1998, expires on January 1, 1999.

13-26          SECTION 12.  The importance of this legislation and the

13-27    crowded condition of the calendars in both houses create an

 14-1    emergency and an imperative public necessity that the

 14-2    constitutional rule requiring bills to be read on three several

 14-3    days in each house be suspended, and this rule is hereby suspended.