By Craddick                                           H.B. No. 3433

         Line and page numbers may not match official copy.

         Bill not drafted by TLC or Senate E&E.

                                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.  Chapter 1, Section 1.04, Tax Code, is amended by

 1-6     adding Subdivision (20) to read as follows:

 1-7           (20)  "Consolidated assessor-collector" means the county

 1-8     assessor-collector as defined by Section 6.21.  A reference to the

 1-9     assessor-collector for a taxing unit means the consolidated

1-10     assessor-collector.

1-11           SECTION 2.  Subchapter B, Chapter 6, Tax Code, is amended by

1-12     amending Sections 6.22, 6.23, 6.235, 6.24, 6.26, 6.27, 6.275, 6.28,

1-13     6.29, and 6.30 to read as follows:

1-14           Sec. 6.22.  Assessor and Collector for Other Taxing Units.

1-15     [(a)]  The assessor and collector for a taxing unit other than a

1-16     county is the consolidated assessor-collector of the appraisal

1-17     district in which the property subject to taxation by the unit is

1-18     located. [or a home-rule city are determined by the law creating or

1-19     authorizing creation of the unit.]

1-20           [(b)  The assessor and collector for a home-rule city are

1-21     determined by the city's charter and ordinances.]

1-22           [(c)  The governing body of a taxing unit authorized to have

 2-1     its own assessor and collector by official action in the manner

 2-2     required by law for official action by the body may require the

 2-3     county to assess and collect the taxes the unit imposes in the

 2-4     county in the manner in which the county assesses and collects its

 2-5     taxes.  The governing body of the unit may revoke the requirement

 2-6     at any time by the same official action.]

 2-7           Sec. 6.23.  DUTIES OF CONSOLIDATED ASSESSOR AND COLLECTOR.

 2-8           [(a)]  The consolidated [county] assessor-collector shall

 2-9     assess and collect taxes on property in the county for the county.

2-10     He shall also assess and collect taxes on property in the county

2-11     for all other taxing units in the county.  [another taxing unit

2-12     if:]

2-13                 [(1)  the law creating or authorizing creation of the

2-14     unit requires it to use the county assessor-collector for the taxes

2-15     the unit imposes in the county;]

2-16                 [(2)  the law creating or authorizing creation of the

2-17     unit does not mention who assesses and collects its taxes and the

2-18     unit imposes taxes in the county;]

2-19                 [(3)  the governing body of the unit requires the

2-20     county to assess and collect its taxes as provided by Subsection

2-21     (c) of Section 6.22 of this code; or]

2-22           [(b)  The assessor and collector for a taxing unit other than

2-23     a county shall assess, collect, or assess and collect taxes, as

2-24     applicable, for the unit.  He shall also assess, collect, or assess

2-25     and collect taxes, as applicable, for another unit if:]

2-26                 [(1)  required by or pursuant to the law creating or

2-27     authorizing creation of the other unit; or]

 3-1                 [(2)  required by an intergovernmental contract.]

 3-2           Sec. 6.235.  Continuing Education Requirements.  (a)  During

 3-3     each full term of office, a county assessor-collector, or

 3-4     consolidated assessor-collector of a county with a population of

 3-5     1,000,000 or more shall complete 64 or more classroom hours of

 3-6     instruction that relate to the duties of the office and that are

 3-7     accredited by the Board of Tax Professional Examiners, the division

 3-8     of the office of comptroller with responsibility for property

 3-9     taxes, the division of the Texas Department of Transportation with

3-10     responsibility for motor vehicles, or the secretary of state as

3-11     continuing education credits for the [office of county]

3-12     assessor-collector.

3-13           (b)  A county assessor-collector, or consolidated

3-14     assessor-collector, of a county with a population of 1,000,000 or

3-15     more shall certify completion of the requirements of Subsection (a)

3-16     to the executive director of the Board of Tax Professional

3-17     Examiners.

3-18           (c)  For the purposes of removal under Subchapter B, Chapter

3-19     87, Local Government Code, "incompetency" in the case of a county

3-20     assessor-collector or consolidated assessor-collector includes the

3-21     failure to comply with the requirements of this section.

3-22           Sec. 6.24.  REPEALED IN 1997.  [CONTRACTS FOR ASSESSMENT AND

3-23     COLLECTION.  (a)  The governing body of a taxing unit other than a

3-24     county may contract as provided by the Interlocal Cooperation Act

3-25     with the governing body of another unit or with the board of

3-26     directors of an appraisal district for the other unit or the

3-27     district to perform duties relating to the assessment or collection

 4-1     of taxes.]

 4-2           [(b)  The commissioners court with the approval of the county

 4-3     assessor-collector may contract as provided by the Interlocal

 4-4     Cooperation Act with the governing body of another taxing unit in

 4-5     the county or with the board of directors of the appraisal district

 4-6     for the other unit or the district to perform duties relating to

 4-7     the assessment or collection of taxes for the county.  If a county

 4-8     contracts to have its taxes assessed and collected by another

 4-9     taxing unit or by the appraisal district, the contract shall

4-10     require the other unit or the district to assess and collect all

4-11     taxes the county is required to assess and collect.]

4-12           [(c)  Repealed in 1983.]

4-13           [(d)  A contract under this section may provide for the

4-14     entity that collects taxes to contract with an attorney, as

4-15     provided by Section 6.30 of this code, for collection of delinquent

4-16     taxes.]

4-17           Sec. 6.25.  Repealed in 1981.

4-18           Sec. 6.26.  REPEALED IN 1997. [ELECTION TO CONSOLIDATE

4-19     ASSESSING AND COLLECTING FUNCTIONS.  (a)  The qualified voters

4-20     residing in an appraisal district by petition submitted to the

4-21     county clerk of the county principally served by the appraisal

4-22     district may require that an election be held to determine whether

4-23     or not to require the appraisal district, the county

4-24     assessor-collector, or a specified taxing unit within the appraisal

4-25     district to assess, collect, or assess and collect property taxes

4-26     on property appraised by the district for all taxing units.]

4-27           [(b)  The qualified voters of a taxing unit that assesses,

 5-1     collects, or assesses and collects its own property taxes by

 5-2     petition submitted to the governing body of the taxing unit may

 5-3     require that an election be held to determine whether or not to

 5-4     require the appraisal district, the county assessor-collector, or

 5-5     another taxing unit that is assessing and collecting property taxes

 5-6     to assess, collect, or assess and collect the unit's property

 5-7     taxes.]

 5-8           [(c)  A petition is valid if:]

 5-9                 [(1)  it states that it is intended to require an

5-10     election in the appraisal district or taxing unit on the question

5-11     of consolidation of assessing or collecting functions or both;]

5-12                 [(2)  it states the functions to be consolidated and

5-13     identifies the entity or office that will be required to perform

5-14     the functions; and]

5-15                 [(3)  it is signed by a number of qualified voters

5-16     equal to at least 10 percent of the number of qualified voters,

5-17     according to the most recent official list of qualified voters,

5-18     residing in the appraisal district, if the petition is authorized

5-19     by Subsection (a) of this section, or in the taxing unit, if the

5-20     petition is authorized by Subsection (b) of this section, or by

5-21     10,000 qualified voters, whichever number is less.]

5-22           [(d)  Not later than the 10th day after the petition is

5-23     submitted, the commissioners court, if the petition is authorized

5-24     by Subsection (a) of this section, or the governing body of the

5-25     taxing unit, if the petition is authorized by Subsection (b) of

5-26     this section, shall determine whether the petition is valid and

5-27     pass a resolution stating its finding.  The signature of a person

 6-1     may not be counted for purposes of validating the petition under

 6-2     Subsection (c)(3) of this section if:]

 6-3                 [(1)  the person does not enter beside his signature at

 6-4     the time of his signing the date on which he signs the petition;

 6-5     or]

 6-6                 [(2)  the person signs the petition more than 30 days

 6-7     before the date on which the petition is submitted to the county

 6-8     clerk or the governing body.]

 6-9           [(e)  If the commissioners court or the governing body finds

6-10     that the petition is valid, it shall order that an election be held

6-11     in the district or taxing unit on the next uniform election date

6-12     prescribed by the Texas Election Code that is more than 60 days

6-13     after the last day on which it could have acted to approve or

6-14     disapprove the petition.  At the election, the ballots shall be

6-15     prepared to permit voting for or against the proposition:

6-16     "Requiring the (name of entity or office) to (assess, collect, or

6-17     assess and collect, as applicable) property taxes for (all taxing

6-18     units in the appraisal district for _____________ county or name of

6-19     taxing unit or units, as applicable)."]

6-20           [(f)  If a majority of the qualified voters voting on the

6-21     question in the election favor the proposition, the entity or

6-22     office named by the ballot shall perform the functions named by the

6-23     ballot beginning with the next time property taxes are assessed or

6-24     collected, as applicable, that is more than 90 days after the date

6-25     of the election.  If the governing bodies (and appraisal district

6-26     board of directors when the district is involved) agree, a function

6-27     may be consolidated when performance of the function begins in less

 7-1     than 90 days after the date of the election.]

 7-2           [(g)  A taxing unit shall pay the actual cost of performance

 7-3     of the functions to the office or entity that performs functions

 7-4     for it pursuant to an election as provided by this section.]

 7-5           [(h)  If a taxing unit is required by election pursuant to

 7-6     Subsection (b) of this section to assess, collect, or assess and

 7-7     collect property taxes for another taxing unit, it shall perform

 7-8     the functions for all taxing units for which the other unit

 7-9     previously performed those functions pursuant to law or

7-10     intergovernmental contract.]

7-11           [(i)  If functions are consolidated by an election, a taxing

7-12     unit may not terminate the consolidation within two years after the

7-13     date of the consolidation.]

7-14           [(j)  An appraisal district may not be required by an

7-15     election to assess, collect, or assess and collect taxes on

7-16     property outside the district's boundaries.  A taxing unit may not

7-17     be required by an election to assess, collect, or assess and

7-18     collect taxes on property outside the boundaries of the appraisal

7-19     district that appraises property for the unit.]

7-20           Sec. 6.27.  Compensation for Assessment and Collection.

7-21     (a)  Repealed in 1983.

7-22           (b)  The county assessor-collector or consolidated

7-23     assessor-collector is entitled to a reasonable fee, which may not

7-24     exceed the actual costs incurred, for assessing and collecting

7-25     taxes for a taxing unit pursuant to [Subdivisions (1) through (3)

7-26     of Subsection (a) of] Section 6.23 of this code.

7-27           [(c)  The assessor or collector for a taxing unit other than

 8-1     a county is entitled to reasonable compensation, which may not

 8-2     exceed the actual costs incurred, for assessing or collecting taxes

 8-3     for a taxing unit pursuant to Subsection (b) of Section 6.23 of

 8-4     this code.]

 8-5           Sec. 6.275.  Release of Assessor and Collector From

 8-6     Liability.

 8-7           A county assessor-collector or consolidated

 8-8     assessor-collector is not personally liable for the loss of public

 8-9     funds in the custody of the assessor-collector or the

8-10     assessor-collector's office if a district court enters a

8-11     declaratory judgment that the loss is due to a reason other than

8-12     the negligence or misconduct of the assessor-collector.

8-13           Sec. 6.28.  Bonds for State and County Taxes.  (a)  To

8-14     qualify for office, a person elected or appointed as county

8-15     assessor-collector or consolidated assessor-collector must, within

8-16     20 days after receiving notice of his election or appointment, give

8-17     bonds to the state and to the county, conditioned on the faithful

8-18     performance of his duties as assessor-collector.

8-19           (b)  The bond for state taxes must be payable to the governor

8-20     and his successors in office in an amount equal to five percent of

8-21     the net state collections from motor vehicle sales and use taxes

8-22     and motor vehicle registration fees in the county during the year

8-23     ending August 31 preceding the date bond is given, except that the

8-24     amount of bond may not be less than $2,500 or more than $100,000.

8-25     To be effective, the bond must be approved by the commissioners

8-26     court and the state comptroller of public accounts.

8-27           (c)  The bond for county taxes must be payable to the

 9-1     commissioners court in an amount equal to 10 percent of the total

 9-2     amount of county taxes imposed in the preceding tax year, except

 9-3     that the amount of the bond may not be more than $100,000.  To be

 9-4     effective, the bond must be approved by the commissioners court.

 9-5           (d)  The state comptroller of public accounts or the

 9-6     commissioners court may require a new bond for state taxes at any

 9-7     time.  The commissioners court may require a new bond for county

 9-8     taxes at any time.  However, the total amount of state bonds or

 9-9     county bonds required of an assessor-collector may not exceed

9-10     $100,000 at one time.  The commissioners court shall suspend the

9-11     assessor-collector from office and begin removal proceedings if he

9-12     fails to give new bond within a reasonable time after demand.

9-13           (e)  The assessor-collector's official oath and bonds for

9-14     state and county taxes shall be recorded in the office of the

9-15     county clerk, and the county judge shall submit the bond for state

9-16     taxes to the state comptroller of public accounts.

9-17           (f)  A county shall pay a reasonable premium for the

9-18     assessor-collector's bonds for state and county taxes out of the

9-19     county general revenue fund on presentation to the commissioners

9-20     court of a bill for the premium authenticated as required by law

9-21     for other claims against the county.  A court of competent

9-22     jurisdiction may determine the reasonableness of any amount claimed

9-23     as premium.

9-24           Sec. 6.29.  Bonds for Other Taxes.  (a)  A taxing unit, other

9-25     than a county, [that has its own collector] shall require the

9-26     consolidated assessor-collector [him] to give bond conditioned on

9-27     the faithful performance of his duties.  To be effective, the bond

 10-1    must be made payable to and must be approved by the governing body

 10-2    of the unit in an amount determined by the governing body.  The

 10-3    governing body may require a new bond at any time, and failure to

 10-4    give new bond within a reasonable time after demand is a ground for

 10-5    removal from office.  The governing body may prescribe additional

 10-6    requirements for the bond.

 10-7          (b)  Repealed in 1997.  [A taxing unit whose taxes are

 10-8    collected by the collector for another taxing unit, by an officer

 10-9    or employee of another taxing unit or of an appraisal district, or

10-10    by any other person other than the unit's own collector may require

10-11    that collector, officer, employee, or other person to give bond

10-12    conditioned on the faithful performance of his duties.  To be

10-13    effective, the bond must be made payable to and must be approved by

10-14    and paid for by the governing body of the unit requiring bond in an

10-15    amount determined by the governing body.  The governing body may

10-16    prescribe additional requirements for the bond.]

10-17          (c)  A taxing unit shall pay the premium for a bond required

10-18    pursuant to this section from its general fund. [or as provided by

10-19    intergovernmental contract.]

10-20          Sec. 6.30.  Attorneys Representing Taxing Units.  (a)  The

10-21    county attorney or, if there is no county attorney, the district

10-22    attorney shall represent the county or other taxing unit within the

10-23    county to enforce the collection of delinquent taxes if the

10-24    commissioners court does not contract with a private attorney as

10-25    provided by Subsection (c) of this section.

10-26          (b)  Repealed in 1997.  [The governing body of a taxing unit

10-27    other than a county may determine who represents the unit to

 11-1    enforce the collection of delinquent taxes.  If a taxing unit

 11-2    collects taxes for another taxing unit, the attorney representing

 11-3    the unit to enforce the collection of delinquent taxes may

 11-4    represent the other unit with consent of its governing body.]

 11-5          (c)  The commissioners court [The governing body of a taxing

 11-6    unit] may contract with any competent attorney to represent the

 11-7    county or other taxing unit within the county [unit] to enforce the

 11-8    collection of delinquent taxes.  The attorney's compensation is set

 11-9    in the contract, but the total amount of compensation provided may

11-10    not exceed 20 percent of the amount of delinquent tax, penalty, and

11-11    interest collected.

11-12          (d)  Repealed in 1983.

11-13          (e)  A contract with an attorney that does not conform to the

11-14    requirements of this section is void.

11-15          SECTION 3.  Subchapter B, Chapter 87, Local Government Code,

11-16    is amended by amending Section 87.012 to read as follows:

11-17          Sec. 87.012.  Officers Subject to Removal.  The district

11-18    judge may, under this subchapter, remove from office:

11-19                (1)  a district attorney;

11-20                (2)  a county attorney;

11-21                (3)  a county judge;

11-22                (4)  a county commissioner;

11-23                (5)  a county clerk;

11-24                (6)  a district clerk;

11-25                (7)  a district and county clerk;

11-26                (8)  a county treasurer;

11-27                (9)  a sheriff;

 12-1                (10)  a county surveyor;

 12-2                (11)  a county [tax] assessor-collector or consolidated

 12-3    assessor-collector;

 12-4                (12)  a constable;

 12-5                (13)  an inspector of hides and animals;

 12-6                (14)  a justice of the peace; and

 12-7                (15)  a county officer, not otherwise named by this

 12-8    section, whose office is created under the constitution or law of

 12-9    this state.

12-10          SECTION 4.  This Act takes effect September 1, 1997.

12-11          SECTION 5.  The importance of this legislation and the

12-12    crowded condition of the calendars in both houses create an

12-13    emergency and an imperative public necessity that the

12-14    constitutional rule requiring bills to be read on three several

12-15    days in each house be suspended, and this rule is hereby suspended.