SRC-JJJ H.B. 954 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 954
By: Uher (Armbrister)
Intergovernmental Relations
5/12/1999
Engrossed


DIGEST 

Current law requires a public hearing every time a taxing entity's rate
change results in the imposition of a tax that, if applied to the total
taxable value, would exceed the previous year's levy. This procedure can
result in numerous public hearings and be very costly.  H.B. 954 would
establish conditions relating to the notice and public hearing requirements
for a taxing unit to increase the unit's tax rate.   

PURPOSE

As proposed, H.B. 954 establishes conditions relating to the notice and
public hearing requirements for a taxing unit to increase the unit's tax
rate.   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 26.04(e), Tax Code, to require a designated
officer or employee to deliver by mail to each property owner in the unit
or to publish in a newspaper in the form prescribed by the comptroller
certain conditions regarding certain financial information regarding the
district including a statement that the adoption of a tax rate equal to the
effective tax rate would result in an increase or decrease, as applicable,
in the amount of taxes imposed by the unit as compared to last year's levy,
and the amount of the increase or decrease.  Makes conforming changes.    

SECTION 2.  Amends Section 26.05(d), Tax Code, to prohibit the governing
body from adopting a tax rate that exceeds the lower of the rollback tax
rate or 103 percent of the effective tax rate calculated  until the
governing body has held a public hearing on the proposed tax rate and has
otherwise complied with Sections 26.06 and 26.065.  Requires the governing
body of a taxing unit to reduce a tax rate set by the law or by vote of the
electorate to the lower of the rollback tax rate or 103 percent of the
effective tax rate and may not adopt a higher rate unless it first complies
with Section 26.06.  Deletes text regarding th imposition of a certain
amount of taxes.  Makes nonsubstantive change.   

SECTION 3.  Amends Sections 26.06(a), (b), (d), and (e), Tax Code, to make
conforming and nonsubstantive changes. 

SECTION 4.  Amends Section 25.19(b), Tax Code, to make conforming changes.

SECTION 5.  Amends Chapter 26, Tax Code, by adding Section 26.065, as
follows: 

Sec. 26.065.  SUPPLEMENTAL NOTICE OF HEARING ON TAX RATE INCREASE. Requires
the governing body of a taxing unit required to hold a public hearing  to
give notice of the hearing in a prescribed manner, in addition to the
notice required in Section 26.06. Sets forth requirements for the taxing
unit regarding the notice of a public hearing on an Internet website
owned, operated, or controlled by the taxing unit, or if the taxing unit
has free access to a television channel, to post a 60-second notice
regarding the proposed tax rate increase at least seven days prior to the
vote.  Provides information required in the notice.  Provides that this
section does not apply to a taxing unit if the taxing unit is unable to
fulfill certain conditions.  Provides that a person who owns a taxable
property is not entitled to an injunction restraining  the collection of
taxes by a taxing unit in which the property is taxable if the taxing unit
has, in good faith, attempted to comply with requirements of this section. 

SECTION 6.  (a)  Effective date:  January 1, 2000, except as provided by
Subsection (b). 

 (b)  Effective date of Section 26.065, Tax Code:  January 1, 2001.

 (c)  Makes application of this Act prospective.

SECTION 7.  Emergency clause.