By Uher, Bonnen                                        H.B. No. 954
         76R1130 SMH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the requirement that a taxing unit proposing to
 1-3     increase the unit's tax rate hold a public hearing on the proposal.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 26.05(d), Tax Code, is amended to read as
 1-6     follows:
 1-7           (d)  The governing body may not adopt a tax rate that [if
 1-8     applied to the total taxable value would impose an amount of taxes
 1-9     that] exceeds the unit's tax rate for the preceding tax year [last
1-10     year's levy] until it has held a public hearing on the  proposed
1-11     tax rate and has otherwise complied with Section 26.06.
1-12           SECTION 2.  The heading to Section 26.06, Tax Code, is
1-13     amended to read as follows:
1-14           Sec. 26.06.  NOTICE, HEARING, AND VOTE ON TAX RATE INCREASE.
1-15           SECTION 3.  Sections 26.06(a), (b), (d), and (e), Tax Code,
1-16     are amended to read as follows:
1-17           (a)  A public hearing required by Section 26.05 [of this
1-18     code] may not be held before the seventh day after the date the
1-19     notice of the public hearing on the proposed tax rate increase is
1-20     given.  The hearing must be on a weekday that is not a public
1-21     holiday.  The hearing must be held inside the boundaries of the
1-22     unit in a publicly owned building or, if a suitable publicly owned
1-23     building is not available, in a suitable building to which the
1-24     public normally has access.  At the hearing, the governing body
 2-1     must afford adequate opportunity for proponents and opponents of
 2-2     the tax rate increase to present their views.
 2-3           (b)  The notice of a public hearing may not be smaller than
 2-4     one-quarter page of a standard-size or a tabloid-size newspaper,
 2-5     and the headline on the notice must be in 18-point or larger type.
 2-6     The notice must:
 2-7                 (1)  contain a statement in the following form:
 2-8               "NOTICE OF PUBLIC HEARING ON TAX RATE INCREASE
 2-9           "The (name of the taxing unit) will hold a public hearing on
2-10     a proposal to increase the tax rate [total tax revenues from
2-11     properties on the tax roll] by (percentage by which [taxes to be
2-12     imposed under] proposed tax rate exceeds the tax rate of the (name
2-13     of the taxing unit) for the preceding tax year [exceed last year's
2-14     levy]) percent.  Your  individual taxes may increase or decrease,
2-15     depending on the change in the taxable value of your property in
2-16     relation to the change in taxable value of all other property and
2-17     the tax rate that is adopted.
2-18           "The public hearing will be held on (date and time) at
2-19     (meeting place).
2-20           "(Names of all members of the governing body, showing how
2-21     each voted on the proposal to consider the increase in the tax rate
2-22     [total tax revenues] or, if one or more were absent, indicating the
2-23     absences.)"; and
2-24                 (2)  contain the following information:
2-25                       (A)  the unit's [adopted] tax rate for the
2-26     preceding year and the proposed tax rate, expressed as an amount
2-27     per $100;
 3-1                       (B)  the difference, expressed as an amount per
 3-2     $100 and as a percent increase or decrease, as applicable, in the
 3-3     proposed tax rate compared to the [adopted] tax rate for the
 3-4     preceding year;
 3-5                       (C)  the average appraised value of a residence
 3-6     homestead in the taxing unit in the preceding year and in the
 3-7     current year; the unit's homestead exemption, other than an
 3-8     exemption available only to disabled persons or persons 65 years of
 3-9     age or older, applicable to that appraised value in each of those
3-10     years; and the average taxable value of a residence homestead in
3-11     the unit in each of those years, disregarding any homestead
3-12     exemption available only to disabled persons or persons 65 years of
3-13     age or older;
3-14                       (D)  the amount of tax that would have been
3-15     imposed by the unit in the preceding year on a residence homestead
3-16     appraised at the average appraised value of a residence homestead
3-17     in that year, disregarding any homestead exemption available only
3-18     to disabled persons or persons 65 years of age or older;
3-19                       (E)  the amount of tax that would be imposed by
3-20     the unit in the current year on a residence homestead appraised at
3-21     the average appraised value of a residence homestead in the current
3-22     year, disregarding any homestead exemption available only to
3-23     disabled persons or persons 65 years of age or older, if the
3-24     proposed tax rate is adopted; and
3-25                       (F)  the difference between the amounts of tax
3-26     calculated under Paragraphs (D) and (E), expressed in dollars and
3-27     cents and described as the annual increase or decrease, as
 4-1     applicable, in the tax to be imposed by the unit on the average
 4-2     residence homestead in the unit in the current year if the proposed
 4-3     tax rate is adopted.
 4-4           (d)  At the public hearing the governing body shall announce
 4-5     the date, time, and place of the meeting at which it will vote on
 4-6     the proposed tax rate [to increase total tax revenues].  After the
 4-7     hearing it shall give notice of the meeting at which it will vote
 4-8     on the proposed tax rate [to increase total tax revenues and the
 4-9     notice shall be] in the same form as prescribed by Subsections (b)
4-10     and (c), except that the notice [it] must state the following:
4-11                         "NOTICE OF VOTE ON TAX RATE
4-12           "The (name of the taxing unit) conducted a public hearing on
4-13     a proposal to increase the tax rate [total tax revenues] of the
4-14     (name of the taxing unit) by (percentage by which [taxes to be
4-15     imposed under] proposed tax rate exceeds the tax rate of the (name
4-16     of the taxing unit) for the preceding tax year [exceed last year's
4-17     levy]) percent on (date  and time public hearing was conducted).
4-18           "The (governing body of the taxing unit) is scheduled to vote
4-19     on the tax rate [that will result in that tax increase] at a public
4-20     meeting to be held on (date and time) at (meeting place)."
4-21           (e)  The meeting to vote on the tax rate increase may not be
4-22     earlier than the third day or later than the 14th day after the
4-23     date of the public hearing.  The meeting must be held inside the
4-24     boundaries of the taxing unit in a publicly owned building or, if a
4-25     suitable publicly owned building is not available, in a suitable
4-26     building to which the public normally has access.  If the governing
4-27     body does not adopt a tax rate that exceeds the tax rate of the
 5-1     taxing unit for the preceding tax year [would impose an amount of
 5-2     taxes  that exceeds last year's levy] by the 14th day, it must give
 5-3     a new notice under Subsection (d) before it may adopt a rate that
 5-4     exceeds the tax rate of the taxing unit for the preceding tax year
 5-5     [would impose an  amount of taxes that exceeds last year's levy].
 5-6           SECTION 4.  (a)  This Act takes effect January 1, 2000.
 5-7           (b)  The change in law made by this Act applies only to an ad
 5-8     valorem tax rate adopted on or after the effective date of this
 5-9     Act.
5-10           SECTION 5.  The importance of this legislation and the
5-11     crowded condition of the calendars in both houses create an
5-12     emergency and an imperative public necessity that the
5-13     constitutional rule requiring bills to be read on three several
5-14     days in each house be suspended, and this rule is hereby suspended.