By:  Nixon                                            S.B. No. 1097
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the authority of this state or a political subdivision
 1-2     of this state to participate in a challenge, protest, or appeal
 1-3     regarding the ad valorem tax appraisal of a taxable leasehold or
 1-4     other possessory interest in real property owned by this state or
 1-5     the political subdivision.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1.  Section 41.05, Tax Code, is amended by adding
 1-8     Subsection (d) to read as follows:
 1-9           (d)  If the challenge relates to a taxable leasehold or other
1-10     possessory interest in real property that is owned by this state or
1-11     a political subdivision of this state, the attorney general or a
1-12     representative of the state agency that owns the real property, if
1-13     the real property is owned by this state, or a person designated by
1-14     the political subdivision that owns the real property, as
1-15     applicable, is entitled to appear at the hearing and offer evidence
1-16     and argument.
1-17           SECTION 2.  Section 41.06, Tax Code, is amended by adding
1-18     Subsection (c) to read as follows:
1-19           (c)  If the challenge relates to a taxable leasehold or other
1-20     possessory interest in real property that is owned by this state or
1-21     a political subdivision of this state, the secretary shall deliver
1-22     notice of the hearing as provided by Subsection (a) to:
1-23                 (1)  the attorney general and the state agency that
1-24     owns the real property, in the case of real property owned by this
 2-1     state; or
 2-2                 (2)  the governing body of the political subdivision,
 2-3     in the case of real property owned by a political subdivision.
 2-4           SECTION 3.  Section 41.45, Tax Code, is amended by adding
 2-5     Subsection (i) to read as follows:
 2-6           (i)  If the protest relates to a taxable leasehold or other
 2-7     possessory interest in real property that is owned by this state or
 2-8     a political subdivision of this state, the attorney general or a
 2-9     representative of the state agency that owns the land, if the real
2-10     property is owned by this state, or a person designated by the
2-11     political subdivision that owns the real property, as applicable,
2-12     is entitled to appear at the hearing and offer evidence and
2-13     argument.
2-14           SECTION 4.  Section 41.46, Tax Code, is amended by adding
2-15     Subsection (c) to read as follows:
2-16           (c)  If the protest relates to a taxable leasehold or other
2-17     possessory interest in real property that is owned by this state or
2-18     a political subdivision of this state, the board shall deliver
2-19     notice of the hearing as provided by Subsection (a) to:
2-20                 (1)  the attorney general and the state agency that
2-21     owns the real property, in the case of real property owned by this
2-22     state; or
2-23                 (2)  the governing body of the political subdivision,
2-24     in the case of real property owned by a political subdivision.
2-25           SECTION 5.  Subchapter A, Chapter 42, Tax Code, is amended by
2-26     adding Section 42.04 to read as follows:
 3-1           Sec. 42.04.  INTERVENTION BY STATE OR POLITICAL SUBDIVISION
 3-2     OWNING PROPERTY SUBJECT TO TAXABLE LEASEHOLD.  If the challenge or
 3-3     protest relates to a taxable leasehold or other possessory interest
 3-4     in real property that is owned by this state or a political
 3-5     subdivision of this state, the attorney general or a representative
 3-6     of the state agency that owns the real property, if the real
 3-7     property is owned by this state, or a person designated by the
 3-8     political subdivision that owns the real property, as applicable,
 3-9     may intervene in an appeal of an order of an appraisal review board
3-10     determining a challenge by a taxing unit or a taxpayer protest.
3-11           SECTION 6.  This Act takes effect September 1, 1999, and
3-12     applies only to a challenge petition or notice of protest filed
3-13     with an appraisal review board on or after that date.
3-14           SECTION 7.  The importance of this legislation and the
3-15     crowded condition of the calendars in both houses create an
3-16     emergency and an imperative public necessity that the
3-17     constitutional rule requiring bills to be read on three several
3-18     days in each house be suspended, and this rule is hereby suspended.