1-1     By:  Nixon                                            S.B. No. 1097
 1-2           (In the Senate - Filed March 10, 1999; March 11, 1999, read
 1-3     first time and referred to Committee on State Affairs;
 1-4     April 9, 1999, reported favorably by the following vote:  Yeas 9,
 1-5     Nays 0; April 9, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the authority of this state or a political subdivision
 1-9     of this state to participate in a challenge, protest, or appeal
1-10     regarding the ad valorem tax appraisal of a taxable leasehold or
1-11     other possessory interest in real property owned by this state or
1-12     the political subdivision.
1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14           SECTION 1.  Section 41.05, Tax Code, is amended by adding
1-15     Subsection (d) to read as follows:
1-16           (d)  If the challenge relates to a taxable leasehold or other
1-17     possessory interest in real property that is owned by this state or
1-18     a political subdivision of this state, the attorney general or a
1-19     representative of the state agency that owns the real property, if
1-20     the real property is owned by this state, or a person designated by
1-21     the political subdivision that owns the real property, as
1-22     applicable, is entitled to appear at the hearing and offer evidence
1-23     and argument.
1-24           SECTION 2.  Section 41.06, Tax Code, is amended by adding
1-25     Subsection (c) to read as follows:
1-26           (c)  If the challenge relates to a taxable leasehold or other
1-27     possessory interest in real property that is owned by this state or
1-28     a political subdivision of this state, the secretary shall deliver
1-29     notice of the hearing as provided by Subsection (a) to:
1-30                 (1)  the attorney general and the state agency that
1-31     owns the real property, in the case of real property owned by this
1-32     state; or
1-33                 (2)  the governing body of the political subdivision,
1-34     in the case of real property owned by a political subdivision.
1-35           SECTION 3.  Section 41.45, Tax Code, is amended by adding
1-36     Subsection (i) to read as follows:
1-37           (i)  If the protest relates to a taxable leasehold or other
1-38     possessory interest in real property that is owned by this state or
1-39     a political subdivision of this state, the attorney general or a
1-40     representative of the state agency that owns the land, if the real
1-41     property is owned by this state, or a person designated by the
1-42     political subdivision that owns the real property, as applicable,
1-43     is entitled to appear at the hearing and offer evidence and
1-44     argument.
1-45           SECTION 4.  Section 41.46, Tax Code, is amended by adding
1-46     Subsection (c) to read as follows:
1-47           (c)  If the protest relates to a taxable leasehold or other
1-48     possessory interest in real property that is owned by this state or
1-49     a political subdivision of this state, the board shall deliver
1-50     notice of the hearing as provided by Subsection (a) to:
1-51                 (1)  the attorney general and the state agency that
1-52     owns the real property, in the case of real property owned by this
1-53     state; or
1-54                 (2)  the governing body of the political subdivision,
1-55     in the case of real property owned by a political subdivision.
1-56           SECTION 5.  Subchapter A, Chapter 42, Tax Code, is amended by
1-57     adding Section 42.04 to read as follows:
1-58           Sec. 42.04.  INTERVENTION BY STATE OR POLITICAL SUBDIVISION
1-59     OWNING PROPERTY SUBJECT TO TAXABLE LEASEHOLD.  If the challenge or
1-60     protest relates to a taxable leasehold or other possessory interest
1-61     in real property that is owned by this state or a political
1-62     subdivision of this state, the attorney general or a representative
1-63     of the state agency that owns the real property, if the real
1-64     property is owned by this state, or a person designated by the
 2-1     political subdivision that owns the real property, as applicable,
 2-2     may intervene in an appeal of an order of an appraisal review board
 2-3     determining a challenge by a taxing unit or a taxpayer protest.
 2-4           SECTION 6.  This Act takes effect September 1, 1999, and
 2-5     applies only to a challenge petition or notice of protest filed
 2-6     with an appraisal review board on or after that date.
 2-7           SECTION 7.  The importance of this legislation and the
 2-8     crowded condition of the calendars in both houses create an
 2-9     emergency and an imperative public necessity that the
2-10     constitutional rule requiring bills to be read on three several
2-11     days in each house be suspended, and this rule is hereby suspended.
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