By Mowery H.B. No. 1781
77R1739 SMH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the governance of an appraisal district by the county
1-3 tax assessor-collector and to the administration of appraisal
1-4 districts and appraisal review boards.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Sections 5.102(b) and (c), Tax Code, are amended
1-7 to read as follows:
1-8 (b) If the review results in a finding that an appraisal
1-9 district is not in compliance with generally accepted appraisal
1-10 standards and practices, the comptroller shall deliver a report
1-11 that details the comptroller's findings and recommendations for
1-12 improvement to the county assessor-collector who governs the
1-13 appraisal district [district's chief appraiser and board of
1-14 directors].
1-15 (c) If noncompliance by an appraisal district with generally
1-16 accepted appraisal standards and practices is found in two
1-17 consecutive reviews and if the county assessor-collector who
1-18 governs the [an affected] appraisal district fails [district's
1-19 chief appraiser and board of directors fail] to take effective
1-20 remedial action as determined by the comptroller, the comptroller
1-21 may appoint a special master who may exercise supervision and
1-22 control over the operations of the district until full compliance
1-23 with generally accepted appraisal standards and practices is
1-24 achieved. The appraisal district shall bear the costs related to
2-1 the master's supervision and control.
2-2 SECTION 2. Section 5.12(b), Tax Code, is amended to read as
2-3 follows:
2-4 (b) At the written request of the governing bodies of a
2-5 majority of the taxing units participating in an appraisal district
2-6 or of a majority of the group of taxing units composed of the
2-7 municipalities, school districts, and county participating in an
2-8 [entitled to vote on the appointment of] appraisal district
2-9 [directors], the comptroller shall audit the performance of the
2-10 appraisal district. The governing bodies may request a general
2-11 audit of the performance of the appraisal district or may request
2-12 an audit of only one or more particular duties, practices,
2-13 functions, departments, or other appraisal district matters.
2-14 SECTION 3. Sections 5.13(c), (f), and (h), Tax Code, are
2-15 amended to read as follows:
2-16 (c) The comptroller must approve the specific plan for the
2-17 performance audit of an appraisal district. Before approving an
2-18 audit plan, the comptroller must provide any interested person an
2-19 opportunity to appear before the comptroller and to comment on the
2-20 proposed plan. Not later than the 20th day before the date the
2-21 comptroller considers the plan for an appraisal district
2-22 performance audit, the comptroller must notify the county
2-23 assessor-collector who governs [presiding officer of] the appraisal
2-24 district [board of directors] that the comptroller intends to
2-25 consider the plan. The notice must include the time, date, and
2-26 place of the meeting to consider the plan. [Immediately after
2-27 receiving the notice, the presiding officer shall deliver a copy of
3-1 the notice to the other members of the appraisal district board of
3-2 directors.]
3-3 (f) The comptroller shall report the results of its audit in
3-4 writing to the governing body of each taxing unit that participates
3-5 in the appraisal district and[,] to the county assessor-collector
3-6 who governs [chief appraiser, and to the presiding officer of] the
3-7 appraisal district [board of directors]. If the audit was
3-8 requested under Section 5.12(c) [of this code], the comptroller
3-9 shall also provide a report to a representative of the property
3-10 owners who requested the audit.
3-11 (h) At any time after the request for an audit is made, the
3-12 comptroller may discontinue the audit in whole or in part if
3-13 requested to do so by:
3-14 (1) the governing bodies of a majority of the taxing
3-15 units participating in the district, if the audit was requested by
3-16 a majority of those units;
3-17 (2) the governing bodies of a majority of the group of
3-18 taxing units composed of the municipalities, school districts, and
3-19 county participating in the [entitled to vote on the appointment
3-20 of] appraisal district [directors], if the audit was requested by a
3-21 majority of those units; or
3-22 (3) if the audit was requested under Section 5.12(c)
3-23 [of this code], by the taxpayers who requested the audit.
3-24 SECTION 4. Sections 6.02(b) and (c), Tax Code, are amended
3-25 to read as follows:
3-26 (b) A taxing unit that has boundaries extending into two or
3-27 more counties may choose to participate in only one of the
4-1 appraisal districts. In that event, the boundaries of the district
4-2 chosen extend outside the county to the extent of the unit's
4-3 boundaries. To be effective, the choice must be approved by the
4-4 county assessor-collector who governs [resolution of the board of
4-5 directors of] the district chosen. The choice of a school district
4-6 to participate in a single appraisal district does not apply to
4-7 property annexed to the school district under Subchapter C or G,
4-8 Chapter 41, Education Code, unless:
4-9 (1) the school district taxes property other than
4-10 property annexed to the district under Subchapter C or G, Chapter
4-11 41, Education Code, in the same county as the annexed property; or
4-12 (2) the annexed property is contiguous to property in
4-13 the school district other than property annexed to the district
4-14 under Subchapter C or G, Chapter 41, Education Code.
4-15 (c) A taxing unit that has chosen to participate in a single
4-16 appraisal district under Subsection (b) [of this section] may
4-17 revoke that choice and, if permitted to do so by Subsection (b),
4-18 choose to participate in a single appraisal district other than the
4-19 one previously chosen. [A taxing unit that has withdrawn from an
4-20 appraisal district under this subsection and chosen to participate
4-21 in another single appraisal district may not under this subsection
4-22 withdraw from that district.]
4-23 SECTION 5. Sections 6.03, 6.05, and 6.051, Tax Code, are
4-24 amended to read as follows:
4-25 Sec. 6.03. GOVERNANCE [BOARD] OF APPRAISAL DISTRICT
4-26 [DIRECTORS]. (a) An [The] appraisal district is governed by the
4-27 assessor-collector of the county for which the district is
5-1 established.
5-2 (b) The county assessor-collector is entitled to
5-3 compensation for administering the appraisal district as provided
5-4 by the appraisal district budget. [a board of directors. Five
5-5 directors are appointed by the taxing units that participate in the
5-6 district as provided by this section. If the county
5-7 assessor-collector is not appointed to the board, the county
5-8 assessor-collector serves as a nonvoting director. The county
5-9 assessor-collector is ineligible to serve if the board enters into
5-10 a contract under Section 6.05(b) or if the commissioners court of
5-11 the county enters into a contract under Section 6.24(b). To be
5-12 eligible to serve on the board of directors, an individual other
5-13 than a county assessor-collector serving as a nonvoting director
5-14 must be a resident of the district and must have resided in the
5-15 district for at least two years immediately preceding the date the
5-16 individual takes office. An individual who is otherwise eligible
5-17 to serve on the board is not ineligible because of membership on
5-18 the governing body of a taxing unit. An employee of a taxing unit
5-19 that participates in the district is not eligible to serve on the
5-20 board unless the individual is also a member of the governing body
5-21 or an elected official of a taxing unit that participates in the
5-22 district.]
5-23 [(b) Members of the board of directors other than a county
5-24 assessor-collector serving as a nonvoting director serve two-year
5-25 terms beginning on January 1 of even-numbered years.]
5-26 [(c) Members of the board of directors other than a county
5-27 assessor-collector serving as a nonvoting director are appointed by
6-1 vote of the governing bodies of the incorporated cities and towns,
6-2 the school districts, and, if entitled to vote, the conservation
6-3 and reclamation districts that participate in the district and of
6-4 the county. A governing body may cast all its votes for one
6-5 candidate or distribute them among candidates for any number of
6-6 directorships. Conservation and reclamation districts are not
6-7 entitled to vote unless at least one conservation and reclamation
6-8 district in the district delivers to the chief appraiser a written
6-9 request to nominate and vote on the board of directors by June 1 of
6-10 each odd-numbered year. On receipt of a request, the chief
6-11 appraiser shall certify a list by June 15 of all eligible
6-12 conservation and reclamation districts that are imposing taxes and
6-13 that participate in the district.]
6-14 [(d) The voting entitlement of a taxing unit that is
6-15 entitled to vote for directors is determined by dividing the total
6-16 dollar amount of property taxes imposed in the district by the
6-17 taxing unit for the preceding tax year by the sum of the total
6-18 dollar amount of property taxes imposed in the district for that
6-19 year by each taxing unit that is entitled to vote, by multiplying
6-20 the quotient by 1,000, and by rounding the product to the nearest
6-21 whole number. That number is multiplied by the number of
6-22 directorships to be filled. A taxing unit participating in two or
6-23 more districts is entitled to vote in each district in which it
6-24 participates, but only the taxes imposed in a district are used to
6-25 calculate voting entitlement in that district.]
6-26 [(e) The chief appraiser shall calculate the number of votes
6-27 to which each taxing unit other than a conservation and reclamation
7-1 district is entitled and shall deliver written notice to each of
7-2 those units of its voting entitlement before October 1 of each
7-3 odd-numbered year. The chief appraiser shall deliver the notice:]
7-4 [(1) to the county judge and each commissioner of the
7-5 county served by the appraisal district;]
7-6 [(2) to the presiding officer of the governing body of
7-7 each city or town participating in the appraisal district, to the
7-8 city manager of each city or town having a city manager, and to the
7-9 city secretary or clerk, if there is one, of each city or town that
7-10 does not have a city manager; and]
7-11 [(3) to the presiding officer of the governing body of
7-12 each school district participating in the district and to the
7-13 superintendent of those school districts.]
7-14 [(f) The chief appraiser shall calculate the number of votes
7-15 to which each conservation and reclamation district entitled to
7-16 vote for district directors is entitled and shall deliver written
7-17 notice to the presiding officer of each conservation and
7-18 reclamation district of its voting entitlement and right to
7-19 nominate a person to serve as a director of the district before
7-20 July 1 of each odd-numbered year.]
7-21 [(g) Each taxing unit other than a conservation and
7-22 reclamation district that is entitled to vote may nominate by
7-23 resolution adopted by its governing body one candidate for each
7-24 position to be filled on the board of directors. The presiding
7-25 officer of the governing body of the unit shall submit the names of
7-26 the unit's nominees to the chief appraiser before October 15.]
7-27 [(h) Each conservation and reclamation district entitled to
8-1 vote may nominate by resolution adopted by its governing body one
8-2 candidate for the district's board of directors. The presiding
8-3 officer of the conservation and reclamation district's governing
8-4 body shall submit the name of the district's nominee to the chief
8-5 appraiser before July 15 of each odd-numbered year. Before August
8-6 1, the chief appraiser shall prepare a nominating ballot, listing
8-7 all the nominees of conservation and reclamation districts
8-8 alphabetically by surname, and shall deliver a copy of the
8-9 nominating ballot to the presiding officer of the board of
8-10 directors of each district. The board of directors of each
8-11 district shall determine its vote by resolution and submit it to
8-12 the chief appraiser before August 15. The nominee on the ballot
8-13 with the most votes is the nominee of the conservation and
8-14 reclamation districts in the appraisal district if the nominee
8-15 received more than 10 percent of the votes entitled to be cast by
8-16 all of the conservation and reclamation districts in the appraisal
8-17 district, and shall be named on the ballot with the candidates
8-18 nominated by the other taxing units. The chief appraiser shall
8-19 resolve a tie vote by any method of chance.]
8-20 [(i) If no nominee of the conservation and reclamation
8-21 districts receives more than 10 percent of the votes entitled to be
8-22 cast under Subsection (h), the chief appraiser, before September 1,
8-23 shall notify the presiding officer of the board of directors of
8-24 each conservation and reclamation district of the failure to select
8-25 a nominee. Each conservation and reclamation district may submit a
8-26 nominee by September 15 to the chief appraiser as provided by
8-27 Subsection (h). The chief appraiser shall submit a second
9-1 nominating ballot by October 1 to the conservation and reclamation
9-2 districts as provided by Subsection (h). The conservation and
9-3 reclamation districts shall submit their votes for nomination
9-4 before October 15 as provided by Subsection (h). The nominee on
9-5 the second nominating ballot with the most votes is the nominee of
9-6 the conservation and reclamation districts in the appraisal
9-7 district and shall be named on the ballot with the candidates
9-8 nominated by the other taxing units. The chief appraiser shall
9-9 resolve a tie vote by any method of chance.]
9-10 [(j) Before October 30, the chief appraiser shall prepare a
9-11 ballot, listing the candidates alphabetically according to the
9-12 first letter in each candidate's surname, and shall deliver a copy
9-13 of the ballot to the presiding officer of the governing body of
9-14 each taxing unit that is entitled to vote.]
9-15 [(k) The governing body of each taxing unit entitled to vote
9-16 shall determine its vote by resolution and submit it to the chief
9-17 appraiser before November 15. The chief appraiser shall count the
9-18 votes, declare the five candidates who receive the largest
9-19 cumulative vote totals elected, and submit the results before
9-20 December 1 to the governing body of each taxing unit in the
9-21 district and to the candidates. For purposes of determining the
9-22 number of votes received by the candidates, the candidate receiving
9-23 the most votes of the conservation and reclamation districts is
9-24 considered to have received all of the votes cast by conservation
9-25 and reclamation districts and the other candidates are considered
9-26 not to have received any votes of the conservation and reclamation
9-27 districts. The chief appraiser shall resolve a tie vote by any
10-1 method of chance.]
10-2 [(l) If a vacancy occurs on the board of directors other
10-3 than a vacancy in the position held by a county assessor-collector
10-4 serving as a nonvoting director, each taxing unit that is entitled
10-5 to vote by this section may nominate by resolution adopted by its
10-6 governing body a candidate to fill the vacancy. The unit shall
10-7 submit the name of its nominee to the chief appraiser within 10
10-8 days after notification from the board of directors of the
10-9 existence of the vacancy, and the chief appraiser shall prepare and
10-10 deliver to the board of directors within the next five days a list
10-11 of the nominees. The board of directors shall elect by majority
10-12 vote of its members one of the nominees to fill the vacancy.]
10-13 [(m) If a school district participates in an appraisal
10-14 district in which the only property of the school district located
10-15 in the appraisal district is property annexed to the school
10-16 district under Subchapter C or G, Chapter 41, Education Code, an
10-17 individual who does not meet the residency requirements of
10-18 Subsection (a) is eligible to be appointed to the board of
10-19 directors of the appraisal district if:]
10-20 [(1) the individual is a resident of the school
10-21 district; and]
10-22 [(2) the individual is nominated as a candidate for
10-23 the board of directors by the school district or, if the taxing
10-24 units have adopted a change in the method of appointing board
10-25 members that does not require a nomination, the school district
10-26 appoints or participates in the appointment of the individual.]
10-27 Sec. 6.05. APPRAISAL OFFICE; CHIEF APPRAISER. (a) Except
11-1 as authorized by Subsection (b) [of this section], each appraisal
11-2 district shall establish an appraisal office. The appraisal office
11-3 must be located in the county for which the district is
11-4 established. An appraisal district may establish branch appraisal
11-5 offices outside the county for which the district is established.
11-6 (b) The county assessor-collector who governs [board of
11-7 directors of] an appraisal district may contract with an appraisal
11-8 office in another district or with a taxing unit in the district to
11-9 perform the duties of the appraisal office for the district.
11-10 (c) The county assessor-collector may serve as the chief
11-11 appraiser for the appraisal district or may appoint another person
11-12 to serve as the chief appraiser.
11-13 (d) A county assessor-collector who appoints a person to
11-14 serve as the chief appraiser shall notify the comptroller and each
11-15 taxing unit that participates in the appraisal district of that
11-16 appointment.
11-17 (e) An appointed chief appraiser serves at the pleasure of
11-18 the county assessor-collector and acts on behalf of the county
11-19 assessor-collector on all matters delegated to the appointed chief
11-20 appraiser by the county assessor-collector.
11-21 (f) The chief appraiser is the chief administrator of the
11-22 appraisal office.
11-23 (g) An appointed [The chief appraiser is appointed by and
11-24 serves at the pleasure of the appraisal district board of
11-25 directors. If a taxing unit performs the duties of the appraisal
11-26 office pursuant to a contract, the assessor for the unit is the
11-27 chief appraiser.]
12-1 [(d) The] chief appraiser is entitled to compensation as
12-2 provided by the appraisal district budget for performing duties
12-3 delegated to the appointed chief appraiser by the county
12-4 assessor-collector [adopted by the board of directors]. The chief
12-5 appraiser [He] may employ and compensate professional, clerical,
12-6 and other personnel as provided by the budget.
12-7 (h) [(e)] The chief appraiser may delegate authority to the
12-8 chief appraiser's [his] employees.
12-9 (i) The county assessor-collector may not appoint a person
12-10 to serve as the chief appraiser if the person is related to the
12-11 county assessor-collector within the second degree by affinity or
12-12 within the third degree by consanguinity, as determined under
12-13 Chapter 573, Government Code. An appointed [(f) The] chief
12-14 appraiser may not employ any individual related to the county
12-15 assessor-collector [a member of the board of directors] within the
12-16 second degree by affinity or within the third degree by
12-17 consanguinity, as determined under Chapter 573, Government Code. A
12-18 person commits an offense if the person intentionally or knowingly
12-19 violates this subsection. An offense under this subsection is a
12-20 misdemeanor punishable by a fine of not less than $100 or more than
12-21 $1,000.
12-22 (j) [(g)] The chief appraiser is an officer of the appraisal
12-23 district for purposes of the nepotism law, Chapter 573, Government
12-24 Code. An appraisal district may not employ or contract with an
12-25 individual or the spouse of an individual who is related to the
12-26 chief appraiser within the first degree by consanguinity or
12-27 affinity, as determined under Chapter 573, Government Code.
13-1 (k) A county assessor-collector who appoints a person to
13-2 serve as the chief appraiser [(h) The board of directors of an
13-3 appraisal district by resolution] may prescribe that specified
13-4 actions of the chief appraiser relating to the finances or
13-5 administration of the appraisal district are subject to the
13-6 approval of the county assessor-collector [board].
13-7 Sec. 6.051. Ownership or Lease of Real Property. (a) The
13-8 county assessor-collector who governs [board of directors of] an
13-9 appraisal district may purchase or lease real property and may
13-10 construct improvements as necessary to establish and operate the
13-11 appraisal office or a branch appraisal office.
13-12 (b) The acquisition or conveyance of real property or the
13-13 construction or renovation of a building or other improvement by an
13-14 appraisal district must be approved by the governing bodies of
13-15 three-fourths of the group of taxing units composed of the
13-16 municipalities, school districts, and county participating in the
13-17 appraisal district [entitled to vote on the appointment of board
13-18 members]. The county assessor-collector [board of directors by
13-19 resolution] may propose a property transaction or other action for
13-20 which this subsection requires approval of the taxing units. The
13-21 county assessor-collector [chief appraiser] shall notify the
13-22 presiding officer of each governing body entitled to vote on the
13-23 approval of the proposal by delivering a copy of the proposal
13-24 [board's resolution], together with information showing the costs
13-25 of other available alternatives to the proposal. On or before the
13-26 30th day after the date the presiding officer receives notice of
13-27 the proposal, the governing body of a taxing unit by resolution may
14-1 approve or disapprove the proposal. If a governing body fails to
14-2 act on or before that 30th day or fails to file its resolution with
14-3 the county assessor-collector [chief appraiser] on or before the
14-4 10th day after that 30th day, the proposal is treated as if it were
14-5 disapproved by the governing body.
14-6 (c) The county assessor-collector [board of directors] may
14-7 convey real property owned by the district, and the proceeds shall
14-8 be credited to each taxing unit that participates in the district
14-9 in proportion to the unit's allocation of the appraisal district
14-10 budget in the year in which the transaction occurs. A conveyance
14-11 must be approved as provided by Subsection (b) [of this section],
14-12 and any proceeds shall be apportioned by an amendment to the annual
14-13 budget made as provided by Section 6.06(c) [Subsection (c) of
14-14 Section 6.06 of this code].
14-15 [(d) An acquisition of real property by an appraisal
14-16 district before January 1, 1988, may be validated before March 1,
14-17 1988, in the manner provided by Subsection (b) of this section for
14-18 the acquisition of real property.]
14-19 SECTION 6. Section 6.06, Tax Code, is amended by amending
14-20 Subsections (a)-(d) and (f)-(j) and adding Subsection (k) to read
14-21 as follows:
14-22 (a) Each year the county assessor-collector [chief
14-23 appraiser] shall prepare a proposed budget for the operations of
14-24 the district for the following tax year and shall submit copies to
14-25 each taxing unit participating in the district [and to the district
14-26 board of directors] before June 15. The county assessor-collector
14-27 [He] shall include in the budget a list showing each proposed
15-1 position, the proposed salary for the position, all benefits
15-2 proposed for the position, each proposed capital expenditure, and
15-3 an estimate of the amount of the budget that will be allocated to
15-4 each taxing unit. Each taxing unit [entitled to vote on the
15-5 appointment of board members] shall maintain a copy of the proposed
15-6 budget for public inspection at its principal administrative
15-7 office.
15-8 (b) The county assessor-collector [board of directors] shall
15-9 hold a public hearing to consider the budget. The county
15-10 assessor-collector [secretary of the board] shall deliver to the
15-11 presiding officer of the governing body of each taxing unit
15-12 participating in the district not later than the 10th day before
15-13 the date of the hearing a written notice of the date, time, and
15-14 place fixed for the hearing. The county assessor-collector [board]
15-15 shall complete the [its] hearings, make necessary [any] amendments
15-16 to the proposed budget [it desires], and finally approve a budget
15-17 before September 15. If governing bodies of a majority of the
15-18 group of taxing units composed of the municipalities, school
15-19 districts, and county participating in the appraisal district
15-20 [taxing units entitled to vote on the appointment of board members]
15-21 adopt resolutions disapproving a budget and file them with the
15-22 county assessor-collector [secretary of the board] within 30 days
15-23 after its adoption, the budget does not take effect, and the county
15-24 assessor-collector [board] shall adopt a new budget within 30 days
15-25 of the disapproval.
15-26 (c) The county assessor-collector [board] may amend the
15-27 approved budget at any time, but [the secretary of the board] must
16-1 deliver a written copy of a proposed amendment to the presiding
16-2 officer of the governing body of each taxing unit participating in
16-3 the district not later than the 30th day before the date the county
16-4 assessor-collector approves the amendment [board acts on it].
16-5 (d) Each taxing unit participating in the district is
16-6 allocated a portion of the amount of the budget equal to the
16-7 proportion that the total taxable value [dollar amount] of property
16-8 located [taxes imposed] in the unit [district by the unit] for the
16-9 tax year in which the budget proposal is prepared bears to the sum
16-10 of the total taxable value [dollar amount] of property located
16-11 [taxes imposed] in each participating unit [the district by each
16-12 participating unit] for that year. For purposes of this
16-13 subsection, the taxable value for each taxing unit is determined
16-14 separately, without regard to the inclusion of the same property in
16-15 the determination of the taxable value for other taxing units. If
16-16 a taxing unit participates in two or more districts, only the
16-17 taxable value of property appraised for the unit by [taxes imposed
16-18 in] a district is [are] used to calculate the unit's cost
16-19 allocations in that district. If the number of real property
16-20 parcels in a taxing unit is less than 5 percent of the total number
16-21 of real property parcels in the district and the total taxable
16-22 value of property located in the taxing unit exceeds [imposes in
16-23 excess of] 25 percent of the sum of the total taxable value of
16-24 property in each participating taxing unit [total amount of the
16-25 property taxes imposed in the district by all of the participating
16-26 taxing units] for a year, the unit's allocation may not exceed a
16-27 percentage of the appraisal district's budget equal to three times
17-1 the unit's percentage of the total number of real property parcels
17-2 appraised by the district.
17-3 (f) Payments shall be made to a depository designated by the
17-4 county assessor-collector [district board of directors]. The
17-5 district's funds may be disbursed only by a written check, draft,
17-6 or order signed by the county assessor-collector [chairman and
17-7 secretary of the board or, if authorized by resolution of the
17-8 board, by the chief appraiser].
17-9 (g) If a taxing unit decides not to impose taxes for any tax
17-10 year, the unit is not liable for any of the costs of operating the
17-11 district in that year, and those costs are allocated among the
17-12 other taxing units [as if that unit had not imposed taxes in the
17-13 year used to calculate allocations]. However, if that unit has
17-14 made any payments, it is not entitled to a refund.
17-15 (h) If a newly formed taxing unit or a taxing unit that did
17-16 not impose taxes in the preceding year imposes taxes in any tax
17-17 year, that unit is allocated a portion of the amount budgeted to
17-18 operate the district. The total taxable value for the current year
17-19 of property in the unit and appraised for the unit by the district
17-20 [as if it had imposed taxes in the preceding year, except that the
17-21 amount of taxes the unit imposes in the current year] is used to
17-22 calculate its allocation. Before the total taxable value for the
17-23 current year of property in the unit and appraised for the unit by
17-24 the district [amount of taxes to be imposed for the current year]
17-25 is known, the allocation may be based on an estimate to which the
17-26 county assessor-collector [district board of directors] and the
17-27 governing body of the unit agree, and the payments made after that
18-1 amount is known shall be adjusted to reflect the actual amount
18-2 [imposed]. The payments of a newly formed taxing unit that has no
18-3 source of funds are postponed until the unit has received adequate
18-4 tax or other revenues.
18-5 (i) The fiscal year of an appraisal district is the calendar
18-6 year unless the governing bodies of three-fourths of the group of
18-7 taxing units composed of the municipalities, school districts, and
18-8 county participating in the appraisal district [taxing units
18-9 entitled to vote on the appointment of board members] adopt
18-10 resolutions proposing a different fiscal year and file them with
18-11 the county assessor-collector [secretary of the board] not more
18-12 than 12 and not less than eight months before the first day of the
18-13 fiscal year proposed by the resolutions. If the fiscal year of an
18-14 appraisal district is changed under this subsection, the county
18-15 assessor-collector [chief appraiser] shall prepare a proposed
18-16 budget for the fiscal year as provided by Subsection (a) [of this
18-17 section] before the 15th day of the seventh month preceding the
18-18 first day of the fiscal year established by the change[,] and [the
18-19 board of directors] shall adopt a budget for the fiscal year as
18-20 provided by Subsection (b) [of this section] before the 15th day of
18-21 the fourth month preceding the first day of the fiscal year
18-22 established by the change. Unless the appraisal district adopts a
18-23 different method of allocation under Section 6.061 [of this code],
18-24 the allocation of the budget to each taxing unit shall be
18-25 calculated as provided by Subsection (d) [of this section] using
18-26 the appropriate total taxable values [amount of property taxes
18-27 imposed by each participating taxing unit] in the most recent tax
19-1 year preceding the fiscal year established by the change for which
19-2 the necessary information is available. Each taxing unit shall pay
19-3 its allocation as provided by Subsection (e) [of this section],
19-4 except that the first payment shall be made before the first day of
19-5 the fiscal year established by the change and subsequent payments
19-6 shall be made quarterly. The [In the year in which a change in the
19-7 fiscal year occurs, the] budget for the fiscal year that precedes
19-8 the fiscal year established by the change [that takes effect on
19-9 January 1 of that year] may be amended as necessary as provided by
19-10 Subsection (c) [of this section in order] to accomplish the change
19-11 in fiscal years.
19-12 (j) If the total amount of the payments made or due to be
19-13 made by the taxing units participating in an appraisal district
19-14 exceeds the amount actually spent or obligated to be spent during
19-15 the fiscal year for which the payments were made, the county
19-16 assessor-collector [chief appraiser] shall credit the excess amount
19-17 against each taxing unit's allocated payments for the following
19-18 year in proportion to the amount of each unit's budget allocation
19-19 for the fiscal year for which the payments were made. If a taxing
19-20 unit that paid its allocated amount is not allocated a portion of
19-21 the district's budget for the following fiscal year, the county
19-22 assessor-collector [chief appraiser] shall refund to the taxing
19-23 unit its proportionate share of the excess funds not later than the
19-24 150th day after the end of the fiscal year for which the payments
19-25 were made.
19-26 (k) In this subsection, "special district or authority"
19-27 means any taxing unit other than a school district, municipality,
20-1 or county and includes a junior college district or hospital
20-2 district. Notwithstanding any other provision of this section, if
20-3 the sum total portion of the budget of the appraisal district
20-4 allocated under another provision of this section to the special
20-5 districts or authorities that participate in the appraisal district
20-6 exceeds 10 percent of the budget, the sum total portion of the
20-7 budget that may be allocated to those special districts or
20-8 authorities may not exceed 10 percent. The other provisions of
20-9 this section govern the allocation of:
20-10 (1) that portion of the budget among the special
20-11 districts or authorities if more than one special district or
20-12 authority participates in the appraisal district; and
20-13 (2) the remainder of the budget among the other taxing
20-14 units that participate in the appraisal district.
20-15 SECTION 7. Section 6.061, Tax Code, is amended to read as
20-16 follows:
20-17 Sec. 6.061. CHANGES IN METHOD OF FINANCING. (a) The county
20-18 assessor-collector who governs [board of directors of] an appraisal
20-19 district, by signed order [resolution adopted and] delivered to
20-20 each taxing unit participating in the district after June 15 and
20-21 before August 15, may prescribe a different method of allocating
20-22 the costs of operating the district unless the governing body of
20-23 any taxing unit that participates in the district adopts a
20-24 resolution opposing the different method, and files it with the
20-25 county assessor-collector [board of directors] before September 1.
20-26 If a [board] proposal is rejected, the county assessor-collector
20-27 [board] shall notify, in writing, each taxing unit participating in
21-1 the district before September 15.
21-2 (b) The taxing units participating in an appraisal district
21-3 may adopt a different method of allocating the costs of operating
21-4 the district if the governing bodies of three-fourths of the group
21-5 of taxing units composed of the municipalities, school districts,
21-6 and county participating in the appraisal district [taxing units
21-7 that are entitled to vote on the appointment of board members]
21-8 adopt resolutions providing for the other method. However, a
21-9 change under this subsection is not valid if it requires any taxing
21-10 unit to pay a greater proportion of the appraisal district's costs
21-11 than the unit would pay under Section 6.06 [of this code] without
21-12 the consent of the governing body of that unit.
21-13 (c) An official copy of a resolution under this section must
21-14 be filed with the county assessor-collector [chief appraiser of the
21-15 appraisal district] after April 30 and before May 15 or the
21-16 resolution is ineffective.
21-17 (d) Before May 20, the county assessor-collector [chief
21-18 appraiser] shall determine whether a sufficient number of eligible
21-19 taxing units have filed valid resolutions proposing a change in the
21-20 allocation of district costs for the change to take effect. Before
21-21 May 25, the county assessor-collector [chief appraiser] shall
21-22 notify each taxing unit participating in the district of each
21-23 change that is adopted.
21-24 (e) A change in allocation of district costs made as
21-25 provided by this section remains in effect until changed in a
21-26 manner provided by this section or rescinded by resolution of a
21-27 majority of the governing bodies of the group of taxing units
22-1 composed of the municipalities, school districts, and county
22-2 participating in the appraisal district [that are entitled to vote
22-3 on appointment of board members under Section 6.03 of this code].
22-4 SECTION 8. Sections 6.062(a) and (c), Tax Code, are amended
22-5 to read as follows:
22-6 (a) Not later than the 10th day before the date of the
22-7 public hearing at which the county assessor-collector [board of
22-8 directors] considers the appraisal district budget, the county
22-9 assessor-collector [chief appraiser] shall give notice of the
22-10 public hearing by publishing the notice in a newspaper having
22-11 general circulation in the county for which the appraisal district
22-12 is established. The notice may not be smaller than one-quarter
22-13 page of a standard-size or tabloid-size newspaper and may not be
22-14 published in the part of the paper in which legal notices and
22-15 classified advertisements appear.
22-16 (c) The notice must state that the appraisal district is
22-17 supported solely by payments from the local taxing units served by
22-18 the appraisal district. The notice must also contain the following
22-19 statement: "If approved by the county tax assessor-collector
22-20 [appraisal district board of directors] at the public hearing, this
22-21 proposed budget will take effect automatically unless disapproved
22-22 by the governing bodies of the county, school districts, and
22-23 municipalities [cities, and towns] served by the appraisal
22-24 district. A copy of the proposed budget is available for public
22-25 inspection in the office of each of those governing bodies."
22-26 SECTION 9. Section 6.063, Tax Code, is amended to read as
22-27 follows:
23-1 Sec. 6.063. Financial Audit. (a) At least once each year,
23-2 the county assessor-collector who governs [board of directors of]
23-3 an appraisal district shall have prepared an audit of its affairs
23-4 by an independent certified public accountant or a firm of
23-5 independent certified public accountants.
23-6 (b) The report of the audit is a public record. A copy of
23-7 the report shall be delivered to the county assessor-collector, the
23-8 county judge, and the presiding officer of the governing body of
23-9 each municipality and school district participating in the
23-10 appraisal district [taxing unit eligible to vote on the appointment
23-11 of district directors], and a reasonable number of copies shall be
23-12 available for inspection at the appraisal office.
23-13 SECTION 10. Sections 6.09(b) and (c), Tax Code, are amended
23-14 to read as follows:
23-15 (b) The county assessor-collector who governs an appraisal
23-16 district [board of directors] shall designate as the district
23-17 depository the financial institution or institutions that offer the
23-18 most favorable terms and conditions for the handling of the
23-19 district's funds.
23-20 (c) The county assessor-collector [board] shall solicit bids
23-21 to be designated as depository for the district at least once in
23-22 each two-year period.
23-23 SECTION 11. Sections 6.11(a) and (b), Tax Code, are amended
23-24 to read as follows:
23-25 (a) The county assessor-collector who governs [board of
23-26 directors of] an appraisal district may not make a contract for the
23-27 district requiring an expenditure of more than $15,000 unless the
24-1 proposed contract is submitted to competitive bidding.
24-2 (b) The county assessor-collector [board of directors] is
24-3 subject to the same requirements and has the same powers regarding
24-4 the following matters as apply to a commissioners court under the
24-5 Certificate of Obligation Act of 1971 (Subchapter C, Chapter 271,
24-6 Local Government Code):
24-7 (1) notice of the contract;
24-8 (2) issuance of the contract to the lowest responsible
24-9 bidder;
24-10 (3) rejection of bids;
24-11 (4) expenditure of funds on the completion and
24-12 acceptance of the contract;
24-13 (5) exceptions to the competitive bidding requirement;
24-14 (6) change orders; and
24-15 (7) effect of noncompliance with the competitive
24-16 bidding requirements.
24-17 SECTION 12. Sections 6.12(a) and (d), Tax Code, are amended
24-18 to read as follows:
24-19 (a) The county assessor-collector who governs an [chief
24-20 appraiser of each] appraisal district shall appoint[, with the
24-21 advice and consent of the board of directors,] an agricultural
24-22 advisory board composed of three or more members as determined by
24-23 the needs of the district [board].
24-24 (d) The board shall meet at the call of the county
24-25 assessor-collector [chief appraiser] at least three times a year.
24-26 SECTION 13. Subchapter A, Chapter 6, Tax Code, is amended by
24-27 adding Section 6.15 to read as follows:
25-1 Sec. 6.15. CONTRACTS WITH TAXING UNITS. The county
25-2 assessor-collector who governs an appraisal district may contract
25-3 with the governing body of a taxing unit that participates in the
25-4 appraisal district to consolidate employee benefit plans, vendor
25-5 contracts, leases, or purchases if the consolidation will reduce
25-6 the costs of those items for the appraisal district and the taxing
25-7 unit.
25-8 SECTION 14. Sections 6.24(a) and (b), Tax Code, are amended
25-9 to read as follows:
25-10 (a) The governing body of a taxing unit other than a county
25-11 may contract as provided by Chapter 791, Government Code, for the
25-12 performance of duties relating to the assessment or collection of
25-13 taxes for the taxing unit [the Interlocal Cooperation Act] with:
25-14 (1) the governing body of another taxing unit [or with
25-15 the board of directors of an appraisal district] for the other unit
25-16 [or the district] to perform those duties; or
25-17 (2) the county assessor-collector who governs an
25-18 appraisal district for the appraisal district to perform those
25-19 duties [relating to the assessment or collection of taxes].
25-20 (b) The commissioners court of a county with the approval of
25-21 the county assessor-collector may contract as provided by Chapter
25-22 791, Government Code, [the Interlocal Cooperation Act] with the
25-23 governing body of another taxing unit in the county [or with the
25-24 board of directors of the appraisal district] for the other unit
25-25 [or the district] to perform duties relating to the assessment or
25-26 collection of taxes for the county. The commissioners court may
25-27 contract as provided by Chapter 791, Government Code, with the
26-1 county assessor-collector for the appraisal district established
26-2 for the county to perform duties relating to the assessment or
26-3 collection of taxes for the county. If a county contracts to have
26-4 its taxes assessed and collected by another taxing unit or by the
26-5 appraisal district, the contract shall require the other unit or
26-6 the district to assess and collect all taxes the county is required
26-7 to assess and collect.
26-8 SECTION 15. Section 6.26(f), Tax Code, is amended to read as
26-9 follows:
26-10 (f) If a majority of the qualified voters voting on the
26-11 question in the election favor the proposition, the entity or
26-12 office named by the ballot shall perform the functions named by the
26-13 ballot beginning with the next time property taxes are assessed or
26-14 collected, as applicable, that is more than 90 days after the date
26-15 of the election. If the governing bodies, [(]and the county
26-16 assessor-collector who governs the appraisal district [board of
26-17 directors] when the district is involved,[)] agree, a function may
26-18 be consolidated when performance of the function begins in less
26-19 than 90 days after the date of the election.
26-20 SECTION 16. Sections 6.41(b), (d), (e), and (f), Tax Code,
26-21 are amended to read as follows:
26-22 (b) The board consists of three members. However, the
26-23 county assessor-collector who governs the appraisal district [board
26-24 of directors by resolution of a majority of its members] may
26-25 increase the size of the appraisal review board to not more than
26-26 nine members or, in a district established for a county with a
26-27 population of at least 250,000, to not more than 15 members or, in
27-1 a district established for a county with a population of at least
27-2 one million, to not more than 30 members or, in a district
27-3 established for a county with a population of at least 1,500,000,
27-4 to not more than 45 members.
27-5 (d) Members of the board are appointed by the governing
27-6 bodies of the group of taxing units composed of the municipalities,
27-7 school districts, and county participating in the appraisal
27-8 district in accordance with a procedure adopted by the county
27-9 assessor-collector who governs the appraisal district. The
27-10 procedure shall provide for equal representation of each
27-11 municipality, school district, and county participating in the
27-12 appraisal district, to the extent practicable [by resolution of a
27-13 majority of the appraisal district board of directors]. A vacancy
27-14 on the board is filled in the same manner for the unexpired portion
27-15 of the term.
27-16 (e) Members of the board hold office for terms of two years
27-17 beginning January 1. The county assessor-collector [appraisal
27-18 district board of directors by resolution] shall provide for
27-19 staggered terms, so that the terms of as close to one-half of the
27-20 members as possible expire each year. In making the initial
27-21 appointments, the county assessor-collector [board of directors]
27-22 shall designate those members who serve terms of one year.
27-23 (f) A member of the board may be removed from the board by
27-24 the county assessor-collector who governs [a majority vote of] the
27-25 appraisal district [board of directors]. Grounds for removal are:
27-26 (1) a violation of Section 6.412 or 6.413; or
27-27 (2) good cause relating to the attendance of members
28-1 at called meetings of the board as established by written policy
28-2 adopted by the county assessor-collector [a majority of the
28-3 appraisal district board of directors].
28-4 SECTION 17. Section 6.411(a), Tax Code, is amended to read as
28-5 follows:
28-6 (a) The county assessor-collector who governs [board of
28-7 directors of] an appraisal district may appoint auxiliary members
28-8 to hear taxpayer protests before the appraisal review board and to
28-9 assist the board in performing its other duties. The appointment
28-10 of an auxiliary member must be approved by resolutions adopted by a
28-11 majority of the governing bodies of the group of taxing units
28-12 composed of the municipalities, school districts, and county
28-13 participating in the appraisal district.
28-14 SECTION 18. Sections 6.412(c) and (d), Tax Code, are amended
28-15 to read as follows:
28-16 (c) A person is ineligible to serve on the appraisal review
28-17 board if the person is the county assessor-collector [a member of
28-18 the board of directors], an officer [,] or employee of the
28-19 appraisal district, an employee of the comptroller, or a member of
28-20 the governing body, an officer, or an employee of a taxing unit.
28-21 (d) A person is ineligible to serve on the appraisal review
28-22 board of an appraisal district established for a county having a
28-23 population of more than 100,000:
28-24 (1) if the person:
28-25 (A) has served for all or part of three previous
28-26 terms as a board member or auxiliary board member on the appraisal
28-27 review board; or
29-1 (B) is a former county assessor-collector who
29-2 governed the appraisal district or a former [member of the board of
29-3 directors,] officer[,] or employee of the appraisal district; [or]
29-4 (2) if the person served as a member of the governing
29-5 body or as an officer of a taxing unit for which the appraisal
29-6 district appraises property, until the fourth anniversary of the
29-7 date the person ceased to be a member or officer; or
29-8 (3) if the person has ever appeared before the
29-9 appraisal review board for compensation.
29-10 SECTION 19. Section 25.01(b), Tax Code, is amended to read as
29-11 follows:
29-12 (b) The county assessor-collector who governs the appraisal
29-13 district [chief appraiser with the approval of the board of
29-14 directors of the district] may contract with a private appraisal
29-15 firm to perform appraisal services for the district, subject to the
29-16 county assessor-collector's [his] approval. A contract for private
29-17 appraisal services is void if the amount of compensation to be paid
29-18 the private appraisal firm is contingent on the amount of or
29-19 increase in appraised, assessed, or taxable value of property
29-20 appraised by the appraisal firm.
29-21 SECTION 20. Section 25.19(e), Tax Code, is amended to read
29-22 as follows:
29-23 (e) The chief appraiser, with the approval of the county
29-24 assessor-collector who governs the appraisal district if the county
29-25 assessor-collector is not the chief appraiser [appraisal district
29-26 board of directors], may dispense with the notice required by
29-27 Subsection (a)(1) if the amount of increase in appraised value is
30-1 $1,000 or less.
30-2 SECTION 21. Section 25.25(b), Tax Code, is amended to read
30-3 as follows:
30-4 (b) The chief appraiser may change the appraisal roll at any
30-5 time to correct a name or address, a description of property, or a
30-6 clerical error or other inaccuracy as prescribed by board rule that
30-7 does not increase the amount of tax liability. Before the 10th day
30-8 after the end of each calendar quarter, the chief appraiser shall
30-9 submit to the appraisal review board and to the county
30-10 assessor-collector who governs the appraisal district if the county
30-11 assessor-collector is not the chief appraiser [board of directors
30-12 of the appraisal district] a written report of each change made
30-13 under this subsection that decreases the tax liability of the owner
30-14 of the property. The report must include:
30-15 (1) a description of each property; and
30-16 (2) the name of the owner of that property.
30-17 SECTION 22. Section 41.66(g), Tax Code, is amended to read
30-18 as follows:
30-19 (g) At the beginning of a hearing on a protest, each member
30-20 of the appraisal review board hearing the protest must sign an
30-21 affidavit stating that the board member has not communicated with
30-22 another person in violation of Subsection (f). If a board member
30-23 has communicated with another person in violation of Subsection
30-24 (f), the member must be recused from the proceeding and may not
30-25 hear, deliberate on, or vote on the determination of the protest.
30-26 The county assessor-collector who governs [board of directors of]
30-27 the appraisal district shall adopt and implement a policy
31-1 concerning the temporary replacement of an appraisal review board
31-2 member who has communicated with another person in violation of
31-3 Subsection (f).
31-4 SECTION 23. Section 42.02, Tax Code, is amended to read as
31-5 follows:
31-6 Sec. 42.02. Right of Appeal by Chief Appraiser. The chief
31-7 appraiser is entitled to appeal an order of the appraisal review
31-8 board determining a taxpayer protest as provided by Subchapter C,
31-9 Chapter 41. The chief appraiser must obtain the written approval
31-10 of the county assessor-collector who governs the appraisal district
31-11 if the county assessor-collector is not the chief appraiser [of
31-12 this code if he has written approval of the local appraisal
31-13 district board of directors to appeal].
31-14 SECTION 24. Subchapter Z, Chapter 152, Local Government
31-15 Code, is amended by adding Section 152.908 to read as follows:
31-16 Sec. 152.908. COMPENSATION OF COUNTY TAX ASSESSOR-COLLECTOR.
31-17 In setting the amount of the compensation of the county tax
31-18 assessor-collector, the commissioners court of the county may not
31-19 take into account the compensation the county tax
31-20 assessor-collector receives for administering the appraisal
31-21 district established for the county.
31-22 SECTION 25. Section 11A, The Property Taxation Professional
31-23 Certification Act (Article 8885, Revised Statutes), is amended to
31-24 read as follows:
31-25 Sec. 11A. EXCEPTION FOR OFFICER OF POPULOUS COUNTY. A tax
31-26 assessor-collector of a county with a population of 1,000,000 or
31-27 more[, according to the most recent federal census,] is exempt from
32-1 the requirement to register under Section 11 of this Act as an
32-2 assessor, assessor-collector, or collector.
32-3 SECTION 26. Section 11B(a), The Property Taxation
32-4 Professional Certification Act (Article 8885, Revised Statutes), is
32-5 amended to read as follows:
32-6 (a) A county tax assessor-collector is exempt from the
32-7 requirement to register under Section 11 of this Act as an
32-8 assessor, assessor-collector, or collector if the county has
32-9 contracted under Section 6.24(b), Tax Code, to have its taxes
32-10 assessed and collected by another taxing unit [or an appraisal
32-11 district].
32-12 SECTION 27. The Property Taxation Professional Certification
32-13 Act (Article 8885, Revised Statutes) is amended by adding Section
32-14 11C to read as follows:
32-15 Sec. 11C. EXCEPTION FOR OFFICERS OF CERTAIN APPRAISAL
32-16 DISTRICTS. (a) A county tax assessor-collector who governs an
32-17 appraisal district is exempt from the requirement to register under
32-18 Section 11 of this Act as an appraiser if the appraisal office for
32-19 the district has contracted under Section 6.05(b), Tax Code, to
32-20 have the duties of the appraisal office for the district performed
32-21 by another district.
32-22 (b) The exemption under this section exists only while a
32-23 contract under Section 6.05(b), Tax Code, is in effect.
32-24 SECTION 28. Section 22, The Property Taxation Professional
32-25 Certification Act (Article 8885, Revised Statutes), is amended to
32-26 read as follows:
32-27 Sec. 22. The county tax assessor-collector who governs an
33-1 [No] appraisal district [board of directors] or the governing body
33-2 of a taxing unit of this state may not, as a necessity for
33-3 employment, require that an appraiser, assessor, or collector act
33-4 in an unprofessional manner or commit acts in violation of this
33-5 Act. A complaint of a violation of this section shall be
33-6 thoroughly investigated by the board.
33-7 SECTION 29. The following provisions of the Tax Code are
33-8 repealed:
33-9 (1) Section 6.031;
33-10 (2) Section 6.033;
33-11 (3) Section 6.034;
33-12 (4) Section 6.035;
33-13 (5) Section 6.036;
33-14 (6) Section 6.037;
33-15 (7) Section 6.04;
33-16 (8) Section 6.052;
33-17 (9) Section 6.10; and
33-18 (10) Section 31.03(c).
33-19 SECTION 30. (a) On the effective date of this Act, the tax
33-20 assessor-collector of each county begins to govern the appraisal
33-21 district established for that county and begins to serve as the
33-22 chief appraiser of the appraisal district, and the board of
33-23 directors of each appraisal district ceases to exist. On that
33-24 date, the appraisal district as governed by the county tax
33-25 assessor-collector succeeds to all the rights, duties, privileges,
33-26 property, obligations, and liabilities of the appraisal district as
33-27 governed by the board of directors.
34-1 (b) A measure taken or adopted by an appraisal district
34-2 board of directors before the effective date of this Act that is in
34-3 effect on the effective date continues in effect after the
34-4 effective date of this Act until superseded by the county tax
34-5 assessor-collector governing the district.
34-6 (c) The amendment by this Act of Section 6.02, Tax Code,
34-7 does not affect the choice of a taxing unit to participate in a
34-8 single appraisal district before the effective date of this Act.
34-9 (d) The amendment by this Act of Section 6.41, Tax Code,
34-10 does not affect the term of a member of an appraisal review board
34-11 appointed before the effective date of this Act.
34-12 SECTION 31. This Act takes effect January 1, 2002.