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.