1-1     By:  Hochberg (Senate Sponsor - Cain)                 H.B. No. 3526
 1-2           (In the Senate - Received from the House May 7, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on
 1-4     Education; May 10, 2001, reported favorably by the following vote:
 1-5     Yeas 7, Nays 0; May 10, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the use of estimated property values in preparing the
 1-9     public notice provided by school districts before adopting a
1-10     proposed budget and tax rate.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1. Section 44.004, Education Code, is amended by
1-13     amending Subsection (e) and adding Subsections (h) and (i) to read
1-14     as follows:
1-15           (e)  A person who owns taxable property in a school district
1-16     is entitled to an injunction restraining the collection of taxes by
1-17     the district if the district has not complied with the requirements
1-18     of Subsections (b), (c), and (d), and, if applicable, Subsection
1-19     (i), and the failure to comply was not in good faith.  An action to
1-20     enjoin the collection of taxes must be filed before the date the
1-21     school district delivers substantially all of its tax bills.
1-22           (h)  Notwithstanding any other provision of this section, a
1-23     school district with a fiscal year beginning July 1 may use the
1-24     certified estimate of the taxable value of district property
1-25     required by Section 26.01(d), Tax Code, in preparing the notice
1-26     required by this section if the district does not receive on or
1-27     before June 7 the certified appraisal roll for the district
1-28     required by Section 26.01(a), Tax Code.
1-29           (i)  A school district that uses a certified estimate, as
1-30     authorized by Subsection (h), may adopt a budget at the public
1-31     meeting designated in the notice prepared using the estimate, but
1-32     the district may not adopt a tax rate before the district receives
1-33     the certified appraisal roll for the district required by Section
1-34     26.01(a), Tax Code.  After receipt of the certified appraisal roll,
1-35     the district must publish a revised notice and hold another public
1-36     meeting before the district may adopt a tax rate that exceeds:
1-37                 (1)  the rate proposed in the notice prepared using the
1-38     estimate; or
1-39                 (2)  the district's rollback rate determined under
1-40     Section 26.08, Tax Code, using the certified appraisal roll.
1-41           SECTION 2. Section 26.01(d), Tax Code, is amended to read as
1-42     follows:
1-43           (d)  By June 7 [15], the chief appraiser shall prepare and
1-44     certify to the assessor for each school district participating in
1-45     the appraisal district an estimate of the taxable value of school
1-46     district property.  The chief appraiser shall assist each school
1-47     district in determining values of school district property for the
1-48     school district's budgetary purposes.
1-49           SECTION 3. This Act takes effect September 1, 2001.
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