78S40346 RCJ-D

By:  Ellis                                                        H.B. No. 56 


A BILL TO BE ENTITLED
AN ACT
relating to the selection of the board of directors of an appraisal district. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 6.02(c), Tax Code, is amended to read as follows: (c) A taxing unit that has chosen to participate in a single appraisal district under Subsection (b) [of this section] may revoke that choice and, if permitted to do so by Subsection (b), choose to participate in a single appraisal district other than the one previously chosen. [A taxing unit that has withdrawn from an appraisal district under this subsection and chosen to participate in another single appraisal district may not under this subsection withdraw from that district.] SECTION 2. Section 6.03, Tax Code, is amended by amending Subsections (a)-(c) and (l) and adding Subsection (a-1) to read as follows: (a) The appraisal district is governed by a board of five directors elected at the general election on the first Tuesday after the first Monday in November of even-numbered years. (a-1) One director shall be elected at large by the voters of the county for which the appraisal district is established, and one director shall be elected from each county commissioners precinct of that county by the voters of that precinct. To be eligible to be a candidate for or to serve as the director representing the county at large, a person must be a registered voter of the county. Except as provided by Subsection (c), to be eligible to be a candidate for or to serve as the director representing a county commissioners precinct, a person must be a registered voter of that precinct. A person shall indicate on the application for a place on the ballot the precinct that the person seeks to represent or that the person seeks to represent the county at large. [Five directors are appointed by the taxing units that participate in the district as provided by this section. If the county assessor-collector is not appointed to the board, the county assessor-collector serves as a nonvoting director. The county assessor-collector is ineligible to serve if the board enters into a contract under Section 6.05(b) or if the commissioners court of the county enters into a contract under Section 6.24(b). To be eligible to serve on the board of directors, an individual other than a county assessor-collector serving as a nonvoting director must be a resident of the district and must have resided in the district for at least two years immediately preceding the date the individual takes office. An individual who is otherwise eligible to serve on the board is not ineligible because of membership on the governing body of a taxing unit. An employee of a taxing unit that participates in the district is not eligible to serve on the board unless the individual is also a member of the governing body or an elected official of a taxing unit that participates in the district.] (b) Members of the board of directors [other than a county assessor-collector serving as a nonvoting director] serve two-year terms beginning on January 1 of each odd-numbered year [even-numbered years]. (c) When the boundaries of the county commissioners precincts are changed under Section 18, Article V, Texas Constitution, a director representing a precinct who is in office on the effective date of the change, or who before the effective date of the change is elected or appointed to a term of office beginning on or after the effective date of the change, is entitled to serve the term or the remainder of the term in the precinct to which the person was elected or appointed even though the change in boundaries places the person's residence outside the precinct for which the person was elected or appointed. [Members of the board of directors other than a county assessor-collector serving as a nonvoting director are appointed by vote of the governing bodies of the incorporated cities and towns, the school districts, and, if entitled to vote, the conservation and reclamation districts that participate in the district and of the county. A governing body may cast all its votes for one candidate or distribute them among candidates for any number of directorships. Conservation and reclamation districts are not entitled to vote unless at least one conservation and reclamation district in the district delivers to the chief appraiser a written request to nominate and vote on the board of directors by June 1 of each odd-numbered year. On receipt of a request, the chief appraiser shall certify a list by June 15 of all eligible conservation and reclamation districts that are imposing taxes and that participate in the district.] (l) If a vacancy occurs on the board of directors in the position of a director representing a county commissioners precinct, the county commissioner representing the same precinct shall appoint a qualified resident of the precinct to fill the vacancy. If a vacancy occurs in the position of the director representing the county at large, the county judge shall appoint a qualified resident of the county to fill the vacancy. A person appointed to fill a vacancy serves the remainder of the unexpired term [other than a vacancy in the position held by a county assessor-collector serving as a nonvoting director, each taxing unit that is entitled to vote by this section may nominate by resolution adopted by its governing body a candidate to fill the vacancy. The unit shall submit the name of its nominee to the chief appraiser within 45 days after notification from the board of directors of the existence of the vacancy, and the chief appraiser shall prepare and deliver to the board of directors within the next five days a list of the nominees. The board of directors shall elect by majority vote of its members one of the nominees to fill the vacancy]. SECTION 3. The heading to Section 6.031, Tax Code, is amended to read as follows: Sec. 6.031. BALLOT PROCEDURES; FILING FEE [CHANGES IN BOARD MEMBERSHIP OR SELECTION]. SECTION 4. Sections 6.031(a)-(c), Tax Code, are amended to read as follows: (a) Except as provided by this section, Chapter 144, Election Code, applies to a candidate for the office [The board of directors] of member of an appraisal district[, by resolution adopted and delivered to each taxing unit participating in the district before August 15, may increase the number of members on the] board of directors [of the district to not more than 13, change the method or procedure for appointing the members, or both, unless the governing body of a taxing unit that is entitled to vote on the appointment of board members adopts a resolution opposing the change, and files it with the board of directors before September 1. If a change is rejected, the board shall notify, in writing, each taxing unit participating in the district before September 15]. (b) An application for a place on the ballot must be filed with the county judge of the county for which the appraisal district is established and be accompanied by either: (1) a filing fee of: (A) $1,000 in a county with a population of 200,000 or more; or (B) $375 in a county with a population of less than 200,000; or (2) a petition that contains at least the lesser of the following number of signatures of registered voters of the county: (A) 500; or (B) five percent of the total vote received in the county by all candidates for governor in the most recent gubernatorial general election, unless that number is less than 25, in which case the required number of signatures is the lesser of: (i) 25; or (ii) 10 percent of that total vote [The taxing units participating in an appraisal district may increase the number of members on the board of directors of the district to not more than 13, change the method or procedure for appointing the members, or both, if the governing bodies of three-fourths of the taxing units that are entitled to vote on the appointment of board members adopt resolutions providing for the change. However, a change under this subsection is not valid if it reduces the voting entitlement of one or more taxing units that do not adopt a resolution proposing it to less than a majority of the voting entitlement under Section 6.03 of this code or if it reduces the voting entitlement of any taxing unit that does not adopt a resolution proposing it to less than 50 percent of its voting entitlement under Section 6.03 of this code and if that taxing unit's allocation of the budget is not reduced to the same proportional percentage amount, or if it expands the types of taxing units that are entitled to vote on appointment of board members]. (c) A filing fee received [An official copy of a resolution] under this section shall be deposited in the county treasury to the credit of the county general fund [must be filed with the chief appraiser of the appraisal district after June 30 and before October 1 of a year in which board members are appointed or the resolution is ineffective]. SECTION 5. Section 6.036(a), Tax Code, is amended to read as follows: (a) An individual is not eligible to be a candidate for [appointed to] or to serve on the board of directors of an appraisal district if the individual or a business entity in which the individual has a substantial interest is a party to a contract with: (1) the appraisal district; or (2) a taxing unit that participates in the appraisal district, if the contract relates to the performance of an activity governed by this title. SECTION 6. Section 6.037, Tax Code, is amended to read as follows: Sec. 6.037. PARTICIPATION OF CONSERVATION AND RECLAMATION DISTRICTS IN APPRAISAL DISTRICT MATTERS. [In this title, a reference to the taxing units entitled to vote on the appointment of appraisal district board members includes the conservation and reclamation districts participating in the appraisal district, without regard to whether the conservation and reclamation districts are currently entitled to do so under Section 6.03(c).] In a provision of this title [other than Section 6.03 or 6.031] that grants authority to a majority or other number of the taxing units participating in an appraisal district [entitled to vote on the appointment of appraisal district directors], including the authority to disapprove [disapproval of] the appraisal district budget under Section 6.06 [and the disapproval of appraisal district board actions under Section 6.10], the conservation and reclamation districts participating in the appraisal district are given the vote or authority of one taxing unit. That vote or authority is considered exercised only if a majority of the conservation and reclamation districts take the same action to exercise that vote or authority. Otherwise, the conservation and reclamation districts are treated in the same manner as a single taxing unit that is entitled to act but does not take any action on the matter. SECTION 7. Section 6.051(b), Tax Code, is amended to read as follows: (b) The acquisition or conveyance of real property or the construction or renovation of a building or other improvement by an appraisal district must be approved by the governing bodies of three-fourths of the taxing units participating in the district [entitled to vote on the appointment of board members]. The board of directors by resolution may propose a property transaction or other action for which this subsection requires approval of the taxing units. The chief appraiser shall notify the presiding officer of each governing body entitled to vote on the approval of the proposal by delivering a copy of the board's resolution, together with information showing the costs of other available alternatives to the proposal. On or before the 30th day after the date the presiding officer receives notice of the proposal, the governing body of a taxing unit by resolution may approve or disapprove the proposal. If a governing body fails to act on or before that 30th day or fails to file its resolution with the chief appraiser on or before the 10th day after that 30th day, the proposal is treated as if it were disapproved by the governing body. SECTION 8. Sections 6.06(a), (b), and (i), Tax Code, are amended to read as follows: (a) Each year the chief appraiser shall prepare a proposed budget for the operations of the district for the following tax year and shall submit copies to each taxing unit participating in the district and to the district board of directors before June 15. The chief appraiser [He] shall include in the budget a list showing each proposed position, the proposed salary for the position, all benefits proposed for the position, each proposed capital expenditure, and an estimate of the amount of the budget that will be allocated to each taxing unit. Each taxing unit participating in the district [entitled to vote on the appointment of board members] shall maintain a copy of the proposed budget for public inspection at its principal administrative office. (b) The board of directors shall hold a public hearing to consider the budget. The secretary of the board shall deliver to the presiding officer of the governing body of each taxing unit participating in the district not later than the 10th day before the date of the hearing a written notice of the date, time, and place fixed for the hearing. The board shall complete its hearings, make any amendments to the proposed budget it desires, and finally approve a budget before September 15. If governing bodies of a majority of the taxing units participating in the district [entitled to vote on the appointment of board members] adopt resolutions disapproving a budget and file them with the secretary of the board within 30 days after its adoption, the budget does not take effect, and the board shall adopt a new budget within 30 days of the disapproval. (i) The fiscal year of an appraisal district is the calendar year unless the governing bodies of three-fourths of the taxing units participating in the district [entitled to vote on the appointment of board members] adopt resolutions proposing a different fiscal year and file them with the secretary of the board not more than 12 and not less than eight months before the first day of the fiscal year proposed by the resolutions. If the fiscal year of an appraisal district is changed under this subsection, the chief appraiser shall prepare a proposed budget for the fiscal year as provided by Subsection (a) [of this section] before the 15th day of the seventh month preceding the first day of the fiscal year established by the change, and the board of directors shall adopt a budget for the fiscal year as provided by Subsection (b) [of this section] before the 15th day of the fourth month preceding the first day of the fiscal year established by the change. Unless the appraisal district adopts a different method of allocation under Section 6.061 [of this code], the allocation of the budget to each taxing unit shall be calculated as provided by Subsection (d) [of this section] using the amount of property taxes imposed by each participating taxing unit in the most recent tax year preceding the fiscal year established by the change for which the necessary information is available. Each taxing unit shall pay its allocation as provided by Subsection (e) [of this section], except that the first payment shall be made before the first day of the fiscal year established by the change and subsequent payments shall be made quarterly. In the year in which a change in the fiscal year occurs, the budget that takes effect on January 1 of that year may be amended as necessary as provided by Subsection (c) [of this section] in order to accomplish the change in fiscal years. SECTION 9. Sections 6.061(b) and (e), Tax Code, are amended to read as follows: (b) The taxing units participating in an appraisal district may adopt a different method of allocating the costs of operating the district if the governing bodies of three-fourths of the taxing units that participate in the district [are entitled to vote on the appointment of board members] adopt resolutions providing for the other method. However, a change under this subsection is not valid if it requires any taxing unit to pay a greater proportion of the appraisal district's costs than the unit would pay under Section 6.06 [of this code] without the consent of the governing body of that unit. (e) A change in allocation of district costs made as provided by this section remains in effect until changed in a manner provided by this section or rescinded by resolution of a majority of the governing bodies of the taxing units participating in the district [that are entitled to vote on appointment of board members under Section 6.03 of this code]. SECTION 10. Section 6.063(b), Tax Code, is amended to read as follows: (b) The report of the audit is a public record. A copy of the report shall be delivered to the presiding officer of the governing body of each taxing unit participating in the district [eligible to vote on the appointment of district directors], and a reasonable number of copies shall be available for inspection at the appraisal office. SECTION 11. Section 52.092, Election Code, is amended by adding Subsection (k) to read as follows: (k) The secretary of state shall prescribe procedures for the listing of the office of appraisal district director on the ballot. SECTION 12. The following sections of the Tax Code are repealed: (1) Sections 6.03(d)-(k) and (m); (2) Sections 6.031(d)-(g); (3) Section 6.033; (4) Section 6.034; and (5) Section 6.10. SECTION 13. (a) Except as otherwise provided by this section, this Act takes effect January 1, 2005. (b) Sections 3, 4, 11, and 14 of this Act take effect September 1, 2004. SECTION 14. (a) Appraisal district directors shall be elected as provided by Section 6.03, Tax Code, as amended by this Act, beginning with the general election conducted in November 2004. Members then elected take office January 1, 2005. (b) The change in manner of selection of appraisal district directors made by this Act does not affect the selection of directors who serve on the board before January 1, 2005. (c) The term of an appraisal district director serving on December 31, 2004, expires on January 1, 2005.