By: Phillips H.B. No. 3090

A BILL TO BE ENTITLED

AN ACT

relating to the appraisal and assessment of property for ad valorem tax purposes and the collection of ad valorem taxes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 5, Tax Code, is amended by adding Section 5.071 to read as follows:

Sec. 5.071. REGISTRY OF CERTIFIED SOFTWARE. (a) The comptroller shall maintain a registry listing software certified by the comptroller for use in the appraisal of property for tax purposes or the assessment or collection of taxes under this title.

(b) To be certified under this section, software must meet uniform standards prescribed by the comptroller.

(c) Each appraisal district, assessor, and collector shall use appropriate software listed in the registry in connection with the appraisal of property for tax purposes or the assessment or collection of taxes by the district, assessor, or collector.

(d) The comptroller shall adopt rules necessary to administer this section.

SECTION 2. Section 5.12(b), Tax Code, is amended to read as follows:

(b) At the written request of the governing bodies of a majority of the taxing units participating in an appraisal district [or of a majority of the taxing units entitled to vote on the appointment of appraisal district directors], the comptroller shall audit the performance of the appraisal district. The governing bodies may request a general audit of the performance of the appraisal district or may request an audit of only one or more particular duties, practices, functions, departments, or other appraisal district matters.

SECTION 3. Section 5.13(h), Tax Code, is amended to read as follows:

(h) At any time after the request for an audit is made, the comptroller may discontinue the audit in whole or in part if requested to do so by:

(1) the governing bodies of a majority of the taxing units participating in the district, if the audit was requested by a majority of those units; or

(2) [the governing bodies of a majority of the taxing units entitled to vote on the appointment of appraisal district directors, if the audit was requested by a majority of those units; or

[(3)] if the audit was requested under Section 5.12(c) [of this code], by the taxpayers who requested the audit.

SECTION 4. 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 5. Section 6.03, Tax Code, is amended by amending Subsections (a), (b), (c), (k), (l), and (m) and adding Subsections (a-1), (a-2), and (l-1) to read as follows:

(a) The appraisal district is governed by a board of seven directors. Two directors are elected at the general election for state and county officers by the voters of the county for which the district is established, and five [Five] directors are appointed by the taxing units that participate in the district as provided by this section.

(a-1) If the county assessor-collector is not appointed to the board of directors, 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).

(a-2) 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 appraisal district and must have resided in the district for at least two years immediately preceding the date the individual takes office. To be eligible to be elected to the board, an individual must be a resident of the county for which the district is established. An individual who is otherwise eligible to serve on the board as a member appointed by the taxing units participating in the district 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 as a member appointed by the taxing units participating in the district 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. The terms of directors elected at a general election begin on January 1 of odd-numbered years. The terms of directors appointed by the taxing units begin [beginning] on January 1 of even-numbered years.

(c) Members of the board of directors, other than a county assessor-collector serving as a nonvoting director and other than the elected members, 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.

(k) The governing body of each taxing unit entitled to vote shall determine its vote by resolution and submit it to the chief appraiser before December 15. The chief appraiser shall count the votes, declare the five candidates who receive the largest cumulative vote totals appointed [elected], and submit the results before December 31 to the governing body of each taxing unit in the district and to the candidates. For purposes of determining the number of votes received by the candidates, the candidate receiving the most votes of the conservation and reclamation districts is considered to have received all of the votes cast by conservation and reclamation districts and the other candidates are considered not to have received any votes of the conservation and reclamation districts. The chief appraiser shall resolve a tie vote by any method of chance.

(l) If a vacancy occurs in an appointive position on the board of directors, 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 appoint [elect] by majority vote of its members one of the nominees to fill the vacancy.

(l-1) If a vacancy occurs in an elective position on the board of directors, the board of directors shall appoint by majority vote of its members a person to fill the vacancy. A person appointed to fill a vacancy in an elective position must have the qualifications required of a director elected at a general election.

(m) If a school district participates in an appraisal district in which the only property of the school district located in the appraisal district is property annexed to the school district under Subchapter C or G, Chapter 41, Education Code, an individual who does not meet the residency requirements of Subsection (a-2) [(a)] is eligible to be appointed to an appointive position on the board of directors of the appraisal district by the taxing units participating in the appraisal district if:

(1) the individual is a resident of the school district; and

(2) the individual is nominated as a candidate for the board of directors by the school district or, if the taxing units have adopted a change in the method of appointing board members that does not require a nomination, the school district appoints or participates in the appointment of the individual.

SECTION 6. Section 6.031, Tax Code, is amended to read as follows:

Sec. 6.031. CHANGES IN BOARD MEMBERSHIP [OR SELECTION]. (a) The board of directors of an appraisal district, by resolution adopted and delivered to each taxing unit participating in the district before May [August] 15, may increase the number of members on the board of directors of the district to not more than 13 or[,] change the method or procedure for appointing the members appointed by the taxing units participating in the district, 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 in the method or procedure for appointing those members[,] and files it with the board of directors before June [September] 1. If a change in the method or procedure for appointing those members is rejected, the board shall notify, in writing, each taxing unit participating in the district before June [September] 15.

(b) 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 or[,] change the method or procedure for appointing the members appointed by the taxing units participating in the district, 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 in the method or procedure for selecting members appointed by the taxing units participating in the district 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) An official copy of a resolution under Subsection (b) [this section] must be filed with the chief appraiser of the appraisal district after May [June] 30 and before August [October] 1 [of a year in which board members are appointed] or the resolution is ineffective.

(d) Before August 15 [October 5 of each year in which board members are appointed], the chief appraiser shall determine whether a sufficient number of eligible taxing units have filed valid resolutions proposing a change under Subsection (b) for the change to take effect. The chief appraiser shall notify each taxing unit participating in the district of each change that is adopted before August 30 [October 10]. A change in the method or procedure for selecting members appointed by the taxing units participating in the district that is adopted takes effect on the date the chief appraiser notifies the taxing units of the change. An increase in the number of members of the board takes effect on January 1 of the first year after the date the chief appraiser notifies the taxing units of the increase.

(e) If the number of members of the board is increased under this section, at least one-half of the number of new members shall be elected to the board in the manner provided by Section 6.03. The board of directors by majority vote of its members may increase the number of members to be elected to more than the minimum number required by this subsection.

(f) A change in [membership or] selection of the board members appointed by the taxing units participating in the district 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 that are entitled to vote on appointment of board members under Section 6.03 [of this code].

(g) [(f)] A provision of Section 6.03 [of this code] that is subject to change under this section but is not expressly changed by resolution of a sufficient number of eligible taxing units remains in effect.

(h) [(g)] For purposes of this section, the conservation and reclamation districts in an appraisal district are considered to be entitled to vote on the appointment of appraisal district directors if:

(1) a conservation and reclamation district has filed a request to the chief appraiser to nominate and vote on directors in the current year as provided by Section 6.03(c); or

(2) conservation and reclamation districts were entitled to vote on the appointment of directors in the appraisal district in the most recent year in which directors were appointed under Section 6.03.

SECTION 7. Subchapter A, Chapter 6, Tax Code, is amended by adding Section 6.032 to read as follows:

Sec. 6.032. BALLOT PROCEDURES FOR ELECTED DIRECTORS; FILING FEE. (a) Except as provided by this section, Chapter 144, Election Code, applies to a candidate for an elective position on an appraisal district board of directors.

(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 a filing fee of $200 or a petition that contains at least 25 signatures of registered voters of the county.

(c) A candidate's name may appear on the ballot only as an independent candidate.

(d) A filing fee received under this section shall be deposited in the county treasury to the credit of the county general fund.

SECTION 8. Section 6.033, Tax Code, is amended to read as follows:

Sec. 6.033. RECALL OF APPOINTED DIRECTOR. (a) The governing body of a taxing unit may call for the recall of a member of the board of directors of an appraisal district appointed by the taxing units participating in the district under Section 6.03 [of this code] for whom the unit cast any of its votes in the appointment of the appointive board members. The call must be in the form of a resolution, be filed with the chief appraiser of the appraisal district, and state that the unit is calling for the recall of the member. If a resolution calling for the recall of a board member is filed under this subsection, the chief appraiser, not later than the 10th day after the date of filing, shall deliver a written notice of the filing of the resolution and the date of its filing to the presiding officer of the governing body of each taxing unit entitled to vote in the appointment of board members.

(b) On or before the 30th day after the date on which a resolution calling for the recall of a member of the board appointed by the taxing units participating in the district is filed, the governing body of a taxing unit that cast any of its votes in the appointment of the board for that member may vote to recall the member by resolution submitted to the chief appraiser. Each taxing unit is entitled to the same number of votes in the recall as it cast for that member in the member's appointment to [of] the board. The governing body of the taxing unit calling for the recall may cast its votes in favor of the recall in the same resolution in which it called for the recall.

(c) Not later than the 10th day after the last day provided by this section for voting in favor of the recall, the chief appraiser shall count the votes cast in favor of the recall. If the number of votes in favor of the recall equals or exceeds a majority of the votes cast for the member in the member's appointment to [of] the board, the member is recalled and ceases to be a member of the board. The chief appraiser shall immediately notify in writing the presiding officer of the appraisal district board of directors and of the governing body of each taxing unit that voted in the recall election of the outcome of the recall election. If the presiding officer of the appraisal district board of directors is the member whose recall was voted on, the chief appraiser shall also notify the secretary of the appraisal district board of directors of the outcome of the recall election.

(d) If a vacancy occurs on the board of directors after the recall of a member of the board under this section, the taxing units that were entitled to vote in the recall election shall appoint a new board member to the vacancy. Each taxing unit is entitled to the same number of votes as it originally cast to appoint the recalled board member. Each taxing unit entitled to vote may nominate one candidate by resolution adopted by its governing body. The presiding officer of the governing body of the unit shall submit the name of the unit's nominee to the chief appraiser on or before the 30th day after the date it receives notification from the chief appraiser of the result of the recall election. On or before the 15th day after the last day provided for a nomination to be submitted, the chief appraiser shall prepare a ballot, listing the candidates nominated alphabetically according to each candidate's surname, and shall deliver a copy of the ballot to the presiding officer of the governing body of each taxing unit that is entitled to vote. On or before the 15th day after the date on which a taxing unit's ballot is delivered, the governing body of the taxing unit shall determine its vote by resolution and submit it to the chief appraiser. On or before the 15th day after the last day on which a taxing unit may vote, the chief appraiser shall count the votes, declare the candidate who received the largest vote total appointed, and submit the results to the presiding officer of the governing body of the appraisal district and of each taxing unit in the district and to the candidates. The chief appraiser shall resolve a tie vote by any method of chance.

(e) If the members appointed by the taxing units participating in the district to the board of directors of an appraisal district are [is] appointed by a method or procedure adopted under Section 6.031 [of this code], the governing bodies of the taxing units that voted for or otherwise participated in the appointment of a member of the board may recall that member and appoint a new member to the vacancy by any method adopted by resolution of a majority of those governing bodies. If the appointment was by election by the taxing units participating in the district, the method of recall and of appointing a new member to the vacancy is not valid unless it provides that each taxing unit is entitled to the same number of votes in the recall and in the appointment to fill the vacancy as the unit [it] originally cast for the member being recalled.

SECTION 9. Sections 6.035(a), (b), and (d), Tax Code, are amended to read as follows:

(a) An individual is ineligible to serve on an appraisal district board of directors or [and is disqualified from employment] as chief appraiser if the individual:

(1) is related within the second degree by consanguinity or affinity, as determined under Chapter 573, Government Code, to an individual who is engaged in the business of appraising property for compensation for use in proceedings under this title or of representing property owners for compensation in proceedings under this title in the appraisal district; or

(2) owns property on which delinquent taxes have been owed to a taxing unit for more than 60 days after the date the individual knew or should have known of the delinquency unless:

(A) the delinquent taxes and any penalties and interest are being paid under an installment payment agreement under Section 33.02; or

(B) a suit to collect the delinquent taxes is deferred or abated under Section 33.06 or 33.065.

(b) A member of an appraisal district board of directors or a chief appraiser commits an offense if the board member or chief appraiser continues to hold office [or the chief appraiser remains employed] knowing that an individual related within the second degree by consanguinity or affinity, as determined under Chapter 573, Government Code, to the board member or chief appraiser is engaged in the business of appraising property for compensation for use in proceedings under this title or of representing property owners for compensation in proceedings under this title in the appraisal district in which the member or chief appraiser serves [or the chief appraiser is employed]. An offense under this subsection is a Class B misdemeanor.

(d) An appraisal performed by a chief appraiser in a private capacity or by an individual related within the second degree by consanguinity or affinity, as determined under Chapter 573, Government Code, to the chief appraiser may not be used as evidence in a protest or challenge under Chapter 41 or an appeal under Chapter 42 concerning property that is taxable in the appraisal district in which the chief appraiser serves [is employed].

SECTION 10. Section 6.036(a), Tax Code, is amended to read as follows:

(a) An individual is not eligible to be a candidate for the office of appraisal district director [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 11. The heading to Section 6.05, Tax Code, is amended to read as follows:

Sec. 6.05. APPRAISAL OFFICE; CHIEF APPRAISER.

SECTION 12. Section 6.05, Tax Code, is amended by amending Subsections (b) and (c) and adding Subsections (c-1) and (j) to read as follows:

(b) The board of directors of an appraisal district may contract with an appraisal office in another district [or with a taxing unit in the district] to perform the duties of the appraisal office for the district.

(c) The chief appraiser is the chief administrator of the appraisal office. The chief appraiser is elected at the general election for state and county officers by the voters of the county for which the appraisal district is established. The chief appraiser serves a two-year term beginning on January 1 of each odd-numbered year. To be eligible to be a candidate for or to serve as chief appraiser, an individual must be a registered voter of the county [appointed by and serves at the pleasure of the appraisal district board of directors. If a taxing unit performs the duties of the appraisal office pursuant to a contract, the assessor for the unit is the chief appraiser].

(c-1) Section 6.032 applies to a candidate for the office of chief appraiser of an appraisal district in the same manner as that section applies to a candidate for an elective position on an appraisal district board of directors.

(j) If a vacancy occurs in the office of chief appraiser, the county judge of the county for which the appraisal district is established shall appoint a qualified person to fill the vacancy. A person appointed to fill a vacancy serves for the remainder of the unexpired term.

SECTION 13. 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 that participate 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 14. Sections 6.411(a) and (b), Tax Code, are amended to read as follows:

(a) A member of an appraisal review board commits an offense if the member communicates with the chief appraiser or an [another] employee of the appraisal district for which the appraisal review board is established in violation of Section 41.66(f).

(b) A chief appraiser or an [another] employee of an appraisal district commits an offense if the chief appraiser or [other] employee communicates with a member of the appraisal review board established for the appraisal district in a circumstance in which the appraisal review board member is prohibited by Section 41.66(f) from communicating with the chief appraiser or [other] employee.

SECTION 15. Section 6.42, Tax Code, is amended by adding Subsection (d) to read as follows:

(d) In an appraisal district established for a county with a population of 50,000 or more the board may not own, lease, rent, occupy, or otherwise maintain administrative office space in the appraisal office or a branch appraisal office.

SECTION 16. Section 23.0101, Tax Code, is amended to read as follows:

Sec. 23.0101. CONSIDERATION OF ALTERNATE APPRAISAL METHODS. In determining the market value of property, the chief appraiser shall consider the cost, income, and market data comparison methods of appraisal and use the most appropriate method based on the individual characteristics of the property.

SECTION 17. Section 25.195, Tax Code, is amended by adding Subsections (f), (g), (h), and (i) to read as follows:

(f) If a property owner or the owner's designated agent requests to inspect and copy appraisal records under Subsection (a) or if at any time the owner or agent requests information relating to sales of property similar to the property owner's property that were used in the appraisal of the property owner's property, the chief appraiser shall provide the owner with information relating to not fewer than three sales of similar property used in the appraisal of the property of the owner.

(g) If the owner or agent makes a request under Subsection (a) and fewer than three sales of similar property were used in the appraisal of the property or the appraisal was made without using information relating to sales of similar property, the chief appraiser shall provide the owner or agent with a statement to that effect that includes as appropriate:

(1) information relating to each sale of similar property that was used in the appraisal; or

(2) an explanation of the method other than the comparable sales method used to appraise the property.

(h) If the owner or agent makes a request under Subsection (a) in preparation for an appraisal review board hearing under Chapter 41, the chief appraiser shall provide the owner or agent with the information required by Subsection (f) or (g) not later than the seventh day before the date scheduled for the hearing.

(i) For purposes of this section, the information provided to a property owner or the property owner's designated agent relating to a sale of property must include at least a general description of the property, its location, and the sales price or other consideration for the sale.

SECTION 18. Section 43.01, Tax Code, is amended to read as follows:

Sec. 43.01. AUTHORITY TO BRING SUIT. (a) A taxing unit may sue the appraisal district that appraises property for the unit to compel the appraisal district to comply with the provisions of this title, rules of the comptroller, or other applicable law.

(b) A person may sue an appraisal district or appraisal review board to compel the appraisal district or appraisal review board to comply with the provisions of this title, rules of the comptroller, or other applicable law if the failure to comply causes or will cause substantial economic harm to or denial of a statutory or constitutional right of that person. A person bringing an action under this subsection must pay $250 into the registry of the court. The court shall distribute that amount to the prevailing party on entry of final judgment in the action.

(c) If the party bringing an action under this section prevails on the merits, the court shall enter an order compelling the appraisal district or appraisal review board to comply with the applicable law and ordering that the prevailing party recover its court costs and reasonable attorney's fees.

(d) This section applies only to a matter that may not be the subject of a motion under Section 25.25(c) or (d) or a protest or challenge under Chapter 41.

SECTION 19. Section 52.092, Election Code, is amended by adding Subsection (k) to read as follows:

(k) The secretary of state shall prescribe procedures for listing the offices of appraisal district director and chief appraiser of an appraisal district on the ballot.

SECTION 20. Sections 6.034 and 6.10, Tax Code, are repealed.

SECTION 21. (a) The appropriate number of appraisal district directors holding elective positions shall be elected in each appraisal district as provided by Section 6.03, Tax Code, as amended by this Act, and Section 6.032, Tax Code, as added by this Act, beginning with the general election for state and county officers conducted in 2008. Members then elected take office January 1, 2009.

(b) The chief appraiser of an appraisal district shall be elected as provided by Section 6.05(c), Tax Code, as amended by this Act, beginning with the general election for state and county officers conducted in 2008. A chief appraiser then elected takes office January 1, 2009.

SECTION 22. (a) The change in law made by this Act does not affect the selection of appraisal district directors or a chief appraiser serving before January 1, 2009.

(b) The term of an appraisal district director serving on December 31, 2008, expires on January 1, 2009.

(c) A person serving as chief appraiser on December 31, 2008, vacates the position on January 1, 2009, unless the person is elected as chief appraiser for the term of that office that begins on January 1, 2009.

SECTION 23. (a) As soon as practicable after the effective date of this Act, the comptroller shall adopt the rules required by Section 5.071, Tax Code, as added by this Act. In the initial rules, the comptroller shall adopt a schedule for appraisal districts, assessors, and collectors to which that section applies to replace software that the appraisal districts, assessors, or collectors are using on the effective date of this Act with appropriate software listed in the registry established under that section.

(b) Notwithstanding Section 5.071, Tax Code, as added by this Act, an appraisal district, assessor, or collector may continue to use software in the appraisal of property for ad valorem tax purposes or in the assessment or collection of ad valorem taxes that the appraisal district, assessor, or collector is using on the effective date of this Act until the software must be replaced in accordance with the schedule adopted under Subsection (a) of this section.

SECTION 24. (a) Except as provided by Subsection (b) of this section, this Act takes effect January 1, 2009.

(b) This section and Sections 19, 21, 22, and 23 of this Act take effect September 1, 2007.