Amend HB 1229 by adding the following appropriately numbered 
SECTION to the bill and renumbering subsequent SECTIONS of the bill 
accordingly:
	SECTION ____.  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 2.  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 3.  Section 6.03, Tax Code, is amended by amending 
Subsections (a), (b), and (l) and adding Subsection (a-1) to read as 
follows:
	(a)  The appraisal district is governed by a board of 
directors.  Five directors are appointed by the local 
administrative district judge in the county in which the appraisal 
district is established [taxing units that participate in the 
district as provided by this section].  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-1)  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.   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 odd-numbered [even-numbered] years.
	(l)  If a vacancy occurs on the board of directors, other 
than a vacancy in the position held by a county assessor-collector 
serving as a nonvoting director, the local administrative district 
judge shall appoint a person to fill the vacancy [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 4.  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 5.  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 6.  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 participating in the district [that 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 7.  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 8.  The following provisions of the Tax Code are 
repealed:           
		(1)  Sections 6.03(c), (d), (e), (f), (g), (h), (i), 
(j), and (k);          
		(2)  Section 6.031;                                                           
		(3)  Section 6.033;                                                           
		(4)  Section 6.034;                                                           
		(5)  Section 6.037; and                                                       
		(6)  Section 6.10.                                                            
	SECTION 9.  Five directors shall be appointed in each 
appraisal district by the local administrative district judge in 
the county in which the appraisal district is established as 
provided by Section 6.03, Tax Code, as amended by this Act, to serve 
terms that begin January 1, 2011.
	SECTION 10.  (a)  The change in law made by this Act does not 
affect the selection of appraisal district directors serving before 
January 1, 2011.
	(b)  The term of an appraisal district director serving on 
December 31, 2010, expires on January 1, 2011.
	SECTION 11.  This Act takes effect January 1, 2010.