82R4989 SMH-D

By: Miller of Erath, et al. H.B. No. 717

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 6.03, Tax Code, is amended by amending

Subsections (a), (b), (c), (k), and (l) and adding Subsections

(a-1), (a-2), and (m) 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 in 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 in 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.

(m) 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.

SECTION 2. 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 3. 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 in which the appraisal district

is established and be accompanied by a filing fee of:

(1) $750 for a county with a population of less than

200,000; or

(2) $1,250 for a county with a population of 200,000 or

more.

(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 4. 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 5. Section 6.036(a), Tax Code, is amended to read as

follows:

(a) An individual is not eligible to be a candidate for, to

be 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

entitled to vote on the appointment of appraisal district

directors, including the 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 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 office of appraisal district director on the ballot.

SECTION 8. Sections 6.034 and 6.10, Tax Code, are repealed.

SECTION 9. (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 2012. Members then elected take office

January 1, 2013.

(b) The change in law made by this Act does not affect the

selection of appraisal district directors serving before January 1,

2013.

(c) A director of an appraisal district that has adopted

staggered terms for directors under Section 6.034, Tax Code, who is

appointed to a term that begins on January 1, 2013, serves a

one-year term.

SECTION 10. (a) Except as provided by Subsection (b) of

this section, this Act takes effect January 1, 2013.

(b) This section and Sections 7 and 9 of this Act take effect

September 1, 2011.