87R9205 CJC-D
 
  By: Birdwell S.B. No. 1586
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the governance and administration of an appraisal
  district.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  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 nominate candidates
  for [vote on the] appointment as [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;
               (2)  the governing bodies of a majority of the taxing
  units entitled to nominate candidates for [vote on the] appointment
  as [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), (c), (d), (e), (g), (j), (k), and (l) and adding
  Subsections (a-1), (a-2), (a-3), (d-1), and (m) to read as follows:
         (a)  The appraisal district is governed by a board of
  directors. Five directors are appointed by the commissioners court
  of the county in which the appraisal district is established from a
  list of nominees nominated in the manner provided by this section.
  The commissioners court must appoint one director from each of the
  four commissioners precincts in the county and one director at
  large from the county [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, 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:
               (1)  be a resident of:
                     (A)  the commissioners precinct from which the
  office is appointed, in the case of a director appointed from a
  commissioners precinct; or
                     (B)  the county in which the appraisal district is
  established, in the case of a director appointed at large;
  [district] and
               (2)  [must] have resided in the district, and if
  appointed from a commissioners precinct, in that commissioners
  precinct, for at least two years immediately preceding the date the
  individual takes office.
         (a-3)  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.
         (c)  The [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, the junior college
  districts, and[, if entitled to vote,] the conservation and
  reclamation districts that participate in the district shall
  nominate nominees to serve on the board of directors of the district
  in the manner provided by Subsection (d) [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].
         (d)  The number of nominees that [voting entitlement of] a
  taxing unit that is entitled to make nominations may nominate [vote
  for directors] is determined by dividing the total dollar amount of
  property taxes imposed in the district by the taxing unit for the
  preceding tax year by the sum of the total dollar amount of property
  taxes imposed in the district for that year by each taxing unit that
  is entitled to make nominations [vote], [by] multiplying the
  quotient by 100 [1,000], and [by] rounding the product to the
  nearest tenth [whole number]. If that number is:
               (1)  less than one, the taxing unit may nominate one
  nominee who resides in the commissioners precinct of the county in
  which the appraisal district is established in which a majority of
  the taxing unit is located;
               (2)  one or more but less than five, the taxing unit may
  nominate two nominees who reside in a commissioners precinct of the
  county in which the appraisal district is established in which any
  part of the taxing unit is located;
               (3)  five or more but less than 10, the taxing unit may
  nominate three nominees who reside in a commissioners precinct of
  the county in which the appraisal district is established in which
  any part of the taxing unit is located;
               (4)  10 or more but less than 20, the taxing unit may
  nominate four nominees who reside in a commissioners precinct of
  the county in which the appraisal district is established in which
  any part of the taxing unit is located; or
               (5)  20 or more, the taxing unit may nominate four
  nominees who reside in a commissioners precinct of the county in
  which the appraisal district is established in which any part of the
  taxing unit is located and one nominee who resides anywhere in the
  county [That number is multiplied by the number of directorships to
  be filled].
         (d-1)  A taxing unit participating in two or more appraisal 
  districts is entitled to nominate nominees for director [vote] in
  each district in which it participates, but only the taxes imposed
  in a district are used to calculate the number of nominees the
  taxing unit is entitled to nominate [voting entitlement] in that
  district.
         (e)  The chief appraiser shall calculate the number of
  nominees [votes to which] each taxing unit [other than a
  conservation and reclamation district] is entitled to nominate and
  shall deliver written notice to each of those taxing units of that
  number [its voting entitlement] before October 1 of each
  odd-numbered year.  The chief appraiser shall deliver the notice:
               (1)  to the county judge and each commissioner of the
  county served by the appraisal district;
               (2)  to the presiding officer of the governing body of
  each city or town participating in the appraisal district, to the
  city manager of each city or town having a city manager, and to the
  city secretary or clerk, if there is one, of each city or town that
  does not have a city manager;
               (3)  to the presiding officer of the governing body of
  each school district participating in the appraisal district and to
  the superintendent of those school districts; [and]
               (4)  to the presiding officer of the governing body of
  each junior college district participating in the appraisal 
  district and to the president, chancellor, or other chief executive
  officer of those junior college districts; and
               (5)  to the presiding officer of each conservation and
  reclamation district participating in the appraisal district.
         (g)  Each taxing unit nominates candidates [other than a
  conservation and reclamation district that is entitled to vote may
  nominate] by resolution adopted by its governing body [one
  candidate for each position to be filled on the board of directors].
  The governing body may nominate any number of nominees, provided
  that the total number of nominees nominated does not exceed the
  number contained in the notice provided under Subsection (e). The
  presiding officer of the governing body of the taxing unit shall
  submit the names of the taxing unit's nominees to the chief
  appraiser before October 15.
         (j)  Before October 30, the chief appraiser shall prepare a
  list of [ballot, listing] the nominees [candidates] whose names
  were timely submitted under Subsection [Subsections] (g) [and, if
  applicable, (h) or (i)] alphabetically according to the first
  letter in each nominee's [candidate's] surname, and shall deliver a
  copy of the list to the commissioners court of the county in which
  the appraisal district is established [ballot to the presiding
  officer of the governing body of each taxing unit that is entitled
  to vote].
         (k)  The commissioners court of the county in which the
  appraisal district is established by majority vote of its members
  shall select from the list provided under Subsection (j) five
  nominees who meet the appropriate residency requirements to serve
  as members of the board of directors of the district [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 elected,]
  and submit the results before December 31 to the governing body of
  each taxing unit in the district and to the nominees [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)  A [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, is filled in
  the manner provided by this subsection.  If the vacancy is in the
  position representing the whole county for which the appraisal
  district is established, each taxing unit that is entitled to make
  nominations under [vote by] this section may nominate by resolution
  adopted by its governing body a nominee [candidate] to fill the
  vacancy.  If the vacancy is in a position representing a
  commissioners precinct, each taxing unit that is entitled to make
  nominations under this section any part of which is located in that
  commissioners precinct may nominate by resolution adopted by its
  governing body a nominee to fill the vacancy.  A nominee must meet
  the applicable residency requirement under Subsection (a-2) for the
  vacant position. The taxing 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 commissioners
  court of the county in which the appraisal district is established
  [board of directors] within the next five days a list of the
  nominees. The commissioners court [board of directors] shall elect
  by majority vote of its members one of the nominees to fill the
  vacancy.
         (m)  If as a result of a change in the boundaries of a
  commissioners precinct an individual serving as a director no
  longer resides in the precinct from which the office is appointed,
  the individual is not for that reason disqualified from office
  during the remainder of the term of office being served at the time
  the boundary change takes effect. If as a result of a change in the
  boundaries of a commissioners precinct an individual appointed as a
  director before the boundary change to a term that begins after the
  boundary change no longer resides in the precinct from which the
  office is appointed, the individual is not for that reason
  disqualified from serving the term to which the individual is
  appointed.
         SECTION 4.  Sections 6.033(a), (b), (c), and (d), Tax Code,
  are amended to read as follows:
         (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 under Section 6.03 [of this code for] whom the
  taxing unit nominated for [cast any of its votes in the] appointment
  to [of] the board. The call must be in the form of a resolution, be
  filed with the chief appraiser of the appraisal district, and state
  that the taxing 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
  nominate candidates for [vote in the] appointment as [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 is filed,
  the governing body of a taxing unit that nominated [cast any of its
  votes in the appointment of the board for] that member for
  appointment to the board 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 appointment of the board.] The governing body of the taxing
  unit calling for the recall may cast its vote [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
  only one taxing unit nominated the member for appointment to the
  board and that taxing unit votes in favor of the recall, the member
  is recalled and ceases to be a member of the board. If more than one
  taxing unit nominated the member for appointment to the board and a
  majority of those taxing units vote 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 appointment 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)  A [If a] vacancy [occurs] on the board of directors that
  results from [after] the recall of a member of the board under this
  section is filled in the same manner a vacancy on the board is
  filled under Section 6.03, except that only the taxing units that
  were entitled to vote in the recall election may nominate a nominee
  to replace the recalled [shall appoint a new board] member. [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.]
         SECTION 5.  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 nominate nominees for 
  [vote on the] appointment as [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 nominate nominees for [vote
  on the] appointment as [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 6.  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 entitled to nominate nominees for
  [vote on the] appointment as [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 7.  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 entitled to
  nominate nominees for [vote on the] appointment as [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 the governing bodies of a
  majority of the taxing units entitled to nominate nominees for
  [vote on the] appointment as [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 entitled to nominate nominees for [vote on the] appointment
  as [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 8.  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 are entitled to nominate nominees for [vote on the]
  appointment as [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 taxing unit would pay under
  Section 6.06 [of this code] without the consent of the governing
  body of that taxing 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 that are entitled to
  nominate nominees for [vote on] appointment as [of] board members
  under Section 6.03 [of this code].
         SECTION 9.  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 that is eligible to nominate
  nominees for [vote on the] appointment as appraisal [of] district
  directors, and a reasonable number of copies shall be available for
  inspection at the appraisal office.
         SECTION 10.  Section 6.10, Tax Code, is amended to read as
  follows:
         Sec. 6.10.  DISAPPROVAL OF BOARD ACTIONS. If the governing
  bodies of two-thirds [a majority] of the taxing units entitled to
  nominate nominees for [vote on the] appointment as [of] board
  members adopt resolutions disapproving an action, other than
  adoption of the budget, by the appraisal district board of
  directors and file them with the secretary of the board within 15
  days after the action is taken, the action is revoked effective the
  day after the day on which the required number of resolutions is
  filed.
         SECTION 11.  The following provisions of the Tax Code are
  repealed:
               (1)  Sections 6.03(f), (h), and (i);
               (2)  Section 6.031;
               (3)  Section 6.033(e); and
               (4)  Section 6.034.
         SECTION 12.  (a) Appraisal district directors shall be
  appointed in each appraisal district as provided by Section 6.03,
  Tax Code, as amended by this Act, to serve terms that begin January
  1, 2022.
         (b)  The change in the manner of selection of appraisal
  district directors made by this Act does not affect the selection of
  appraisal district directors serving before January 1, 2022.
         (c)  The term of an appraisal district director serving on
  December 31, 2021, expires on January 1, 2022.
         SECTION 13.  (a) Except as provided by Subsection (b) of
  this section, this Act takes effect January 1, 2022.
         (b)  This section and Section 12 of this Act take effect
  September 1, 2021.