BILL ANALYSIS

H.B. 4232

By: Shine

Urban Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Recently enacted legislation increased transparency regarding the way a property owner can determine if the person's property is in a public improvement district and, thus, whether the owner is liable for an applicable assessment by the district. That legislation placed the same statutory notification obligations and associated penalties on parties to home sales in public improvement districts as those placed on home sales in municipal utility districts. While these changes were a welcome measure, property owners reportedly still have trouble determining if their property is in a public improvement district, especially if the requisite information regarding the district has not been properly filed. H.B. 4232 seeks to remedy this information gap by providing for increased transparency with respect to a public improvement district's service plans and assessments.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 4232 amends the Local Government Code, with respect to the Public Improvement District Assessment Act, to require the governing body of a municipality or county to do the following:

· not later than the seventh day after the date the governing body levies an assessment on property within a public improvement district, submit the assessment roll for each public improvement district to each appraisal district in which property subject to assessment under the district is located;

· not later than the seventh day after the date the governing body makes a supplemental assessment or a reassessment or new assessment, submit an updated assessment roll for each public improvement district to each such appraisal district; and

· not later than the seventh day after the date the governing body of a municipality or county approves, amends, or updates a service plan for a public improvement district, post a copy of the service plan on the website maintained or used by the municipality or county for posting certain tax rate and budget information.

H.B. 4232 requires the assessment roll to state the total assessment levied against each parcel of land in the improvement district, the amount of the annual assessment, and the amount of each periodic installment, if applicable. The bill requires an assessment roll to be submitted to an appraisal district in an electronic format capable of being electronically incorporated into the property tax database maintained by each appraisal district.

H.B. 4232 amends the Tax Code to include, for each public improvement district established under the Public Improvement District Assessment Act or under Local Government Code provisions applicable only to certain populous counties, or certain counties adjacent to them, the following information among the information that must be included in the property tax database maintained by each appraisal district:

· the name of the district;

· the total assessment levied against the property by the district;

· the amount of the annual assessment levied against the property by the district; and

· if applicable, the amount of each periodic installment levied against the property by the district.

EFFECTIVE DATE

January 1, 2024.