Amend CSHB 2786 (house committee report) as follows:

(1)  On page 1, line 15, between "district" and the underlined period, insert ", except as provided by Sections 25.18(b-1), (b-2), and (b-3)".

(2)  On page 2, strike lines 2 and 3 and substitute the following:

SECTION 2.  Section 25.18, Tax Code, is amended by adding Subsections (a-1), (b-1), (b-2), and (b-3) and amending Subsection (b) to read as follows:

(3)  On page 2, line 7, between "year" and the underlined period, insert ", except as provided by Subsections (b-1), (b-2), and (b-3)".

(4)  On page 2, between lines 9 and 10, insert the following:

(b)  The plan shall provide for the following reappraisal activities for all real and personal property in the district at least once every three years, except as provided by Subsections (b-1), (b-2), and (b-3):

(1)  identifying properties to be appraised through physical inspection or by other reliable means of identification, including deeds or other legal documentation, aerial photographs, land-based photographs, surveys, maps, and property sketches;

(2)  identifying and updating relevant characteristics of each property in the appraisal records;

(3)  defining market areas in the district;

(4)  identifying property characteristics that affect property value in each market area, including:

(A)  the location and market area of property;

(B)  physical attributes of property, such as size, age, and condition;

(C)  legal and economic attributes; and

(D)  easements, covenants, leases, reservations, contracts, declarations, special assessments, ordinances, or legal restrictions;

(5)  developing an appraisal model that reflects the relationship among the property characteristics affecting value in each market area and determines the contribution of individual property characteristics;

(6)  applying the conclusions reflected in the model to the characteristics of the properties being appraised; and

(7)  reviewing the appraisal results to determine value.