BILL ANALYSIS

S.B. 2073

By: Zaffirini

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill sponsor has informed the committee that there is ambiguity under current law regarding whether appraisal districts have the authority to finance the purchase of real property or the construction of improvements necessary for their operations. Additionally, the bill sponsor has further informed the committee that this ambiguity has caused confusion between taxing entities, resulting in inefficiencies, construction delays, and increased costs for local governments and taxpayers. S.B. 2073 seeks to address the administrative obstacles and delays appraisal districts have faced by providing clear authority for appraisal districts to finance real property purchases and construction projects.

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

S.B. 2073 amends the Tax Code to authorize an appraisal district's board of directors, in addition to the current authorization for the board to purchase or lease real property and construct improvements as necessary for purposes of establishing and operating the appraisal office or a branch appraisal office, to finance the purchase of real property and finance the construction of improvements as necessary for those purposes.

S.B. 2073 establishes that the financing of the acquisition of real property or the financing of the construction or renovation of a building or other improvement by an appraisal district does not require approval by the taxing units entitled to vote on the appointment of the appraisal district's board members. The bill replaces the provision establishing that, if a governing body of a taxing unit fails to act on a proposal by an appraisal district to acquire or convey real property or to construct or renovate a building or other improvement on or before the 30th day after the date the presiding officer of the governing body receives notice of the proposal or fails to file its resolution to approve or disapprove the proposal with the appraisal district's 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 with a provision establishing that such a proposal is treated as if it were approved by the governing body under those circumstances. These provisions apply only to a proposed property transaction or other action for which a chief appraiser sends notification on or after the bill's effective date. A proposed property transaction or other action for which notification is sent before the bill's effective date is governed by the law in effect on the date the notification was sent, and the former law is continued in effect for that purpose.

EFFECTIVE DATE

September 1, 2025.