Texas 2009 - 81st Regular

Texas House Bill HB4038 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	By: Merritt H.B. No. 4038
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the system for appraising property for ad valorem tax
7	7	purposes.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Sections 5.102(c) and (d), Tax Code, are amended
10	10	to read as follows:
11	11	(c) If the review results in a finding that an appraisal
12	12	district is not in compliance with generally accepted appraisal
13	13	standards and practices, the comptroller shall deliver a report
14	14	that details the comptroller's findings and recommendations for
15	15	improvement to:
16	16	(1) the county assessor-collector who governs the
17	17	appraisal district [district's chief appraiser and board of
18	18	directors]; and
19	19	(2) the superintendent and board of trustees of each
20	20	school district participating in the appraisal district.
21	21	(d) If the appraisal district fails to comply with the
22	22	recommendations in the report and the comptroller finds that the
23	23	county assessor-collector who governs [board of directors of] the
24	24	appraisal district failed to take remedial action before the first
25	25	anniversary of the date the report was issued, the comptroller
26	26	shall notify the judge of each district court in the county for
27	27	which the appraisal district is established, who shall appoint a
28	28	board of conservators consisting of five members to implement the
29	29	recommendations. The board of conservators shall exercise
30	30	supervision and control over the operations of the appraisal
31	31	district until the comptroller determines under Section 403.302,
32	32	Government Code, that in the same year the taxable value of each
33	33	school district for which the appraisal district appraises property
34	34	is the local value for the school district. The appraisal district
35	35	shall bear the costs related to the supervision and control of the
36	36	district by the board of conservators.
37	37	SECTION 2. Sections 5.12(b) and (h), Tax Code, are amended
38	38	to read as follows:
39	39	(b) At the written request of the governing bodies of a
40	40	majority of the taxing units participating in an appraisal district
41	41	or of a majority of the group of taxing units composed of the
42	42	municipalities, school districts, and county participating in an
43	43	[entitled to vote on the appointment of] appraisal district
44	44	[directors], the comptroller shall audit the performance of the
45	45	appraisal district. The governing bodies may request a general
46	46	audit of the performance of the appraisal district or may request an
47	47	audit of only one or more particular duties, practices, functions,
48	48	departments, or other appraisal district matters.
49	49	(h) In addition to the performance audits required by
50	50	Subsections (a), (b), and (c) and the review of appraisal standards
51	51	required by Section 5.102, the comptroller may audit an appraisal
52	52	district to analyze the effectiveness and efficiency of the
53	53	policies, management, and operations of the appraisal district.
54	54	The results of the audit shall be delivered in a report that details
55	55	the comptroller's findings and recommendations for improvement to
56	56	the county assessor-collector who governs the appraisal district
57	57	[district's chief appraiser and board of directors] and the
58	58	governing body of each taxing unit participating in the appraisal
59	59	district. The comptroller may require reimbursement by the
60	60	appraisal district for some or all of the costs of the audit, not to
61	61	exceed the actual costs associated with conducting the audit.
62	62	SECTION 3. Sections 5.13(c), (f), and (h), Tax Code, are
63	63	amended to read as follows:
64	64	(c) The comptroller must approve the specific plan for the
65	65	performance audit of an appraisal district. Before approving an
66	66	audit plan, the comptroller must provide any interested person an
67	67	opportunity to appear before the comptroller and to comment on the
68	68	proposed plan. Not later than the 20th day before the date the
69	69	comptroller considers the plan for an appraisal district
70	70	performance audit, the comptroller must notify the county
71	71	assessor-collector who governs [presiding officer of] the
72	72	appraisal district [board of directors] that the comptroller
73	73	intends to consider the plan. The notice must include the time,
74	74	date, and place of the meeting to consider the plan. [Immediately
75	75	after receiving the notice, the presiding officer shall deliver a
76	76	copy of the notice to the other members of the appraisal district
77	77	board of directors.]
78	78	(f) The comptroller shall report the results of its audit in
79	79	writing to the governing body of each taxing unit that participates
80	80	in the appraisal district and[,] to the county assessor-collector
81	81	who governs [chief appraiser, and to the presiding officer of] the
82	82	appraisal district [board of directors]. If the audit was
83	83	requested under Section 5.12(c) [of this code], the comptroller
84	84	shall also provide a report to a representative of the property
85	85	owners who requested the audit.
86	86	(h) At any time after the request for an audit is made, the
87	87	comptroller may discontinue the audit in whole or in part if
88	88	requested to do so by:
89	89	(1) the governing bodies of a majority of the taxing
90	90	units participating in the district, if the audit was requested by a
91	91	majority of those units;
92	92	(2) the governing bodies of a majority of the group of
93	93	taxing units composed of the municipalities, school districts, and
94	94	county participating in the [entitled to vote on the appointment
95	95	of] appraisal district [directors], if the audit was requested by a
96	96	majority of those units; or
97	97	(3) if the audit was requested under Section 5.12(c)
98	98	[of this code], by the taxpayers who requested the audit.
99	99	SECTION 4. Section 6.02(b), Tax Code, is amended to read as
100	100	follows:
101	101	(b) This section does not preclude the county
102	102	assessor-collectors who govern [board of directors of] two or more
103	103	adjoining appraisal districts from providing for the operation of a
104	104	consolidated appraisal district by interlocal contract.
105	105	SECTION 5. Section 6.03, Tax Code, is amended to read as
106	106	follows:
107	107	Sec. 6.03. GOVERNANCE [BOARD] OF APPRAISAL DISTRICTS
108	108	[DIRECTORS]. (a) An [The] appraisal district is governed by the
109	109	assessor-collector of the county for which the district is
110	110	established as part of the duties of the office.
111	111	(b) The county assessor-collector is entitled to
112	112	compensation for administering the appraisal district as provided
113	113	by the appraisal district budget. [a board of directors. Five
114	114	directors are appointed by the taxing units that participate in the
115	115	district as provided by this section. If the county
116	116	assessor-collector is not appointed to the board, the county
117	117	assessor-collector serves as a nonvoting director. The county
118	118	assessor-collector is ineligible to serve if the board enters into
119	119	a contract under Section 6.05(b) or if the commissioners court of
120	120	the county enters into a contract under Section 6.24(b). To be
121	121	eligible to serve on the board of directors, an individual other
122	122	than a county assessor-collector serving as a nonvoting director
123	123	must be a resident of the district and must have resided in the
124	124	district for at least two years immediately preceding the date the
125	125	individual takes office. An individual who is otherwise eligible
126	126	to serve on the board is not ineligible because of membership on the
127	127	governing body of a taxing unit. An employee of a taxing unit that
128	128	participates in the district is not eligible to serve on the board
129	129	unless the individual is also a member of the governing body or an
130	130	elected official of a taxing unit that participates in the
131	131	district.
132	132	[(b) Members of the board of directors other than a county
133	133	assessor-collector serving as a nonvoting director serve two-year
134	134	terms beginning on January 1 of even-numbered years.
135	135	[(c) Members of the board of directors other than a county
136	136	assessor-collector serving as a nonvoting director are appointed by
137	137	vote of the governing bodies of the incorporated cities and towns,
138	138	the school districts, and, if entitled to vote, the conservation
139	139	and reclamation districts that participate in the district and of
140	140	the county. A governing body may cast all its votes for one
141	141	candidate or distribute them among candidates for any number of
142	142	directorships. Conservation and reclamation districts are not
143	143	entitled to vote unless at least one conservation and reclamation
144	144	district in the district delivers to the chief appraiser a written
145	145	request to nominate and vote on the board of directors by June 1 of
146	146	each odd-numbered year. On receipt of a request, the chief
147	147	appraiser shall certify a list by June 15 of all eligible
148	148	conservation and reclamation districts that are imposing taxes and
149	149	that participate in the district.
150	150	[(d) The voting entitlement of a taxing unit that is
151	151	entitled to vote for directors is determined by dividing the total
152	152	dollar amount of property taxes imposed in the district by the
153	153	taxing unit for the preceding tax year by the sum of the total
154	154	dollar amount of property taxes imposed in the district for that
155	155	year by each taxing unit that is entitled to vote, by multiplying
156	156	the quotient by 1,000, and by rounding the product to the nearest
157	157	whole number. That number is multiplied by the number of
158	158	directorships to be filled. A taxing unit participating in two or
159	159	more districts is entitled to vote in each district in which it
160	160	participates, but only the taxes imposed in a district are used to
161	161	calculate voting entitlement in that district.
162	162	[(e) The chief appraiser shall calculate the number of votes
163	163	to which each taxing unit other than a conservation and reclamation
164	164	district is entitled and shall deliver written notice to each of
165	165	those units of its voting entitlement before October 1 of each
166	166	odd-numbered year. The chief appraiser shall deliver the notice:
167	167	[(1) to the county judge and each commissioner of the
168	168	county served by the appraisal district;
169	169	[(2) to the presiding officer of the governing body of
170	170	each city or town participating in the appraisal district, to the
171	171	city manager of each city or town having a city manager, and to the
172	172	city secretary or clerk, if there is one, of each city or town that
173	173	does not have a city manager; and
174	174	[(3) to the presiding officer of the governing body of
175	175	each school district participating in the district and to the
176	176	superintendent of those school districts.
177	177	[(f) The chief appraiser shall calculate the number of votes
178	178	to which each conservation and reclamation district entitled to
179	179	vote for district directors is entitled and shall deliver written
180	180	notice to the presiding officer of each conservation and
181	181	reclamation district of its voting entitlement and right to
182	182	nominate a person to serve as a director of the district before July
183	183	1 of each odd-numbered year.
184	184	[(g) Each taxing unit other than a conservation and
185	185	reclamation district that is entitled to vote may nominate by
186	186	resolution adopted by its governing body one candidate for each
187	187	position to be filled on the board of directors. The presiding
188	188	officer of the governing body of the unit shall submit the names of
189	189	the unit's nominees to the chief appraiser before October 15.
190	190	[(h) Each conservation and reclamation district entitled to
191	191	vote may nominate by resolution adopted by its governing body one
192	192	candidate for the district's board of directors. The presiding
193	193	officer of the conservation and reclamation district's governing
194	194	body shall submit the name of the district's nominee to the chief
195	195	appraiser before July 15 of each odd-numbered year. Before August
196	196	1, the chief appraiser shall prepare a nominating ballot, listing
197	197	all the nominees of conservation and reclamation districts
198	198	alphabetically by surname, and shall deliver a copy of the
199	199	nominating ballot to the presiding officer of the board of
200	200	directors of each district. The board of directors of each district
201	201	shall determine its vote by resolution and submit it to the chief
202	202	appraiser before August 15. The nominee on the ballot with the most
203	203	votes is the nominee of the conservation and reclamation districts
204	204	in the appraisal district if the nominee received more than 10
205	205	percent of the votes entitled to be cast by all of the conservation
206	206	and reclamation districts in the appraisal district, and shall be
207	207	named on the ballot with the candidates nominated by the other
208	208	taxing units. The chief appraiser shall resolve a tie vote by any
209	209	method of chance.
210	210	[(i) If no nominee of the conservation and reclamation
211	211	districts receives more than 10 percent of the votes entitled to be
212	212	cast under Subsection (h), the chief appraiser, before September 1,
213	213	shall notify the presiding officer of the board of directors of each
214	214	conservation and reclamation district of the failure to select a
215	215	nominee. Each conservation and reclamation district may submit a
216	216	nominee by September 15 to the chief appraiser as provided by
217	217	Subsection (h). The chief appraiser shall submit a second
218	218	nominating ballot by October 1 to the conservation and reclamation
219	219	districts as provided by Subsection (h). The conservation and
220	220	reclamation districts shall submit their votes for nomination
221	221	before October 15 as provided by Subsection (h). The nominee on the
222	222	second nominating ballot with the most votes is the nominee of the
223	223	conservation and reclamation districts in the appraisal district
224	224	and shall be named on the ballot with the candidates nominated by
225	225	the other taxing units. The chief appraiser shall resolve a tie
226	226	vote by any method of chance.
227	227	[(j) Before October 30, the chief appraiser shall prepare a
228	228	ballot, listing the candidates whose names were timely submitted
229	229	under Subsections (g) and, if applicable, (h) or (i) alphabetically
230	230	according to the first letter in each candidate's surname, and
231	231	shall deliver a copy of the ballot to the presiding officer of the
232	232	governing body of each taxing unit that is entitled to vote.
233	233	[(k) The governing body of each taxing unit entitled to vote
234	234	shall determine its vote by resolution and submit it to the chief
235	235	appraiser before December 15. The chief appraiser shall count the
236	236	votes, declare the five candidates who receive the largest
237	237	cumulative vote totals elected, and submit the results before
238	238	December 31 to the governing body of each taxing unit in the
239	239	district and to the candidates. For purposes of determining the
240	240	number of votes received by the candidates, the candidate receiving
241	241	the most votes of the conservation and reclamation districts is
242	242	considered to have received all of the votes cast by conservation
243	243	and reclamation districts and the other candidates are considered
244	244	not to have received any votes of the conservation and reclamation
245	245	districts. The chief appraiser shall resolve a tie vote by any
246	246	method of chance.
247	247	[(l) If a vacancy occurs on the board of directors other
248	248	than a vacancy in the position held by a county assessor-collector
249	249	serving as a nonvoting director, each taxing unit that is entitled
250	250	to vote by this section may nominate by resolution adopted by its
251	251	governing body a candidate to fill the vacancy. The unit shall
252	252	submit the name of its nominee to the chief appraiser within 45 days
253	253	after notification from the board of directors of the existence of
254	254	the vacancy, and the chief appraiser shall prepare and deliver to
255	255	the board of directors within the next five days a list of the
256	256	nominees. The board of directors shall elect by majority vote of
257	257	its members one of the nominees to fill the vacancy.]
258	258	SECTION 6. Sections 6.035(a) and (b), Tax Code, are amended
259	259	to read as follows:
260	260	(a) An individual is [ineligible to serve on an appraisal
261	261	district board of directors and is] disqualified from employment as
262	262	chief appraiser if the individual:
263	263	(1) is related within the second degree by
264	264	consanguinity or affinity, as determined under Chapter 573,
265	265	Government Code, to an individual who is engaged in the business of
266	266	appraising property for compensation for use in proceedings under
267	267	this title or of representing property owners for compensation in
268	268	proceedings under this title in the appraisal district; or
269	269	(2) owns property on which delinquent taxes have been
270	270	owed to a taxing unit for more than 60 days after the date the
271	271	individual knew or should have known of the delinquency unless:
272	272	(A) the delinquent taxes and any penalties and
273	273	interest are being paid under an installment payment agreement
274	274	under Section 33.02; or
275	275	(B) a suit to collect the delinquent taxes is
276	276	deferred or abated under Section 33.06 or 33.065.
277	277	(b) A [member of an appraisal district board of directors or
278	278	a] chief appraiser commits an offense if the [board member
279	279	continues to hold office or the] chief appraiser remains employed
280	280	knowing that an individual related within the second degree by
281	281	consanguinity or affinity, as determined under Chapter 573,
282	282	Government Code, to the [board member or] chief appraiser is
283	283	engaged in the business of appraising property for compensation for
284	284	use in proceedings under this title or of representing property
285	285	owners for compensation in proceedings under this title in the
286	286	appraisal district in which the [member serves or the] chief
287	287	appraiser is employed. An offense under this subsection is a Class
288	288	B misdemeanor.
289	289	SECTION 7. Sections 6.05 and 6.051, Tax Code, are amended to
290	290	read as follows:
291	291	Sec. 6.05. APPRAISAL OFFICE; CHIEF APPRAISER. (a) Except
292	292	as authorized by Subsection (b) [of this section], each appraisal
293	293	district shall establish an appraisal office. The appraisal office
294	294	must be located in the county for which the district is established.
295	295	An appraisal district may establish branch appraisal offices
296	296	outside the county for which the district is established.
297	297	(b) The county assessor-collector who governs [board of
298	298	directors of] an appraisal district may contract with an appraisal
299	299	office in another district or with a taxing unit in the district to
300	300	perform the duties of the appraisal office for the district.
301	301	(c) The county assessor-collector may serve as the chief
302	302	appraiser for the appraisal district or may appoint another person
303	303	to serve as the chief appraiser.
304	304	(d) A county assessor-collector who appoints another person
305	305	to serve ad the chief appraiser shall notify the comptroller and
306	306	each taxing unit that participates in the appraisal district of
307	307	that appointment.
308	308	(e) An appointed chief appraiser serves at the pleasure of
309	309	the county assessor-collector and acts on behalf of the county
310	310	assessor-collector on all matters delegated to the appointed chief
311	311	appraiser by the county assessor-collector.
312	312	(f) The chief appraiser is the chief administrator of the
313	313	appraisal office.
314	314	(g) An appointed [The chief appraiser is appointed by and
315	315	serves at the pleasure of the appraisal district board of
316	316	directors. If a taxing unit performs the duties of the appraisal
317	317	office pursuant to a contract, the assessor for the unit is the
318	318	chief appraiser.
319	319	[(d) The] chief appraiser is entitled to compensation as
320	320	provided by the appraisal district budget for performing duties
321	321	delegated to the appointed chief appraiser by the county
322	322	assessor-collector [adopted by the board of directors]. The chief
323	323	appraiser's compensation may not be directly or indirectly linked
324	324	to an increase in the total market, appraised, or taxable value of
325	325	property in the appraisal district.
326	326	(h) The chief appraiser may employ and compensate
327	327	professional, clerical, and other personnel as provided by the
328	328	budget.
329	329	[(e)] The chief appraiser may delegate authority to the
330	330	chief appraiser's [his] employees.
331	331	(i) The county assessor-collector may not appoint a person
332	332	to serve as the chief appraiser if the person is related to the
333	333	county assessor-collector within the second degree by affinity or
334	334	within the third degree by consanguinity, as determined under
335	335	Chapter 573, Government Code. An appointed [(f) The] chief
336	336	appraiser may not employ any individual related to the county
337	337	assessor-collector [a member of the board of directors] within the
338	338	second degree by affinity or within the third degree by
339	339	consanguinity, as determined under Chapter 573, Government Code. A
340	340	person commits an offense if the person intentionally or knowingly
341	341	violates this subsection. An offense under this subsection is a
342	342	misdemeanor punishable by a fine of not less than $100 or more than
343	343	$1,000.
344	344	(j) [(g)] The chief appraiser is an officer of the appraisal
345	345	district for purposes of the nepotism law, Chapter 573, Government
346	346	Code. An appraisal district may not employ or contract with an
347	347	individual or the spouse of an individual who is related to the
348	348	chief appraiser within the first degree by consanguinity or
349	349	affinity, as determined under Chapter 573, Government Code.
350	350	(k) A county assessor-collector who apoints another person
351	351	to serve as the chief appraiser [(h) The board of directors of an
352	352	appraisal district by resolution] may prescribe that specified
353	353	actions of the chief appraiser relating to the finances or
354	354	administration of the appraisal district are subject to the
355	355	approval of the county assessor-collector [board].
356	356	(l) [(i)] To ensure adherence with generally accepted
357	357	appraisal practices, the county assessor-collector [board of
358	358	directors of an appraisal district] shall develop biennially a
359	359	written plan for the periodic reappraisal of all property within
360	360	the boundaries of the district according to the requirements of
361	361	Section 25.18 and shall hold a public hearing to consider the
362	362	proposed plan. Not later than the 10th day before the date of the
363	363	hearing, the county assessor-collector [secretary of the board]
364	364	shall deliver to the presiding officer of the governing body of each
365	365	taxing unit participating in the district a written notice of the
366	366	date, time, and place for the hearing. Not later than September 15
367	367	of each even-numbered year, the county assessor-collector [board]
368	368	shall hold the hearing [complete its hearings], make any
369	369	amendments, and [by resolution] finally approve the plan. Copies
370	370	of the approved plan shall be distributed to the presiding officer
371	371	of the governing body of each taxing unit participating in the
372	372	district and to the comptroller within 60 days of the approval date.
373	373	Sec. 6.051. OWNERSHIP OR LEASE OF REAL PROPERTY. (a) The
374	374	county assessor-collector who governs [board of directors of] an
375	375	appraisal district may purchase or lease real property and may
376	376	construct improvements as necessary to establish and operate the
377	377	appraisal office or a branch appraisal office.
378	378	(b) The acquisition or conveyance of real property or the
379	379	construction or renovation of a building or other improvement by an
380	380	appraisal district must be approved by the governing bodies of
381	381	three-fourths of the group of taxing units composed of the
382	382	municipalities, school districts, and county participating in the
383	383	appraisal district [entitled to vote on the appointment of board
384	384	members]. The county assessor-collector [board of directors by
385	385	resolution] may propose a property transaction or other action for
386	386	which this subsection requires approval of the taxing units. The
387	387	county assessor-collector [chief appraiser] shall notify the
388	388	presiding officer of each governing body entitled to vote on the
389	389	approval of the proposal by delivering a copy of the proposal
390	390	[board's resolution], together with information showing the costs
391	391	of other available alternatives to the proposal. On or before the
392	392	30th day after the date the presiding officer receives notice of the
393	393	proposal, the governing body of a taxing unit by resolution may
394	394	approve or disapprove the proposal. If a governing body fails to
395	395	act on or before that 30th day or fails to file its resolution with
396	396	the county assessor-collector [chief appraiser] on or before the
397	397	10th day after that 30th day, the proposal is treated as if it were
398	398	disapproved by the governing body.
399	399	(c) The county assessor-collector [board of directors] may
400	400	convey real property owned by the district, and the proceeds shall
401	401	be credited to each taxing unit that participates in the district in
402	402	proportion to the unit's allocation of the appraisal district
403	403	budget in the year in which the transaction occurs. A conveyance
404	404	must be approved as provided by Subsection (b) [of this section],
405	405	and any proceeds shall be apportioned by an amendment to the annual
406	406	budget made as provided by Section 6.06(c) [Subsection (c) of
407	407	Section 6.06 of this code].
408	408	[(d) An acquisition of real property by an appraisal
409	409	district before January 1, 1988, may be validated before March 1,
410	410	1988, in the manner provided by Subsection (b) of this section for
411	411	the acquisition of real property.]
412	412	SECTION 8. Section 6.06, Tax Code, is amended by amending
413	413	Subsections (a) through (d) and (f) through (k) and adding
414	414	Subsection (1) to read as follows:
415	415	(a) Each year the county assessor-collector [chief
416	416	appraiser] shall prepare a proposed budget for the operations of
417	417	the district for the following tax year and shall submit copies to
418	418	each taxing unit participating in the district [and to the district
419	419	board of directors] before June 15. The county assessor-collector
420	420	[He] shall include in the budget a list showing each proposed
421	421	position, the proposed salary for the position, all benefits
422	422	proposed for the position, each proposed capital expenditure, and
423	423	an estimate of the amount of the budget that will be allocated to
424	424	each taxing unit. Each taxing unit [entitled to vote on the
425	425	appointment of board members] shall maintain a copy of the proposed
426	426	budget for public inspection at its principal administrative
427	427	office.
428	428	(b) The county assessor-collector [board of directors]
429	429	shall hold a public hearing to consider the budget. The county
430	430	assessor-collector [secretary of the board] shall deliver to the
431	431	presiding officer of the governing body of each taxing unit
432	432	participating in the district not later than the 10th day before the
433	433	date of the hearing a written notice of the date, time, and place
434	434	fixed for the hearing. The county assessor-collector [board] shall
435	435	complete the [its] hearings, make necessary [any] amendments to the
436	436	proposed budget [it desires], and finally approve a budget before
437	437	September 15. If governing bodies of a majority of the group of
438	438	taxing units composed of the municipalities, school districts, and
439	439	county participating in the appraisal district [taxing units
440	440	entitled to vote on the appointment of board members] adopt
441	441	resolutions disapproving a budget and file them with the county
442	442	assessor-collector [secretary of the board] within 30 days after
443	443	its adoption, the budget does not take effect, and the county
444	444	assessor-collector [board] shall adopt a new budget within 30 days
445	445	of the disapproval.
446	446	(c) The county assessor-collector [board] may amend the
447	447	approved budget at any time, but [the secretary of the board] must
448	448	deliver a written copy of a proposed amendment to the presiding
449	449	officer of the governing body of each taxing unit participating in
450	450	the district not later than the 30th day before the date the county
451	451	assessor-collector approves the amendment [board acts on it].
452	452	(d) Each taxing unit participating in the district is
453	453	allocated a portion of the amount of the budget equal to the
454	454	proportion that the total taxable value [dollar amount] of property
455	455	located [taxes imposed] in the unit [district by the unit] for the
456	456	tax year in which the budget proposal is prepared bears to the sum
457	457	of the total taxable value [dollar amount] of property located
458	458	[taxes imposed] in each participating unit [the district by each
459	459	participating unit] for that year. For purposes of this
460	460	subsection, the taxable value for each taxing unit is determined
461	461	separately, without regard to the inclusion of the same property in
462	462	the determination of the taxable value for other taxing units. If a
463	463	taxing unit participates in two or more districts, only the taxable
464	464	value of property appraised for the unit by [taxes imposed in] a
465	465	district is [are] used to calculate the unit's cost allocations in
466	466	that district. If the number of real property parcels in a taxing
467	467	unit is less than 5 percent of the total number of real property
468	468	parcels in the district and the total taxable value of property
469	469	located in the taxing unit exceeds [imposes in excess of] 25 percent
470	470	of the sum of the total taxable value of property in each
471	471	participating taxing unit [total amount of the property taxes
472	472	imposed in the district by all of the participating taxing units]
473	473	for a year, the unit's allocation may not exceed a percentage of the
474	474	appraisal district's budget equal to three times the unit's
475	475	percentage of the total number of real property parcels appraised
476	476	by the district.
477	477	(f) Payments shall be made to a depository designated by the
478	478	county assessor-collector [district board of directors]. The
479	479	district's funds may be disbursed only by a written check, draft, or
480	480	order signed by the county assessor-collector [chairman and
481	481	secretary of the board or, if authorized by resolution of the board,
482	482	by the chief appraiser].
483	483	(g) If a taxing unit decides not to impose taxes for any tax
484	484	year, the unit is not liable for any of the costs of operating the
485	485	district in that year, and those costs are allocated among the other
486	486	taxing units [as if that unit had not imposed taxes in the year used
487	487	to calculate allocations]. However, if that unit has made any
488	488	payments, it is not entitled to a refund.
489	489	(h) If a newly formed taxing unit or a taxing unit that did
490	490	not impose taxes in the preceding year imposes taxes in any tax
491	491	year, that unit is allocated a portion of the amount budgeted to
492	492	operate the district. The total taxable value for the current year
493	493	of property in the unit and appraised for the unit by the district
494	494	[as if it had imposed taxes in the preceding year, except that the
495	495	amount of taxes the unit imposes in the current year] is used to
496	496	calculate its allocation. Before the total taxable value for the
497	497	current year of property in the unit and appraised for the unit by
498	498	the district [amount of taxes to be imposed for the current year] is
499	499	known, the allocation may be based on an estimate to which the
500	500	county assessor-collector [district board of directors] and the
501	501	governing body of the unit agree, and the payments made after that
502	502	amount is known shall be adjusted to reflect the actual amount
503	503	[imposed]. The payments of a newly formed taxing unit that has no
504	504	source of funds are postponed until the unit has received adequate
505	505	tax or other revenues.
506	506	(i) The fiscal year of an appraisal district is the calendar
507	507	year unless the governing bodies of three-fourths of the group of
508	508	taxing units composed of the municipalities, school districts, and
509	509	county participating in the appraisal district [taxing units
510	510	entitled to vote on the appointment of board members] adopt
511	511	resolutions proposing a different fiscal year and file them with
512	512	the county assessor-collector [secretary of the board] not more
513	513	than 12 and not less than eight months before the first day of the
514	514	fiscal year proposed by the resolutions. If the fiscal year of an
515	515	appraisal district is changed under this subsection, the county
516	516	assessor-collector [chief appraiser] shall prepare a proposed
517	517	budget for the fiscal year as provided by Subsection (a) [of this
518	518	section] before the 15th day of the seventh month preceding the
519	519	first day of the fiscal year established by the change[,] and [the
520	520	board of directors] shall adopt a budget for the fiscal year as
521	521	provided by Subsection (b) [of this section] before the 15th day of
522	522	the fourth month preceding the first day of the fiscal year
523	523	established by the change. Unless the appraisal district adopts a
524	524	different method of allocation under Section 6.061 [of this code],
525	525	the allocation of the budget to each taxing unit shall be calculated
526	526	as provided by Subsection (d) [of this section] using the
527	527	appropriate total taxable values [amount of property taxes imposed
528	528	by each participating taxing unit] in the most recent tax year
529	529	preceding the fiscal year established by the change for which the
530	530	necessary information is available. Each taxing unit shall pay its
531	531	allocation as provided by Subsection (e) [of this section], except
532	532	that the first payment shall be made before the first day of the
533	533	fiscal year established by the change and subsequent payments shall
534	534	be made quarterly. The [In the year in which a change in the fiscal
535	535	year occurs, the] budget for the fiscal year that precedes the
536	536	fiscal year established by the change [that takes effect on January
537	537	1 of that year] may be amended as necessary as provided by
538	538	Subsection (c) [of this section in order] to accomplish the change
539	539	in fiscal years.
540	540	(j) If the total amount of the payments made or due to be
541	541	made by the taxing units participating in an appraisal district
542	542	exceeds the amount actually spent or obligated to be spent during
543	543	the fiscal year for which the payments were made, the county
544	544	assessor-collector [chief appraiser] shall credit the excess
545	545	amount against each taxing unit's allocated payments for the
546	546	following year in proportion to the amount of each unit's budget
547	547	allocation for the fiscal year for which the payments were made. If
548	548	a taxing unit that paid its allocated amount is not allocated a
549	549	portion of the district's budget for the following fiscal year, the
550	550	county assessor-collector [chief appraiser] shall refund to the
551	551	taxing unit its proportionate share of the excess funds not later
552	552	than the 150th day after the end of the fiscal year for which the
553	553	payments were made.
554	554	(k) For good cause shown, the county assessor-collector
555	555	[board of directors] may waive the penalty and interest on a
556	556	delinquent payment under Subsection (e).
557	557	(l) In this subsection, "special district or authority"
558	558	means any taxing unit other than a school district, municipality,
559	559	or county and includes a junior college district or hospital
560	560	district. Notwithstanding any other provision of this section, if
561	561	the sum total portion of the budget of the appraisal district
562	562	allocated under another provision of this section to the special
563	563	districts or authorities that participate in the appraisal district
564	564	exceeds 10 percent of the budget, the sum total portion of the
565	565	budget that may be allocated to those special districts or
566	566	authorities may not exceed 10 percent. The other provisions of this
567	567	section govern the allocation of:
568	568	(1) that portion of the budget among the special
569	569	districts or authorities if more than one special district or
570	570	authority participates in the appraisal district; and
571	571	(2) the remainder of the budget among the other taxing
572	572	units that participate in the appraisal district.
573	573	SECTION 9. Section 6.061, Tax Code, is amended to read as
574	574	follows:
575	575	Sec. 6.061. CHANGES IN METHOD OF FINANCING. (a) The county
576	576	assessor-collector who governs [board of directors of] an appraisal
577	577	district, by signed order [resolution adopted and] delivered to
578	578	each taxing unit participating in the district after June 15 and
579	579	before August 15, may prescribe a different method of allocating
580	580	the costs of operating the district unless the governing body of any
581	581	taxing unit that participates in the district adopts a resolution
582	582	opposing the different method, and files it with the county
583	583	assessor-collector [board of directors] before September 1. If a
584	584	[board] proposal is rejected, the county assessor-collector
585	585	[board] shall notify, in writing, each taxing unit participating in
586	586	the district before September 15.
587	587	(b) The taxing units participating in an appraisal district
588	588	may adopt a different method of allocating the costs of operating
589	589	the district if the governing bodies of three-fourths of the group
590	590	of taxing units composed of the municipalities, school districts,
591	591	and county participating in the appraisal district [taxing units
592	592	that are entitled to vote on the appointment of board members] adopt
593	593	resolutions providing for the other method. However, a change
594	594	under this subsection is not valid if it requires any taxing unit to
595	595	pay a greater proportion of the appraisal district's costs than the
596	596	unit would pay under Section 6.06 [of this code] without the consent
597	597	of the governing body of that unit.
598	598	(c) An official copy of a resolution under this section must
599	599	be filed with the county assessor-collector [chief appraiser of the
600	600	appraisal district] after April 30 and before May 15 or the
601	601	resolution is ineffective.
602	602	(d) Before May 20, the county assessor-collector [chief
603	603	appraiser] shall determine whether a sufficient number of eligible
604	604	taxing units have filed valid resolutions proposing a change in the
605	605	allocation of district costs for the change to take effect. Before
606	606	May 25, the county assessor-collector [chief appraiser] shall
607	607	notify each taxing unit participating in the district of each
608	608	change that is adopted.
609	609	(e) A change in allocation of district costs made as
610	610	provided by this section remains in effect until changed in a manner
611	611	provided by this section or rescinded by resolution of a majority of
612	612	the governing bodies of the group of taxing units composed of the
613	613	municipalities, school districts, and county participating in the
614	614	appraisal district [that are entitled to vote on appointment of
615	615	board members under Section 6.03 of this code].
616	616	SECTION 10. Sections 6.062(a) and (c), Tax Code, are
617	617	amended to read as follows:
618	618	(a) Not later than the 10th day before the date of the public
619	619	hearing at which the county assessor-collector [board of directors]
620	620	considers the appraisal district budget, the county
621	621	assessor-collector [chief appraiser] shall give notice of the
622	622	public hearing by publishing the notice in a newspaper having
623	623	general circulation in the county for which the appraisal district
624	624	is established. The notice may not be smaller than one-quarter page
625	625	of a standard-size or tabloid-size newspaper and may not be
626	626	published in the part of the paper in which legal notices and
627	627	classified advertisements appear.
628	628	(c) The notice must state that the appraisal district is
629	629	supported solely by payments from the local taxing units served by
630	630	the appraisal district. The notice must also contain the following
631	631	statement: "If approved by the county assessor-collector
632	632	[appraisal district board of directors] at the public hearing, this
633	633	proposed budget will take effect automatically unless disapproved
634	634	by the governing bodies of the county, school districts, and
635	635	municipalities [cities, and towns] served by the appraisal
636	636	district. A copy of the proposed budget is available for public
637	637	inspection in the office of each of those governing bodies."
638	638	SECTION 11. Section 6.063, Tax Code, is amended to read as
639	639	follows:
640	640	Sec. 6.063. FINANCIAL AUDIT. (a) At least once each year,
641	641	the county assessor-collector who governs [board of directors of]
642	642	an appraisal district shall have prepared an audit of its affairs by
643	643	an independent certified public accountant or a firm of independent
644	644	certified public accountants.
645	645	(b) The report of the audit is a public record. A copy of
646	646	the report shall be delivered to the county assessor-collector, the
647	647	county judge, and the presiding officer of the governing body of
648	648	each municipality and school district participating in the
649	649	appraisal district [taxing unit eligible to vote on the appointment
650	650	of district directors], and a reasonable number of copies shall be
651	651	available for inspection at the appraisal office.
652	652	SECTION 12. Sections 6.09(b) and (c), Tax Code, are amended
653	653	to read as follows:
654	654	(b) The county assessor-collector who governs an appraisal
655	655	district [board of directors] shall designate as the district
656	656	depository the financial institution or institutions that offer the
657	657	most favorable terms and conditions for the handling of the
658	658	district's funds.
659	659	(c) The county assessor-collector [board] shall solicit
660	660	bids to be designated as depository for the district. The
661	661	depository when designated shall serve for a term of two years and
662	662	until its successor is designated and has qualified. The county
663	663	assessor-collector [board] and the depository may agree to extend a
664	664	depository contract for one additional two-year period.
665	665	SECTION 13. Sections 6.12(a) and (d), Tax Code, are amended
666	666	to read as follows:
667	667	(a) The county assessor-collector who governs an [chief
668	668	appraiser of each] appraisal district shall appoint[, with the
669	669	advice and consent of the board of directors,] an agricultural
670	670	advisory board composed of three or more members as determined by
671	671	the needs of the district [board].
672	672	(d) The board shall meet at the call of the county
673	673	assessor-collector [chief appraiser] at least three times a year.
674	674	SECTION 14. Sections 6.15(a), (b), and (c), Tax Code, are
675	675	amended to read as follows:
676	676	(a) The county assessor-collector who governs [A member of
677	677	the board of directors of] an appraisal district commits an offense
678	678	if the county assessor-collector [member] directly or indirectly
679	679	communicates with the chief appraiser on any matter relating to the
680	680	appraisal of property by the appraisal district, except in:
681	681	(1) an open meeting of the county assessor-collector
682	682	[appraisal district board of directors] or another public forum; or
683	683	(2) a closed meeting of the county assessor-collector
684	684	[board of directors] held to consult with the county
685	685	assessor-collector's [board's] attorney about pending litigation,
686	686	at which the chief appraiser's presence is necessary for full
687	687	communication between the county assessor-collector [board] and
688	688	the county assessor-collector's [board's] attorney.
689	689	(b) A chief appraiser commits an offense if the chief
690	690	appraiser directly or indirectly communicates with the county
691	691	assessor-collector who governs [a member of the board of directors
692	692	of] the appraisal district on any matter relating to the appraisal
693	693	of property by the appraisal district, except in:
694	694	(1) an open meeting of the county assessor-collector
695	695	[board of directors] or another public forum; or
696	696	(2) a closed meeting of the county assessor-collector
697	697	[board of directors] held to consult with the county
698	698	assessor-collector's [board's] attorney about pending litigation,
699	699	at which the chief appraiser's presence is necessary for full
700	700	communication between the county assessor-collector [board] and
701	701	the county assessor-collector's [board's] attorney.
702	702	(c) Subsections (a) and (b) do not apply to a routine
703	703	communication between the chief appraiser and the county
704	704	assessor-collector that relates to the administration of an
705	705	appraisal roll, including a communication made in connection with
706	706	the certification, correction, or collection of an account[,
707	707	regardless of whether the county assessor-collector was appointed
708	708	to the board of directors of the appraisal district or serves as a
709	709	nonvoting director].
710	710	SECTION 15. Subchapter A, Chapter 6, Tax Code, is amended by
711	711	adding Section 6.16 to read as follows:
712	712	Sec. 6.16. CONTRACTS WITH TAXING UNITS. The county
713	713	assessor-collector who governs an appraisal district may contract
714	714	with the governing body of a taxing unit that participates in the
715	715	appraisal district to consolidate employee benefit plans, vendor
716	716	contracts, leases, or purchases if the consolidation will reduce
717	717	the costs of those items for the appraisal district and the taxing
718	718	unit.
719	719	SECTION 16. Sections 6.24(a) and (b), Tax Code, are amended
720	720	to read as follows:
721	721	(a) The governing body of a taxing unit other than a county
722	722	may contract as provided by Chapter 791, Government Code, for the
723	723	performance of duties relating to the assessment or collection of
724	724	taxes fur the taxing unit [the Interlocal Cooperation Act] with:
725	725	(1) the governing body of another taxing unit [or with
726	726	the board of directors of an appraisal district] for the other unit
727	727	[or the district] to perform those duties; or
728	728	(2) the county assessor-collector who governs an
729	729	appraisal district for the appraisal district to perform those
730	730	duties [relating to the assessment or collection of taxes].
731	731	(b) The commissioners court of a county with the approval of
732	732	the county assessor-collector may contract as provided by Chapter
733	733	791, Government Code, [the Interlocal Cooperation Act] with the
734	734	governing body of another taxing unit in the county [or with the
735	735	board of directors of the appraisal district] for the other unit [or
736	736	the district] to perform duties relating to the assessment or
737	737	collection of taxes for the county. The commissioners court may
738	738	contract as provided by Chapter 791, Government Code, with the
739	739	county assessor-collector for the appraisal district established
740	740	for the county to perform duties relating to the assessment or
741	741	collection of taxes for the county. If a county contracts to have
742	742	its taxes assessed and collected by another taxing unit or by the
743	743	appraisal district, except as provided by Subsection (c), the
744	744	contract shall require the other unit or the district to assess and
745	745	collect all taxes the county is required to assess and collect.
746	746	SECTION 17. Section 6.26(f), Tax Code, is amended to read as
747	747	follows:
748	748	(f) If a majority of the qualified voters voting on the
749	749	question in the election favor the proposition, the entity or
750	750	office named by the ballot shall perform the functions named by the
751	751	ballot beginning with the next time property taxes are assessed or
752	752	collected, as applicable, that is more than 90 days after the date
753	753	of the election. If the governing bodies, [(]and the county
754	754	assessor-collector who governs the appraisal district [board of
755	755	directors] when the district is involved,[)] agree, a function may
756	756	be consolidated when performance of the function begins in less
757	757	than 90 days after the date of the election.
758	758	SECTION 18. Sections 6.41(b), (d), (e), and (f), Tax Code,
759	759	are amended to read as follows:
760	760	(b) The board consists of three members. However, the
761	761	county assessor-collector who governs the appraisal district
762	762	[board of directors by resolution of a majority of its members] may
763	763	increase the size of the appraisal review board to the number of
764	764	members the county assessor-collector [board of directors]
765	765	considers appropriate.
766	766	(d) Members of the board are appointed by the county
767	767	assessor-collector who governs the appraisal district [by
768	768	resolution of a majority of the appraisal district board of
769	769	directors]. A vacancy on the board is filled in the same manner for
770	770	the unexpired portion of the term.
771	771	(e) Members of the board hold office for terms of two years
772	772	beginning January 1. The county assessor-collector [appraisal
773	773	district board of directors by resolution] shall provide for
774	774	staggered terms, so that the terms of as close to one-half of the
775	775	members as possible expire each year. In making the initial or
776	776	subsequent appointments, the county assessor-collector [board of
777	777	directors] shall designate those members who serve terms of one
778	778	year as needed to comply with this subsection.
779	779	(f) A member of the board may be removed from the board by
780	780	the county assessor-collector who governs [a majority vote of] the
781	781	appraisal district [board of directors]. Grounds for removal are:
782	782	(1) a violation of Section 6.412, 6.413, 41.66(f), or
783	783	41.69; or
784	784	(2) good cause relating to the attendance of members
785	785	at called meetings of the board as established by written policy
786	786	adopted by the county assessor-collector [a majority of the
787	787	appraisal district board of directors].
788	788	SECTION 19. Sections 6.412(c) and (d), Tax Code, are
789	789	amended to read as follows:
790	790	(c) A person is ineligible to serve on the appraisal review
791	791	board if the person is the county assessor-collector [a member of
792	792	the board of directors], an officer[,] or employee of the appraisal
793	793	district, an employee of the comptroller, or a member of the
794	794	governing body, an officer, or an employee of a taxing unit.
795	795	(d) A person is ineligible to serve on the appraisal review
796	796	board of an appraisal district established for a county having a
797	797	population of more than 100,000:
798	798	(1) if the person:
799	799	(A) has served for all or part of three previous
800	800	terms as a board member or auxiliary board member on the appraisal
801	801	review board; or
802	802	(B) is a former county assessor-collector who
803	803	governed the appraisal district or a former [member of the board of
804	804	directors,] officer[,] or employee of the appraisal district; [or]
805	805	(2) if the person served as a member of the governing
806	806	body or as an officer of a taxing unit for which the appraisal
807	807	district appraises property, until the fourth anniversary of the
808	808	date the person ceased to be a member or officer; or
809	809	(3) if the person has ever appeared before the
810	810	appraisal review board for compensation.
811	811	SECTION 20. Subchapter B, Chapter 22, Tax Code, is amended
812	812	by adding Section 22.31 to read as follows:
813	813	Sec. 22.31. NOTICE TO COMPTROLLER REGARDING COMPLIANCE WITH
814	814	FILING REQUIREMENT. (a) A person who owns tangible personal
815	815	property used for the production of income and who is audited by the
816	816	comptroller for any purpose shall notify the comptroller regarding
817	817	whether the person filed a rendition statement or property report
818	818	required by this chapter with the chief appraiser for the most
819	819	recent tax year in which the person was required to file the
820	820	statement or report.
821	821	(b) The comptroller shall forward to the chief appraiser the
822	822	notice received by the comptroller under Subsection (a).
823	823	SECTION 21. Sections 23.23(a), (b), (c), (d), and (f), Tax
824	824	Code, are amended to read as follows:
825	825	(a) The appraised value of a residence homestead for the
826	826	first tax year after the year in which the owner acquires the
827	827	property is the market value of the property. Notwithstanding
828	828	Section 23.01, the appraised value of the property in each
829	829	subsequent tax year until the end of the tax year in which the
830	830	ownership of the property changes shall be the sum of:
831	831	(1) the appraised value of the property for the
832	832	preceding tax year as adjusted for the current tax year to reflect
833	833	the change from the preceding tax year in the purchasing power of
834	834	the dollar for consumers in this state; and
835	835	(2) the market value of all new improvements to the
836	836	property [Notwithstanding the requirements of Section 25.18 and
837	837	regardless of whether the appraisal office has appraised the
838	838	property and determined the market value of the property for the tax
839	839	year, an appraisal office may increase the appraised value of a
840	840	residence homestead for a tax year to an amount not to exceed the
841	841	lesser of:
842	842	[(1) the market value of the property for the most
843	843	recent tax year that the market value was determined by the
844	844	appraisal office; or
845	845	[(2) the sum of:
846	846	[(A) 10 percent of the appraised value of the
847	847	property for the preceding tax year;
848	848	[(B) the appraised value of the property for the
849	849	preceding tax year; and
850	850	[(C) the market value of all new improvements to
851	851	the property].
852	852	(b) For each tax year, using regional indexes that the
853	853	comptroller considers to most accurately report changes in the
854	854	purchasing power of the dollar for consumers in this state, the
855	855	comptroller shall determine and publicize the percentage by which
856	856	the appraised value of residence homesteads may be increased under
857	857	Subsection (a)(1). The tax assessor-collector shall use the
858	858	percentage determined by the comptroller under this subsection to
859	859	determine the maximum appraised valued under Subsection (a) of
860	860	residence homesteads appraised by that chief appraiser [When
861	861	appraising a residence homestead, the chief appraiser shall:
862	862	[(1) appraise the property at its market value; and
863	863	[(2) include in the appraisal records both the market
864	864	value of the property and the amount computed under Subsection
865	865	(a)(2)].
866	866	(c) When appraising a residence homestead, the chief
867	867	appraiser shall:
868	868	(1) determine the market value of the property; and
869	869	(2) include in the appraisal records both the market
870	870	value of the property and the maximum appraised value of the
871	871	property calculated under Subsection (a) [The limitation provided
872	872	by Subsection (a) takes effect as to a residence homestead on
873	873	January 1 of the tax year following the first tax year the owner
874	874	qualifies the property for an exemption under Section 11.13. The
875	875	limitation expires on January 1 of the first tax year that neither
876	876	the owner of the property when the limitation took effect nor the
877	877	owner's spouse or surviving spouse qualifies for an exemption under
878	878	Section 11.13].
879	879	(d) This section does not apply to property appraised under
880	880	Subchapter C, D, E, F, [or] G, or H.
881	881	(f) For purposes of this section, the owner of a residence
882	882	homestead on January 1, 2010, is considered to have acquired the
883	883	property in the 2009 tax year [Notwithstanding Subsections (a) and
884	884	(e) and except as provided by Subdivision (2), an improvement to
885	885	property that would otherwise constitute a new improvement is not
886	886	treated as a new improvement if the improvement is a replacement
887	887	structure for a structure that was rendered uninhabitable or
888	888	unusable by a casualty or by mold or water damage. For purposes of
889	889	appraising the property in the tax year in which the structure would
890	890	have constituted a new improvement:
891	891	[(1) the last year in which the property was appraised
892	892	for taxation before the casualty or damage occurred is considered
893	893	to be the last year in which the property was appraised for taxation
894	894	for purposes of Subsection (a)(2)(A); and
895	895	[(2) the replacement structure is considered to be a
896	896	new improvement only to the extent it is a significant improvement
897	897	over the replaced structure as that structure existed before the
898	898	casualty or damage occurred].
899	899	SECTION 22. Section 23.55(n), Tax Code, is amended to read
900	900	as follows:
901	901	(n) Within one year of the conclusion of the two fiscal
902	902	bienniums for which the comptroller issued a letter as provided
903	903	under Subsection (m), the county assessor-collector who governs
904	904	[board of directors of] the appraisal district[, by official board
905	905	action,] may direct the chief appraiser to request the comptroller
906	906	to determine if the amount of revenues was equal to or exceeded 20
907	907	times the amount of taxes and interest that would have been imposed
908	908	under Subsection (a). The comptroller shall issue a finding as to
909	909	whether the amount of revenue met the projected increases. The
910	910	chief appraiser shall review the results of the comptroller's
911	911	finding and shall make a determination as to whether sanctions
912	912	under Subsection (a) should be imposed. If the chief appraiser
913	913	determines that the sanctions provided by Subsection (a) shall be
914	914	imposed, the sanctions shall be based on the date of the transfer of
915	915	the property under Subsection (f)(4).
916	916	SECTION 23. Section 25.01(b), Tax Code, is amended to read
917	917	as follows:
918	918	(b) The county assessor-collector who governs the appraisal
919	919	district [chief appraiser with the approval of the board of
920	920	directors of the district] may contract with a private appraisal
921	921	firm to perform appraisal services for the district, subject to the
922	922	county assessor-collector's [his] approval. A contract for private
923	923	appraisal services is void if the amount of compensation to be paid
924	924	the private appraisal firm is contingent on the amount of or
925	925	increase in appraised, assessed, or taxable value of property
926	926	appraised by the appraisal firm.
927	927	SECTION 24. Sections 25.18(a) and (b), Tax Code, are
928	928	amended to read as follows:
929	929	(a) Each appraisal office shall implement the plan for
930	930	periodic reappraisal of property approved by the county
931	931	assessor-collector [board of directors] under Section 6.05(l)
932	932	[6.05(i)].
933	933	(b) The plan shall provide for the following reappraisal
934	934	activities for all residence homesteads in the district in the same
935	935	year once every 10 years and for all other real and personal
936	936	property in the district at least once every three years:
937	937	(1) identifying properties to be appraised through
938	938	physical inspection or by other reliable means of identification,
939	939	including deeds or other legal documentation, aerial photographs,
940	940	land-based photographs, surveys, maps, and property sketches;
941	941	(2) identifying and updating relevant characteristics
942	942	of each property in the appraisal records;
943	943	(3) defining market areas in the district;
944	944	(4) identifying property characteristics that affect
945	945	property value in each market area, including:
946	946	(A) the location and market area of property;
947	947	(B) physical attributes of property, such as
948	948	size, age, and condition;
949	949	(C) legal and economic attributes; and
950	950	(D) easements, covenants, leases, reservations,
951	951	contracts, declarations, special assessments, ordinances, or legal
952	952	restrictions;
953	953	(5) developing an appraisal model that reflects the
954	954	relationship among the property characteristics affecting value in
955	955	each market area and determines the contribution of individual
956	956	property characteristics;
957	957	(6) applying the conclusions reflected in the model to
958	958	the characteristics of the properties being appraised; and
959	959	(7) reviewing the appraisal results to determine
960	960	value.
961	961	SECTION 25. Section 25.19(e), Tax Code, is amended to read
962	962	as follows:
963	963	(e) The chief appraiser, with the approval of the county
964	964	assessor-collector who governs the appraisal district [appraisal
965	965	district board of directors], may dispense with the notice required
966	966	by Subsection (a)(1) if the amount of increase in appraised value is
967	967	$1,000 or less.
968	968	SECTION 26. Section 25.25(b), Tax Code, is amended to read
969	969	as follows:
970	970	(b) The chief appraiser may change the appraisal roll at any
971	971	time to correct a name or address, a determination of ownership, a
972	972	description of property, multiple appraisals of a property, or a
973	973	clerical error or other inaccuracy as prescribed by board rule that
974	974	does not increase the amount of tax liability. Before the 10th day
975	975	after the end of each calendar quarter, the chief appraiser shall
976	976	submit to the appraisal review board and to the county
977	977	assessor-collector who governs [board of directors of] the
978	978	appraisal district a written report of each change made under this
979	979	subsection that decreases the tax liability of the owner of the
980	980	property. The report must include:
981	981	(1) a description of each property; and
982	982	(2) the name of the owner of that property.
983	983	SECTION 27. Section 41.66(g), Tax Code, is amended to read
984	984	as follows:
985	985	(g) At the beginning of a hearing on a protest, each member
986	986	of the appraisal review board hearing the protest must sign an
987	987	affidavit stating that the board member has not communicated with
988	988	another person in violation of Subsection (f). If a board member
989	989	has communicated with another person in violation of Subsection
990	990	(f), the member must be recused from the proceeding and may not
991	991	hear, deliberate on, or vote on the determination of the protest.
992	992	The county assessor-collector who governs [board of directors of]
993	993	the appraisal district shall adopt and implement a policy
994	994	concerning the temporary replacement of an appraisal review board
995	995	member who has communicated with another person in violation of
996	996	Subsection (f).
997	997	SECTION 28. Section 42.02, Tax Code, is amended by amending
998	998	Subsections (a) and (c) and adding Subsection (d) to read as
999	999	follows:
1000	1000	(a) The [On written approval of the board of directors of
1001	1001	the appraisal district, the] chief appraiser is entitled to appeal
1002	1002	an order of the appraisal review board determining:
1003	1003	(1) a taxpayer protest as provided by Subchapter C,
1004	1004	Chapter 41, subject to Subsection (b); or
1005	1005	(2) a taxpayer's motion to change the appraisal roll
1006	1006	filed under Section 25.25.
1007	1007	(c) The [On written approval of the board of directors of
1008	1008	the appraisal district, the] chief appraiser may appeal an order of
1009	1009	the appraisal review board determining a taxpayer protest otherwise
1010	1010	prohibited by Subsection (b)[,] if the chief appraiser alleges that
1011	1011	the taxpayer or a person acting on behalf of the taxpayer committed
1012	1012	fraud, made a material misrepresentation, or presented fraudulent
1013	1013	evidence in the hearing before the board. In an appeal under this
1014	1014	subsection, the court shall first consider whether the taxpayer or
1015	1015	a person acting on behalf of the taxpayer committed fraud, made a
1016	1016	material misrepresentation, or presented fraudulent evidence to
1017	1017	the appraisal review board. If the court does not find by a
1018	1018	preponderance of the evidence that the taxpayer or a person acting
1019	1019	on behalf of the taxpayer committed fraud, made a material
1020	1020	misrepresentation, or presented fraudulent evidence to the
1021	1021	appraisal review board, the court shall:
1022	1022	(1) dismiss the appeal; and
1023	1023	(2) award court costs and reasonable attorney's fees
1024	1024	to the taxpayer.
1025	1025	(d) The county assessor-collector must approve an appeal
1026	1026	under this section in writing.
1027	1027	SECTION 29. Subchapter Z, Chapter 152, Local Government
1028	1028	Code, is amended by adding Section 152.908 to read as follows:
1029	1029	Sec. 152.908. COMPENSATION OF COUNTY TAX
1030	1030	ASSESSOR-COLLECTOR. In setting the amount of the compensation of
1031	1031	the county tax assessor-collector, the commissioners court of the
1032	1032	county may not take into account the compensation the county tax
1033	1033	assessor-collector receives for administering the appraisal
1034	1034	district established for the county.
1035	1035	SECTION 30. Section 1151.004(a), Occupations Code, is
1036	1036	amended to read as follows:
1037	1037	(a) A county assessor-collector [An appraisal district
1038	1038	board of directors] or a governing body may not, as a necessity for
1039	1039	employment, require an appraiser, assessor, or collector to:
1040	1040	(1) act in an unprofessional manner; or
1041	1041	(2) violate this chapter.
1042	1042	SECTION 31. The heading to Section 1151.151, Occupations
1043	1043	Code, is amended to read as follows:
1044	1044	Sec. 1151.151. REGISTRATION REQUIRED; EXEMPTIONS
1045	1045	[EXEMPTION].
1046	1046	SECTION 32. Section 1151.151, Occupations Code, is amended
1047	1047	by amending Subsection (b) and adding Subsections (c) and (d) to
1048	1048	read as follows:
1049	1049	(b) A county assessor-collector is not required to register
1050	1050	with the board as an assessor, assessor-collector, or collector if
1051	1051	the county, by contract entered into under Section 6.24(b), Tax
1052	1052	Code, has its taxes assessed and collected by another taxing unit
1053	1053	[or an appraisal district].
1054	1054	(c) A county assessor-collector is not required to register
1055	1055	with the board as an appraiser if the duties of the appraisal office
1056	1056	for the appraisal district established for the county are performed
1057	1057	by another appraisal district or by a taxing unit under a contract
1058	1058	authorized by Section 6.05(b), Tax Code.
1059	1059	(d) The exemption under Subsection (c) exists only while a
1060	1060	contract under Section 6.05(b), Tax Code, is in effect.
1061	1061	SECTION 33. The following provisions of the Tax Code are
1062	1062	repealed:
1063	1063	(1) Section 6.031;
1064	1064	(2) Section 6.033;
1065	1065	(3) Section 6.034;
1066	1066	(4) Section 6.036;
1067	1067	(5) Section 6.037;
1068	1068	(6) Section 6.04;
1069	1069	(7) Section 6.052;
1070	1070	(8) Section 6.10; and
1071	1071	(9) Section 31.03(c).
1072	1072	SECTION 34. (a) On the effective date of this Act, the tax
1073	1073	assessor-collector of each county begins to govern the appraisal
1074	1074	district established for that county and begins to serve as the
1075	1075	chief appraiser of the appraisal district, and the board of
1076	1076	directors of each appraisal district ceases to exist. On that date,
1077	1077	the appraisal district as governed by the county tax
1078	1078	assessor-collector succeeds to all the rights, duties, privileges,
1079	1079	property, obligations, and liabilities of the appraisal district as
1080	1080	governed by the board of directors.
1081	1081	(b) A measure taken or adopted by an appraisal district
1082	1082	board of directors before the effective date of this Act that is in
1083	1083	effect on the effective date continues in effect after the
1084	1084	effective date of this Act until superseded by a measure taken or
1085	1085	adopted by the county tax assessor-collector governing the
1086	1086	district.
1087	1087	(c) The amendment by this Act of Section 6.41, Tax Code,
1088	1088	does not affect the term of a member of an appraisal review board
1089	1089	appointed before the effective date of this Act.
1090	1090	SECTION 35. This Act takes effect January 1, 2010, but only
1091	1091	if the constitutional amendment proposed by the 81st Legislature,
1092	1092	Regular Session, 2009, authorizing the legislature to limit
1093	1093	increases in the appraised value of a residence homestead for ad
1094	1094	valorem tax purposes based on the inflation rate and to limit the
1095	1095	frequency of reappraisals of residence homesteads is approved by
1096	1096	the voters. If that amendment is not approved by the voters, this
1097	1097	Act has no effect.