82R10674 JE-D
By: Price H.B. No. 2529
A BILL TO BE ENTITLED
AN ACT
relating to the administration of appraisal districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1.15, Tax Code, is amended to read as
follows:
Sec. 1.15. APPRAISERS FOR TAXING UNITS PROHIBITED. A
taxing unit may not employ any person for the purpose of appraising
property for taxation purposes [except to the extent necessary to
perform a contract under Section 6.05(b) of this code].
SECTION 2. Sections 5.12(d), (e), and (h), Tax Code, are
amended to read as follows:
(d) A request for a performance audit of an appraisal
district may not be made under Subsection [(b) or] (c) if according
to each of the two most recently published studies conducted by the
comptroller under Section 5.10:
(1) the overall median level of appraisal for all
property in the district for which the comptroller determines a
median level of appraisal is more than 0.90 and less than 1.10;
(2) the coefficient of dispersion around the overall
median level of appraisal of the properties used to determine the
overall median level of appraisal for all property in the district
for which the comptroller determines a median level of appraisal is
less than 0.15; and
(3) the difference between the highest and lowest
median levels of appraisal in the district for the classes of
property for which the comptroller determines a median level of
appraisal is less than 0.20.
(e) A request for a performance audit of an appraisal
district may not be made under Subsection [(b) or] (c):
(1) during the two years immediately following the
publication of the second of two consecutive studies according to
which the comptroller is required to conduct an audit of the
district under Subsection (a);
(2) during the year immediately following the date the
results of an audit of the district conducted by the comptroller
under Subsection (a) are reported to the chief appraiser of the
district; or
(3) during a year in which the comptroller is
conducting a review of the district under Section 5.102.
(h) In addition to the performance audits required by
Subsections (a) [, (b),] and (c) and the review of appraisal
standards required by Section 5.102, the comptroller may audit an
appraisal district to analyze the effectiveness and efficiency of
the policies, management, and operations of the appraisal district.
The results of the audit shall be delivered in a report that details
the comptroller's findings and recommendations for improvement to
the appraisal district's chief appraiser and board of directors and
the governing body of each taxing unit participating in the
appraisal district. The comptroller may require reimbursement by
the appraisal district for some or all of the costs of the audit,
not to exceed the actual costs associated with conducting the
audit.
SECTION 3. Sections 5.13(a), (g), and (h), Tax Code, are
amended to read as follows:
(a) The comptroller shall complete an audit required by
Section 5.12(a) within two years after the date of the publication
of the second of the two studies the results of which required the
audit to be conducted. The comptroller shall complete an audit
requested under Section 5.12(c) [5.12(b) or (c)] as soon as
practicable after the request is made.
(g) If the audit is required [or requested] under Section
5.12(a) [or (b) of this code], the appraisal district shall
reimburse the comptroller for the costs incurred in conducting the
audit and making its report of the audit. The costs shall be
allocated among the taxing units participating in the district in
the same manner as an operating expense of the district. If the
audit is requested under Section 5.12(c) [of this code], the
property owners who requested the audit shall reimburse the
comptroller for the costs incurred in conducting the audit and
making its report of the audit and shall allocate the costs among
those property owners in proportion to the appraised value of each
property owner's property in the district or on such other basis as
the property owners may agree. If the audit confirms that the
median level of appraisal for a class of property exceeds 1.10 or
that the median level of appraisal for a class of property varies at
least 10 percent from the overall median level of appraisal for all
property in the district for which the comptroller determines a
median level of appraisal, within 90 days after the date a request
is made by the property owners for reimbursement the appraisal
district shall reimburse the property owners who requested the
audit for the amount paid to the comptroller for the costs incurred
in conducting the audit and making the report. Before conducting an
audit under Section 5.12(c), the comptroller may require the
requesting [taxing units or] property owners to provide the
comptroller with a bond, deposit, or other financial security
sufficient to cover the expected costs of conducting the audit and
making the report. For purposes of this subsection, "costs"
include expenses related to salaries, professional fees, travel,
reproduction or other printing services, and consumable supplies
that are directly attributable to conducting the audit.
(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 the taxpayers who requested the audit under
Section 5.12(c) [:
[(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 vote on the appointment 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 4. Section 6.03, Tax Code, is amended by amending
Subsections (a), (b), (c), (d), and (l) and adding Subsection (a-1)
to read as follows:
(a) The appraisal district is governed by a board of five
directors. Four [Five] directors are appointed by the
commissioners court of the county in which the appraisal district
is established [taxing units that participate in the district as
provided by this section]. The [If the county assessor-collector
is not appointed to the board, the] county assessor-collector
serves as a nonvoting director by virtue of the person's office.
[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-1) To be eligible to serve on the board of directors, an
individual other than the [a] county assessor-collector [serving as
a nonvoting director] must be a resident of the appraisal district
and must have resided in the district for at least two years
immediately preceding the date the individual takes office. [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.]
(b) Members of the board of directors other than the [a]
county assessor-collector [serving as a nonvoting director] serve
two-year terms beginning on January 1 of even-numbered years.
(c) Subsection (a) does not preclude the boards of directors
of two or more adjoining appraisal districts that have provided for
the operation of a consolidated appraisal district by interlocal
contract as provided by Section 6.02(b) from providing for the
operation of a consolidated board of directors by interlocal
contract. In that event, four directors are appointed by the
commissioners court of each county for which the consolidated
appraisal district is established. The county assessor-collectors
for each of the counties for which the consolidated appraisal
district is established shall rotate service as nonvoting directors
as provided by Subsection (d). The directors serve two-year terms
beginning on January 1 of even-numbered years [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, and, if
entitled to vote, the conservation and reclamation districts that
participate in the district 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 position on the board of directors of a consolidated
appraisal district held by a county assessor-collector rotates
every two years among the county assessor-collectors for each
county for which the consolidated appraisal district is established
so that the county assessor-collector for each appraisal district
serves as a director. The rotation begins with the county
assessor-collector of the county with the largest population,
followed by the county assessor-collectors of each of the other
counties for which the consolidated appraisal district is
established in order of descending population [The voting
entitlement of a taxing unit that is entitled to 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 vote, by multiplying the quotient by 1,000, and by rounding the
product to the nearest whole number. That number is multiplied by
the number of directorships to be filled. A taxing unit
participating in two or more districts is entitled to vote in each
district in which it participates, but only the taxes imposed in a
district are used to calculate voting entitlement in that
district].
(l) A [If a] vacancy [occurs] on the board of directors
other than a vacancy in the position held by the [a] county
assessor-collector is filled for the remainder of the unexpired
term by appointment by the commissioners court of the county from
which the director who created the vacancy was appointed [serving
as a nonvoting director, each taxing unit that is entitled to vote
by this section may nominate by resolution adopted by its governing
body a candidate to fill the vacancy. The 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
board of directors within the next five days a list of the nominees.
The board of directors shall elect by majority vote of its members
one of the nominees to fill the vacancy].
SECTION 5. Section 6.036(a), Tax Code, is amended to read as
follows:
(a) An individual is not eligible to be appointed to or to
serve on the board of directors of an appraisal district if [the
individual or a business entity in which the individual has a
substantial interest is a party to a contract with]:
(1) the individual or a business entity in which the
individual has a substantial interest is a party to a contract with
the appraisal district; [or]
(2) the individual or a business entity in which the
individual has a substantial interest is a party to a contract with
a taxing unit that participates in the appraisal district, if the
contract relates to the performance of an activity governed by this
title; or
(3) the individual is an employee of a taxing unit.
SECTION 6. Section 6.04(a), Tax Code, is amended to read as
follows:
(a) A majority of the appraisal district board of directors
constitutes a quorum. The county assessor-collector serving as a
director is the chairman of the board. At its first meeting each
calendar year, the board shall elect from its members a [chairman
and a] secretary.
SECTION 7. Sections 6.05(a) and (c), Tax Code, are amended
to read as follows:
(a) Each [Except as authorized by Subsection (b) of this
section, each] appraisal district shall establish an appraisal
office. The appraisal office must be located in the county for
which the district is established. An appraisal district may
establish branch appraisal offices outside the county for which the
district is established.
(c) The chief appraiser is the chief administrator of the
appraisal office. The chief appraiser is appointed by and serves at
the pleasure of the appraisal district board of directors. [If a
taxing unit performs the duties of the appraisal office pursuant to
a contract, the assessor for the unit is the chief appraiser.]
SECTION 8. Sections 6.051(a) and (c), Tax Code, are amended
to read as follows:
(a) The board of directors of an appraisal district may:
(1) purchase or lease real property and may construct
improvements as necessary to establish and operate the appraisal
office or a branch appraisal office;
(2) acquire or convey real property; and
(3) construct or renovate a building or other
improvement.
(c) The board of directors may convey real property owned by
the district, and the proceeds shall be credited to each taxing unit
that participates in the district in proportion to the unit's
allocation of the appraisal district budget in the year in which the
transaction occurs. Any [A conveyance must be approved as provided
by Subsection (b) of this section, and any] proceeds shall be
apportioned by an amendment to the annual budget made as provided by
Subsection (c) of Section 6.06 [of this code].
SECTION 9. Sections 6.06(a), (b), (e), 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
vote on the appointment 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 governing bodies of a
majority of the taxing units entitled to vote on the appointment 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.]
(e) Each [Unless the governing body of a unit and the chief
appraiser agree to a different method of payment, each] taxing unit
shall pay its allocation in four equal payments to be made at the
end of each calendar quarter, and the first payment shall be made
before January 1 of the year in which the budget takes effect. A
payment is delinquent if not paid on the date it is due. A
delinquent payment incurs a penalty of 5 percent of the amount of
the payment and accrues interest at an annual rate of 10 percent.
If the budget is amended, any change in the amount of a unit's
allocation is apportioned among the payments remaining.
(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 vote on the appointment 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 10. Sections 6.061(a) and (e), Tax Code, are
amended to read as follows:
(a) The board of directors of an appraisal district, by
resolution adopted and delivered to each taxing unit participating
in the district after June 15 and before August 15, may prescribe a
different method of allocating the costs of operating the district
[unless the governing body of any taxing unit that participates in
the district adopts a resolution opposing the different method, and
files it with the board of directors before September 1. If a board
proposal is rejected, the board shall notify, in writing, each
taxing unit participating in the district before September 15].
(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 the board of
directors [a majority of the governing bodies that are entitled to
vote on appointment of board members under Section 6.03 of this
code].
SECTION 11. Section 6.062(c), Tax Code, is amended to read
as follows:
(c) The notice must state that the appraisal district is
supported solely by payments from the local taxing units served by
the appraisal district. The notice must also contain the following
statement: "If approved by the appraisal district board of
directors at the public hearing, this proposed budget will take
effect automatically [unless disapproved by the governing bodies of
the county, school districts, cities, and towns served by the
appraisal district. A copy of the proposed budget is available for
public inspection in the office of each of those governing
bodies]."
SECTION 12. 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 eligible to vote on the
appointment of district directors, and a] reasonable number of
copies shall be available for inspection at the appraisal office.
SECTION 13. The following provisions of the Tax Code are
repealed:
(1) Section 5.042(c);
(2) Section 5.12(b);
(3) Sections 6.03(e), (f), (g), (h), (i), (j), and
(k);
(4) Section 6.031;
(5) Section 6.033;
(6) Section 6.034;
(7) Section 6.037;
(8) Section 6.05(b);
(9) Sections 6.051(b) and (d);
(10) Sections 6.061(b), (c), and (d); and
(11) Section 6.10.
SECTION 14. (a) Four directors shall be appointed in each
appraisal district by the commissioners court of the county in
which the appraisal district is established as provided by Section
6.03, Tax Code, as amended by this Act, to serve terms that begin
January 1, 2012.
(b) The change in law made by this Act does not affect the
selection of appraisal district directors serving before January 1,
2012.
(c) The term of an appraisal district director serving on
December 31, 2011, expires on January 1, 2012.
SECTION 15. (a) Except as provided by Subsection (b) of
this section, this Act takes effect January 1, 2012.
(b) This section and Section 14 of this Act take effect
September 1, 2011.