Texas 2021 - 87th Regular

Texas Senate Bill SB1586 Compare Versions

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1	1	87R9205 CJC-D
2	2	By: Birdwell S.B. No. 1586
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the governance and administration of an appraisal
8	8	district.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 5.12(b), Tax Code, is amended to read as
11	11	follows:
12	12	(b) At the written request of the governing bodies of a
13	13	majority of the taxing units participating in an appraisal district
14	14	or of a majority of the taxing units entitled to nominate candidates
15	15	for [vote on the] appointment as [of] appraisal district directors,
16	16	the comptroller shall audit the performance of the appraisal
17	17	district. The governing bodies may request a general audit of the
18	18	performance of the appraisal district or may request an audit of
19	19	only one or more particular duties, practices, functions,
20	20	departments, or other appraisal district matters.
21	21	SECTION 2. Section 5.13(h), Tax Code, is amended to read as
22	22	follows:
23	23	(h) At any time after the request for an audit is made, the
24	24	comptroller may discontinue the audit in whole or in part if
25	25	requested to do so by:
26	26	(1) the governing bodies of a majority of the taxing
27	27	units participating in the district, if the audit was requested by a
28	28	majority of those units;
29	29	(2) the governing bodies of a majority of the taxing
30	30	units entitled to nominate candidates for [vote on the] appointment
31	31	as [of] appraisal district directors, if the audit was requested by
32	32	a majority of those units; or
33	33	(3) if the audit was requested under Section 5.12(c)
34	34	[of this code], [by] the taxpayers who requested the audit.
35	35	SECTION 3. Section 6.03, Tax Code, is amended by amending
36	36	Subsections (a), (c), (d), (e), (g), (j), (k), and (l) and adding
37	37	Subsections (a-1), (a-2), (a-3), (d-1), and (m) to read as follows:
38	38	(a) The appraisal district is governed by a board of
39	39	directors. Five directors are appointed by the commissioners court
40	40	of the county in which the appraisal district is established from a
41	41	list of nominees nominated in the manner provided by this section.
42	42	The commissioners court must appoint one director from each of the
43	43	four commissioners precincts in the county and one director at
44	44	large from the county [taxing units that participate in the
45	45	district as provided by this section].
46	46	(a-1) If the county assessor-collector is not appointed to
47	47	the board, the county assessor-collector serves as a nonvoting
48	48	director. The county assessor-collector is ineligible to serve if
49	49	the board enters into a contract under Section 6.05(b) or if the
50	50	commissioners court of the county enters into a contract under
51	51	Section 6.24(b).
52	52	(a-2) To be eligible to serve on the board of directors, an
53	53	individual other than a county assessor-collector serving as a
54	54	nonvoting director must:
55	55	(1) be a resident of:
56	56	(A) the commissioners precinct from which the
57	57	office is appointed, in the case of a director appointed from a
58	58	commissioners precinct; or
59	59	(B) the county in which the appraisal district is
60	60	established, in the case of a director appointed at large;
61	61	[district] and
62	62	(2) [must] have resided in the district, and if
63	63	appointed from a commissioners precinct, in that commissioners
64	64	precinct, for at least two years immediately preceding the date the
65	65	individual takes office.
66	66	(a-3) An individual who is otherwise eligible to serve on
67	67	the board is not ineligible because of membership on the governing
68	68	body of a taxing unit. An employee of a taxing unit that
69	69	participates in the district is not eligible to serve on the board
70	70	unless the individual is also a member of the governing body or an
71	71	elected official of a taxing unit that participates in the
72	72	district.
73	73	(c) The [Members of the board of directors other than a
74	74	county assessor-collector serving as a nonvoting director are
75	75	appointed by vote of the] governing bodies of the incorporated
76	76	cities and towns, the school districts, the junior college
77	77	districts, and[, if entitled to vote,] the conservation and
78	78	reclamation districts that participate in the district shall
79	79	nominate nominees to serve on the board of directors of the district
80	80	in the manner provided by Subsection (d) [and of the county. A
81	81	governing body may cast all its votes for one candidate or
82	82	distribute them among candidates for any number of directorships.
83	83	Conservation and reclamation districts are not entitled to vote
84	84	unless at least one conservation and reclamation district in the
85	85	district delivers to the chief appraiser a written request to
86	86	nominate and vote on the board of directors by June 1 of each
87	87	odd-numbered year. On receipt of a request, the chief appraiser
88	88	shall certify a list by June 15 of all eligible conservation and
89	89	reclamation districts that are imposing taxes and that participate
90	90	in the district].
91	91	(d) The number of nominees that [voting entitlement of] a
92	92	taxing unit that is entitled to make nominations may nominate [vote
93	93	for directors] is determined by dividing the total dollar amount of
94	94	property taxes imposed in the district by the taxing unit for the
95	95	preceding tax year by the sum of the total dollar amount of property
96	96	taxes imposed in the district for that year by each taxing unit that
97	97	is entitled to make nominations [vote], [by] multiplying the
98	98	quotient by 100 [1,000], and [by] rounding the product to the
99	99	nearest tenth [whole number]. If that number is:
100	100	(1) less than one, the taxing unit may nominate one
101	101	nominee who resides in the commissioners precinct of the county in
102	102	which the appraisal district is established in which a majority of
103	103	the taxing unit is located;
104	104	(2) one or more but less than five, the taxing unit may
105	105	nominate two nominees who reside in a commissioners precinct of the
106	106	county in which the appraisal district is established in which any
107	107	part of the taxing unit is located;
108	108	(3) five or more but less than 10, the taxing unit may
109	109	nominate three nominees who reside in a commissioners precinct of
110	110	the county in which the appraisal district is established in which
111	111	any part of the taxing unit is located;
112	112	(4) 10 or more but less than 20, the taxing unit may
113	113	nominate four nominees who reside in a commissioners precinct of
114	114	the county in which the appraisal district is established in which
115	115	any part of the taxing unit is located; or
116	116	(5) 20 or more, the taxing unit may nominate four
117	117	nominees who reside in a commissioners precinct of the county in
118	118	which the appraisal district is established in which any part of the
119	119	taxing unit is located and one nominee who resides anywhere in the
120	120	county [That number is multiplied by the number of directorships to
121	121	be filled].
122	122	(d-1) A taxing unit participating in two or more appraisal
123	123	districts is entitled to nominate nominees for director [vote] in
124	124	each district in which it participates, but only the taxes imposed
125	125	in a district are used to calculate the number of nominees the
126	126	taxing unit is entitled to nominate [voting entitlement] in that
127	127	district.
128	128	(e) The chief appraiser shall calculate the number of
129	129	nominees [votes to which] each taxing unit [other than a
130	130	conservation and reclamation district] is entitled to nominate and
131	131	shall deliver written notice to each of those taxing units of that
132	132	number [its voting entitlement] before October 1 of each
133	133	odd-numbered year. The chief appraiser shall deliver the notice:
134	134	(1) to the county judge and each commissioner of the
135	135	county served by the appraisal district;
136	136	(2) to the presiding officer of the governing body of
137	137	each city or town participating in the appraisal district, to the
138	138	city manager of each city or town having a city manager, and to the
139	139	city secretary or clerk, if there is one, of each city or town that
140	140	does not have a city manager;
141	141	(3) to the presiding officer of the governing body of
142	142	each school district participating in the appraisal district and to
143	143	the superintendent of those school districts; [and]
144	144	(4) to the presiding officer of the governing body of
145	145	each junior college district participating in the appraisal
146	146	district and to the president, chancellor, or other chief executive
147	147	officer of those junior college districts; and
148	148	(5) to the presiding officer of each conservation and
149	149	reclamation district participating in the appraisal district.
150	150	(g) Each taxing unit nominates candidates [other than a
151	151	conservation and reclamation district that is entitled to vote may
152	152	nominate] by resolution adopted by its governing body [one
153	153	candidate for each position to be filled on the board of directors].
154	154	The governing body may nominate any number of nominees, provided
155	155	that the total number of nominees nominated does not exceed the
156	156	number contained in the notice provided under Subsection (e). The
157	157	presiding officer of the governing body of the taxing unit shall
158	158	submit the names of the taxing unit's nominees to the chief
159	159	appraiser before October 15.
160	160	(j) Before October 30, the chief appraiser shall prepare a
161	161	list of [ballot, listing] the nominees [candidates] whose names
162	162	were timely submitted under Subsection [Subsections] (g) [and, if
163	163	applicable, (h) or (i)] alphabetically according to the first
164	164	letter in each nominee's [candidate's] surname, and shall deliver a
165	165	copy of the list to the commissioners court of the county in which
166	166	the appraisal district is established [ballot to the presiding
167	167	officer of the governing body of each taxing unit that is entitled
168	168	to vote].
169	169	(k) The commissioners court of the county in which the
170	170	appraisal district is established by majority vote of its members
171	171	shall select from the list provided under Subsection (j) five
172	172	nominees who meet the appropriate residency requirements to serve
173	173	as members of the board of directors of the district [governing body
174	174	of each taxing unit entitled to vote shall determine its vote by
175	175	resolution and submit it to the chief appraiser before December 15.
176	176	The chief appraiser shall count the votes, declare the five
177	177	candidates who receive the largest cumulative vote totals elected,]
178	178	and submit the results before December 31 to the governing body of
179	179	each taxing unit in the district and to the nominees [candidates.
180	180	For purposes of determining the number of votes received by the
181	181	candidates, the candidate receiving the most votes of the
182	182	conservation and reclamation districts is considered to have
183	183	received all of the votes cast by conservation and reclamation
184	184	districts and the other candidates are considered not to have
185	185	received any votes of the conservation and reclamation districts.
186	186	The chief appraiser shall resolve a tie vote by any method of
187	187	chance].
188	188	(l) A [If a] vacancy [occurs] on the board of directors,
189	189	other than a vacancy in the position held by a county
190	190	assessor-collector serving as a nonvoting director, is filled in
191	191	the manner provided by this subsection. If the vacancy is in the
192	192	position representing the whole county for which the appraisal
193	193	district is established, each taxing unit that is entitled to make
194	194	nominations under [vote by] this section may nominate by resolution
195	195	adopted by its governing body a nominee [candidate] to fill the
196	196	vacancy. If the vacancy is in a position representing a
197	197	commissioners precinct, each taxing unit that is entitled to make
198	198	nominations under this section any part of which is located in that
199	199	commissioners precinct may nominate by resolution adopted by its
200	200	governing body a nominee to fill the vacancy. A nominee must meet
201	201	the applicable residency requirement under Subsection (a-2) for the
202	202	vacant position. The taxing unit shall submit the name of its
203	203	nominee to the chief appraiser within 45 days after notification
204	204	from the board of directors of the existence of the vacancy, and the
205	205	chief appraiser shall prepare and deliver to the commissioners
206	206	court of the county in which the appraisal district is established
207	207	[board of directors] within the next five days a list of the
208	208	nominees. The commissioners court [board of directors] shall elect
209	209	by majority vote of its members one of the nominees to fill the
210	210	vacancy.
211	211	(m) If as a result of a change in the boundaries of a
212	212	commissioners precinct an individual serving as a director no
213	213	longer resides in the precinct from which the office is appointed,
214	214	the individual is not for that reason disqualified from office
215	215	during the remainder of the term of office being served at the time
216	216	the boundary change takes effect. If as a result of a change in the
217	217	boundaries of a commissioners precinct an individual appointed as a
218	218	director before the boundary change to a term that begins after the
219	219	boundary change no longer resides in the precinct from which the
220	220	office is appointed, the individual is not for that reason
221	221	disqualified from serving the term to which the individual is
222	222	appointed.
223	223	SECTION 4. Sections 6.033(a), (b), (c), and (d), Tax Code,
224	224	are amended to read as follows:
225	225	(a) The governing body of a taxing unit may call for the
226	226	recall of a member of the board of directors of an appraisal
227	227	district appointed under Section 6.03 [of this code for] whom the
228	228	taxing unit nominated for [cast any of its votes in the] appointment
229	229	to [of] the board. The call must be in the form of a resolution, be
230	230	filed with the chief appraiser of the appraisal district, and state
231	231	that the taxing unit is calling for the recall of the member. If a
232	232	resolution calling for the recall of a board member is filed under
233	233	this subsection, the chief appraiser, not later than the 10th day
234	234	after the date of filing, shall deliver a written notice of the
235	235	filing of the resolution and the date of its filing to the presiding
236	236	officer of the governing body of each taxing unit entitled to
237	237	nominate candidates for [vote in the] appointment as [of] board
238	238	members.
239	239	(b) On or before the 30th day after the date on which a
240	240	resolution calling for the recall of a member of the board is filed,
241	241	the governing body of a taxing unit that nominated [cast any of its
242	242	votes in the appointment of the board for] that member for
243	243	appointment to the board may vote to recall the member by resolution
244	244	submitted to the chief appraiser. [Each taxing unit is entitled to
245	245	the same number of votes in the recall as it cast for that member in
246	246	the appointment of the board.] The governing body of the taxing
247	247	unit calling for the recall may cast its vote [votes] in favor of
248	248	the recall in the same resolution in which it called for the recall.
249	249	(c) Not later than the 10th day after the last day provided
250	250	by this section for voting in favor of the recall, the chief
251	251	appraiser shall count the votes cast in favor of the recall. If
252	252	only one taxing unit nominated the member for appointment to the
253	253	board and that taxing unit votes in favor of the recall, the member
254	254	is recalled and ceases to be a member of the board. If more than one
255	255	taxing unit nominated the member for appointment to the board and a
256	256	majority of those taxing units vote in favor of the recall [If the
257	257	number of votes in favor of the recall equals or exceeds a majority
258	258	of the votes cast for the member in the appointment of the board],
259	259	the member is recalled and ceases to be a member of the board. The
260	260	chief appraiser shall immediately notify in writing the presiding
261	261	officer of the appraisal district board of directors and of the
262	262	governing body of each taxing unit that voted in the recall election
263	263	of the outcome of the recall election. If the presiding officer of
264	264	the appraisal district board of directors is the member whose
265	265	recall was voted on, the chief appraiser shall also notify the
266	266	secretary of the appraisal district board of directors of the
267	267	outcome of the recall election.
268	268	(d) A [If a] vacancy [occurs] on the board of directors that
269	269	results from [after] the recall of a member of the board under this
270	270	section is filled in the same manner a vacancy on the board is
271	271	filled under Section 6.03, except that only the taxing units that
272	272	were entitled to vote in the recall election may nominate a nominee
273	273	to replace the recalled [shall appoint a new board] member. [Each
274	274	taxing unit is entitled to the same number of votes as it originally
275	275	cast to appoint the recalled board member. Each taxing unit
276	276	entitled to vote may nominate one candidate by resolution adopted
277	277	by its governing body. The presiding officer of the governing body
278	278	of the unit shall submit the name of the unit's nominee to the chief
279	279	appraiser on or before the 30th day after the date it receives
280	280	notification from the chief appraiser of the result of the recall
281	281	election. On or before the 15th day after the last day provided for
282	282	a nomination to be submitted, the chief appraiser shall prepare a
283	283	ballot, listing the candidates nominated alphabetically according
284	284	to each candidate's surname, and shall deliver a copy of the ballot
285	285	to the presiding officer of the governing body of each taxing unit
286	286	that is entitled to vote. On or before the 15th day after the date
287	287	on which a taxing unit's ballot is delivered, the governing body of
288	288	the taxing unit shall determine its vote by resolution and submit it
289	289	to the chief appraiser. On or before the 15th day after the last day
290	290	on which a taxing unit may vote, the chief appraiser shall count the
291	291	votes, declare the candidate who received the largest vote total
292	292	appointed, and submit the results to the presiding officer of the
293	293	governing body of the appraisal district and of each taxing unit in
294	294	the district and to the candidates. The chief appraiser shall
295	295	resolve a tie vote by any method of chance.]
296	296	SECTION 5. Section 6.037, Tax Code, is amended to read as
297	297	follows:
298	298	Sec. 6.037. PARTICIPATION OF CONSERVATION AND RECLAMATION
299	299	DISTRICTS IN APPRAISAL DISTRICT MATTERS. In this title, a
300	300	reference to the taxing units entitled to nominate nominees for
301	301	[vote on the] appointment as [of] appraisal district board members
302	302	includes the conservation and reclamation districts participating
303	303	in the appraisal district[, without regard to whether the
304	304	conservation and reclamation districts are currently entitled to do
305	305	so under Section 6.03(c)]. In a provision of this title other than
306	306	Section 6.03 [or 6.031] that grants authority to a majority or other
307	307	number of the taxing units entitled to nominate nominees for [vote
308	308	on the] appointment as [of] appraisal district directors, including
309	309	the disapproval of the appraisal district budget under Section 6.06
310	310	and the disapproval of appraisal district board actions under
311	311	Section 6.10, the conservation and reclamation districts
312	312	participating in the appraisal district are given the vote or
313	313	authority of one taxing unit. That vote or authority is considered
314	314	exercised only if a majority of the conservation and reclamation
315	315	districts take the same action to exercise that vote or authority.
316	316	Otherwise, the conservation and reclamation districts are treated
317	317	in the same manner as a single taxing unit that is entitled to act
318	318	but does not take any action on the matter.
319	319	SECTION 6. Section 6.051(b), Tax Code, is amended to read as
320	320	follows:
321	321	(b) The acquisition or conveyance of real property or the
322	322	construction or renovation of a building or other improvement by an
323	323	appraisal district must be approved by the governing bodies of
324	324	three-fourths of the taxing units entitled to nominate nominees for
325	325	[vote on the] appointment as [of] board members. The board of
326	326	directors by resolution may propose a property transaction or other
327	327	action for which this subsection requires approval of the taxing
328	328	units. The chief appraiser shall notify the presiding officer of
329	329	each governing body entitled to vote on the approval of the proposal
330	330	by delivering a copy of the board's resolution, together with
331	331	information showing the costs of other available alternatives to
332	332	the proposal. On or before the 30th day after the date the
333	333	presiding officer receives notice of the proposal, the governing
334	334	body of a taxing unit by resolution may approve or disapprove the
335	335	proposal. If a governing body fails to act on or before that 30th
336	336	day or fails to file its resolution with the chief appraiser on or
337	337	before the 10th day after that 30th day, the proposal is treated as
338	338	if it were disapproved by the governing body.
339	339	SECTION 7. Sections 6.06(a), (b), and (i), Tax Code, are
340	340	amended to read as follows:
341	341	(a) Each year the chief appraiser shall prepare a proposed
342	342	budget for the operations of the district for the following tax year
343	343	and shall submit copies to each taxing unit participating in the
344	344	district and to the district board of directors before June 15. The
345	345	chief appraiser [He] shall include in the budget a list showing each
346	346	proposed position, the proposed salary for the position, all
347	347	benefits proposed for the position, each proposed capital
348	348	expenditure, and an estimate of the amount of the budget that will
349	349	be allocated to each taxing unit. Each taxing unit entitled to
350	350	nominate nominees for [vote on the] appointment as [of] board
351	351	members shall maintain a copy of the proposed budget for public
352	352	inspection at its principal administrative office.
353	353	(b) The board of directors shall hold a public hearing to
354	354	consider the budget. The secretary of the board shall deliver to
355	355	the presiding officer of the governing body of each taxing unit
356	356	participating in the district not later than the 10th day before the
357	357	date of the hearing a written notice of the date, time, and place
358	358	fixed for the hearing. The board shall complete its hearings, make
359	359	any amendments to the proposed budget it desires, and finally
360	360	approve a budget before September 15. If the governing bodies of a
361	361	majority of the taxing units entitled to nominate nominees for
362	362	[vote on the] appointment as [of] board members adopt resolutions
363	363	disapproving a budget and file them with the secretary of the board
364	364	within 30 days after its adoption, the budget does not take effect,
365	365	and the board shall adopt a new budget within 30 days of the
366	366	disapproval.
367	367	(i) The fiscal year of an appraisal district is the calendar
368	368	year unless the governing bodies of three-fourths of the taxing
369	369	units entitled to nominate nominees for [vote on the] appointment
370	370	as [of] board members adopt resolutions proposing a different
371	371	fiscal year and file them with the secretary of the board not more
372	372	than 12 and not less than eight months before the first day of the
373	373	fiscal year proposed by the resolutions. If the fiscal year of an
374	374	appraisal district is changed under this subsection, the chief
375	375	appraiser shall prepare a proposed budget for the fiscal year as
376	376	provided by Subsection (a) [of this section] before the 15th day of
377	377	the seventh month preceding the first day of the fiscal year
378	378	established by the change, and the board of directors shall adopt a
379	379	budget for the fiscal year as provided by Subsection (b) [of this
380	380	section] before the 15th day of the fourth month preceding the first
381	381	day of the fiscal year established by the change. Unless the
382	382	appraisal district adopts a different method of allocation under
383	383	Section 6.061 [of this code], the allocation of the budget to each
384	384	taxing unit shall be calculated as provided by Subsection (d) of
385	385	this section using the amount of property taxes imposed by each
386	386	participating taxing unit in the most recent tax year preceding the
387	387	fiscal year established by the change for which the necessary
388	388	information is available. Each taxing unit shall pay its
389	389	allocation as provided by Subsection (e) [of this section], except
390	390	that the first payment shall be made before the first day of the
391	391	fiscal year established by the change and subsequent payments shall
392	392	be made quarterly. In the year in which a change in the fiscal year
393	393	occurs, the budget that takes effect on January 1 of that year may
394	394	be amended as necessary as provided by Subsection (c) [of this
395	395	section] in order to accomplish the change in fiscal years.
396	396	SECTION 8. Sections 6.061(b) and (e), Tax Code, are amended
397	397	to read as follows:
398	398	(b) The taxing units participating in an appraisal district
399	399	may adopt a different method of allocating the costs of operating
400	400	the district if the governing bodies of three-fourths of the taxing
401	401	units that are entitled to nominate nominees for [vote on the]
402	402	appointment as [of] board members adopt resolutions providing for
403	403	the other method. However, a change under this subsection is not
404	404	valid if it requires any taxing unit to pay a greater proportion of
405	405	the appraisal district's costs than the taxing unit would pay under
406	406	Section 6.06 [of this code] without the consent of the governing
407	407	body of that taxing unit.
408	408	(e) A change in allocation of district costs made as
409	409	provided by this section remains in effect until changed in a manner
410	410	provided by this section or rescinded by resolution of a majority of
411	411	the governing bodies of the taxing units that are entitled to
412	412	nominate nominees for [vote on] appointment as [of] board members
413	413	under Section 6.03 [of this code].
414	414	SECTION 9. Section 6.063(b), Tax Code, is amended to read as
415	415	follows:
416	416	(b) The report of the audit is a public record. A copy of
417	417	the report shall be delivered to the presiding officer of the
418	418	governing body of each taxing unit that is eligible to nominate
419	419	nominees for [vote on the] appointment as appraisal [of] district
420	420	directors, and a reasonable number of copies shall be available for
421	421	inspection at the appraisal office.
422	422	SECTION 10. Section 6.10, Tax Code, is amended to read as
423	423	follows:
424	424	Sec. 6.10. DISAPPROVAL OF BOARD ACTIONS. If the governing
425	425	bodies of two-thirds [a majority] of the taxing units entitled to
426	426	nominate nominees for [vote on the] appointment as [of] board
427	427	members adopt resolutions disapproving an action, other than
428	428	adoption of the budget, by the appraisal district board of
429	429	directors and file them with the secretary of the board within 15
430	430	days after the action is taken, the action is revoked effective the
431	431	day after the day on which the required number of resolutions is
432	432	filed.
433	433	SECTION 11. The following provisions of the Tax Code are
434	434	repealed:
435	435	(1) Sections 6.03(f), (h), and (i);
436	436	(2) Section 6.031;
437	437	(3) Section 6.033(e); and
438	438	(4) Section 6.034.
439	439	SECTION 12. (a) Appraisal district directors shall be
440	440	appointed in each appraisal district as provided by Section 6.03,
441	441	Tax Code, as amended by this Act, to serve terms that begin January
442	442	1, 2022.
443	443	(b) The change in the manner of selection of appraisal
444	444	district directors made by this Act does not affect the selection of
445	445	appraisal district directors serving before January 1, 2022.
446	446	(c) The term of an appraisal district director serving on
447	447	December 31, 2021, expires on January 1, 2022.
448	448	SECTION 13. (a) Except as provided by Subsection (b) of
449	449	this section, this Act takes effect January 1, 2022.
450	450	(b) This section and Section 12 of this Act take effect
451	451	September 1, 2021.