Bill Text: TX SB1168 | 2023-2024 | 88th Legislature | Introduced

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Bill Title: Relating to the governance and administration of an appraisal district.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-03-09 - Referred to Local Government [SB1168 Detail]

Download: Texas-2023-SB1168-Introduced.html

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88R3820 RDS-D
By: Birdwell S.B. No. 1168

A BILL TO BE ENTITLED
AN ACT
relating to the governance and administration of an appraisal
district.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 5.12(b), Tax Code, is amended to read as
follows:
(b) At the written request of the governing bodies of a
majority of the taxing units participating in an appraisal district
or of a majority of the taxing units entitled to nominate nominees
for [vote on the] appointment as [of] appraisal district directors,
the comptroller shall audit the performance of the appraisal
district. The governing bodies may request a general audit of the
performance of the appraisal district or may request an audit of
only one or more particular duties, practices, functions,
departments, or other appraisal district matters.
SECTION 2. Section 5.13(h), Tax Code, is amended to read as
follows:
(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:
(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 nominate nominees for [vote on the] appointment
as [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 3. Section 6.03, Tax Code, is amended by amending
Subsections (a), (c), (d), (e), (g), (j), (k), and (l) and adding
Subsections (a-1), (a-2), (a-3), (d-1), and (m) to read as follows:
(a) The appraisal district is governed by a board of
directors. Five directors are appointed by the commissioners court
of the county in which the appraisal district is established from a
list of nominees nominated in the manner provided by this section.
The commissioners court must appoint one director from each of the
four commissioners precincts in the county and one director at
large from the county [taxing units that participate in the
district as provided by this section].
(a-1) If the county assessor-collector is not appointed to
the board, the county assessor-collector serves as a nonvoting
director. 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-2) To be eligible to serve on the board of directors, an
individual other than a county assessor-collector serving as a
nonvoting director must:
(1) be a resident of:
(A) the commissioners precinct from which the
office is appointed, in the case of a director appointed from a
commissioners precinct; or
(B) the county in which the appraisal district is
established, in the case of a director appointed at large;
[district] and
(2) [must] have resided in the district, and if
appointed from a commissioners precinct, in that commissioners
precinct, for at least two years immediately preceding the date the
individual takes office.
(a-3) 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.
(c) The [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, the junior college
districts, and[, if entitled to vote,] the conservation and
reclamation districts that participate in the district shall
nominate nominees to serve on the board of directors of the district
in the manner provided by Subsection (d) [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 number of nominees that [voting entitlement of] a
taxing unit that is entitled to make nominations may nominate [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 make nominations [vote], [by] multiplying the
quotient by 100 [1,000], and [by] rounding the product to the
nearest tenth [whole number]. If that number is:
(1) less than one, the taxing unit may nominate one
nominee who resides in the commissioners precinct of the county in
which the appraisal district is established in which a majority of
the taxing unit is located;
(2) one or more but less than five, the taxing unit may
nominate two nominees who reside in a commissioners precinct of the
county in which the appraisal district is established in which any
part of the taxing unit is located;
(3) five or more but less than 10, the taxing unit may
nominate three nominees who reside in a commissioners precinct of
the county in which the appraisal district is established in which
any part of the taxing unit is located;
(4) 10 or more but less than 20, the taxing unit may
nominate four nominees who reside in a commissioners precinct of
the county in which the appraisal district is established in which
any part of the taxing unit is located; or
(5) 20 or more, the taxing unit may nominate four
nominees who reside in a commissioners precinct of the county in
which the appraisal district is established in which any part of the
taxing unit is located and one nominee who resides anywhere in the
county [That number is multiplied by the number of directorships to
be filled].
(d-1) A taxing unit participating in two or more appraisal
districts is entitled to nominate nominees for director [vote] in
each district in which it participates, but only the taxes imposed
in a district are used to calculate the number of nominees the
taxing unit is entitled to nominate [voting entitlement] in that
district.
(e) The chief appraiser shall calculate the number of
nominees [votes to which] each taxing unit [other than a
conservation and reclamation district] is entitled to nominate and
shall deliver written notice to each of those taxing units of that
number [its voting entitlement] before October 1 of each
odd-numbered year. The chief appraiser shall deliver the notice:
(1) to the county judge and each commissioner of the
county served by the appraisal district;
(2) to the presiding officer of the governing body of
each city or town participating in the appraisal district, to the
city manager of each city or town having a city manager, and to the
city secretary or clerk, if there is one, of each city or town that
does not have a city manager;
(3) to the presiding officer of the governing body of
each school district participating in the appraisal district and to
the superintendent of those school districts; [and]
(4) to the presiding officer of the governing body of
each junior college district participating in the appraisal
district and to the president, chancellor, or other chief executive
officer of those junior college districts; and
(5) to the presiding officer of each conservation and
reclamation district participating in the appraisal district.
(g) Each taxing unit nominates nominees [other than a
conservation and reclamation district that is entitled to vote may
nominate] by resolution adopted by its governing body [one
candidate for each position to be filled on the board of directors].
The governing body may nominate any number of nominees, provided
that the total number of nominees nominated does not exceed the
number contained in the notice provided under Subsection (e). The
presiding officer of the governing body of the taxing unit shall
submit the names of the taxing unit's nominees to the chief
appraiser before October 15.
(j) Before October 30, the chief appraiser shall prepare a
list of [ballot, listing] the nominees [candidates] whose names
were timely submitted under Subsection [Subsections] (g) [and, if
applicable, (h) or (i)] alphabetically according to the first
letter in each nominee's [candidate's] surname, and shall deliver a
copy of the list to the commissioners court of the county in which
the appraisal district is established [ballot to the presiding
officer of the governing body of each taxing unit that is entitled
to vote].
(k) The commissioners court of the county in which the
appraisal district is established by majority vote of its members
shall select from the list provided under Subsection (j) five
nominees who meet the appropriate residency requirements to serve
as members of the board of directors of the district [Except as
provided by Subsection (k-1), the governing body of each taxing
unit entitled to vote shall determine its vote by resolution and
submit it to the chief appraiser before December 15. The chief
appraiser shall count the votes, declare the five candidates who
receive the largest cumulative vote totals elected,] and submit the
results before December 31 to the governing body of each taxing unit
in the district and to the nominees [candidates. For purposes of
determining the number of votes received by the candidates, the
candidate receiving the most votes of the conservation and
reclamation districts is considered to have received all of the
votes cast by conservation and reclamation districts and the other
candidates are considered not to have received any votes of the
conservation and reclamation districts. The chief appraiser shall
resolve a tie vote by any method of chance].
(l) A [If a] vacancy [occurs] on the board of directors,
other than a vacancy in the position held by a county
assessor-collector serving as a nonvoting director, is filled in
the manner provided by this subsection. If the vacancy is in the
position representing the whole county for which the appraisal
district is established, each taxing unit that is entitled to make
nominations under [vote by] this section may nominate by resolution
adopted by its governing body a nominee [candidate] to fill the
vacancy. If the vacancy is in a position representing a
commissioners precinct, each taxing unit that is entitled to make
nominations under this section any part of which is located in that
commissioners precinct may nominate by resolution adopted by its
governing body a nominee to fill the vacancy. A nominee must meet
the applicable residency requirement under Subsection (a-2) for the
vacant position. The taxing 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 commissioners
court of the county in which the appraisal district is established
[board of directors] within the next five days a list of the
nominees. The commissioners court [board of directors] shall elect
by majority vote of its members one of the nominees to fill the
vacancy.
(m) If as a result of a change in the boundaries of a
commissioners precinct an individual serving as a director no
longer resides in the precinct from which the office is appointed,
the individual is not for that reason disqualified from office
during the remainder of the term of office being served at the time
the boundary change takes effect. If as a result of a change in the
boundaries of a commissioners precinct an individual appointed as a
director before the boundary change to a term that begins after the
boundary change no longer resides in the precinct from which the
office is appointed, the individual is not for that reason
disqualified from serving the term to which the individual is
appointed.
SECTION 4. The heading to Section 6.031, Tax Code, is
amended to read as follows:
Sec. 6.031. CHANGES IN BOARD MEMBERSHIP [OR SELECTION].
SECTION 5. Sections 6.031(a), (b), (b-1), and (e), Tax
Code, are amended to read as follows:
(a) The commissioners court of the county in which [board of
directors of] an appraisal district is established, by resolution
adopted and delivered to each taxing unit participating in the
district before August 15, may increase the number of members on the
board of directors of the district to not more than 13[, change the
method or procedure for appointing the members, or both,] unless
the governing body of a taxing unit that is entitled to nominate
nominees for [vote on the] appointment as [of] board members adopts
a resolution opposing the change[,] and files it with the
commissioners court [board of directors] before September 1. If a
change is rejected, the commissioners court [board] shall notify,
in writing, each taxing unit participating in the district before
September 15.
(b) The taxing units participating in an appraisal district
may increase the number of members on the board of directors of the
district to not more than 13[, change the method or procedure for
appointing the members, or both,] if the governing bodies of
three-fourths of the taxing units that are entitled to nominate
nominees for [vote on the] appointment as [of] board members adopt
resolutions providing for the change. [However, a change under
this subsection is not valid if it reduces the voting entitlement of
one or more taxing units that do not adopt a resolution proposing it
to less than a majority of the voting entitlement under Section 6.03
of this code or if it reduces the voting entitlement of any taxing
unit that does not adopt a resolution proposing it to less than 50
percent of its voting entitlement under Section 6.03 of this code
and if that taxing unit's allocation of the budget is not reduced to
the same proportional percentage amount, or if it expands the types
of taxing units that are entitled to vote on appointment of board
members.]
(b-1) If [an appraisal district increases] the number of
members on the board of directors of the district is increased under
[or changes the method or procedure for appointing the members as
provided by] this section, the commissioners court shall select the
appropriate number of directors from the list of nominees provided
under Section 6.03(j), provided that at least one director is
appointed from each commissioners precinct in the county, one
director is appointed at large from the county, and no more than
four directors are appointed from any one commissioners precinct in
the county [board of directors by resolution shall provide for the
junior college districts that participate in the appraisal district
to collectively participate in the selection of directors in the
same manner as the school district that imposes the lowest total
dollar amount of property taxes in the appraisal district among all
of the school districts with representation in the appraisal
district. A resolution adopted under this section is not subject
to rejection by a resolution opposing the change filed with the
board of directors by a taxing unit under Subsection (a)].
(e) A change in membership [or selection] made as provided
by this section remains in effect until changed in a manner provided
by this section or rescinded by resolution of a majority of the
governing bodies that are entitled to nominate nominees for [vote
on] appointment as [of] board members under Section 6.03 [of this
code].
SECTION 6. Sections 6.033(a), (b), (c), and (d), Tax Code,
are amended to read as follows:
(a) The governing body of a taxing unit may call for the
recall of a member of the board of directors of an appraisal
district appointed under Section 6.03 [of this code for] whom the
taxing unit nominated for [cast any of its votes in the] appointment
to [of] the board. The call must be in the form of a resolution, be
filed with the chief appraiser of the appraisal district, and state
that the taxing unit is calling for the recall of the member. If a
resolution calling for the recall of a board member is filed under
this subsection, the chief appraiser, not later than the 10th day
after the date of filing, shall deliver a written notice of the
filing of the resolution and the date of its filing to the presiding
officer of the governing body of each taxing unit entitled to
nominate nominees for [vote in the] appointment as [of] board
members.
(b) On or before the 30th day after the date on which a
resolution calling for the recall of a member of the board is filed,
the governing body of a taxing unit that nominated [cast any of its
votes in the appointment of the board for] that member for
appointment to the board may vote to recall the member by resolution
submitted to the chief appraiser. [Each taxing unit is entitled to
the same number of votes in the recall as it cast for that member in
the appointment of the board.] The governing body of the taxing
unit calling for the recall may cast its vote [votes] in favor of
the recall in the same resolution in which it called for the recall.
(c) Not later than the 10th day after the last day provided
by this section for voting in favor of the recall, the chief
appraiser shall count the votes cast in favor of the recall. If
only one taxing unit nominated the member for appointment to the
board and that taxing unit votes in favor of the recall, the member
is recalled and ceases to be a member of the board. If more than one
taxing unit nominated the member for appointment to the board and a
majority of those taxing units vote in favor of the recall [If the
number of votes in favor of the recall equals or exceeds a majority
of the votes cast for the member in the appointment of the board],
the member is recalled and ceases to be a member of the board. The
chief appraiser shall immediately notify in writing the presiding
officer of the appraisal district board of directors and of the
governing body of each taxing unit that voted in the recall election
of the outcome of the recall election. If the presiding officer of
the appraisal district board of directors is the member whose
recall was voted on, the chief appraiser shall also notify the
secretary of the appraisal district board of directors of the
outcome of the recall election.
(d) A [If a] vacancy [occurs] on the board of directors that
results from [after] the recall of a member of the board under this
section is filled in the same manner a vacancy on the board is
filled under Section 6.03, except that only the taxing units that
were entitled to vote in the recall election may nominate a nominee
to replace the recalled [shall appoint a new board] member. [Each
taxing unit is entitled to the same number of votes as it originally
cast to appoint the recalled board member. Each taxing unit
entitled to vote may nominate one candidate by resolution adopted
by its governing body. The presiding officer of the governing body
of the unit shall submit the name of the unit's nominee to the chief
appraiser on or before the 30th day after the date it receives
notification from the chief appraiser of the result of the recall
election. On or before the 15th day after the last day provided for
a nomination to be submitted, the chief appraiser shall prepare a
ballot, listing the candidates nominated alphabetically according
to each candidate's surname, and shall deliver a copy of the ballot
to the presiding officer of the governing body of each taxing unit
that is entitled to vote. On or before the 15th day after the date
on which a taxing unit's ballot is delivered, the governing body of
the taxing unit shall determine its vote by resolution and submit it
to the chief appraiser. On or before the 15th day after the last day
on which a taxing unit may vote, the chief appraiser shall count the
votes, declare the candidate who received the largest vote total
appointed, and submit the results to the presiding officer of the
governing body of the appraisal district and of each taxing unit in
the district and to the candidates. The chief appraiser shall
resolve a tie vote by any method of chance.]
SECTION 7. Section 6.037, Tax Code, is amended to read as
follows:
Sec. 6.037. PARTICIPATION OF CONSERVATION AND RECLAMATION
DISTRICTS IN APPRAISAL DISTRICT MATTERS. In this title, a
reference to the taxing units entitled to nominate nominees for
[vote on the] appointment as [of] appraisal district board members
includes the conservation and reclamation districts participating
in the appraisal district[, without regard to whether the
conservation and reclamation districts are currently entitled to do
so under Section 6.03(c)]. In a provision of this title other than
Section 6.03 or 6.031 that grants authority to a majority or other
number of the taxing units entitled to nominate nominees for [vote
on the] appointment as [of] appraisal district directors, including
the disapproval of the appraisal district budget under Section 6.06
and the disapproval of appraisal district board actions under
Section 6.10, the conservation and reclamation districts
participating in the appraisal district are given the vote or
authority of one taxing unit. That vote or authority is considered
exercised only if a majority of the conservation and reclamation
districts take the same action to exercise that vote or authority.
Otherwise, the conservation and reclamation districts are treated
in the same manner as a single taxing unit that is entitled to act
but does not take any action on the matter.
SECTION 8. Section 6.051(b), Tax Code, is amended to read as
follows:
(b) The acquisition or conveyance of real property or the
construction or renovation of a building or other improvement by an
appraisal district must be approved by the governing bodies of
three-fourths of the taxing units entitled to nominate nominees for
[vote on the] appointment as [of] board members. The board of
directors by resolution may propose a property transaction or other
action for which this subsection requires approval of the taxing
units. The chief appraiser shall notify the presiding officer of
each governing body entitled to vote on the approval of the proposal
by delivering a copy of the board's resolution, together with
information showing the costs of other available alternatives to
the proposal. On or before the 30th day after the date the
presiding officer receives notice of the proposal, the governing
body of a taxing unit by resolution may approve or disapprove the
proposal. If a governing body fails to act on or before that 30th
day or fails to file its resolution with the chief appraiser on or
before the 10th day after that 30th day, the proposal is treated as
if it were disapproved by the governing body.
SECTION 9. Sections 6.06(a), (b), 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
nominate nominees for [vote on the] appointment as [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 the governing bodies of a
majority of the taxing units entitled to nominate nominees for
[vote on the] appointment as [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.
(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 nominate nominees for [vote on the] appointment
as [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(b) and (e), Tax Code, are
amended to read as follows:
(b) The taxing units participating in an appraisal district
may adopt a different method of allocating the costs of operating
the district if the governing bodies of three-fourths of the taxing
units that are entitled to nominate nominees for [vote on the]
appointment as [of] board members adopt resolutions providing for
the other method. However, a change under this subsection is not
valid if it requires any taxing unit to pay a greater proportion of
the appraisal district's costs than the taxing unit would pay under
Section 6.06 [of this code] without the consent of the governing
body of that taxing unit.
(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 a majority of
the governing bodies of the taxing units that are entitled to
nominate nominees for [vote on] appointment as [of] board members
under Section 6.03 [of this code].
SECTION 11. 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 that is eligible to nominate
nominees for [vote on the] appointment as appraisal [of] district
directors, and a reasonable number of copies shall be available for
inspection at the appraisal office.
SECTION 12. Section 6.10, Tax Code, is amended to read as
follows:
Sec. 6.10. DISAPPROVAL OF BOARD ACTIONS. If the governing
bodies of two-thirds [a majority] of the taxing units entitled to
nominate nominees for [vote on the] appointment as [of] board
members adopt resolutions disapproving an action, other than
adoption of the budget, by the appraisal district board of
directors and file them with the secretary of the board within 15
days after the action is taken, the action is revoked effective the
day after the day on which the required number of resolutions is
filed.
SECTION 13. The following provisions of the Tax Code are
repealed:
(1) Sections 6.03(f), (h), (i), and (k-1);
(2) Section 6.031(g);
(3) Section 6.033(e); and
(4) Section 6.034.
SECTION 14. (a) Appraisal district directors shall be
appointed in each appraisal district as provided by Section 6.03,
Tax Code, as amended by this Act, to serve terms that begin January
1, 2024.
(b) The change in the manner of selection of appraisal
district directors made by this Act does not affect the selection of
appraisal district directors serving before January 1, 2024.
(c) The term of an appraisal district director serving on
December 31, 2023, expires on January 1, 2024.
SECTION 15. (a) Except as provided by Subsection (b) of
this section, this Act takes effect January 1, 2024.
(b) This section and Section 14 of this Act take effect
September 1, 2023.