Bill Text: TX SR841 | 2019-2020 | 86th Legislature | Enrolled


Bill Title: Suspending limitations on conference committee jurisdiction on SB 2.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2019-05-25 - Reported enrolled [SR841 Detail]

Download: Texas-2019-SR841-Enrolled.html
 
 
  By: Hancock S.R. No. 841
 
 
SENATE RESOLUTION
         BE IT RESOLVED by the Senate of the State of Texas, 86th
  Legislature, Regular Session, 2019, That Senate Rule 12.03 be
  suspended in part as provided by Senate Rule 12.08 to enable the
  conference committee appointed to resolve the differences on
  Senate Bill 2 (ad valorem taxation; authorizing fees) to consider
  and take action on the following matters:
         (1)  Senate Rule 12.03(4) is suspended to permit the
  committee to add text on a matter not included in either the house
  or senate version of the bill by adding the following new SECTION
  to the bill:
         SECTION 2.  Chapter 1, Tax Code, is amended by adding
  Section 1.045 to read as follows:
         Sec. 1.045.  REFERENCE TO CERTAIN TERMS IN LAW. Unless
  the context indicates otherwise:
               (1)  a reference in law to a taxing unit's effective
  maintenance and operations rate is a reference to the taxing
  unit's no-new-revenue maintenance and operations rate, as
  defined by Chapter 26;
               (2)  a reference in law to a taxing unit's effective
  tax rate is a reference to the taxing unit's no-new-revenue tax
  rate, as defined by Chapter 26; and
               (3)  a reference in law to a taxing unit's rollback
  tax rate is a reference to the taxing unit's voter-approval tax
  rate, as defined by Chapter 26.
         Explanation:  The addition is necessary to ensure that
  references in other law to terms in Title 1 of the Tax Code that
  are changed in the bill are construed in accordance with the way
  those terms are used in the bill.
         (2)  Senate Rule 12.03(1) is suspended to permit the
  committee to amend text not in disagreement in proposed SECTION
  36 of the bill, in added Section 26.04(c-1)(2), Tax Code, to read
  as follows:
               (2)  the third tax year after the tax year in which
  the disaster occurred.
         Explanation:  The change is necessary to limit the period
  of time during which certain taxing units may calculate the
  voter-approval tax rate of the taxing unit at a higher rate
  following certain disasters.
         (3)  Senate Rule 12.03(1) is suspended to permit the
  committee to amend text not in disagreement in proposed SECTION
  36 of the bill, in amended Section 26.04(e), Tax Code, to read as
  follows:
         (e)  By August 7 or as soon thereafter as practicable, the
  designated officer or employee shall submit the rates to the
  governing body. The designated officer or employee [He] shall
  post prominently on the home page of the taxing unit's Internet
  website [deliver by mail to each property owner in the unit or
  publish in a newspaper] in the form prescribed by the
  comptroller:
               (1)  the no-new-revenue [effective] tax rate, the
  voter-approval [rollback] tax rate, and an explanation of how
  they were calculated;
               (2)  the estimated amount of interest and sinking
  fund balances and the estimated amount of maintenance and
  operation or general fund balances remaining at the end of the
  current fiscal year that are not encumbered with or by
  corresponding existing debt obligation; and
               (3)  a schedule of the taxing unit's debt obligations
  showing:
                     (A)  the amount of principal and interest that
  will be paid to service the taxing unit's debts in the next year
  from property tax revenue, including payments of lawfully
  incurred contractual obligations providing security for the
  payment of the principal of and interest on bonds and other
  evidences of indebtedness issued on behalf of the taxing unit by
  another political subdivision and, if the taxing unit is created
  under Section 52, Article III, or Section 59, Article XVI, Texas
  Constitution, payments on debts that the taxing unit anticipates
  to incur in the next calendar year;
                     (B)  the amount by which taxes imposed for debt
  are to be increased because of the taxing unit's anticipated
  collection rate; and
                     (C)  the total of the amounts listed in
  Paragraphs (A)-(B), less any amount collected in excess of the
  previous year's anticipated collections certified as provided in
  Subsection (b)[;
               [(4)     the amount of additional sales and use tax
  revenue anticipated in calculations under Section 26.041;
               [(5)     a statement that the adoption of a tax rate
  equal to the effective tax rate would result in an increase or
  decrease, as applicable, in the amount of taxes imposed by the
  unit as compared to last year's levy, and the amount of the
  increase or decrease;
               [(6)     in the year that a taxing unit calculates an
  adjustment under Subsection (i) or (j), a schedule that includes
  the following elements:
                     [(A)     the name of the unit discontinuing the
  department, function, or activity;
                     [(B)     the amount of property tax revenue spent
  by the unit listed under Paragraph (A) to operate the
  discontinued department, function, or activity in the 12 months
  preceding the month in which the calculations required by this
  chapter are made; and
                     [(C)     the name of the unit that operates a
  distinct department, function, or activity in all or a majority
  of the territory of a taxing unit that has discontinued operating
  the distinct department, function, or activity; and
               [(7)     in the year following the year in which a
  taxing unit raised its rollback rate as required by Subsection
  (j), a schedule that includes the following elements:
                     [(A)     the amount of property tax revenue spent
  by the unit to operate the department, function, or activity for
  which the taxing unit raised the rollback rate as required by
  Subsection (j) for the 12 months preceding the month in which the
  calculations required by this chapter are made; and
                     [(B)     the amount published by the unit in the
  preceding tax year under Subdivision (6)(B)].
         Explanation:  The change is necessary to remove the
  requirement that the designated officer or employee of a taxing
  unit publish certain tax information in a newspaper.
         (4)  Senate Rule 12.03(1) is suspended to permit the
  committee to amend text not in disagreement in proposed SECTION
  37 of the bill, in added Section 26.041(c-1)(2), Tax Code, to
  read as follows:
               (2)  the third tax year after the tax year in which
  the disaster occurred.
         Explanation:  The change is necessary to limit the period
  of time during which certain taxing units may calculate the
  voter-approval tax rate of the taxing unit at a higher rate
  following certain disasters.
         (5)  Senate Rule 12.03(4) is suspended to permit the
  committee to add text on a matter not included in either the house
  or senate version of the bill in proposed SECTION 43 of the bill
  by adding the following new Section 26.0443, Tax Code, to the
  bill:
         Sec. 26.0443.  TAX RATE ADJUSTMENT FOR ELIGIBLE COUNTY
  HOSPITAL EXPENDITURES. (a)  In this section:
               (1)  "Eligible county hospital" means a hospital
  that:
                     (A)  is:
                           (i)  owned or leased by a county and
  operated in accordance with Chapter 263, Health and Safety Code;
  or
                           (ii)  owned or leased jointly by a
  municipality and a county and operated in accordance with Chapter
  265, Health and Safety Code; and
                     (B)  is located in an area not served by a
  hospital district created under Sections 4 through 11, Article
  IX, Texas Constitution.
               (2)  "Eligible county hospital expenditures" for a
  tax year means the amount paid by a county or municipality in the
  period beginning on July 1 of the tax year preceding the tax year
  for which the tax is adopted and ending on June 30 of the tax year
  for which the tax is adopted to maintain and operate an eligible
  county hospital.
         (b)  If a county's or municipality's eligible county
  hospital expenditures exceed the amount of those expenditures
  for the preceding tax year, the no-new-revenue maintenance and
  operations rate for the county or municipality, as applicable, is
  increased by the lesser of the rates computed according to the
  following formulas:
         (Current Tax Year's Eligible County Hospital
  Expenditures - Preceding Tax Year's Eligible County
  Hospital Expenditures) / (Current Total Value - New
  Property Value)
  or
         (Preceding Tax Year's Eligible County Hospital
  Expenditures x 0.08) / (Current Total Value - New
  Property Value)
         (c)  The county or municipality shall include a notice of
  the increase in the no-new-revenue maintenance and operations
  rate provided by this section, including a description and amount
  of eligible county hospital expenditures, in the information
  published under Section 26.04(e) and, as applicable, in the
  notice prescribed by Section 26.06 or 26.061.
         Explanation:  The addition is necessary to add a provision
  to Title 1 of the Tax Code to provide for a tax rate adjustment
  for eligible county hospital expenditures.
         (6)  Senate Rule 12.03(1) is suspended to permit the
  committee to amend text not in disagreement in proposed SECTION
  48 of the bill, in amended Section 26.06(a), Tax Code, to read as
  follows:
         (a)  A public hearing required by Section 26.05 may not be
  held before the fifth [seventh] day after the date the notice of
  the public hearing is given. The [second hearing may not be held
  earlier than the third day after the date of the first hearing.
  Each] hearing must be on a weekday that is not a public holiday.
  The [Each] hearing must be held inside the boundaries of the unit
  in a publicly owned building or, if a suitable publicly owned
  building is not available, in a suitable building to which the
  public normally has access. At the hearing [hearings], the
  governing body must afford adequate opportunity for proponents
  and opponents of the tax increase to present their views.
         Explanation:  The change is necessary to prohibit holding
  a public hearing on certain proposed tax rates before the fifth
  day after the date the notice of hearing is given.
         (7) Senate Rule 12.03(1) is suspended to permit the
  committee to amend text not in disagreement in proposed SECTION
  48 of the bill, in added Sections 26.06(b-1) and (b-3), Tax Code,
  in the language of the statement prescribed by those subsections
  that describes the effect of the rejection by the voters of the
  proposed tax rate, to read as follows:
  If a majority of the voters reject the proposed tax rate, the tax
  rate of the (name of taxing unit) will be the voter-approval tax
  rate.
         Explanation:  The change is necessary to provide notice of
  what tax rate applies to a taxing unit in a tax year if the voters
  reject a proposed tax rate that exceeds the voter-approval tax
  rate.
         (8)  Senate Rule 12.03(3) is suspended to permit the
  committee to add text on a matter not in disagreement in SECTION
  48 of the bill, in added Sections 26.06(b-1), (b-2), and (b-3),
  Tax Code, to read as follows:
         "The 86th Texas Legislature modified the manner in which
  the voter-approval tax rate is calculated to limit the rate of
  growth of property taxes in the state."
         Explanation:  The addition is necessary to require that
  the notice of a public hearing on certain proposed tax rates
  include a statement that the 86th Texas Legislature modified the
  manner in which the voter-approval tax rate is calculated.
         (9)  Senate Rule 12.03(1) is suspended to permit the
  committee to amend text not in disagreement in proposed SECTION
  48 of the bill, in amended Sections 26.06(d) and (e), Tax Code, to
  read as follows:
         (d)  The governing body may vote on the proposed tax rate
  at the public hearing. If the governing body does not vote on the
  proposed tax rate at the public hearing, [At the public hearings]
  the governing body shall announce at the public hearing the date,
  time, and place of the meeting at which it will vote on the
  proposed tax rate.  [After each hearing the governing body shall
  give notice of the meeting at which it will vote on the proposed
  tax rate and the notice shall be in the same form as prescribed by
  Subsections (b) and (c), except that it must state the following:
  ["NOTICE OF TAX REVENUE INCREASE
         ["The (name of the taxing unit) conducted public hearings
  on (date of first hearing) and (date of second hearing) on a
  proposal to increase the total tax revenues of the (name of the
  taxing unit) from properties on the tax roll in the preceding
  year by (percentage by which proposed tax rate exceeds lower of
  rollback tax rate or effective tax rate calculated under this
  chapter) percent.
         ["The total tax revenue proposed to be raised last year at
  last year's tax rate of (insert tax rate for the preceding year)
  for each $100 of taxable value was (insert total amount of taxes
  imposed in the preceding year).
         ["The total tax revenue proposed to be raised this year at
  the proposed tax rate of (insert proposed tax rate) for each $100
  of taxable value, excluding tax revenue to be raised from new
  property added to the tax roll this year, is (insert amount
  computed by multiplying proposed tax rate by the difference
  between current total value and new property value).
         ["The total tax revenue proposed to be raised this year at
  the proposed tax rate of (insert proposed tax rate) for each $100
  of taxable value, including tax revenue to be raised from new
  property added to the tax roll this year, is (insert amount
  computed by multiplying proposed tax rate by current total
  value).
         ["The (governing body of the taxing unit) is scheduled to
  vote on the tax rate that will result in that tax increase at a
  public meeting to be held on (date of meeting) at (location of
  meeting, including mailing address) at (time of meeting).
         ["The (governing body of the taxing unit) proposes to use
  the increase in total tax revenue for the purpose of (description
  of purpose of increase)."]
         (e)  A [The] meeting to vote on the tax increase may not be
  held [earlier than the third day or] later than the seventh
  [14th] day after the date of the [second] public hearing.  The
  meeting must be held inside the boundaries of the taxing unit in a
  publicly owned building or, if a suitable publicly owned building
  is not available, in a suitable building to which the public
  normally has access.  [If the governing body does not adopt a tax
  rate that exceeds the lower of the rollback tax rate or the
  effective tax rate by the 14th day, it must give a new notice
  under Subsection (d) before it may adopt a rate that exceeds the
  lower of the rollback tax rate or the effective tax rate.]
         Explanation:  The changes are necessary to provide the
  manner in which the governing body of a taxing unit must in
  certain circumstances provide notice of the meeting at which the
  governing body will adopt the taxing unit's proposed tax rate.
         (10)  Senate Rule 12.03(3) is suspended to permit the
  committee to add text on a matter not in disagreement in SECTION
  49 of the bill, in added Section 26.061(b), Tax Code, to read as
  follows:
         "The 86th Texas Legislature modified the manner in which
  the voter-approval tax rate is calculated to limit the rate of
  growth of property taxes in the state."
         Explanation:  The addition is necessary to require that
  the notice of a meeting on certain proposed tax rates include a
  statement that the 86th Texas Legislature modified the manner in
  which the voter-approval tax rate is calculated.
         (11) Senate Rule 12.03(1) is suspended to permit the
  committee to amend text not in disagreement in proposed SECTION
  57 of the bill, in added Section 26.16(d-2), Tax Code, to read as
  follows:
         (d-2)  Not later than August 7, the county
  assessor-collector shall post on the website the tax rate
  calculation forms described by Subsection (d-1)(1) for the
  current tax year.
         Explanation:  The change is necessary to give the county
  assessor-collector of a county more time to post certain tax rate
  calculation forms on the Internet.
         (12)  Senate Rule 12.03(3) is suspended to permit the
  committee to add text on a matter not in disagreement in SECTION
  57 of the bill, in added Section 26.17(a), Tax Code, to read as
  follows:
               (6)  includes the following statement:  "The 86th
  Texas Legislature modified the manner in which the
  voter-approval tax rate is calculated to limit the rate of growth
  of property taxes in the state.".
         Explanation:  The addition is necessary to require the
  chief appraiser of an appraisal district to include in a property
  tax database a statement that the 86th Texas Legislature modified
  the manner in which the voter-approval tax rate is calculated.
         (13)  Senate Rule 12.03(1) is suspended to permit the
  committee to amend text not in disagreement in proposed SECTION
  58 of the bill, in amended Section 31.12(b)(2), Tax Code, to read
  as follows:
               (2)  if the refund is required by Section 26.07(g) or
  26.075(k), on the date the results of the election to approve or
  reduce the tax rate, as applicable, are certified;
         Explanation:  The change is necessary to change the date on
  which liability for certain tax refunds arises.
         (14)  Senate Rule 12.03(3) is suspended to permit the
  committee to add text on a matter not in disagreement in SECTION
  66 of the bill, in amended Section 41.66, Tax Code, to read as
  follows:
         (j-2)  An appraisal review board must schedule a hearing
  on a protest filed by a property owner who is 65 years of age or
  older, disabled, a military service member, a military veteran,
  or the spouse of a military service member or military veteran
  before scheduling a hearing on a protest filed by a designated
  agent of a property owner.
         Explanation:  The addition is necessary to require an
  appraisal review board to schedule a hearing on a protest filed
  by certain persons before those of other persons.
         (15)  Senate Rule 12.03(2) is suspended to permit the
  committee to omit text not in disagreement by omitting SECTION 68
  of the senate engrossment of Senate Bill 2 and the corresponding
  section of the bill as the bill was amended by the house, which
  reads as follows:
         SECTION 68.  Section 45.105(e), Education Code, is
  amended to read as follows:
         (e)  The governing body of an independent school district
  that governs a junior college district under Subchapter B,
  Chapter 130, in a county with a population of more than two
  million may dedicate a specific percentage of the local tax levy
  to the use of the junior college district for facilities and
  equipment or for the maintenance and operating expenses of the
  junior college district. To be effective, the dedication must be
  made by the governing body on or before the date on which the
  governing body adopts its tax rate for a year. The amount of
  local tax funds derived from the percentage of the local tax levy
  dedicated to a junior college district from a tax levy may not
  exceed the amount that would be levied by five percent of the
  no-new-revenue [effective] tax rate for the tax year calculated
  as provided by Section 26.04, Tax Code, on all property taxable
  by the school district. All real property purchased with these
  funds is the property of the school district, but is subject to
  the exclusive control of the governing body of the junior college
  district for as long as the junior college district uses the
  property for educational purposes.
         Explanation:  The omission is necessary to ensure
  consistency of terminology used in the Education Code to describe
  certain tax rates.
         (16)  Senate Rule 12.03(4) is suspended to permit the
  committee to add text on a matter not included in either the house
  or senate version of the bill by adding the following new
  SECTIONS to the bill:
         SECTION 76.  Section 281.107(j), Health and Safety Code,
  is amended to read as follows:
         (j)  The portion of the rate of ad valorem tax that is to
  be levied and assessed each year by or for the district that is
  allocated by the district to the payment of the principal of and
  the interest on bonds and other obligations or the maintenance of
  reserves therefor in accordance with this section shall be
  applied as a payment on current debt in calculating the current
  debt rate under the applicable voter-approval tax rate
  [rollback] provisions of Chapter 26, Tax Code.
         SECTION 77.  The heading to Section 281.124, Health and
  Safety Code, is amended to read as follows:
         Sec. 281.124.  ELECTION TO APPROVE TAX RATE IN EXCESS OF
  VOTER-APPROVAL [ROLLBACK] TAX RATE.
         Explanation:  The addition is necessary to ensure
  consistency of terminology used in the Health and Safety Code and
  Title 1 of the Tax Code to describe certain tax rates.
         (17)  Senate Rule 12.03(3) is suspended to permit the
  committee to add text on a matter not in disagreement in SECTION
  78 of the bill, in amended Section 281.124, Health and Safety
  Code, to read as follows:
         (b)  The board may hold an election at which the
  registered voters of the district may approve a tax rate for the
  current tax year that exceeds the district's voter-approval
  [rollback] tax rate for the year computed under Chapter 26, Tax
  Code, by a specific rate stated in dollars and cents per $100 of
  taxable value.
         (c)  An election under this section must be held at least
  180 days before the date on which the district's tax rate is
  adopted by the board.  At the election, the ballot shall be
  prepared to permit voting for or against the proposition:  
  "Approving the ad valorem tax rate of $ (insert total proposed
  tax rate) per $100 valuation in (insert district name) for the
  (insert current tax year) tax year, a rate that exceeds the
  district's voter-approval [rollback] tax rate.  The proposed ad
  valorem tax rate exceeds the ad valorem tax rate most recently
  adopted by the district by $ (insert difference between proposed
  and preceding year's tax rates) per $100 valuation."
         Explanation:  The addition is necessary to ensure
  consistency of terminology used in the Health and Safety Code and
  Title 1 of the Tax Code to describe certain tax rates.
         (18)  Senate Rule 12.03(4) is suspended to permit the
  committee to add text on a matter not included in either the house
  or senate version of the bill by adding the following new SECTION
  to the bill:
         SECTION 85.  Section 49.057, Water Code, is amended by
  amending Subsection (b) and adding Subsection (b-1) to read as
  follows:
         (b)  The board shall adopt an annual budget.  The board of
  a developed district, as defined by Section 49.23602, shall
  include as an appendix to the budget the district's:
               (1)  audited financial statements;
               (2)  bond transcripts; and
               (3)  engineer's reports required by Section 49.106.
         (b-1)  All district employees are employed at the will of
  the district unless the district and employee execute a written
  employment contract.
         Explanation:  The addition is necessary to ensure that the
  board of certain special districts includes an appendix in the
  district's budget that includes certain information.
         (19)  Senate Rule 12.03(1) is suspended to permit the
  committee to amend text not in disagreement in proposed SECTION
  105 of the bill, in the transition language, to read as follows:
         SECTION 105.  (a)  An appraisal district established in a
  county with a population of 200,000 or more and each taxing unit
  located wholly or primarily in such an appraisal district shall
  comply with Sections 26.04(e-2), 26.05(d-1) and (d-2), 26.17,
  and 26.18, Tax Code, as added by this Act, beginning with the 2020
  tax year.
         (b)  An appraisal district established in a county with a
  population of less than 200,000 and each taxing unit located
  wholly or primarily in such an appraisal district shall comply
  with Sections 26.04(e-2), 26.05(d-1) and (d-2), 26.17, and
  26.18, Tax Code, as added by this Act, beginning with the 2021 tax
  year.
         Explanation:  The change is necessary to provide for the
  applicability and implementation of certain provisions of the
  Tax Code added by the bill.
         (20)  Senate Rule 12.03(1) is suspended to permit the
  committee to amend text not in disagreement in proposed SECTION
  111 of the bill, in the transition language, to read as follows:
         SECTION 111.  Sections 41.46, 41.461, 41.47, 41.66(h),
  (i), and (j), and 41.67, Tax Code, as amended by this Act, and
  Sections 41.66(j-1), (j-2), and (p), Tax Code, as added by this
  Act, apply only to a protest for which the notice of protest was
  filed by a property owner or the designated agent of the owner
  with the appraisal review board established for an appraisal
  district on or after January 1, 2020.
         Explanation:  The change is necessary to provide for the
  implementation of certain provisions of the Tax Code added by the
  bill.
         (21)  Senate Rule 12.03(4) is suspended to permit the
  committee to add text on a matter not included in either the house
  or senate version of the bill by adding the following new
  SECTIONS to the bill:
         SECTION 115.  Section 42.081, Tax Code, as added by this
  Act, applies only to an appeal under Chapter 42, Tax Code, that is
  filed on or after January 1, 2020.
         SECTION 117.  Section 49.057, Water Code, as amended by
  this Act, applies only to a budget adopted on or after January 1,
  2020.
         Explanation:  The changes are necessary to provide for the
  implementation of certain provisions of the Tax Code and Water
  Code added by the bill.
         (22)  Senate Rule 12.03(2) is suspended to permit the
  committee to omit text not in disagreement in SECTION 110 of the
  senate engrossment of Senate Bill 2 and the corresponding section
  of the bill as the bill was amended by the house by striking
  references to Sections 26.04(e-2), (e-3), and (e-4) and Sections
  26.05(d-1) and (d-2), Tax Code.
         Explanation:  The omission is necessary to implement the
  changes made in SECTION 105 by the bill.
 
 
 
 
    _______________________________ 
        President of the Senate
     
         I hereby certify that the
    above Resolution was adopted by
    the Senate on May 25, 2019, by the
  following vote:  Yeas 21, Nays 9.
   
   
   
    _______________________________ 
        Secretary of the Senate
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