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 |
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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 [ |
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post prominently on the home page of the taxing unit's Internet | ||
website [ |
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comptroller: | ||
(1) the no-new-revenue [ |
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voter-approval [ |
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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)[ |
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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 [ |
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the public hearing is given. The [ |
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The [ |
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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 [ |
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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, [ |
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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. [ |
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(e) A [ |
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held [ |
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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. [ |
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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 [ |
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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 | ||
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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 [ |
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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 | ||
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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 [ |
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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 |