HBA-RBT H.B. 2330 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2330
By: Mowery
Ways & Means
4/19/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, appointed members of local appraisal district boards control the
appraisal of property in Texas through their chief appraiser. Though public
servants, numerous Texans complain that these officials are frequently
unavailable and unresponsive to their concerns, questions, and complaints.
In addition, citizens complain that it is not uncommon for the members of
these boards and the chief appraiser that they appoint to intentionally and
substantially overvalue their property, or place the same minimum values on
numerous and varied property interests that do not have similar market
values. 
 
Texans who have struggled with the unresponsiveness and potentially illegal
actions of these boards and their chief appraisers believe that an elected
official, someone who is directly accountable to the people, should
ultimately be in charge of local appraisals. County tax assessor-collectors
are elected officials who are in an ideal position to take over the duties
and responsibilities of current appraisal district boards and chief
appraisers. County tax assessor-collectors are directly accountable to the
citizenry at the ballot box and as such, would be responsive to the
concerns of those residents who are affected by ad valorem taxation. 

H.B. 2330 vests control of appraisal districts in the county tax
assessor-collector who is accountable to voters at the ballot box. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 5.102(b) and (c), Tax Code, by requiring the
comptroller to notify the county assessor-collector of non-compliance with
generally accepted appraisal practices and standards; and, by deleting the
same notification requirement in regards to the appraisal district's chief
appraiser and board of directors and by allowing the comptroller to act on
repeated non-compliance by the county assessor-collector and by deleting
the same procedure in regards to the appraisal district's chief appraiser
and board of directors. 

SECTION 2. Amends Section 5.12(b), Tax Code, by adding municipalities,
school districts, and the county to further describe taxing units as the
entities that may ask for a performance audit. 

SECTION 3. Amends Section 5.13 (c), (f), and (h), Tax Code, by requiring
the comptroller to notify the county assessor-collector regarding any
performance audit and the related hearing; and, by deleting the same
notification requirement in regards to the appraisal district's chief
appraiser and presiding officer of the board of directors.  Requires the
comptroller to notify the county assessor-collector regarding the results
of a performance audit; and, by deleting the same notification requirement
in regards to the appraisal district's chief appraiser and presiding
officer of the board of directors.  Adds municipalities, school districts,
and county to further describe taxing units as the bodies that may withdraw
a request for a performance audit. 
SECTION 4. Amends Sections 6.02(b) and (c), Tax Code, by authorizing the
county assessor-collector to approve the choice made by a taxing unit
regarding which district to belong to  when the unit's boundaries extend
into more than one county; and, by deleting language authorizing the
appraisal district's board of directors to exercise this power.  Deletes
the prohibition that a taxing unit that has withdrawn from one appraisal
district may not subsequently withdraw from another appraisal district. 

SECTION 5.  Amends Section 6.03 and 6.05, Tax Code, as follows:

Sec.  6.03.  New title: GOVERNANCE OF APPRAISAL DISTRICT.  Provides that
the appraisal district is governed by the county assessor-collector.
Deletes existing text to  make conforming changes. 

Sec.  6.05.  New title: APPRAISAL OFFICE; CHIEF APPRAISER.  Provides that
the county assessor-collector is the chief appraiser of the appraisal
district unless that authority is delegated by appointing a chief
appraiser.  Requires the county assessor-collector to notify the
comptroller and the participating taxing units of any appointment of a
chief appraiser. Provides that an appointed chief appraiser serves at the
pleasure of the county assessor-collector and that the chief appraiser may
act on behalf of the county assessor-collector.  Makes conforming and
nonsubstantive changes. 

SECTION 6.  Amends Section 6.051,  to make conforming and nonsubstantive
changes. 

SECTION 7.  Amends Section 6.06, Tax Code, by amending Subsections (a)-(d)
and (f)-(j) and adding Subsection (k), to define "special district or
authority."  Provides that the sum total portion of the budget of the
appraisal district allocated under another provision of this section of the
special districts or authorities that participate in the appraisal district
exceeds 10 percent of the budget, the sum total portion of the budget that
may be allocated to those special districts or authorities may not exceed
10 percent.  Provides that the other provisions of this section govern the
allocation of other portions of the budget.  Makes conforming and
nonsubstantive changes. 

SECTION 8.  Amends Section 6.061, Tax Code, to make conforming and
nonsubstantive changes. 

SECTION 9.  Amends Sections 6.062(a) and (c), Tax Code, to make conforming
and nonsubstantive changes. 

SECTION 10.  Amends Section 6.063, Tax Code, to make conforming and
nonsubstantive changes. 

SECTION 11.  Amends Section 6.069(b) and (c), Tax Code, to make conforming
and nonsubstantive changes. 

SECTION 12.  Amends Section 6.11(a) and (b), Tax Code, to make conforming
and nonsubstantive changes. 

SECTION 13.  Amends Section 6.12(a), Tax Code, to make conforming and
nonsubstantive changes. 

SECTION 14.  Amends Subchapter A, Chapter 6, Tax Code, by adding Section
6.14, as follows: 

Sec.  6.14.  CONTRACTS WITH TAXING UNITS.  Authorizes the county
assessorcollector who governs an appraisal district to contract with the
governing body of a taxing unit that participates in the appraisal district
to consolidate employee benefit plans, vendor contracts, leases, or
purchases if the consolidation will reduce the costs of those items for the
appraisal district and the taxing unit. 

SECTION 15.  Amends Section 6.24(a) and (b), Tax Code, to make conforming
and nonsubstantive changes. 

SECTION 16.  Amends Section 6.26(f), Tax Code, to make conforming and
nonsubstantive changes. 


 SECTION 17.  Amends Section 6.41(b), (c), (d), (e), and (f), Tax Code, to
make conforming and nonsubstantive changes. 

SECTION 18.  Amends Section 6.411(a), Tax Code, to provide that the
appointment of an auxiliary member must be approved by resolutions adopted
by a majority of the group of taxing units composed of the municipalities,
school districts, and county participating in the appraisal district and
makes conforming and nonsubstantive changes. 

SECTION 19.  Amends Section 25.01(b), Tax Code, to make conforming and
nonsubstantive changes. 

SECTION 20.  Amends Section 25.19(g), Tax Code, to make conforming and
nonsubstantive changes. 

SECTION 21.  Amends Section 25.25(b), Tax Code, to make conforming and
nonsubstantive changes. 

SECTION 22.  Amends Section 41.66(g), Tax Code, to make conforming and
nonsubstantive changes. 

SECTION 23.  Amends Section 42.02, Tax Code, to make conforming and
nonsubstantive changes. 

SECTION 24.  Amends Subchapter Z, Chapter 152, Local Government Code, by
adding Section 152.907, as follows: 

Sec.  152.907.  COMPENSATION OF COUNTY TAX ASSESSOR-COLLECTOR. Prohibits
the commissioners court, in setting the amount of the compensation of the
county tax assessor-collector, from taking into account the compensation
the county tax assessorcollector receives for serving as the chief
appraiser for the appraisal district established for the county. 

SECTION 25.  Amends Section 22, Article 8885, V.T.C.S. (The Property
Taxation Professional Certification Act), to make conforming and
nonsubstantive changes. 

SECTION 26.  Repealer: Section 6.031 (Changes in Board Membership or
Selection), Section 6.033 Recall of Director), Section 6.034 (Optional
Staggered Terms for Board of Directors), Section 6.035 (Restrictions on
Eligibility and Conduct of Board Members and Chief Appraisers and Their
Relatives), Section 6.036 (Interest in Certain Contracts Prohibited),
Section 6.037 Participation of Conservation and Reclamation Districts in
Appraisal District Matters), Section 6.04 (Organization, Meetings, and
Compensation), Section 6.052 (Taxpayer Liaison Officer), Section 6.10
(Disapproval of Board Actions), Section 31.03(c) (Split Payment of Taxes),
Tax Code. 

SECTION 27.  Makes application of this Act prospective.

SECTION 28.  Effective date: January 1, 2000.

SECTION 29.  Emergency clause.