HBA-AMW H.B. 3319 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3319 By: Ramsay Ways & Means 4/16/2001 Introduced BACKGROUND AND PURPOSE Under current law, appraisal districts have to appraise the value of the land for school districts. This value is used to assess the amount of money that a school district will receive from the state to compensate for the lack of local tax money a school district receives. In addition, the comptroller of public accounts (comptroller) conducts an annual study or assessment of the value of land in school districts. If the comptroller determines in the annual study that the assessment by the local appraisal district is not valid, the comptroller's assessment is used. While most cases result in the appraisal district's value being used, use of the comptroller's assessment may be costly to school districts, especially small, rural districts. There is concern that these school districts may lose a large portion of an annual budget because of discrepancies between the findings of the comptroller and an appraisal district regarding the assessment of the value of the land. House Bill 3319 requires the comptroller to audit the performance of an appraisal district if the comptroller determines the district's market value of property is not valid and sets forth provisions regarding the audit. 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. ANALYSIS House Bill 3319 amends the Government and Tax codes to require the comptroller of public accounts (comptroller) to audit the performance of an appraisal district if the comptroller does not determine in the annual study of the market value of property in a school district that an appraisal district's market value of property is valid. The bill amends the Government Code to remove the provision specifying that if the comptroller determines that an appraisal district's market value of property is not valid, then taxable value is the value determined in the comptroller's annual study. The bill amends the Tax Code to authorize the comptroller to conduct a general audit of the performance of the appraisal district or to audit only one or more particular duties, practices, functions, departments, or other appraisal district matters. The bill requires the comptroller to complete such an audit as soon as practicable. The bill authorizes the comptroller to order the development of an improvement plan that addresses the deficiencies found in an audit, submission of the plan to the comptroller for approval, and implementation of the plan. If an appraisal district fails to develop and implement an improvement plan, the bill authorizes the comptroller to appoint a special master who may exercise supervision and control over the operations of the district until the plan is developed and implemented. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.