85R1267 TJB-D     By: Phelan H.B. No. 495       A BILL TO BE ENTITLED   AN ACT   relating to the selection of the board of directors of an appraisal   district; authorizing the imposition of a fee.          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 all the taxing units participating in an appraisal   district or of a majority of the group of taxing units composed of   the municipalities, school districts, junior college districts,   and county participating in the appraisal district [entitled to   vote on the appointment 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 all 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 group of   taxing units composed of the municipalities, school districts,   junior college districts, and county participating in the appraisal   district [entitled to vote on the appointment of appraisal district   directors], if the audit was requested by a majority of those units;   or                (3)  the taxpayers who requested the audit, 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) and (l) and adding Subsections (a-1) and (m) to read   as follows:          (a)  The appraisal district is governed by a board of five   directors. One director is elected from each of the four   commissioners precincts of the county for which the appraisal   district is established. The county assessor-collector is a   director by virtue of the person's office. The directors other than   the county assessor-collector are elected at the general election   for state and county officers and serve two-year terms beginning on   January 1 of odd-numbered years. [Five directors are appointed by   the taxing units that participate in the district as provided by   this section. 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). If the county assessor-collector is ineligible to   serve, the appraisal district is governed by the four directors   elected from the commissioners precincts and a director elected   from the county at large. The director elected from the county at   large is elected at the same election and serves the same term of   office as the four directors elected from the commissioners   precincts.          (a-1)  To be eligible to serve on the board of directors, an   individual other than the [a] county assessor-collector [serving as   a nonvoting director] must:                (1)  be a resident of:                      (A)  the commissioners precinct from which the   office is elected, in the case of a director elected from a   commissioners precinct; or                      (B)  the county for which the appraisal district   is established, in the case of a director elected from the county at   large; [district] and                (2)  [must] have resided in the appraisal district for   at least two years immediately preceding the date the individual   takes office. [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.]          (l)  A [If a] vacancy [occurs] on the board of directors   other than a vacancy in the position held by the [a] county   assessor-collector is filled for the remainder of the unexpired   term by appointment by the commissioners court of the county for   which the appraisal district is established.  A person appointed to   fill a vacancy on the board of directors must meet the   qualifications of the vacated position [serving as a nonvoting   director, each taxing unit that is entitled to vote by this section   may nominate by resolution adopted by its governing body a   candidate to fill the vacancy. The 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   board of directors within the next five days a list of the nominees.   The 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 elected, 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 elected as a   director before the boundary change to a term that begins after the   boundary change no longer resides in the precinct from which   elected, the individual is not for that reason disqualified from   serving the term to which elected.          SECTION 4.  Section 6.036(a), Tax Code, is amended to read as   follows:          (a)  An individual is not eligible to be a candidate for, to   be appointed to, or to serve on the board of directors of an   appraisal district if the individual or a business entity in which   the individual has a substantial interest is a party to a contract   with:                (1)  the appraisal district; or                (2)  a taxing unit that participates in the appraisal   district, if the contract relates to the performance of an activity   governed by this title.          SECTION 5.  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 group of taxing units composed of the   municipalities, school districts, junior college districts, and   county participating in the appraisal district [entitled to vote on   the appointment of board members]. The board of directors by   resolution may propose a property transaction or other action for   which this subsection requires approval of those [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 6.  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 municipality, each school   district, each junior college district, and the county   participating in the appraisal district [taxing unit entitled to   vote on the appointment 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 governing bodies of a   majority of the group of taxing units composed of the   municipalities, school districts, junior college districts, and   county participating in the appraisal district [taxing units   entitled to vote on the appointment 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 group of   taxing units composed of the municipalities, school districts,   junior college districts, and county participating in the appraisal   district [taxing units entitled to vote on the appointment 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 7.  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 group   of taxing units composed of the municipalities, school districts,   junior college districts, and county participating in the appraisal   district [taxing units that are entitled to vote on the appointment   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 unit would pay under Section 6.06 [of this   code] without the consent of the governing body of that 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 group of taxing units composed of the   municipalities, school districts, junior college districts, and   county participating in the appraisal district [that are entitled   to vote on appointment of board members under Section 6.03 of this   code].          SECTION 8.  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 municipality, each school district, each   junior college district, and the county participating in the   appraisal district [taxing unit eligible to vote on the appointment   of district directors], and a reasonable number of copies shall be   available for inspection at the appraisal office.          SECTION 9.  Section 6.15(c), Tax Code, is amended to read as   follows:          (c)  Subsections (a) and (b) do not apply to a routine   communication between the chief appraiser and the county   assessor-collector that relates to the administration of an   appraisal roll, including a communication made in connection with   the certification, correction, or collection of an account,   regardless of whether the county assessor-collector serves on [was   appointed to] the board of directors of the appraisal district [or   serves as a nonvoting director].          SECTION 10.   Section 52.092(d), Election Code, is amended   to read as follows:          (d)  District offices of the state government shall be listed   in the following order:                (1)  member, State Board of Education;                (2)  state senator;                (3)  state representative;                (4)  chief justice, court of appeals;                (5)  justice, court of appeals;                (6)  district judge;                (7)  criminal district judge;                (8)  family district judge;                (9)  district attorney;                (10)  criminal district attorney;                (11)  appraisal district director.          SECTION 11.  Section 172.024(a), Election Code, is amended   to read as follows:          (a)  The filing fee for a candidate for nomination in the   general primary election is as follows:                (1)  United States senator $5,000                (2)  office elected statewide, except United States   senator 3,750                (3)  United States representative 3,125                (4)  state senator 1,250                (5)  state representative 750                (6)  member, State Board of Education 300                (7)  chief justice or justice, court of appeals, other   than a justice specified by Subdivision (8) 1,875                (8)  chief justice or justice of a court of appeals that   serves a court of appeals district in which a county with a   population of more than one million is wholly or partly   situated 2,500                (9)  district judge or judge specified by Section   52.092(d) for which this schedule does not otherwise prescribe a   fee 1,500                (10)  district or criminal district judge of a court in   a judicial district wholly contained in a county with a population   of more than 1.5 million 2,500                (11)  judge, statutory county court, other than a judge   specified by Subdivision (12) 1,500                (12)  judge of a statutory county court in a county with   a population of more than 1.5 million 2,500                (13)  district attorney, criminal district attorney,   or county attorney performing the duties of a district   attorney 1,250                (14)  county commissioner, district clerk, county   clerk, sheriff, county tax assessor-collector, county treasurer,   or judge, constitutional county court:                      (A)  county with a population of 200,000 or   more 1,250                      (B)  county with a population of under   200,000 750                (15)  justice of the peace or constable:                      (A)  county with a population of 200,000 or   more 1,000                      (B)  county with a population of under   200,000 375                (16)  county surveyor75                (17)  office of the county government for which this   schedule does not otherwise prescribe a fee 750                (18)  office of appraisal district director:                      (A)  county with a population of 200,000 or   more 400                      (B)  county with a population of under   200,000 200          SECTION 12.  The following provisions of the Tax Code are   repealed:                (1)  Sections 6.03(b), (c), (d), (e), (f), (g), (h),   (i), (j), and (k);                (2)  Section 6.031;                (3)  Section 6.033;                (4)  Section 6.034;                (5)  Section 6.037; and                (6)  Section 6.10.          SECTION 13.  (a)  Appraisal district directors shall be   elected as provided by Section 6.03, Tax Code, as amended by this   Act, beginning with the primary and general elections conducted in   2018. Members then elected take office January 1, 2019.          (b)  The change in the manner of selection of appraisal   district directors made by this Act does not affect the selection of   directors who serve on the board before January 1, 2019.          (c)  The term of an appraisal district director serving on   December 31, 2018, expires on January 1, 2019.          SECTION 14.  (a)  Except as otherwise provided by this   section, this Act takes effect January 1, 2019.          (b)  This section and Sections 10, 11, and 13 of this Act take   effect September 1, 2017.