Bills Filed for the 2017 Regular Session

of the 85th Texas Legislature

March 30, 2017
By Robert Mott, Chris Jackson, Adam Walker & Debbie Wheeler
Perdue Brandon Fielder Collins & Mott, LLP

Perdue Brandon tracks legislation filed during the 85th Texas Legislature, Regular Session. Pre-filing of bills
began November 14, 2016. The last day of the session is May 29, 2017. Filing deadline was Friday, March 10.

Organized by subject matter, each bill includes a short summary, proposed effective date and current bill status.
All references to section numbers are to the Texas Property Tax Code, unless otherwise indicated. Some bills are
listed several times because they address multiple subjects. Check Perdue Brandons website at www.pbfcm.com
for updates. Updates from the last issue are highlighted in gray.

Table of Contents Page
Appraisal District (CAD) Administration 1
Appraisal 9 of the governing body or an elected official of a local
Renditions ... 13
Exemptions . 13
Special Valuation ... 25
Appraisal Review Board (ARB) 30
Appraisal District Litigation . 37
Assessment & Truth-in-Taxation . 42
Tax Collections 53
Delinquent Tax Litigation . 56
County Tax Assessor-Collectors ... 60
School Finance ... 61
Special & Miscellaneous .... 66
Open Meetings, Chapter 551 . 72
Open Records, Chapter 552 .. 73
Other Codes and Statutes .. 76
Appraisal District Administration
CAD BOARD MEMBERS MUST BE ELECTED
OFFICIALS OF LOCAL GOVERNMENTS;
ADVISORY BOARD CREATED
COMPTROLLERS OFFICE; APPRAISAL
NOTICES SENT EARLIER
The Property Tax Reform and Relief Act of 2017
SB 2 Bettencourt; similar HB 934 Zerwas
Adds 5.01; amends 5.05, 5.102, 5.13, 6.03, 6.035,
6.15, 25.19; amends Government Code 403.302
CAD Board of Directors
The substitute bill retains the current law on members
of the appraisal districts board of directors. The
substitute removes the change in the original filed bill
that a director be an elected county officer, member
government located in all or part of the CAD.
An individual who has been engaged in appraising
property for compensation for property tax matters or
representing property owners for property tax matters
may not serve on the CAD Board at any time during
the preceding three years. Current law is preceding
five years.
A CAD director may transmit to the chief appraiser
without comment a complaint by a property owner or
taxing unit about the appraisal of a specific property,
provided that the transmission is in writing, and will
not be considered an ex parte communication subject
to penalty.
State Administration
A minimum six-member Property Tax
Administration Advisory Board will be created to
improve the effectiveness and efficiency of the
AT
property tax system, best practices and complaint
resolution. The Advisory Board will consist of
representatives of property owners, appraisal
districts, school districts and a person who has
knowledge or experience with ratio studies. The
Comptroller appoints the members. Any advice to the
Comptroller provided by a member of the Board must
be provided at a meeting called by the Comptroller.
Government Code Chapter 2110 does not apply to the
Advisory Board.

2017 Legislative Update; Page 1

Notices of Appraised Value
Appraisal districts would send all notices of appraised
value by April 15, rather than April 1 or May 1. The
distinction between homestead notices and other
notices is eliminated. In counties of 120,000
population or more, the notices for commercial,
utility, industrial and multifamily properties must
include a notice that the owner may request a hearing
before a special panel for that category of property.
For more analysis of these bills, see also Appraisal,
Rendition, Exemption, Appraisal Review Board,
Appraisal District Litigation, Assessment and Truth in
Taxation sections.
Proposed Effective: 1/1/2018; however, a board
member who is not an elected official may complete
his or her term on the board of directors. SB 2 has
notices with required language relating to protests
before a special panel will become effective 1/1/2019.
HB 934 has the effective date for the notices as
9/1/2018.
Status: SB 2 substitute passed Senate 3/21/17, with
four floor amendments, and received in House
3/22/17. HB 934 referred to House Ways & Means
2/21/17.
CHIEF APPRAISER ELECTED BY COUNTY
VOTERS
HB 85 Keough
Amends 1.15, 5.041, 5.042, 6.035, 6.05, 6.41, 6.411,
22.28, 42.21; adds 6.0502; repeals 5.042(c) and
6.0501; amends Election Code 52.092; amends Local
Government Code 87.041; amends Occupations Code
1151.164
The bill provides that the chief appraiser be elected at
the general election for state and county officers by
county voters. The chief appraiser would serve a two-
year term beginning January 1 of odd-numbered
years. The chief appraiser must be a resident of the
county and have resided in the county for at least four
years preceding taking office. The requirement for a
person to hold certain designation(s), such as the
Registered Professional Appraiser (RPA), is
removed. The filing fee would be $1,250 for a county
with a population of 200,000 or more and $750 for a
county with a population less than 200,000. The
candidates name appears as an independent. The
newly-elected chief appraiser must complete the chief
appraiser training course required by the Texas
Department of Licensing and Regulation (TDLR).
2017 Legislative Update; Page 2
The chief appraiser may be removed for
incompetency for failing to complete the required
training within one year of election. Prior to the bills
effective date, the CAD board appoints the chief
appraiser to serve until the elected person takes office
for the term that begins January 1, 2019. The CAD
board of directors may contract with another CAD to
perform the duties of the appraisal office but not with
a taxing unit. After the bills effective date, the
commissioners court fills a vacancy in this position.
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 2/13/17.
OPERATOR OF MINERAL LEASE MAY NOT BE
REQUIRED TO PROVIDE LISTING OF
OWNERSHIP OF INTERESTS IN LEASE
HB 119 Craddick; SB 676 Seliger
Amends 25.12
The bills state that chief appraisers are to determine
the ownership of mineral interests from duly filed and
recorded instruments of title. A chief appraiser may
not require the operator of a lease to provide
ownership information by listing the property in the
name of the operator if the information is not
provided.
Proposed Effective: 9/1/2017.
Status: HB 119 referred to House Ways & Means
2/13/17. SB 676 referred to Senate Finance 2/15/17.
SPOUSES AND CHILDREN OF PEACE OFFICER
EXEMPT FROM DISCLOSING HOME ADDRESS
HB 457 Holland
Amends 25.025
The bill adds the spouse or surviving spouse and the
adult child of a peace officer to those who are exempt
from disclosure of their home address.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017.
Status: Substitute reported from House Ways &
Means 3/20/17 and recommended for
Local/Consent Calendar.
APPRAISAL DISTRICT DIRECTORS ELECTED
ALONG WITH MORE CHANGES
HB 495 Phelan; HB 2265 Munoz
Amends 5.12, 6.03, 6.051, 6.06, 6.061, 6.063, 6.15
Appraisal district directors are to be elected in each
commissioners precinct. If the county tax assessor-
collector collects taxes, he or she will remain a
director. If county tax assessor-collector does not, a
county-wide position is elected. Candidates must
reside in the appraisal district at least two years prior
to taking office. Elections will be during the general
election for state and county officers. The director
will serve two-year terms beginning on January 1 of
odd-numbered years.
Three-fourths of the taxing units consisting of the
county, school districts, cities and junior college
districts must approve the purchase of a building by
the appraisal district. This same group of entities also
exercises the veto of the CAD budget, changes the
fiscal year, changes the methods of financing or
changes the allocation of appraisal district costs. The
presiding officers of these same groups are also
entitled to reports of district audits.
Either a majority of all taxing units or a majority of
the group of school districts, cities, junior colleges
and the county may request an audit of the appraisal
district.
Proposed Effective: 1/1/2018.
Status: HB 495 referred to House Ways & Means
2/16/17. HB 2265 referred to House Ways &
Means 3/15/17.
CHILD PROTECTIVE CASEWORKER OR
INVESTIGATOR MAY REQUEST HOME
ADDRESS EXEMPT FROM DISCLOSURE
HB 39 Wu; similar HB 703 Wu
Amends 25.025
The bills add a current or former child protective
services caseworker or investigator for the
Department of Family and Protective Services to the
list that may request their home address be exempt
from disclosure. HB 39 also adds a department
contractor performing these functions on behalf of the
Department.
Proposed Effective: HB 703 immediately if passed by
two-thirds of both houses; otherwise, 9/1/2017. HB
39 effective 9/1/2017.
Status: HB 703 referred to House Human Services
2/20/17. HB 39 filed 3/10/17, referred to House
Human Services 3/15/17 and left pending 3/20/17.
2017 Legislative Update; Page 3
CURRENT AND FORMER PROSECUTORS
REQUEST HOME ADDRESS CONFIDENTIAL
HB 1278 Dutton
Amends 25.025; amends Government Code 552.117,
552.1175
The bill adds a current or former district attorney,
criminal district attorney or a county or municipal
attorney whose jurisdiction includes any criminal law
or child protective service matters to the list that may
request their home address be exempt from
disclosure.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017.
Status: Scheduled for hearing in House
Government Transparency & Operation 4/3/17.
FIREFIGHTERS AND EMS PERSONNEL ADDED
TO LIST WHO MAY REQUEST HOME
ADDRESS CONFIDENTIAL
HB 1919 Raymond
Amends 25.025 and amends other codes
The bill provides that the home address information
of a current or former firefighter or current or former
EMS personnel may be exempt from disclosure in the
appraisal records at the written request of the
homeowner.
Proposed Effective: 9/1/2017.
Status: Referred to House Criminal
Jurisprudence 3/13/17.
COMPTROLLER PROHIBITED FROM POSTING
ON WEBSITE HOTEL OCCUPANCY TAX
INFORMATION BY HOTEL
HB 1924 Elkins
Adds 156.155
The bill adds that a state agency (Comptroller) may
not post on a public website information that
identifies the taxable receipts of an individual
business contained in a document required to be
provided to the agency. Information that is collected
or maintained by a state agency is public information
under Government Code Section 552.002 and provide
access in the manner provided by Chapter 552, Open
Records Act.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017.
Status: Re-referred to House Government
Transportation & Operations 3/30/17.

CAD BUDGET REQUIRES VOTING TAXING
UNIT APPROVAL ACTION
HB 2868 Hefner
Amends 6.037, 6.06, 6.062
The bill changes the CAD budget process to require
that the CAD board of directors approve a proposed
budget before September 15 and submit to each taxing
unit entitled to vote on director appointments for final
approval. Not later than 30 days after the CAD board
submits the proposed budget to the voting units, the
governing body of each unit shall vote to approve or
disapprove the proposed budget. The budget does not
take effect unless a majority of the voting taxing units
approve by that date. If the budget is not approved by
that date, the CAD board shall adopt a new proposed
budget to submit to each voting unit within 30 days.
The public notice of the proposed budget includes
language about this new approval process.
Proposed Effective: 9/1/2017; if proposed budget
hearing is held before this date, the former law
continues.
Status: Referred to House Ways & Means 3/29/17.
ARB REQUIREMENTS AND PROTEST
PROCEDURES CHANGES; OFFICE OF LOCAL
PROPERTY TAX OMBUDSMAN CREATED
HB 3168 Geren
Designates Secs. 5.03 through 5.16 as Subchapter A
and adds Subchapter B to Ch. 5, adds 6.425; amends
5.041, 6.41, 6.412, 6.42, 25.19, 25.25(d), 41.03,
41.11, 41.44, 41.45, 41.66, 41.71, 41A.01, 41A.03,
41A.06, 42.01, 42.21, 42.29
ARB EDUCATION
This bill requires the Comptroller to consult with
property owners, tax agents and chief appraisers in
drafting the ARB Manual and adds requirements
regarding content of ARB education. Further, it
requires the ARB to comply with procedural
requirements in the ARB Manual.
OFFICE OF LOCAL PROPERTY TAX
OMBUDSMAN
This bill creates the Office of Local Property Tax
Ombudsman (LPTO) in the Comptrollers office. The
LPTOs duty is to hear complaints involving alleged
violations of procedural requirements regarding
activities of an appraisal district, ARB, chief appraiser
2017 Legislative Update; Page 4
or an ARB member. The bill sets forth the LPTOs
qualifications, duties and procedural requirements.
ARB SELECTION AND OPERATION
The bill changes the minimum population threshold
whereby the administrative district judge is required
to appoint ARB members from 120,000 to 75,000. It
changes the population requirement from 100,000 to
120,000 regarding the eligibility to serve on an ARB
found in Section 6.412 and disallows service if the
person has served all or part of three previous terms;
requires the ARB rather than the appraisal district
board to select the ARB chair and secretary; requires
the Comptroller to determine and pay ARB members
a per diem, from funds assessed to the CAD;
establishes a special ARB panel, with specific
qualifications of those on the panel, to hear five types
of complex appraisal protests.
APPRAISAL NOTICES
The date of mailing all appraisal notices changes to
April 1, or a soon thereafter as practicable. The chief
appraiser in a county of 120,000 or more includes on
the appraisal notice if the property is one of the five
types of complex properties eligible for review by the
special ARB panel.
PROTESTS AND CHALLENGES
The bill clarifies a property owners ability to file a
25.25(d) motion regarding unequal appraisal in
addition to excessive appraisal; removes a taxing
units ability to challenge the level of appraisals of
any category of property in the CAD; changes the
protest deadline from May 1 to before June 1; requires
an ARB to provide for hearings on Saturdays and after
5 p.m. on weekdays and prohibits a first hearing on a
weekday after 7 p.m. or on Sundays.
BINDING ARBITRATION
The bill allows for a property owner to request
binding arbitration on a denial of a 25.25 motion and
extends the deadline to file from 45 to 60 days. For
the arbitration of non-residential homestead property
valued at more than $3,000,000 but less than
$5,000,000, the arbitration fee is $1,250.
APPRAISAL DISTRICT LITIGATION
The bill allows for the appeal of an ARB
determination on a procedural issue involving Section
25.25 of a Chapter 41 protest. The property owner
recovers attorneys fees if the owner prevails on the
merits of appealing the procedural issue.
See also Appraisal Review Board and Appraisal
District Litigation.
Proposed Effective: 1/1/2018, with some sections
effective 9/1/2018.
Status: Referred to House Ways & Means 3/30/17.
FEDERAL OR STATE JUDGES HOME
ADDRESS AUTOMATICALLY EXEMPT FROM
DISCLOSURE
SB 42 Zaffirini; HB 1487 Smithee
Amends 25.025
These bills provide that the home address information
of a federal or state judge, or their spouses, is
automatically confidential and exempt from
disclosure in the appraisal records, beginning on the
date that the judge qualifies for office. The judge or
spouse no longer must request the exemption from
disclosure by form. SB 42 substitute requires the
Office of Court Administration to notify the appraisal
district of the judges qualification for the judges
office.
Proposed Effective: 9/1/2017.
Status: SB 42 substitute reported from Senate
State Affairs 3/30/17 and placed on Senate Intent
Calendar 4/3/17. HB 1487 left pending in House
Judiciary & Civil Jurisprudence 3/14/17.
MORE INDIVIDUALS MAY REQUEST HOME
ADDRESS EXEMPT FROM DISCLOSURE
SB 256 Taylor; HB 2222 Hunter
Amends 25.025
These bills revise the procedures for keeping the
home address confidential and not open to public
disclosure for an individual, the individuals child or
another person in the household who is a victim of
family violence, if the individual provides a copy of a
protective order, magistrates order for emergency
protection or other independent document that shows
they are a victim of family violence. The bills add two
other types of individuals that may request their home
address be kept confidential: a person who is a victim
of sexual abuse or victim of assault, stalking or
trafficking by providing these same type of
documents, or a participant in the address
confidentiality program by attorney generals office.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017.
2017 Legislative Update; Page 5
Status: SB 256, with one floor amendment, passed
Senate 3/29/17 and received in House 3/30/17. HB
2222 referred to House Criminal Jurisprudence
3/21/17.
HOME ADDRESS OF CURRENT OR FORMER
EMPLOYEE OF STATE JUDGE EXEMPT FROM
DISCLOSURE
SB 510 Zaffirini; HB 2106 Smithee
Amends 25.025
SB 510 substitute provides that the home address
information of a current or former employee of a
federal judge or state judge may be exempt from
disclosure in the appraisal records at the written
request of the homeowner. SB 2106 only addresses a
state judge.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017.
Status: SB 510 substitute placed on Senate Local
Calendar 4/3/17. HB 2106 referred to House Ways
& Means 3/13/17.
STATE ELECTED OFFICIAL OR MEMBER OF
LEGISLATURE REQUESTS HOME ADDRESS
CONFIDENTIAL
SB 659 Campbell
Amends 25.025; amends Government Code 552.117,
552.1175
The bill adds a statewide elected official or a member
of the Legislature to the list that may request their
home address be exempt from disclosure.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017.
Status: Left pending in Senate Business &
Commerce 3/30/17.
CONVEYING PROCEEDS FROM CAD REAL
PROPERTY SALE CHANGED
SB 348 Watson
Amends 6.051
The bill provides that any proceeds from the
conveyance of real property owned by the CAD shall
be apportioned by an amendment to the annual CAD
budget.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017.
Status: Referred to Senate Finance 1/30/17.
CHIEF APPRAISER ELECTED BY COUNTY
VOTERS
SB 447 Burton
Amends 1.15, 5.041, 5.042, 5.103, 6.035, 6.05, 6.052,
6.41, 6.411, 6.412, 6.42, 22.28, 41.66, 42.21; repeals
6.0501; amends Election Code 52.092; amends Local
Government Code 87.041; amends Occupations Code
1151.164
The bill provides that county voters elect the chief
appraiser to a two-year term beginning January 1 of
each odd-numbered year. The chief appraiser must be
a resident of the county for the two years preceding
taking office. The bill removes the requirements for
any special professional designations. The chief
appraiser may be removed for incompetency,
including failure of the chief appraiser to complete the
TDLR-required chief appraiser training within the
required time. The bill removes the provision that a
taxing units tax office may serve as the appraisal
office. The chief appraiser appoints the ARB
members and selects the ARB chair and secretary.
The commissioners court shall fill a chief appraiser
vacancy.
Proposed Effective: 9/1/2017, with the first term of
office for chief appraiser beginning January 1, 2019
and the terms of existing ARB members expiring on
January 1, 2019 so that the newly-elected chief
appraiser appoints the next ARB.
Status: Referred to Senate Finance 2/6/17.
PROPERTY TAXATION ABOLISHED IN 2022
HB 1050 Swanson
Repeals Tax Code, Title 1
The bill prohibits a state or local property tax,
effective January 1, 2022. Any tax liability accrued
before that date is not affected. The bill provides that
the Legislature has an obligation to ensure that local
government entities provide essential services in a
manner that is fair and fiscally responsible and should
encourage the use of the sales tax to fund services.
Proposed Effective: 9/1/2017, with Title 1, Tax Code,
repealed 1/1/2022.
Status: Referred to House Ways & Means 3/6/17.
2017 Legislative Update; Page 6
SOME GROUPS MAY AND OTHERS MAY NOT
LAWFULLY TAKE AND USE DRONE IMAGES
SB 838, SB 839, SB 840 Zaffirini; HB 106 Martinez
Amends Government Code 423.002
These bills address when it is lawful to capture an
image using an unmanned aircraft in Texas. To the
group allowed such images, SB 838 adds a person
who is in compliance with Federal Aviation
Administration registrations or exemptions and the
images are reasonably related to a commercial
purpose (including navigation or public safety). The
bill, however, removes from the list a Texas licensed
real estate broker in connection with marketing, sale
or financing of real property; the owner or operator of
an oil, gas, water or other pipeline for inspecting,
maintaining or repairing pipelines and without the
intent to conduct surveillance; a registered
professional land surveyor in connection with
surveying; a professional engineer in connection with
engineering. SB 839 adds a journalist for reporting of
substantial public interest, potentially affects public
safety (such as weather) and occurs under
circumstances in which individuals whose images are
captured do not have a reasonable expectation of
privacy (mass gathering). SB 840 and HB 106 remove
from the list images of real property or a person on
real property that is within 25 miles of the U.S. border.
Proposed Effective: 9/1/2017.
Status: HB 106 substitute reported from House
Homeland Security and Public Safety 3/28/17. SB
839 referred to Senate Business & Commerce
2/27/17. SB 838 not heard in Senate Business &
Commerce 3/28/17. SB 840 left pending in Senate
Veteran Affairs & Border Security 3/15/17.
CHIEF APPRAISER GIVEN AUTHORITY TO
CORRECT ERRONEOUS DENIAL OR
CANCELLATION OF EXEMPTION
SB 945 Bettencourt; HB 2227 Murphy
Amends 25.25
These bills expand the authority of the chief appraiser
to correct the appraisal roll after certification to
include correcting an erroneous denial or cancellation
of a homestead exemption for the disabled or elderly
or an exemption for a disabled veteran.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017.
Status: SB 945 passed the Senate 3/28/17 and
received in House 3/28/17. HB 2227 referred to
House Ways & Means 3/20/17.
APPRAISAL DEADLINES CHANGED
SB 946 Bettencourt; HB 2228 Murphy
Amends 11.4391, 21.09, 22.23, 41.11, 41.44
These bills change several deadlines: the late deadline
for filing for the freeport goods is changed to not later
than June 1 (current law is before the ARB approves
the records); a request for allocation of value must be
filed before April 1 (current law is before May 1),
with the provision for extending the deadline can be
for 30 days (current is 45 days) and that the chief
appraiser may add an additional 30 days (current law
is 60 days); rendition statements for property
regulated by the Public Utility Commission, Railroad
Commission, Federal Surface Transportation Board
or Federal Energy Regulatory Commission must be
delivered to chief appraiser by April 30, and the chief
appraiser may extend by 15 days for good cause on
written request of the owner. The bills also address
some changes to protesting in Tax Code Section
41.44, making the deadline to do so later, May 15
rather than May 1 or 30-days after receipt of notice
for all property (not simply residence homesteads).
However, it also limits the extensions of time to file
protests currently in the Code (after deadline but
before ARB approves records and before June 1).
Proposed Effective: 1/1/2018.
Status: SB 946 placed on Senate Intent Calendar
3/30/17. HB 2228 referred to House Ways &
Means 3/20/17.
STATE AGENCY PROPOSED RULES
APPROVED BY LEGISLATURE
HB 2926, HJR 94 Roberts; HJR 84 Swanson; SJR
32 Taylor
Adds Government Code 2001.0321; adds Tex. Const.
Art. 2, Sec. 2
The bill and constitutional amendments require that a
state agencys proposed rule, other than an emergency
rule, shall be referred to the standing committee as
bills are referred (for example, property tax rule to
House Ways & Means and Senate Finance). Proposed
rules also are filed at that time with the Secretary of
State for the Texas Register. Within 30 days, the
committee(s) shall consider and vote on the rule,
requiring unanimous vote of the committees full
2017 Legislative Update; Page 7
membership. If not approved, the proposed rule is
suspended. The committee notifies the state agency
within three days and files the notice of suspension
with the Secretary of State to publish in the Texas
Register. If a rule is suspended, the committee chair
shall notify the Speaker or Lt. Governor, depending
on the committee. Within 35 days, the full
membership of the House or Senate shall vote to
approve or suspend the proposed rule. If the
Legislature is not in session, these actions will occur
during the first 10 to 30 days of the next regular
session.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: SJR 32 referred to Senate Business &
Commerce 2/13/17. HJR 84 and HJR 94 referred
to House State Affairs 3/20/17. HB 2926 referred
to House State Affairs 3/23/17.
TAX INFORMATION INCLUDED ON NOTICES
AND TAX BILLS TO CERTAIN PROPERTY
OWNERS
SB 1360 Watson
Adds 25.191 and amends 1.085, 25.19, 31.01
The bill addresses specific statements of tax
information be added to a property owners notice of
appraised value for property in certain school
districts. These notices are for property that is in a
school district that must equalize its wealth by
purchasing student credits from the state. The notices
include these statements: Your local school district
property taxes are estimated on the tax rate for the
preceding year to be $___. Of those estimated taxes,
it is estimated that:
"$____ will be used by the school district to fund
maintenance and operations of the school district;
"$____ will be used by the school district to pay for
facilities; and
"$____ will be paid by the school district to the state.
"For the preceding year:
"$____ was used by the school district to fund
maintenance and operations of the school district;
"$____ was used by the school district to pay for
facilities; and
"$____ was paid by the school district to the state.
"For the year preceding the preceding year:
"$____ was used by the school district to fund
maintenance and operations of the school district;
"$____ was used by the school district to pay for
facilities; and
"$____ was paid by the school district to the state."
The bill states how the chief appraiser estimates the
taxes for these items. As an alternative to including
this statements on the notice of appraised value, the
CAD may do new Section 25.191, for which the
Comptroller adopts by rule the format and form. The
alternative Notice of Taxes Actually Imposed on
Property by Taxing Units provides these statements
on a notice sent after the taxing units have adopted
their current tax rates. The statements are modified for
adopted rates. Tax collectors also include these
statements on the owners tax bills for these properties
in these school districts. See also Tax Collections.
Proposed Effective: 1/1/2018.
Status: Referred to Senate Finance 3/16/17.
CAD MAY NOT USE PUBLIC FUNDS TO LOBBY
ON LEGISLATION
SB 1812 Taylor
Amends Government Code 305.026
The bill provides that a CAD may not use public
money to directly or indirectly influence or attempt to
influence the passage or defeat of legislation before
the Legislature. A CAD employee is not prevented
from providing information for a member of the
Legislature or appearing before a legislative
committee at the request of the committee or a
member of the Legislature.
Proposed Effective: 9/1/2017.
Status: Referred to Senate State Affairs 3/23/17.
TEXAS CIVIL COMMITMENT OFFICES
EMPLOYEES MAY REQUEST HOME ADDRESS
CONFIDENTIAL
SB 1576 Perry; HB 4103 King
Amends 25.025; amends various other sections of
codes
The bills add a current or former employee of the
Texas Civil Commitment Office (or its predecessor in
function or division) to the list that may request their
home address be exempt from disclosure. These
employees deal with individuals who are sexually
violent predators.
Proposed Effective: 9/1/2017.
Status: SB 1576 substitute voted from Senate
Criminal Justice 3/28/17.
2017 Legislative Update; Page 8
HOMEOWNER MAY REQUEST HOME
ADDRESS BE HELD CONFIDENTIAL
HB 4001 Tinderholt
Amends 25.025
The bill provides that any homeowner may choose his
or her home address be exempt from disclosure by
filing the Comptroller form with the CAD.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Filed.
INTEREST RATE CHANGED IN TAX CODE
SB 2198 Campbell
Adds 1.13 and 1.14 and amends 11.135, 11.181,
11.185, 11.201, 23.46, 23.55, 23.76, 23.86, 23.96,
23.9807, 26.09, 31.12, 33.01, 33.06, 33.065, 42.42,
The bill changes the interest rate used to accrued on
various provisions of the Tax Code, including special
valuation rollback taxes, omitted property, delinquent
taxes, tax refunds, tax deferrals and others. The
annual interest rate is the lesser of 12% or the sum of
2% and the prime rate published by the Federal
Reserve Board on the first business day of the
calendar year for which simple interest is calculated.
The Comptroller posts the interest rate on the
Comptrollers website, beginning with the 2018
calendar year. The parties to a motion, effort or appeal
may agree to waive or reduce the interest that accrues
on a tax, penalty or refund that is subject to a 25.25
error correction; on a delinquent tax or a delinquent
tax lawsuit to collect; or for an appeal to district court.
The written agreement is required before the court
issues the order for the delinquent tax lawsuit or
pending appeal. A district court may waive or reduce
interest that has accrued as part of the final judgment
to the extent the interest is waived or reduced by
agreement. See also Appraisal District Litigation and
Delinquent Tax Collections.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Finance 3/29/17.
REGULATING PROPERTY TAX
PROFESSIONALS TRANSFERRED FROM TDLR
TO COMPTROLLER
SB 2208 Hancock
Amends 5.04, 5.102; amends Occupations Code
Chapter 1151 and adds 1151.201, 11.51.203,
1151.207, 1151.208 and 1151.209 and repeals
1151.1015; amends Occupations Code 1152.103

The bill transfers the regulation of property tax
professionals from the Texas Department of
Licensing and Regulation (TDLR) to the Comptroller.
Currently registered with TDLR, the registrants
include appraisers, tax assessors and tax collectors.
The Comptroller mails to a persons last known
address a renewal notice no later than 30 days before
a persons registration expires. The Comptroller may
conduct inspections or investigations as necessary.
The Comptroller may place a registrant on probation
whose registration is suspended. The Comptroller will
set up hearings and administrative procedure for
registration denials and disciplinary actions using the
State Office of Administrative Hearings (SOAH). For
complaints filed against a registrant, the Comptroller
will notify the registrant and the local governmental
entity that employs the registrant. The Comptroller
shall issue cease and desist orders for violations,
impose an administrative penalty and seek injunctive
relief and civil penalty through the Attorney General
or the Comptroller. The Comptroller shall adopt rules
by March 1, 2018.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Business and
Commerce 3/29/17.
BILLS ON DOUBLE TAXATION FILED AFTER
THE MARCH 10 DEADLINE
SB 2241 Hinojosa; similar SB 2242 Hinojosa
Adds 21.056 and 31.112 and amends 31.12, 42.41;
adds Education Code 42.2532
The bills were filed March 13, after the filing
deadline, and address double taxation of properties by
like taxing units. The bills apply only to Nueces and
San Patricio Counties. SB 2241 states, as a result of
disputed, overlapping or erroneously applied
geographic boundaries of multiple like taxing units,
the tax amount due on the property is the average of
the tax amounts imposed by each of the like taxing
units. Taxes are deposited into an escrow account in
the district court of Refugio County. The district court
applies the escrow amount to the taxing unit on
resolution of the dispute or error. SB 2241 begins with
the 2018 tax year. SB 2242 provides that the property
owner may file suit with the Supreme Court
challenging the double taxation by like taxing units.
The Supreme Court shall rule within 90 days. Both
bills address a refund process and the Education
2017 Legislative Update; Page 9
Commissioner adjusting the school district values for
the correction of the double taxation.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Filed 3/13/17. Received by the Secretary of
State for filing after deadline.
Appraisal
APPRAISAL DISTRICTS MUST USE
COMPTROLLERS APPRAISAL MANUALS
The Property Tax Reform and Relief Act of 2017
SB 2 Bettencourt; similar HB 934 Zerwas
Amends 5.05, 5.102, 5.13, 23.01
Appraisal districts must use the Comptrollers
generated appraisal manuals in appraising property
for property taxation. Both MAP reviews and taxing
unit-requested audits of appraisal districts must
include the districts compliance with these manuals
issued by the Comptroller. Generally accepted
appraisal methods and techniques will also include
those included in the Comptrollers appraisal manual.
For more analysis of these bills, see also Appraisal
District Administration, Rendition, Exemption,
Appraisal Review Board, Appraisal District
Litigation, Assessment and Truth in Taxation sections.
Proposed Effective: 1/1/2018.
Status: SB 2 substitute, with four floor
amendments, passed Senate 3/21/17 and received
in House 3/22/17. HB 934 referred to House Ways
& Means 2/21/17.
COMPARABLE PROPERTY DEFINED TO
ADDRESS DARK STORE APPRAISALS
HB 27 Springer
Amends 23.01
The bill clarifies that a property must have the highest
and best use as the subject property to be considered
as a comparable property. A use restriction on a
property that prohibits the continuation of the current
property use or prohibits competitive use by a
subsequent owner may not be considered in
determining the propertys highest and best use.
Determining market value must include consideration
of whether the highest and best use is the continuation
of the propertys current use.
Proposed Effective: 1/1/2018.
Status: Left pending in House Ways & Means
3/15/17.
A 5% APPRAISAL CAP SET FOR REAL
PROPERTY
HB 44, HJR 17 Keough; HB 167, HJR 26 Bell
Amends 1.12, 23.23 and 42.26; amends Government
Code 403.302; amends Tex. Const. Art. 8, Sec. 1
These bills and constitutional amendment would
change the 10% appraisal cap for residence
homesteads to an appraisal cap for all real property
and would set the appraisal cap at 5% above the
preceding year. The appraisal cap would apply the
first year after the owner acquires the property and
would expire when the owner no longer owns the
property. In the case of residential homesteads, the
cap would expire when the spouse who inherits a
homestead property ceases to own the property. In the
case of non-homestead property subject to multiple
ownership, the cap expires when at least 50% of the
ownership transfers in a given year. The cap will first
be effective on the tax year beginning in 2018 (so the
applicable base year will be 2017). The state will
need to address value losses for school districts
through the state aid formula.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: HB 44, HJR 17 referred to House Ways &
Means 2/13/17. HB 167, HJR 26 referred to House
Ways & Means 2/14/17.
COMPTROLLER STUDIES IMPACT OF SALES
PRICE DISCLOSURE
HB 182 Bernal
The bill orders the Comptroller to initiate a study of
the impact of mandatory sales price disclosure and
report to the Legislature next session. The
Comptroller appoints and is advised by a committee
of local government representatives and the real
estate professionals. The committee is to study the
impact on distribution of the tax burden and school
finance.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017.
Status: Referred to House Ways & Means 2/14/17.
2017 Legislative Update; Page 10
A 5% CAP SET FOR RESIDENCES
HB 376, HJR 33 Metcalf; HB 586, HJR 43 Bohac
Amends 23.23; amends Tex. Const. Art. 8, Sec. 1
These bills and constitutional amendment lower the
10% cap on residence homesteads to 5% per year.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: HB 376, HJR 33 referred to House Ways
and Means 2/16/17. HB 586, HJR 43 referred to
House Ways & Means 2/20/17.
PROPERTY SET BY AGREEMENT OR APPEAL
LIMITED TO 5% INCREASE IN SUBSEQUENT
YEAR
HB 301, HJR 30 Larson
Amends 23.01; adds Tex. Const. Art. 8, Sec. k
The bill and constitutional amendment add that a
property whose value in the previous year was
determined by an agreement between the chief
appraiser and the property owner after a protest or
appeal cannot be increased more than 5% the next
year. Exceptions remain for those properties that lose
their open-space qualification or whose limitations
under Section 23.23 expire.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: Referred to House Ways and Means
2/15/17.
MANDATORY SALES PRICE DISCLOSURE
REQUIRED ON RECORDED INSTUMENTS
HB 379 Bernal
Adds Property Code 12.0013
The bill requires that an instrument filed in the county
clerks office conveying real property under a
contract for sale must disclose the propertys sales
price. If not disclosed, the propertys purchaser is
liable to the state for a civil penalty equal to 5% of the
propertys sales price. The Attorney General or the
county or district attorney may bring suit to recover
the penalty. The disclosure does not apply to an
instrument conveying only a mineral interest.
Proposed Effective: 9/1/2017.
Status: Referred to House Business & Industry
2/23/17.
REAPPRAISAL FOR DISASTER AREA IS
AUTOMATIC
HB 513 Davis of Harris; SB 717 Taylor
Amends 23.02
SB 717 substitute and HB 513 substitute require the
CAD to automatically reappraise an area declared a
disaster area that the Federal Emergency
Management Agency (FEMA) estimates to have
sustained 5% or greater damage to market value as a
result of the disaster. A property owner may refuse to
have the owners property reappraised. The chief
appraiser completes the reappraisal by 45 days after
the governor declares the area a disaster area. If
FEMA does not complete the damage estimate before
that deadline, the chief appraiser shall complete the
reappraisal as soon as possible. The Comptroller may
adopt rules to implement and administer this
provision. Appraisal costs are apportioned to all
taxing units for which the properties are reappraised.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017.
Status: HB 513 substitute voted from House Ways
and Means 3/29/17. SB 717 substitute passed
Senate 3/27/17 and received in House 3/28/17.
MANUFACTURED HOUSING REGULATIONS
CHANGED
HB 2019 King
Amends 23.127 and various sections of Occupations
Code Chapter 1201
The bill revises the regulation of manufactured
housing. For the inventory of retail manufactured
housing, the retailer files the statement of declaration
indicating those units considered to be retail
inventory. The chief appraiser imposes the retail
inventory tax only on the retail inventory and may not
include any personal property homes declared as
retail manufactured housing inventory. The
Statement of Ownership and Location is changed to
Statement of Ownership. The Texas Department of
Housing and Community Affairs sets up a website
with searchable and downloadable information on
manufactured housing ownership, liens, installation,
license holder records, shipment reports and
enforcement actions.
Proposed Effective: 9/1/2018.
Status: Left pending in House Licensing and
Administrative Procedures 3/20/17.
2017 Legislative Update; Page 11
DEFINITION OF REPLACEMENT STRUCTURE
VERSUS NEW IMPROVEMENT CHANGED
HB 2241 Lozano
Amends 11.26, 11.261, 23.23
The bill revises the definition of what constitutes a
replacement structure versus a new improvement for
the appraisal cap and for increasing the tax limitation
for a property owner when a homestead is damaged
by a casualty or by wind or water damage. The
replacement structure is considered to be a new
improvement if the square footage exceeds the
replaced structure. The bill removes language about
the exterior of the replacement structure is of higher
qualify and composition than the damaged one.
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 3/16/17.
LOW-INCOME OR MODERATE HOUSING
APPRAISAL REFINED
HB 2532 Anderson; similar SB 1275 Taylor; HB
3752 Johnson
Amends 23.215; SB 1275 also amends 1.07
The bills revise the appraisal of nonexempt property
used for low-income or moderate housing to require
the chief appraiser to use the income approach to
value the property, based on the most recent annual
owners compliance report filed with the Texas
Department of Housing and Community Affairs
(TDHCA), to estimate the gross income and operating
expenses, to project future income and expenses and
to project future rent or income potential using the
maximum amount of permitted rent. The chief
appraiser uses this method regardless if the property
is no longer under active construction and occupancy
has stabilized. Operating expenses include standard
property maintenance, debt service, employee
compensation, government fees, lender expenses
insurance and other justifiable expenses for
maintenance and operation.
SB 1275 and HB 3752 require a certified letter from
the appraisal district to the property owner if the chief
appraiser determines that the property is no longer
eligible for this appraisal. The property will be subject
to a rollback tax for the three preceding years based
on the difference between the propertys sales price
and the special appraised value in each year. The
owner has a right to protest the determination to the
ARB. A tax lien attaches to the property. Taxes are
due and become delinquent if not paid before the next
February 1 that is at least 20 days after the date the
bill is delivered. SB 1275 provides that a property
owner may not protest the propertys special value,
which has been adjusted by the percentage change in
net income. This type of property is not considered a
comparable property for any other properties. The
change in net income is based on the organizations
audit by an independent auditor or most recent
compliance report with TDHCA, which is delivered
to the chief appraiser no later than May 1.
Proposed Effective: 1/1/2018.
Status: SB 1275 scheduled for hearing in Senate
Finance 4/3/17. HB 2532 referred to House Ways
& Means 3/23/17.
INTANGIBLE PERSONAL PROPERTY
DEFINITION REVISED
HB 3138 Gutierrez
Amends 1.04
The bill adds to definition of intangible personal
property to include the value of a brand name,
business service or business and income derived from
the operation of a business other than income from the
propertys use.
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 3/29/17.
APPRAISAL STIPULATIONS PLACED ON
CERTAIN AFFORDABLE HOUSING PROPERTY
SOLD TO LOW OR MODERATE INCOME
INDIVIDUAL OR FAMILY
HB 3999 Isaac
Amends 23.21
The bill addresses the appraisal of real property
previously owned by a charitable organization
meeting Section 11.18 requirements and is sold to a
low-income to moderate-income individual or family.
If the property was sold pursuant to a shared or fixed
appreciation affordable housing program by the
organization that has a fixed period of time, the chief
appraiser may not take into account the appreciation
in value that the organization would be entitled if the
property were sold on January 1 of the tax year and
shall take into account the extent of any regulation,
resale restrictions or conditions to the property to
reduce the propertys value.
Proposed Effective: 1/1/2018.
Status: Filed.
2017 Legislative Update; Page 12
A HOMESTEAD VALUE CAP OF 5% SET
MAYBE
SB 172, SJR 19 Nichols
Amends 23.23, 42.26; adds Tex. Const. Art. 8, Sec. 1
(i-1) and (i-2)
The bill and constitutional amendment imposes a 5%
cap on residential homesteads, unless the
commissioners court authorizes an election to
determine a specified cap between 5% and 10%.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: Referred to Senate Finance 1/25/17.
HOMESTEAD VALUE CAP BASED ON HOMES
VALUE
SB 376, SJR 28 Creighton
Amends 23.23
The bill and constitutional amendment changes the
10% cap to 3% if the homes appraised value is $1
million or less and 5% if the homes value is more
than $1 million.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: Referred to Senate Finance 2/1/17.
PROPERTY OWNER REQUESTS REAPPRAISAL
FOLLOWING DESTRUCTION BY CASUALTY
SB 972 Zaffirini
Adds 23.025
The substitute bill adds that a property owner of a
residence homestead owned and occupied by the
owner may request the chief appraiser to reappraise
the residence if a building on the property is
completely destroyed by a casualty. The written
request must be no later than 180 days after the
casualty date. The chief appraiser reappraises unless a
taxing unit has requested a reappraisal for other
properties for the same casualty. The chief appraiser
includes in the appraisal records the date of the
casualty, appraised value before and after and any
other information. The taxes on the property are
adjusted for the number of days before and after the
casualty. If the tax bill has already been mailed, the
tax collector sends a corrected tax bill. If the tax has
been paid, the tax collection shall refund the excess
amount. The Comptroller adopts guidelines,
including whether the property is completely
destroyed and for calculating the appropriate value of
any exemption and appraisal homestead cap on the
home during or after the tax year.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017.
Status: Substitute reported from Senate Finance
3/20/17, passed Senate 3/22/17 and received in
House 3/23/17.
Renditions
RENDITION DEADLINES MOVED TO EARLIER
DATES
The Property Tax Reform and Relief Act of 2017
SB 2 Bettencourt
Amends 21.09, 22.23
Renditions would be due April 1, instead of April 15.
The automatic written-extension rendition deadline
also would be earlier, a date not later than May 1,
rather than May 15. SB 2 substitute adds that rendition
statements and property reports for property regulated
by the Public Utility Commission, Railroad
Commission, Federal Surface Transportation Board
or Federal Energy Regulatory Commission must be to
the chief appraiser no later than April 30. The chief
appraiser may extend the April 30 filing deadline for
15 days for good cause on written request of the
property owner.
SB 2 substitute also changes the dates for filing the
request for allocation of value for property that travels
between states. The allocation application is changed
to April 1, rather than May 1, and the deadline may be
extended 30 days, not 45 days, after the date of
receiving the 25.19 notice of appraised value. The
chief appraiser for good cause shall extend the
deadline for 30, not 60, days.
For more analysis of SB 2, see also Appraisal District
Administration, Appraisal, Exemption, Appraisal
Review Board, Appraisal District Litigation,
Assessment and Truth in Taxation Sections.
Proposed Effective: 1/1/2018.
Status: SB 2 substitute, with four floor
amendments, passed Senate 3/21/17, and received
in House 3/22/17.
2017 Legislative Update; Page 13
Exemptions
INCOME-PRODUCING PERSONAL PROPERTY
EXEMPTION CAP INCREASED TO $2,500
The Property Tax Reform and Relief Act of 2017
SB 2 Bettencourt; SB 730 Bettencourt; HB 1330
Kuempel
Amends 11.145; SB 2 substitute amends 11.4391
These bills exempt income-producing tangible
personal property with a taxable value of less than
$2,500. Current law sets the value at less than $500.
SB 2 substitute, however, removes the change to this
exemption amount.
SB 2 substitute also changes the deadline for the
freeport exemption application to not later than June
1. Current law is before the date the ARB approves
the appraisal records.
For more analysis of SB 2, see also Appraisal District
Administration, Appraisal, Exemption, Appraisal
Review Board, Appraisal District Litigation,
Assessment and Truth in Taxation Sections.
Proposed Effective: 1/1/2018.
Status: SB 2 substitute, with four floor
amendments, passed Senate 3/21/17, and received
in House 3/22/17. SB 730 passed Senate 3/27/17
and received in House 3/28/17. HB 1330 referred
to House Ways & Means 2/27/17.
A 10-YEAR EXEMPTION GRANTED FOR NEW
BUSINESSES IN SMALL COUNTIES
HB 102; HJR 18 Guillen
Adds 11.36; amends 11.42, 26.1125; adds Tex. Const.
Art. 8, Sec. 1-s
The bill and constitutional amendment provides for a
local-option exemption from property taxes for new
businesses located in a county with a population of
250,000 or less. A new business for purposes of this
bill is one that begins business in this state on or after
January 1, 2018; is not substantially similar in
ownership or operation to any business in this state in
the preceding five years; is engaged in certain
manufacturing (categories 2011-3999 of the 1987
Standard Industrial Classification Manual) or certain
forms of research determined by Section 41 of the
Internal Revenue Code; and creates at least one full-
time, permanent job. The Comptroller administers the
determination of an eligible new business. A taxing
unit may revoke its local-option exemption at any
time, but revocation will not affect those that have
already qualified for exemption. The exemption may
be applied for within one year after the business
initially qualified for the exemption. The bill also
includes state tax exemptions.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: HB 102, HJR 18 referred to House Ways
& Means 2/13/17.
PARTIAL EXEMPTION APPLIED TO DISABLED
VETERANS HOMESTEAD
HB 150, HJR 21 Bell; SB 240, SJR 23 Creighton
Amends 11.132, amends Tex. Const. Art. 8, Sec.
1(b)(1)
These bills and constitutional amendment amend the
partial homestead exemption for disabled veterans to
include housing donated to a disabled veteran for less
than 50% of the estimate of market value by the
charitable organization that donates the housing.
Presently, this exemption is available only to those
homes donated at no cost to the veteran.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: SB 240 referred to Senate Veteran Affairs
& Border Security 1/30/17. HB 150, HJR 21
referred to House Ways & Means 2/13/17.
MINERAL INTEREST EXEMPTION INCREASES
TO VALUE OF LESS THAN $2,000
HB 302 Goldman
Amends 11.146
The bill increases the value of mineral interests
exempt from taxation to those accounts whose value
is less than $2,000. The present exemption cap is less
than $500.
Proposed Effective: 1/1/2018.
Status: Referred to House Ways and Means
2/15/17.
PROPERTY EXEMPTED IF LEASED TO
CERTAIN CHARTER SCHOOLS
HB 382, HJR 34 Murphy; SB 1030, SJR 42 Taylor
Adds 11.211; amends Tex. Const. Art. 8, Sec. 2
These bills and constitutional amendment exempts
property leased to a charter school if the property
owners reduced taxes are passed along to the tenant
2017 Legislative Update; Page 14
charter school. The leasehold does not become
taxable pursuant to Section 25.07.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: HB 382, HJR 34 left pending House Ways
and Means 3/22/17. SB 1030, SJR 42 referred to
Senate Finance 3/6/17 and 3/7/17.
RETAIL INVENTORY EXEMPT FROM SCHOOL
TAXES
HB 425, HJR 35 Button
Adds 11.35; amends Tex. Const. Art. 8, Sec. 1(d)
The bill and constitutional amendment exempts retail
inventory from taxation by school districts. The
constitutional amendment authorizes the Legislature
to exempt retail inventory.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: Referred to House Ways & Means 2/20/17
and 3/9/17.
LATE APPLICATION DEADLINE EXTENDED
FOR HOMESTEAD AND DISABLED
VETERANS EXEMPTIONS
HB 626 Workham
Amends 11.431, 11.429
The bill extends the deadline for the late application
for a homestead exemption to two years after the
delinquency date for the home taxes. Current law
requires filing the application no later than one year
after the delinquency date. The chief appraiser
notifies each taxing units collector within 30 days
after the date the application is approved. The
collector is required to issue any refund not later than
60 days after the chief appraiser notifies the collector.
For the disabled veterans exemption, the application
deadline is extended to no later than five years (from
one year) after the delinquency date.
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 2/22/17.
SCHOOL TAXES ON TANGIBLE PERSONAL
PROPERTY PHASED OUT BY 2027
HB 734, HJR 48 Workman
Adds 11.35; adds Education Code 42.2512; adds Tex.
Const. Art. 8, Sec. 1-q
The bill and constitutional amendment exempts
tangible personal property that consists of inventory
from taxation by school districts. The exemption
begins as a 10% exemption in tax year 2018, and the
exemption increases by 10% each tax year for a 100%
exemption by tax year 2027. The school district
receives additional state aid for the tax revenue lost
for the exemption.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: Referred to House Ways & Means 2/20/17.
PHYSICAN HOMESTEAD OFFERED
EXEMPTION BY COUNTY
HB 820, HJR 50 Shaheen; SB 1543, SJR 52 West
Amends 11.13; adds Tex. Const. Art. 8, Sec. 1-b(n)
The bills and constitutional amendment provide that
the county may offer a homestead exemption to a
physician residing in the county who provides health
care services to qualifying county residents that are
indigent or on Medicaid for which the physician does
not receive reimbursement for those services from
any source. The exemption is based on a percentage
of the homes value, not to exceed 50%. The county
may express the percentage of the physicians total
practice that is for qualifying county residents. The
county commissioners provide the appraisal district
with the exemption information, and the chief
appraiser may require the physician to provide
additional information.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: HB 820, HJR 50 referred to House Ways
& Means 2/21/17. SB 1543, SJR 52 scheduled for
hearing in Senate Finance 4/3/17.
LOCAL TAXING UNIT MAY EXEMPT
MINERAL INTERESTS OWNED BY NONPROFIT
ORGANIZATION
HB 845, HJR 51 Lozano
Adds 11.186; amends 11.43; amends Government
Code 403.302; adds Tex. Const. Art. 8, Sec. 1-r
The bill and constitutional amendment allow a taxing
unit to grant an exemption to mineral interests owned
by a nonprofit organization that is organized
exclusively to generate income from ownership, lease
and management of real property, including
buildings, land and interests; exclusively organized
for religious and charitable purposes; engages in
housing, counseling, training, spiritual aid and related
services for children and family in need; does not
2017 Legislative Update; Page 15
charge a fee for services; and does not accept or
receive money from a governmental entity. The
exemption applies in the tax year that the taxing units
governing body adopts before April 15 or the next
year if adopted on or after that date. The nonprofit
organization applies for the exemption at the appraisal
district; annual application is not required. The
Comptroller adjusts for this in Property Value Study.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: Referred to House Ways & Means 2/21/17.
OWNER OF GROUP HOME OR INTERMEDIATE
CARE FACILITY RECEIVES EXEMPTION
BASED ON 12-MONTHS OF OPERATING COSTS
HB 850, HJR 52 Turner
Adds 11.35; adds Tex. Const. Art. 8, Sec. 1-p
The bill and constitutional amendment provide the
owner of a group home or an intermediate care facility
to a property tax exemption equal to the amount of the
costs incurred by the owner in maintaining, operating
and improving the property during the preceding 12-
month period. A group home is one that is primarily
for individuals with intellectual disabilities. An
intermediate care facility has individuals with
development, physical or intellectual disabilities if at
least 95% of the residents are on medical assistance
under Human Resources Code Chapter 32. The
Comptroller-adopted exemption application includes
an affidavit stating the costs and any relevant
information or documentation.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: Substitute HB 850 and HJR 52 left pending
in House Ways & Means 3/22/17.
UNIVERSITY RESEARCH TECHNOLOGY
CORPORATION GRANTED EXEMPTION
HB 906, HJR 54 Elkins
Adds 11.232; amends 11.42, 26.113; amends
Education Code Chapter 157; amends Tax Code
Chapter 151 and 171adds Tex. Const. Art. 8, Sec. 1-t
The bill and constitutional amendment provide for the
exemption of real and tangible personal property
owned by or leased to a university research
technology corporation. This special-purpose
corporation is owned wholly or partly by a university
or by a nonprofit medical center development
corporation with members that are universities. The
exemption also applies to the leasehold interest in real
and tangible personal property leased from the
corporation. The bill provides for prorating the taxes
upon acquiring a property by the corporation.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: Referred to Government Transparency &
Operation 3/9/17 and HJR 54 on 3/20/17.
CHIEF APPRAISER LIMITED ON
REAPPLICATION BY TOTALLY DISABLED
VETERAN
HB 1101 Pickett
Amends 11.43
The bill prevents the chief appraiser from requesting
a new homestead exemption application to confirm
current qualifications from a totally disabled veteran
who has a permanent total disability determined by
the Veterans Administration.
Proposed Effective: 1/1/2018.
Status: Reported favorably from House Ways &
Means 3/27/17 and recommended for House Local
& Consent Calendar.
TANGIBLE PERSONAL PROPERTY EXEMPT IF
FOOD PRODUCTS HELD FOR SALE
HB 1182, HJR 60 Button
Adds 11.35; adds Tex. Const. Art. 8, Sec. 1-p
The bill and constitutional amendment would exempt
tangible personal property consisting of food products
that are exempt from the sales and use tax to also
receive a property tax exemption if the owner holds
the property for sale at retail.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: Referred to House Ways & Means 2/21/17.
TAXING UNITS DECIDES TO EXEMPT
RAINWATER HARVESTING EQUIPMENT
HB 1334 Isaac
Adds 11.325
The bill provides a local-option exemption that a
taxing units governing body may adopt to exempt a
portion of a propertys appraised value that is
attributable to installation of a rainwater harvesting
system. At this time, no HJR has been filed for a
constitutional amendment for this exemption.
Proposed Effective: 1/1/2018.
2017 Legislative Update; Page 16
Status: Referred to House Ways & Means 2/27/17.
TOTAL EXEMPTION GRANTED TO
HOMESTEAD OF VERY ELDERLY AND
SURVIVING SPOUSE
HB 1473, HJR 64 Bohac; similar HB 1772, HJR 71
Swanson; similar HB 2081, HJR 76 Phelan
Amends 11.13, 11.42, 11.43, 26.10, 26.112, 33.01;
adds Education Code 41.0012 and amends 42.2518,
42.252, 42.302, 44.004, 46.003, 46.032, 46.071;
amends Government Code 403.302; adds Tex. Const.
Art. 8, Sec. 1-b(n)
HB 1473 provides for the total exemption from
property taxes of the homestead of an elderly
homeowner who is 80 years or older and has received
homestead exemptions on the homestead for at least
the preceding 10 years. The surviving spouse
continues to receive the total exemption if the
deceased spouse died qualified for the exemption in
the year of death, the surviving spouse was 55 years
of age or older at spouses death and the property was
also the residence homestead of the surviving spouse
and remains the homestead. The total exemption is
effective on January 1 of the year qualified. The
homeowner may apply up to one year late after
qualification. If the exemption terminates during the
year because the homeowner claims another
homestead, the taxes are prorated for the time the
homestead did not qualify. The Comptroller adjusts
the school districts taxable wealth for state funds for
this exemption. The school notice for proposed
budget and tax rate includes a statement that a person
80 years of age or older or surviving spouse is exempt
from taxes.
With many of the same provisions as HB 1473, HB
1772 provides for a total exemption of the homestead
taxes for a homeowner 75 years of age or older, but
with no requirement on years of ownership. It also has
all the other requirements, including for the surviving
spouse 55 years of age or older, for state aid to school
districts and for the school notice for proposed budget
and tax rate (with 75 years of age).
With many of the same provisions as HB 1473 and
HB 1772, HB 2081 provides for a local-option total
exemption of the school homestead taxes for a
homeowner disabled or who is 70 years of age or
older, but with no requirement on years of ownership.
The school board would adopt the exemption before
July 1. It also has all the other requirements, including
for the surviving spouse 55 years of age or older, for
state aid to school districts and for the school notice
for proposed budget and tax rate (with 70 years of
age).
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: HB 1473, HJR 64 left pending in House
Ways & Means 3/22/17. HB 1772 referred to
House Ways & Means 3/14/17 and HJR 71 on
3/20/17. HB 2081, HJR 76 referred to House Ways
& Means 3/16/17.
LOW-INCOME HOUSING EXEMPTION
EXTENDED FOR 10 YEARS FROM
ACQUISITION
HB 1513 Isaac
Amends 11.181
The bill extends the property tax exemption for a
charitable organization providing low-income
housing for 10 years from the anniversary date the
transferring organization acquired the property.
Current law is for five years.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017.
Status: Referred to House Ways & Means 3/9/17.
SCHOOL DISTRICT EXEMPTS LOW AND
MODERATE-INCOME HOUSING PROJECTS
NEAR A PUBLIC SCHOOL
HB 1548, HJR 66 Dutton
Adds 11.1828 and amends 11.436, 26.111; adds Tex.
Const. Art. 8, Section 1-v
The bill and constitutional amendment grants a person
an exemption from school property taxes of improved
or unimproved real property within a one-mile radius
of a school campus if the property is built and used for
low or moderate-income housing. In an urban area,
the property must be 25 or more new single-family
dwellings sold or leased to families or a new
multifamily housing project of 150 or more rental
units. In a rural area, the property must be 10 or more
single-family dwellings sold or leased or a
multifamily housing project of 60 or more rental
units. The dwellings/units in either area must be for
families earning nor more than 60 percent of the
areas median income. The exemption is for three
years. If any part of the property is sold, leased or
rented to a person that does not meet the eligibility
2017 Legislative Update; Page 17
requirements, a penalty is imposed for each year that
the property was exempt, plus 7% interest from date
taxes are due. The person who received the exemption
and the purchaser are jointly and severally liable for
the penalty and interest. A tax lien attaches to the
property. The chief appraiser notes the penalty in the
appraisal records and delivers notice to both parties.
The constitutional amendment gives the Legislature
the authority to allow a property tax exemption by one
or more political subdivisions of a property near a
public school that is owned by a person for building
low-income or moderate-income housing.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: Referred to House Ways & Means 3/9/17
and HJR 66 on 3/20/17.
PURPLE HEART RECIPIENT AND SURVIVING
SPOUSE ENTITLED TO TOTAL HOMESTEAD
EXEMPTION
HB 1591, HJR 67 Bohac
Adds 11.134 and amends 11.42, 11.43, 11.431, 26.10,
26.1125; amends Government Code 403.302; amends
Local Government Code 140.011; amends Tex.
Const. Art. 8, Section 1-b
The bill and constitutional amendment provide for a
total homestead exemption from property taxes for a
Purple Heart recipient and to the surviving spouse.
The surviving spouse is entitled to the total exemption
on the same property to which the Purple Heart
recipients exemption applied if the spouse has not
remarried since the death and the property was the
residence homestead of the surviving spouse at the
time of the recipients death and remains the residence
homestead. The surviving spouse may port the dollar
amount of exemption to another homestead. If the
Purple Heart recipient qualifies after January 1, the
exemption applies only for a portion of the tax year.
The homestead application is a one-time application
and may be filed up to one-year after the delinquency
date. The Comptroller adjusts the school property
values for this exemption. Local taxing units may
include the impact of this exemption in requesting
state financial assistance from the Comptroller.
Committee testimony was to have the State hold
harmless the taxing units impacted by more
exemptions for veterans, particularly if legislation
requires these local units to hold rollback elections to
raise the tax rate to recoup the lost taxes.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: HB 1591 left pending in House Ways &
Means 3/22/17. HJR 67 referred to House Ways
& Means 3/20/17.
SCHOOL HOMESTEAD EXEMPTION IS
GREATER OF $25,000 OR 13% OF HOME VALUE
HB 1679, HJR 69 Schofield
Amends 11.13, 11.26; amends Education Code
41.0011, 42.2518, 42.252, 42.302, 46.003, 46.032,
46.071; amends
The bill and constitutional amendment provides that
the school homestead exemption is $25,000 or 13% of
the market value of the homestead, whichever is
greater. Homeowners with a school tax limitation and
a homestead with a 2018 market value of more than
$192,308 shall have their limitations reduced by
subtracting $25,000 from 13% of the 2018 market
value and multiplying by the 2018 school tax rate.
State funding to school districts is adjusted for the
exemption change.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: Referred to House Ways & Means 3/6/17.
DISABLED VETERANS EXEMPTION
CHANGED FROM DOLLAR AMOUNT TO
PERCENTAGE EXEMPTION OF PROPERTYS
VALUE
HB 1696, HJR 70 Blanco
Amends 11.22, 11.26; amends Tex. Const. Article 8,
Section 2(b)
The bill and constitutional amendment change the
dollar amounts of exemptions for a disabled veteran
and the veterans surviving spouse and children to
percentages of the propertys value: disability rating
of 10 to less than 30% is an exemption of 7.91% of
the propertys value; disability rating of 30 to less than
50% is exemption of 11.86% of value; disability
rating of 50 to less than 70% is 15.82% of value; and
disability rating of 70% or more is 18.98% of value.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: HB 1696 referred to House Ways & Means
3/9/17 and HJR 70 on 3/20/17.
2017 Legislative Update; Page 18
TIME THAT DELINQUENT TAX PROPERTY IS
HELD BETWEEN JUDGMENT AND SALE IS
EXEMPT FROM TAXES
HB 1833, no filed HJR Dutton
Adds 11.281 and amends 11.43, 33.52, 34.01, 34.05
The bill and constitutional amendment (not filed as of
this date) provides for exempting real property held
during the period between issuance of a judgement
foreclosing a tax lien on the property and the sale of
the property at a tax sale or the payment of the taxes
before the sale. If the owner pays the amount of the
judgment before the sale or redeems the property, a
penalty is imposed equal to the taxes that would have
been imposed during the exempt period, plus interest
at 7% from the date on which taxes would have
become due. A tax lien attaches to secure payment of
the penalty and interest. For the property to be
exempt, a person must file an exemption application.
No post-judgement taxes, penalties and interest may
be enforced. A sale by the taxing unit holding the
property discharges and extinguishes all liens
foreclosed by the judgement. See also Delinquent
Tax Collections.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: Referred to House Ways & Means 3/9/17.
CONTIGOUS TRACT OF LAND BY PLACE OF
RELIGIOUS WORSHIP IS NOT ENTITLED UP TO
SIX-YEAR EXEMPTION
HB 2133 Anderson
Amends 11.20
The bill remove the current land that a tract of land
contiguous to an actual place of religious worship
receives an exemption for up to six years.
Proposed Effective: 1/1/2018.
Status: Referred to House Ways & Means 3/13/17.
SCHOOL HOMESTEAD EXEMPTIONS
INCREASED FOR ONE YEAR, USING MONEY
FROM ECONOMIC STABLIZATION FUND
HB 2268, HJR 75 Raymond
Amends 11.13, 11.26; adds Education Code 41.0011
and amends 42.2518, 42.252, 42.302, 46.003, 46.032,
46.071; amends Tex. Const. Art. 3, Sec. 49-g and Art.
8, Sec. 1-b
The bill and constitutional amendment increases the
current school homestead exemption to $71,000 from
$25,000 for the 2018 taxes only. The over-65 or
disabled homeowners are increased to $46,000 from
$10,000, and those homeowners with limitations are
adjusted for the $46,000 times the 2018 tax rate. The
state adjusts the taxable wealth of school districts as
if the exemption existed for the 2017 tax year, and
adjustments are made in state funding for the
additional exemption. The constitutional amendment
also appropriates $3.05 billion of the economic
stabilization fund to the foundation school program to
finance the temporary increase in the school
homestead exemptions.
Proposed Effective: 1/1/2018, if constitutional
amendment to appropriate money from the economic
stabilization fund is passed by Texas voters
November 7, 2017.
Status: HB 2268 referred to House Ways & Means
3/15/17 and HJR 75 on 3/20/17.
MORE LOCAL GOVERNMENTS AFFECTED BY
DISABLED VETERANS EXEMPTIONS MAY
APPLY FOR STATE AID
HB 2356 Cosper; similar HB 3524 Sheffield
Amends Local Government Code 140.011; amends
Transportation Code 201.996
HB 2356 revises which local governments may apply
for state aid for being disproportionately affected by
disabled veterans exemptions and the resulting
revenue loss. Added to the local governments are the
cities in a county in which a U.S. military installation
is wholly or partly located and not just those that are
adjacent to it and to a county that is adjacent to a
county with a military base. HB 3524 adds that the
formula for allocating state funds for congestion
mitigation and air quality improvement projects
prioritize those regions with a military installation and
have granted tax relief to disabled veterans
disproportionately.
Proposed Effective: 9/1/2017.
Status: HB 2356 referred to House Ways & Means
3/16/17.
NAVIGATION DISTRICT PROPERTY EXEMPT
FROM TAXES
HB 2591 Herrero, SB 1133 Hinojosa
Adds Water Code 60.005
These bills provide that navigation district property is
public property used for essential public and
governmental purposes and exempt from all taxes and
2017 Legislative Update; Page 19
special assessments by the state or a political
subdivision.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017.
Status: SB 1133 referred to Senate Transportation
3/7/17. HB 2951 referred to House Ways & Means
3/27/17.
VEHICLE LEASED TO STATE, PUBLIC ENTITY
OR CHARITY EXEMPT FROM PROPERTY TAX
HB 2714 Bohac
Amends 11.252
The bill adds to the leased motor vehicle exemption
for a use other than production of income to include a
motor vehicle leased to the state, a political
subdivision of the state or a 501(c)(3) charitable
organization. The Comptrollers form shall require a
lessee to provide the name, address and federal tax ID
number.
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 3/28/17.
DISABLED VETERANS EXEMPTION AMOUNT
INCREASED
HB 2877, HJR 92 Sanford
Amends 11.22; amends Tex. Const. Art. 8, Sec. 2(b)
and repeals Sec. 2(d)
The bill and constitutional amendment increase the
amounts for the disabled veterans exemption based
on disability rating as follows: $10,000 for disability
rating between 10% but less than 30%; $15,000 for
30% but less than 50%; $20,000 for 50% but less than
70%; or $24,000 for at least 70%. A disabled veteran
who is 65 with at least 10% disability, or is totally
blind or has lost use of one or more limbs gets
$24,000. The veterans surviving spouse exemption
and eligible children increases to $10,000.
Proposed Effective: 1/1/2018, if constitutional
amendment is passed by Texas voters November 7,
2017.
Status: HJR 92 referred to House Ways & Means
3/20/17. HB 2877 referred to House Ways &
Means 3/29/17.
U. S. VETERAN RECEIVES ADDITIONAL $5,000
HOMESTEAD EXEMPTION
HB 2887, HJR 93 Thierry
Amends 11.13; amends Government Code 403.302;
amends Tex. Const. Art. 8, Section 1-b

The bill and constitutional amendment add an
additional homestead exemption of $5,000 for a
veteran of the U.S. armed services who served in the
armed services for at least three years. The
Comptroller adjusts the Property Value Study for this
new exemption for school funding.
Proposed Effective: 1/1/2018, if constitutional
amendment is passed by Texas voters November 7,
2017.
Status: HJR 93 referred to House Ways & Means
3/20/17. HB 2887 referred to House Ways &
Means 3/29/17.
COUNTY COMMISSIONERS COURT MAY
EXEMPT RETAIL INVENTORY FOR LIMITED
TIME
HB 2973, HJR 96 Button
Adds 11.37; adds Tex. Const. Art. 8, Sec. 1-u
The bill and constitutional amendment add that the
county commissioners court may adopt an exemption
for county taxes for a persons inventory held for sale
at retail. The exemption applies to the current tax year
if the official action was adopted before April 15 or to
the following tax year if adopted on or after April 15.
The exemption continues for only the four tax years
following that tax year. It does not apply to real
property, a car dealers inventory, a boat dealers
inventory, a heavy equipment dealers inventory or a
dealers manufactured housing inventory.
Proposed Effective: 1/1/2018, if constitutional
amendment is passed by Texas voters November 7,
2017.
Status: HJR 96 referred to House Ways & Means
3/20/17 and HB 2973 referred to House Ways &
Means 3/22/17.
NON-PROFIT MEDICAL CENTER PROPERTY IS
EXEMPT IN HARRIS COUNTY
HB 2999 Bonnen; SB 1809 Huffman
Amends 11.23
The bills add that in a county with a population of 3.3
million or more (Harris County), all real and personal
property owned by a nonprofit corporation organized
exclusively for benevolent, charitable and educational
purposes is exempt. The property uses add research
and auxiliary uses to support the organization, such as
invention, development and dissemination of
materials, tools, technologies, etc.
2017 Legislative Update; Page 20
Proposed Effective: 1/1/2018.
Status: HB 2999 left pending in House Ways &
Means 3/29/17. SB 1809 referred to Senate
Finance 3/23/17.
DISABLED VETERAN AND SURVIVING
SPOUSE GRANTED ADDITIONAL
PERCENTAGE HOMESTEAD EXEMPTION
HB 3002, HJR 97 Miller
Adds 11.134, 11.42, 11.43, 11.431, 26.1127, 31.031;
adds Tex. Const. Art. 8, Sec. 1-b(o)
The bill and constitutional amendment add a new
homestead exemption for a disabled veteran with a
disability rating of at least 80% but less than 100%.
The veteran receives the same percentage exemption
as the disabled veterans disability rating. The
surviving spouse receives that same percentage
homestead exemption if the spouse has not remarried
and the spouse resided in that home and continues to
reside in that home. The surviving spouse may
transfer the dollar amount of the exemption from that
home to a subsequent homestead if the surviving
spouse remains unmarried. The chief appraiser
provides a written certificate for the surviving spouse
to use to claim the exemption on the subsequent
homestead. The exemption applies on January 1 as if
the home qualified for the entire year.
Proposed Effective: 1/1/2018, if amendment is passed
by Texas voters November 7, 2017.
Status: HJR 97 referred to House Ways & Means
3/20/17. HB 3002 referred to House Ways &
Means 3/27/17.
USE REQUIREMENT DEFINED FOR TANGIBLE
PERSONAL PROPERTY MOVING IN AND OUT
OF TEXAS
HB 3103 Darby
Amends 11.01
The bill addresses tangible personal property used in
Texas and outside of Texas to determine its situs for
taxation. The property is considered to be used
continually in Texas, whether regularly or irregularly,
if the property is used in Texas three or more times on
regular routes or for three or more completed
assignments occurring in close succession throughout
the year. A series of events in close succession are if
they occur in sequence within a short period of
intervals from the beginning to the end of the year.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017.
Status: Referred to House Ways & Means 3/29/17.
CHIEF APPRAISER LIMITED IN REQUESTING
IDENTIFICATION FOR HOMESTEAD
EXEMPTION; TAX COLLECTOR SENDS
REFUND TO ADDRESS STATED BY OWNER
HB 3446 Yvonne Davis
Amends 11.43, 25.027, 26.15, 31.12
The bill provides that the chief appraiser may not
require an applicant for a homestead exemption to
provide any other identification, except current law on
drivers license or state ID, to determine homestead
address, unless the chief appraiser possesses
reasonable evidence that the address is not the
applicants homestead. A chief appraiser may not
require both spouses of a married couple to sign the
residence homestead exemption application. A chief
appraiser may not require proof of marriage. The chief
appraiser may not deny or cancel an exemption for an
expired state ID or because the individual has a
temporary license or limited term license. The bill
changes Section 25.027, which provides that the CAD
may not post on its website a property owners age or
information that the owner is 65 years of age or older,
to state that this age information does not apply to a
non-searchable appraisal or tax roll dataset available
for download only. For a refund on a residence
homestead, the owner may request that the tax
collector send the refund to a particular address. If no
written request is made, the tax collector sends the
refund to the owners most recent mailing address in
the records of the tax collector. See also Tax
Collections.
Proposed Effective: 9/1/2017.
Status: Filed.
SURVIVING SPOUSE OF TOTALLY DISABLED
VETERAN RECEIVES TOTAL HOMESTEAD
EXEMPTION
HB 3498, HJR 105 White
Amends 11.131; amends Tex. Const. Art. 8, Sec. 1-b
The bill removes the current requirement that the
residence homestead of the totally disabled veteran
was also the same homestead of the surviving spouse
on the date that the veteran died. The only
requirement is that the surviving spouse has not
remarried since the death of the disabled veteran.
2017 Legislative Update; Page 21
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: HJR 105 referred to House Ways & Means
3/20/17.
TAX LIMITATION APPLIES TO HOMESTEAD
RENDERED UNINHABITABLE BY NATURAL
DISASTER
HB 3584, HJR 108 Neave
Adds 11.262 and amends 23.19, 26.012; amends
Education Code 44.004; amends Government Code
403.302;
The bill and constitutional amendment add a tax
limitation on homesteads damaged in disaster area
declared by the governor following a natural disaster
and rendered uninhabitable or unusable. A taxing unit
may not increase during the limitation that takes effect
on January 1 of the first tax year following the disaster
and expires on January 1 of the earlier of first tax year
following fifth year after the disaster or the first tax
year that the homeowner or surviving spouse no
longer claims the limitation. The homeowner submits
a limitation application to the chief appraiser no later
than the first anniversary of the date the home was
rendered uninhabitable or unusable. The limitation is
the taxes imposed on the homestead in the tax year it
was rendered uninhabitable or unusable. The chief
appraiser certifies the taxable value loss for a school
district to the Comptroller. Current total value in
Truth-in-Taxation calculation excludes the total value
of homesteads that qualify for the tax limitation. The
school district notice of proposed budget and tax rate
includes a statement on the limitation.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: HJR 108 re-referred to House Ways &
Means 3/30/17. HB 3584 referred to House Ways
& Means 3/30/17.
INCOME APPROACH USED AND EXEMPTION
CHANGES MADE TO COMMUNITY LAND
TRUSTS
HB 3447 Rodriquez; SB 1931 West
Amends 11.182, 11.1827, 11.436, 23.21; amends
Local Government Code 373B.003
The bills revise the exemption qualifications for a
community land trust to remove the requirement to
meet the strict Tax Code Section 11.18 provisions for
exclusively used. The community land trust is
organized as a nonprofit corporation, a limited
partnership with a nonprofit corporation controlling
100% of the general partner interest or a limited
liability company with the nonprofit as the only
member. Once the governing body of a taxing unit
grants the exemption, the property continues to
receive the exemption until the governing body
rescinds by official action. In appraising for low-
income housing, the chief appraiser is directed to use
the income approach, taking into account the
limitation in computing actual rental income and
projecting future rental income and using the same
capitalization rate used to appraise other rent-
restricted properties. If the sale of a housing unit is
subject to an eligible land use restriction, the chief
appraiser may not appraise the housing unit in a tax
year that exceeds the price for which the housing unit
may be sold under the restriction for that tax year.
Eligible land use restriction is an agreement recorded
in the real property records, has a term of at least 40
years, restricts sales price that may be less than market
value and restricts sale of unit to a family meeting
income-eligibility standards.
Proposed Effective: 9/1/2017.
Status: SB 1931 referred to Senate
Intergovernmental Relations 3/27/17.
PEACE OFFICER IN HIGH CRIME AREA
GRANTED TOTAL HOMESTEAD EXEMPTION
HB 3908, HJR 115 D Bonnen
Adds 11.137; adds Tex. Const. Art. 9, Sec. 1-b(u)
The bill and constitutional amendment provide for a
total homestead exemption for a peace officer,
employed by Texas or by a political subdivision of
Texas, if the officers homestead is in a qualified high
crime area. Qualified crime area is a census tract in
the most recent decennial census that is one of the 100
census tracts in Texas with the highest per capita rate
of arrests made for offenses under Penal Code Title 5.
The Texas Department of Public Safety (DPS)
performs an analysis of crime statistics for the
preceding tax year to identify the 100 census tracts.
DPS publishes the list in the Texas Register. The
exemption would begin January 1, 2019.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: HJR 115 referred to House Ways & Means
3/20/17. HB 3908 referred to House Ways &
Means 3/29/17.
2017 Legislative Update; Page 22
LOWER-INCOME HOMEOWNER GRANTED
TAX LIMITATION IF HOME IS IN HOMESTEAD
PRESERVATION DISTRICT
HB 3920, HJR 116 Thierry
Adds 11.263 and amends 23.19, 26.012; amends
Education Code 44.004; amends Government Code
403.302; adds Tex. Const. Art. 8, Sec. 1-b(s)
The bill and constitutional amendment grant a tax
limitation to a lower-income person whose homestead
is in a homestead preservation district, as defined by
Local Government Code Section 373A.002. A lower-
income homeowner has a household income not
greater than 60% of the areas annual median family
income, adjusted for household size, for the metro
statistical area in which the homestead is located. The
governing body of a taxing unit by official action
adopts a limitation on the total annual taxes imposed
on a lower-income homeowner in a preservation
district. If adopted, the taxing unit may not increase
the total annual taxes on the homestead the greater of
(1) the taxes in the first tax year in which the
limitation was in effect and the lower-income
homeowner received the residence homestead
exemption or (2) the taxes plus taxes on any new
improvements to the homestead, other than normal
repairs or government requirements. An improvement
that is a replacement structure for one rendered
uninhabitable or unusable is not considered a new
improvement. If the tax limitation is erroneously
allowed, the positive difference in any tax is imposed
for each year and back taxes are due. The surviving
spouse of a qualified individual receives the tax
limitation if the homestead was and remains the
surviving spouses home. If a school district grants
the limitation, the chief appraiser determines the value
loss and certifies it to the Comptroller. The
Comptroller adjusts the Property Value Study for the
value loss. The TNT values do not include the total
value of the homesteads with a tax limitation for this
provision. The school notice of proposed budget and
tax rate includes a statement about this limitation.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: HJR 116 referred to House Ways & Means
3/20/17.
LEGISLATURE AUTHORIZED TO EXEMPT
PRECIOUS METALS FROM TAXATION
HJR 113 Capriglione
Adds Tex. Const. Art. 8 Sec. 1-p
The constitutional amendment would authorize the
Legislature to exempt bullion, special and precious
metals held by the Texas Bullion Depository from
taxation. Precious metals include gold, silver,
platinum, palladium and rhodium.
Proposed Effective: If voters approve constitutional
amendment November 7, 2017.
Status: HJR 113 referred to House Ways & Means
3/20/17.
FIRST RESPONDERS SURVIVING SPOUSE
HOMESTEAD EXEMPTED
SB 15 Huffines, SJR 1 Campbell; HB 570, HJR 86
Button; HB 2524, HJR 88 Fallon
Adds 11.134; amends 11.42, 11.43, 11.431, 26.10,
26.112; amends Government Code 403.302; adds
Tex. Const. Art. 8, Sec. 1-b(o) and (p)
These bills and constitutional provisions provide a
100% homestead exemption to the surviving spouse
of a first responder killed while on duty. The
exemption is transferrable in its dollar amount to a
new homestead. The exemption is effective if the
surviving spouse is an eligible survivor for purposes
of Government Code Chapter 615, as determined by
the Employees Retirement System, and has not
remarried since the death of the first responder. The
exemption applies regardless of the date of the first
responders death if the surviving spouse meets the
qualifications. A one-time application is required. The
application must be made within one year of
qualification to be timely for the first year. The
exemption applies for the whole first year but is
prorated off if property ceases to qualify. The
Comptroller adjusts the property values for school
districts for state aid adjustments to compensate
schools for the loss.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: SB 15, SJR 1 passed Senate, with one floor
amendment, and received in House 3/14/17. HB
570 referred to House Ways & Means 2/20/17.
HJR 86 referred to House Ways & Means 3/9/17.
HJR 88 referred to House Ways & Means 3/20/17
and HB 2524 3/23/17.
2017 Legislative Update; Page 23
FIRST RESPONDER RECEIVES ADDITIONAL
HOMESTEAD EXEMPTION
HB 3264, HJR 102 Anderson
Adds 11.136 and amends 11.13, 11.42, 11.43, 11.431,
26.10, 26.1125; amends Government Code 403.302;
adds Tex. Const. Art. 8, Sec. 1-b(q), (r), (s) and (t)
The bill and constitutional amendment provides for an
additional $10,000 homestead exemption by a taxing
unit to a first responder, if the residence homestead is
located in the political subdivision that employs the
first responder. If the first responder is employed by
the state, the exemption is granted regardless of the
location of the residence homestead. A disabled first
responder who sustained the injury during official
duties and the injury is a total disability resulting in
permanent incapacity that has been for more than 12
months has the total homestead value exempted. The
surviving spouse of the disabled first responder
continues the total exemption if the surviving spouse
has not remarried and surviving spouse lived in that
home and remains in that home. If the disabled first
responder is unmarried, any surviving children are
entitled to the exemption of the same property if one
or more are younger than 18 years of age and
unmarried and live in the home and continue living in
the home. A one-time application is required. The
application must be made within one year of
qualification to be timely for the first year. The
exemption applies for whole first year but is prorated
off if property ceases to qualify. The Comptroller
adjusts the property values for school districts for
state aid adjustments to compensate schools for the
loss.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: HJR 102 referred to House Ways & Means
3/20/17. HB 3264 referred to House Ways &
Means 3/28/17.
DISABLED VETERAN HOMESTEAD
EXEMPTION HAS LATE APPLICATION
SB 97 Hall
Amends 11.431; adds 11.4311
The bill authorizes the acceptance of the application
of a disabled veterans homestead exemption within
one year after the date the Veterans Administration
approves the veteran for 100% disability.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Finance 1/24/17.

LOCAL EXEMPTION BY CERTAIN TAXING
UNITS GRANTED IN DOLLAR AMOUNT, WITH
REDUCING OR REPEALING PERCENTAGE
HOMESTEAD EXEMPTION AND ADJUSTING
IN TRUTH-IN-TAXATION RATES
SB 418, SJR 29 Watson
Amends 11.13, 25.23, 26.012; amends Tex. Const.
Art. 8, Sec. 1-b
The bill and constitutional amendment provide that a
municipality or county that adopted a percentage
homestead exemption in 2014 may repeal that
exemption if it adopts a dollar amount of homestead
exemption of at least $5,000 by December 31, 2019.
The exemption is adopted before July 1. If the
average homestead appraised value in the unit
exceeds $25,000, based on the appraisal records, then
the governing body may authorize a larger dollar
amount not to exceed an amount equal to 20% of the
average homesteads value in the year that the
exemption is adopted. A homeowner who received
the percentage homestead exemption is entitled to
continue to receive that percentage exemption if it is
higher than the dollar amount exemption. This choice
ends when the homes ownership changes or there is
a change in the trustor or beneficiary of the trust if the
homestead is in a qualifying trust. The amount of the
dollar exemptions is excluded from the current total
value in the truth-in-taxation calculations.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: Referred to Senate Finance 2/1/17.
CHARITY THAT DOES TAX RETURNS EXEMPT
FROM PROPERTY TAXES
SB 1345 Watson
Amends 11.18
The bill exempts a charitable organizations property
used to provide tax return preparation and other
financial services without the beneficiaries ability to
pay.
Proposed Effective: 1/1/2018.
Status: Scheduled for hearing in Senate Finance
4/3/17.
TAX LIEN ON ERRONEOUS EXEMPTION
ADDED TO APPRAISAL ROLL IS NOT
ENFORCED AGAINST NEW OWNER
SB 1745, SJR 55 Hinojosa
2017 Legislative Update; Page 24
Amends 11.43; amends Tex. Const. Art. 8, Sec. 15
The bill and constitutional amendment provide that if
the chief appraiser adds property or appraised value
that was erroneously exempted in a prior year to the
appraisal roll, a tax lien may not be enforced against
the property for payment of taxes, penalties or interest
as a result of adding the property if at any time after
January 1 of that year the property was sold in an
arms length transaction to a person who was not
related to the seller within the first degree by blood or
marriage. See also Delinquent Tax Litigation.
Proposed Effective: 9/1/2017. Not contingent on
voter approval of constitutional amendment
November 7, 2017.
Status: SJR 55 referred to Senate Finance 3/21/17
and SB 1745 3/23/17.
COUNTY FAIRS ASSOCIATION EXEMPTION
CHANGED TO REFER TO TEXAS RACING ACT
SB 1969 Kolkhorst
Amends 11.23 and various sections of Occupations
Code Title 13
The bill changes the cite for the county fairs
association exemption from Article 179e, Vernons
Texas Civil Statutes to Subtitle A-1, Title 13,
Occupations Code, Texas Racing Act.
Proposed Effective: 4/1/2019.
Status: Referred to Senate Committee on
Administration 3/27/17.
PROCEDURES CHANGED FOR THE
POLLUTION CONTROL EXEMPTION
SB 2028 Rodriquez; HB 4219 Perez
Amends 11.31 and 11.43
The bill requires the Texas Commission on
Environmental Quality (TCEQ) to adopt by rule a list
of property that is used wholly as a facility, device or
method for controlling pollution. The TCEQ
executive director can use previously determined
property to compile the list. TCEQ reviews the list
every five years. The fact that a property is on the list
and TCEQ determined previously it was pollution
control property does not preclude the chief appraiser
from cancelling the exemption if the chief appraiser
determines the property is no longer installed or no
longer used. An exemption expires at the end of five
years. To continue to receive the exemption, the
person must file a new permit application or
exemption request with TCEQ executive director and
a new application with the chief appraiser by
September 1 in the year the exemption expires.
Exemptions granted before 1998 tax year expire the
end of 2018 tax year unless the person uses the
renewal process. Exemptions granted before 2003 but
not before 1998 expire at the end of 2019 tax year.
Exemptions granted before 2009 but not before 2003
expire at the end of the 2020 tax year. Exemptions
granted before 2011 but not before 2009 expire at the
end of the 2021 tax year. Exemptions granted before
2018 but not before 2011 expires at the end of the
2022 tax year. The exception for these expirations is
that the property is on the TCEQ list of properties. The
pollution control exemption returns to being an
annual application process.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Referred to Senate Finance 3/27/17.
FREEPORT PROPERTY EXEMPTION
EXTENDED TO FULL YEAR AND OTHER
CHANGES
SB 2043 Bettencourt
Amends 11.251
The bill extends the current exemption for freeport
property from 175 days to 365 days to be transported
out of Texas. No SJR was filed for the constitutional
amendment.
Proposed Effective: 1/1/2018, if approve the
constitutional amendment. No SJR filed to call for
amendment at election November 7, 2017.
Status: Referred to Senate Finance 3/28/17.
Special Valuation
UNCOMMON AGRICULTURAL USES ADDED
FOR OPEN-SPACE LAND APPRAISAL ON
SMALL LAND TRACTS
HB 231 Rodriguez; similar SB 700 Zaffirini
Adds 23.5215; amends 23.51
These bills add guidelines for uncommon agricultural
uses, particularly for small-scale producers on land
under 10 acres. In consultation with the Texas A&M
AgriLife Extension Service, appraisal districts and
producers, the Comptroller shall develop these
guidelines and may consider financial investment,
2017 Legislative Update; Page 25
degree of active management and percentage of land
tract used for ag uses. The chief appraiser shall
distinguish between the degree of intensity required
for various agricultural methods, including organic,
sustainable, pastured poultry, rotational grazing and
other uncommon methods. Producing fruits and
vegetables is added to the definition of agricultural
use. Land under 10 acres that qualified under these
guidelines may not subsequently qualify for wildlife
management use.
Proposed Effective: 9/1/2017, and applies to appraisal
of land for 2019 tax year and after.
Status: SB 700 referred to Senate Finance 2/15/17.
HB 231 referred to House Agriculture & Livestock
2/21/17.
OPEN SPACE AG ROLLBACK SHORTENED TO
TWO YEARS
HB 320 Canales
Amends 23.55
The bill changes the length of the rollback of taxes for
changing land from agricultural use from the
preceding five years to the preceding two years.
Proposed Effective: 9/1/2017.
Status: Scheduled for hearing in House
Agriculture and Livestock 3/22/17 but not heard.
WILDLIFE MANAGEMENT VALUE IS AT
NATIVE PASTURE CATEGORY, WITH NO
REQUIREMENT FOR PRIOR YEAR OPEN-
SPACE LAND QUALIFICATION
HB 643 Phillips
Amends 23.51, 23.52
The bill changes the definition of wildlife
management to remove the requirement that the land
was qualified open-space land or qualified timber
land at the time it was changed to wildlife
management. The wildlife management value is
based on the native pasture category value.
Proposed Effective: 1/1/2018.
Status: Referred to House Ways & Means 2/22/17.
OPEN-SPACE AG ROLLBACK TAX REPEALED
HB 801 Murphy; HB 1880 Hefner
Repeals 23.55; amends 1.07, 23.20, 23.52, 23.551,
23.58, 31.01, 41.41, 41.44; amends Agriculture Code
60.022; amends Property Code 21.0421
These bills repeal the rollback tax assessed when a
landowner changes the agricultural use of qualified
open-space land to a nonagricultural use.
Proposed Effective: 9/1/2017.
Status: HB 801 referred to House Agriculture &
Livestock 2/21/17. HB 1880 referred to House
Agriculture & Livestock 3/13/17.
OPEN-SPACE AG AND TIMBER ROLLBACK
TAX REPEALED
HB 1662, HJR 68 Phelan
Repeals 23.46, 23.55, 23.76, 23.9807; amends 1.07,
23.20, 23.47, 23.52, 23.551, 23.58, 23.73, 31.01,
41.41, 41.44; amends Agriculture Code 60.022;
amends Property Code 21.0421; repeals Art. 8,
Section 1-d(f)
The bill repeals the rollback tax assessed when a
landowner changes the agricultural use of qualified
open-space land to a nonagricultural use or changes
land qualified for timberland appraisal to a non-
qualifying use.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017. If not,
then all the changes apply 1/1/2018, except the old ag-
use rollback tax in Section 23.46 remains.
Status: Referred to House Ways & Means 3/22/17.
INTEREST RATE LOWERED FOR AG
ROLLBACK TAX BILL
HB 1211 Phillips
Amends 23.55
The bill lowers the interest rate imposed on a rollback
tax bill for changing land to a non-agricultural use
from 7% to 5%.
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 2/22/17.
OWNER OF HEAVY EQUIPMENT INVENTORY
GETS 10 EXTRA DAYS TO PREPAY TAX
HB 1346 Button; SB 711 Taylor
Amends 23.1242
The bills give the owner/dealer of heavy equipment
inventory 20 days after the first of each month to file
the required form and prepay the inventory tax.
Current law requires the owner/dealer to file and pay
by the 10th day of the month.
Proposed Effective: 9/1/2017.
2017 Legislative Update; Page 26
Status: SB 711 left pending in Senate Finance
3/27/17. HB 1346 reported from House Ways &
Means 3/20/17 and recommended for House
Local/Consent Calendar.
PREDATOR CONTROL MANAGEMENT ADDED
FOR WILDLIFE MANAGEMENT USE
HB 1471 Murr; SB 1209 Uresti
Amends 23.51, 23.521
These bills add predator control activities on an
owners land as a qualifying wildlife management
use. The landowner must be a member in good
standing of the local predation management
organization, current on membership dues and allow
the organization or Texas Wildlife Services
reasonable access to the land to conduct predation
management activities. The local predation
management organization must expend at least 70
percent of its annual budget conducting these
activities or contributing to the Texas Wildlife
Services. The Texas Parks and Wildlife Department,
with assistance from the Texas A&M AgriLife
Extension Service, shall develop what those activities
include and a membership form with certification by
the local organization. The landowner presents the
membership form to the CAD to prove membership.
The Comptroller by rule adopts the membership form
and distributes to CADs.
Proposed Effective: 9/1/2017.
Status: SB 1209 referred to Senate Finance 3/9/17.
HB 1471 referred to House Ways & Means
3/20/17.
STATE AGRICULTURAL AND TIMBER
ADVISORY COMMITTEES ABOLISHED
HB 1712 Shaheen
Amends 23.52(d) and 23.73(b)
The substitute bill abolishes numerous advisory
committees for various state laws, including the state
committees for the approval of the manuals for
agricultural land and timber land valuation. The
Comptroller seeks the review and counsel of the
Texas Department of Agriculture before approving a
rule change to the agricultural land manual. The
Comptroller seeks the review and counsel of the
Texas A&M Forest Service before approving a rule
change to the timber land manual.
Proposed Effective: 9/1/2017.
Status: Substitute reported from House
Government Transparency & Operations 3/23/17
and sent to House Calendars 3/24/17.
HEAVY EQUIPMENT INVENTORY DEFINITION
AND PROCEDURES CHANGED
HB 2560 King
Repeals 21.1241(b-1) and amends 23.1241, 23.1242
The bill revises the inventory tax provision for heavy
equipment dealers. The definition of heavy
equipment inventory is to be inventory held for sale at
retail, including leased or rented but subject to a
purchase option by the lessee or renter. The sales
price for a leased or rented item with option to
purchase is the total amount of the lease or rental
payments plus any final consideration, excluding
interest. A sale is considered to have occurred when
possession of an item of heavy equipment is
transferred from the dealer to the purchaser. The bill
removes language and provisions about a leased or
rented item only (no option to purchase), including a
line item for the inventory tax on the invoice of a
rental item and the repeal of Section 23.1241(b-1).
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 3/27/17.
RETAL INVENTORY APPRAISED BASED ON
PAST YEARS AVERAGE MONTHLY SALES
HB 2589 Button
Adds 23.1244 and amends 23.12,
The bill adds retail inventory to the special inventory
appraisal process, excluding those that render their
retail inventory. Retail inventory is all tangible
personal property that the retailer holds for sale during
a 12-month period and which is not tax exempt. Sales
price of the inventory is what the retailer paid for the
purchase of the inventory. The inventorys market
value on January 1 is the total annual sales, less
inventory shrinkage, sales at wholesale and sales to
retailers, for the preceding tax year 12-month period,
divided by 12. For the nine-year period of January 1,
2018 to December 31, 2026, the market value is the
greater of the average monthly sales from the
preceding year or the following percentages, based on
the regular inventory appraisal under Section 23.12:
90% for 2018, 80% for 2019, 70% for 2020, 60% for
2021, 50% for 2022, 40% for 2023, 30% for 2024,
20% for 2025, 10% for 2026. The chief appraiser shall
estimate the retailers inventory market value if not a
2017 Legislative Update; Page 27
retailer on January 1. The Comptroller develops a
declaration form to be filed by the retailer by April 15
annually, or within 30 days of business
commencement. There is no pre-payment of VIT
taxes to the county tax assessor-collector.
Proposed Effective: 1/1/2018.
Status: Referred to House Ways & Means 3/27/17.
FAMILY TRANSFER OF QUALIFIED AG VALUE
LAND DOES NOT REQUIRE A NEW AG
APPLICATION; ARB CORRECTS LAND NOT
GRANTED AG VALUE IN PAST YEAR
HB 3137 Hefner; similar to HB 3928 Schaefer
Amends 23.54, 25.25
The bills add that a person is not required to file a new
agricultural valuation application because of an
ownership change in qualified land if the former
owner and new owner are related within the second
degree by marriage or third degree by blood. The new
owner must notify the appraisal office of the
ownership transfer in writing within 180 days of the
transfer date. The ARB may correct the appraisal
record for qualified land in either of the two preceding
tax years if the chief appraiser or property owner
demonstrates by clear and convincing evidence that
the land was appraised for three of the five preceding
tax years as qualified agricultural land, the land was
determined ineligible for ag value because the owner
failed to file a new application after ownership
change, the change of ownership was to a relative
within the second degree by marriage or third degree
by blood and the land continued to be used for ag
during that year. If the ARB approves the correction,
the owner pays 10% penalty in the difference of taxes.
The ARB may not change the record if the land was
subject to a protest by the owner for which a formal
hearing was held or the appraised value was
established by a written agreement with CAD.
Proposed Effective: 1/1/2018.
Status: HB 3137 referred to House Ways & Means
3/29/17.
AG ROLLBACK TAX DOES NOT APPLY TO
CHANGE FOR OIL AND GAS LEASE
HB 3198 Darby
Amends 23.55
The bill adds that the rollback tax for change of use
for qualified agricultural land does not apply to land
changed as a result of a lessee conducting oil and gas
operations under a lease for which the Texas Railroad
Commission has jurisdiction.
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 3/30/17.
HEAVY EQUIPMENT DEALER USES AVERAGE
MONTHLY SUM OF MARKET VALUE OF
ITEMS FOR VALUE AND TO PREPAY TAXES
HB 3466 King
Amends 23.1241, 23.1242, 41.44, 41.47, 42.01;
repeals 23.1243
The bill changes the inventory appraisal of a heavy
equipment dealer to use the market value of all
inventory based on the last day of each month of the
preceding year and dividing by 12. The market value
of an item of heavy equipment that was in the
inventory for only a portion of the month is
determined by multiplying the market value of the
item by a fraction, the numerator is the number of
days the item was part of the inventory and the
denominator is the number of days in the month. For
a dealer who began after January 1 of the preceding
year, the sum is divided by the number of months in
the preceding year that the person was a dealer. The
bill adds that the dealer files in the appraisal district in
which the heavy equipment inventory has situs. If the
chief appraiser determines that the values as reported
by the dealer are inaccurate, the chief appraiser
appraises the heavy equipment, places the value on
the appraisal roll and gives notice for which the owner
may protest to the ARB. For the monthly prepayment,
the owner assigns a unit property tax to each item of
the dealers heavy equipment that is in the inventory
on the last day of the preceding month. The unit
property tax is based on the equipments market
value. The owner may not withdraw funds from the
escrow account (current exception in law is removed).
Proposed Effective: 1/1/2018.
Status: Filed.
LEASED OR RENTED EQUIPMENT REMOVED
FROM THE SPECIAL INVENTORY PROVISIONS
FOR HEAVY EQUIPMENT DEALERS
HB 3850 Zerwas
Amends 23.1241; amends various other Codes with
state fiscal matters
The bill removes leasing and renting heavy equipment
from the special inventory provisions for heavy
equipment dealers. A heavy equipment dealer is one
2017 Legislative Update; Page 28
who sells heavy equipment, including items that are
for purchase pursuant to a lease with option to
purchase. Sales price is the total amount paid during
the tax year in which the purchase occurs plus any
final consideration paid or to be paid to the dealer for
the purchase, excluding interest. An item of heavy
equipment is not considered to be in a dealers
inventory if the item was included on the dealers
heavy equipment inventory on January 1 of the
preceding tax year and was not sold by the dealer in
that tax year and for 30 days or more during the
preceding tax year the item was either leased or rented
by the dealer to one or more other persons or used not
related to demonstrating or testing the equipment for
sale, lease or rent.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Referred to House Appropriations 3/30/17.
QUALIFIED CITRUS PRODUCING LAND
CONTINUES TO RECEIVE AG PRODUCTIVITY
VALUE WHEN PEST CONTROL
MANAGEMENT IS REQUIRED
HB 3013 Martinez; SB 1459 Hinojosa
Adds 23.524
The bills provide for temporary cessation of
agricultural use to manage the spread of certain pests.
Qualified agricultural land does not end because the
land ceases to be devoted principally to ag use to the
degree of intensity generally accepted if the land is in
a pest management zone and appraised primarily for
producing citrus. The owner has an agreement to
destroy, remove or treat all citrus trees located on the
land and infested with pests. The agreement, per
Agriculture Code Section 80.003, is with the Texas
Citrus Pest and Disease Management Corporation, the
Agriculture Commissioner or the U. S. Department of
Agriculture. The temporary cessation is for five years.
The owner is required to notify the chief appraiser in
writing within 30 days of the agreement about the
temporary cessation and include a copy of the
agreement. A change of use occurs if the owner does
not fully comply with the terms of the agreement.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: SB 1459 referred to Senate Agriculture,
Water & Rural Affairs 3/20/17, reported
favorably 3/27/17 and recommended for
Local/Uncontested Calendar 3/29/17. HB 3013
referred to House Agriculture and Livestock
3/27/17.
LAND DEFINED FOR TIMBER APPRAISAL
HB 3975 Ashby
Amends 23.72
The bill adds to the timberland appraisal provision the
definition that land include roads, rights-of-way,
buffer areas, fire breaks, property taken from eminent
domain and other real property associated with
producing timber or forest products.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Filed.
MEMBER IN MILITARY SERVICE DOES NOT
LOSE AG VALUE DUE TO CESSATION OF AG
ACTIVITY DURING SERVICE OUT-OF-STATE
SB 175 Nichols; HB 777 Ashby
Adds 23.253
These bills address a member of the armed services
who is deployed out-of-state and who has land that
qualifies for productivity valuation. The service
member notifies the chief appraiser within 30 days of
receiving the notice of deployment that the member
intends to resume ag production to the requisite
degree of intensity within 180 days of returning to
Texas. The lands productivity value may not be
removed due to cessation of agricultural activity.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017.
Status: SB 175 referred to Senate Finance 1/25/17.
HB 777 reported from House Ways & Means
3/20/17 and recommended for House
Local/Consent Calendar.
AG-USE QUALIFICATONS ADDED FOR U. S.
VETERAN OR A YOUNG FARMER/RANCHER
SB 330 Rodriguez; HB 950 Rodriguez
Amends 23.51
These bills provide that land qualifies for open-space
land appraisal if currently devoted principally to
degree of intensity generally accepted in the area, was
devoted to agricultural use or timber production in the
preceding year and is owned or managed by a veteran
of the U. S. armed services or by an individual who
was less than 35 years of age and had not served as
the principal operator of a farm or ranch for any
2017 Legislative Update; Page 29
period of more than 10 consecutive years. The Senate
floor amendment to SB 330 removes managed by a
veteran, so the veteran owns the land.
Proposed Effective: 1/1/2018.
Status: SB 330, with one floor amendment, passed
Senate 3/29/17 and received in House 3/30/17. HB
950 left pending in House Agriculture & Livestock
3/22/17.
STATE LEADERS REMOVED FROM
APPROVAL OF COMPTROLLERS AG AND
TIMBER MANUALS
SB 594 Creighton; HB 1299 Springer
Amends 23.52 and 23.73
These bills remove the five-member state committee
of Governor, Comptroller, Attorney General,
Agriculture Commissioner and General Land Office
Commissioner to approve the Comptrollers rule on
the manuals for the appraisal of open-space land (ag)
and of timber land. The bill requires the Comptroller,
with the review and counsel of the Department of
Agriculture, to approve the rules for these two
manuals.
Proposed Effective: 1/1/2018.
Status: SB 594 passed Senate 3/27/17 and received
in House 3/28/17. HB 1299 referred to House
Ways & Means 3/21/17.
NO INTEREST ADDED TO AG ROLLBACK BILL
SB 629 Schwertner; HB 2314 Murphy
Amends 23.46, 23.47, 23.55, 23.58
The bills remove the interest added to an agricultural
rollback tax bill, for land qualified under 1-d and 1-d-
1. Current law has an annual 7% interest rate
calculated for each year on the ag rollback bill for 1-
d-1. For an ag rollback tax bill that goes delinquent,
penalty and interest is added.
Proposed Effective: 9/1/2017.
Status: SB 629 passed Senate 3/27/17 and received
in House 3/28/17. HB 2314 referred to House
Ways & Means 3/22/17.
LAND USED AS ECO-LAB MUST HAVE
QUALIFED IN 2017 TO CONTINUE THAT
APPRAISAL
SB 1006 Nichols
Amends 23.51
The bill adds that land used principally as an eco-lab
by a public or private university does not qualify for
appraisal as open-space land unless the land was
appraised as open-space land for that use for the 2017
tax year.
Proposed Effective: 1/1/2018.
Status: Left pending in Senate Finance 3/27/17.
QUALIFIED AG LAND IN SMALLER COUNTY
HAS NO ROLLBACK TAX FOR CHANGE OF
USE
SB 1379 Zaffirini
Amends 23.55
The bill removes the agricultural rollback tax for a
change of use for land qualified for productivity
appraisal in a county with a population of less than
25,000.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Finance 3/16/17.
OIL AND GAS PRODUCTION DOES NOT END
AG VALUATION
SB 1514, SJR 51 Estes
Adds 23.524; amends Tex. Const. Art. 8, Sec. 1-d-1
The bill adds that the eligibility of land for agricultural
productivity appraisal does not end because a lessee
begins conducting oil and gas operations under a lease
for which the Texas Railroad Commission has
jurisdiction.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: Referred to Senate Finance 3/20/17.
OLD 1-D AG ROLLBACK TAXES FOR
CONDEMNATION BECOME OBLIGATION OF
CONDEMNING ENTITY
SB 1979 Schwertner
Amends 23.46
The bill adds to the provisions of the old 1-d ag use
that the rollback taxes due because land was diverted
to a nonagricultural use as a result of condemnation
are the personal obligation of the condemning entity
and not the property owner from whom the property
was taken.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Finance 3/27/17.
2017 Legislative Update; Page 30
Appraisal Review Board (ARB)
SPECIALIZED ARB PANELS REQUIRED IN
LARGE DISTRICTS
The Property Tax Reform and Relief Act of 2017
SB 2 Bettencourt; similar HB 934 Zerwas
Adds 6.425; amends 6.41, 6.414, 6.42, 25.22, 41.03,
41.11, 41.12, 41.44, 41.45, 41.66, 41.71
Submission of Records
SB 2 provides that the chief appraiser shall submit the
appraisal records to the ARB for review by May 1,
instead of May 15, or as soon thereafter as practicable.
ARB Panels
The appraisal district board of directors in a county
with a population of 120,000 or more shall increase
the size of the ARB to manage duties and to provide
for specialized panels for complex properties. Four
such panels, consisting of three members appointed
by the ARB chair, are commercial, utilities, industrial
and multi-family. The ARB chair may create more
than one special panel for each category. In selecting
individuals, the local administrative district judge
shall select an adequate number of qualified
individuals to permit the ARB chair to fill the special
panel positions. To be eligible to serve on these
panels, a person must hold a law degree, an MBA, be
a certified public accountant, a senior appraiser
certified by ASA, an MAI, hold a CAE, have 20-plus
years of experience in property tax appraisal or
consulting or be licensed as a real estate broker or
sales agent under Occupations Code Chapter 1101. If
an insufficient number of members possess these
qualifications, the ARB chair may appoint a member
with a bachelors degree in any field.
A property owner in the specialized category may
request that the protest be heard by the specialized
property panel for that property category. If multiple
panels exist and the protest is moved to another
specialized panel, the property owner may consent to
be heard the same day or may request a postponement.
(This is the same for non-specialized property
hearings.)
The concurrence of the majority of a panel or of the
ARB is sufficient to decide a matter and a greater
majority may not be required.
Taxing Unit Challenge
SB 2 provides that taxing units may no longer
challenge the level of appraisals in a category or a
territory before the ARB. Other grounds for challenge
remain.
ARB deadline to Approve Appraisal Records Earlier
SB 2 sets out the ARB shall substantially complete
hearings and approve the appraisal records by July 5,
instead of July 20.
Protest Deadline May 15
SB 2 substitute changes the protest deadline to not
later than the later date of May 15, instead of May 1,
for all protests or the 30th day after the date the chief
appraiser delivers the 25.19 notice to property owner.
Protest Form for Specialized Properties
The protest form for properties in the commercial,
utility, industrial and multifamily categories must
permit the owner to request a hearing before a
specialized panel. If the owner fails to request a
specialized panel, any panel may hear the protest of
that owner.
Disapproved Panel Recommendations
If the whole ARB disapproves a recommendation by
a specialized panel for commercial, utility, industrial
or multifamily properties, the whole ARB shall
conduct the rehearing. If the ARB disapproves the
recommendation for any other panel, the ARB must
still provide a hearing before another panel. Notices
of the rehearing are still required.
Weekend and Evening Hearings
SB 2 provides that the ARB may schedule weekend
hearings on a Saturday, but not a Sunday. Evening
hearings may be scheduled after 5 p.m. on the
weekday, but the first hearing for that evening may
not be scheduled to begin after 7 p.m.
For more analysis of these bills, see also Appraisal
District Administration, Appraisal, Exemption,
Appraisal Review Board, Appraisal District
Litigation, Assessment and Truth in Taxation
Sections.
Proposed Effective: 1/1/2018 for the concurrence of a
majority of panel or board, barring of taxing unit
challenges regarding levels of value and all other
matters. 1/1/2019 for appointment of specialized
panel members by the district judge, creation of
2017 Legislative Update; Page 31
specialized panels, inclusion of the right to request a
specialized panel in the 25.19 notice and all other
provisions with specialized panels.
Status: SB 2 substitute, with four floor
amendments, passed Senate 3/21/17, and received
in House 3/22/17. HB 934 referred to House Ways
& Means 2/21/17.
TAXING UNIT CHALLENGE LIMITED
SB 1906 Bettencourt
Amends
The bill provides that taxing units may no longer
challenge the level of appraisals in a category or a
territory before the ARB. Other grounds for
challenges remain. This is also in SB 2 above.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Referred to Senate Finance 3/23/17.
ARB SELECTS ITS CHAIRMAN AND
SECRETARY
SB 1907 Bettencourt
Amends 6.42
The bill returns the authority of selecting the ARB
officers of chairman and secretary to the ARB rather
than the CAD board of directors.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Finance 3/23/17.
NOTICE OF PROTEST HEARING DELIVERED
BY CERTIFIED MAIL IF REQUESTED
HB 139 Bell
Amends 41.46
The bill requires that the ARB deliver the notice of
hearing for protests filed under Section 41.44 by
certified mail if the owner requests such notice with
the protest. The ARB may provide that the property
owner pay the costs of postage.
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 2/13/17.
PROPERTY OWNER HEARD BY TELEPHONE
AT ARB HEARING
HB 455 Metcalf
Amends 41.45
The substitute bill authorizes a property owner who
gives advance notice at least 10 days before the ARB
hearing or in the protest to appear by telephone
conference call to offer argument. Or, the ARB
proposes that the hearing be conducted by telephone
conference call and the property owner agrees.
Evidence must be submitted in advance by affidavit.
The ARB shall provide a telephone number for the
owner to call to participate in the hearing and hold the
hearing in a location equipped with telephone
equipment that allows each ARB member and other
parties to hear the owners argument. The owner may
still appear in person. If the owner doesnt show, the
evidence in the affidavit is to be submitted as
appearance.
Proposed Effective: 9/1/2017.
Status: Substitute reported favorably from House
Ways & Means 3/27/17 and recommend for House
Local & Consent Calendar.
FIVE ARB MEMBERS ELECTED BY COUNTY
VOTERS
HB 566 Keough
Adds 6.4010; amends 5.103, 6.41, 6.411, 6.413,
6.414, 6.42, 41.66; repeals various subsections of Tax
Code; amends Election Code 52.092
The bill provides that county voters shall elect five
ARB members at the general election for state and
county officers. The application and filing fee of $250
is filed with the county judge to be listed on the ballot
as an independent candidate. The elected ARB
members shall serve two-year terms that begin on
January 1 of odd-numbered years. The county
commissioners shall appoint a person to fill a vacancy
on the ARB. Grounds for removal are the same as
current law, plus adding the removal for failure to
compete the Comptrollers training course. The bill
removes the application for ARB membership from
the Comptrollers model guidelines. The elected ARB
members may appoint auxiliary ARB members to
one-year terms. Auxiliary ARB members may not
serve more than two consecutive terms. The ARB
selects its chair and secretary.
Proposed Effective: 1/1/2019, with some changes
effective 9/1/2018 and first election in November
2018.
Status: Referred to House Ways & Means 2/20/17.
PROPERTY OWNER SENDS LESSEE COPY OF
NOTICE OF APPRAISED VALUE
HB 804 Dale
Amends 41.413
2017 Legislative Update; Page 32
The bill requires an owner to send the person leasing
the owners property under contract a copy of the
notice of appraised value. The owner must send the
notice not later than the 10th day after receiving it. A
lessee who is entitled to protest before the ARB may
file a protest not later than 30 days after the protest
deadline if the property owner did not send a copy of
the notice.
Proposed Effective: 9/1/2017.
Status: Left pending in House Ways & Means
3/15/17. A substitute bill is being drafted.
LOCAL ADMINISTRATIVE JUDGE APPOINTS
ARB MEMBERS IN FEWER COUNTIES
HB 1582 Tracy King
Amends 6.41
The bill increases the county population from 120,000
to 350,000 where the administrative law judge
appoints the ARB members.
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 3/9/17.
ARB CORRECTION REQUIRED IF HOME SELLS
FOR LESS THAN APPRAISED VALUE
HB 1660 Phelan; SB 987 Buckingham
Amends 25.25
These bills add that on the motion of a property owner
or chief appraiser, the ARB may direct that a
homestead value be reduced for the current tax year
and either of the two preceding tax years to the sales
price of the homestead in the current tax year. The
value change applies to a property that qualifies as the
owners residence homestead, the sales price is at
least 10 percent less than the propertys appraised
value and the ARB finds that the sales price reflects
the propertys market value.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017.
Status: HB 1660 referred to House Ways & Means
3/6/17. SB 987 referred to Senate Finance 3/6/17.
ARB MAY CORRECT APPROVED VALUE FOR
ERROR OR INACCURACY ON BUSINESS
PROPERTY RENDITION/REPORT
HB 2906 Raymond; similar SB 1847 Bettencourt
Amends 25.25
The bills add to correcting appraisal records to
provide that the ARB, on motion of a property owner,
may order changes in the approved appraisal records
for the current tax year and for the two preceding tax
years to correct an inaccuracy in personal propertys
appraised value. SB 1847 has the motion from the
chief appraiser or the property owner. The correction
is to correct an error or omission in the rendition
statement or property report filed by the owner. The
ARB may not change the propertys value if the
owner failed to timely file the rendition or property
report and was assessed the filing penalty; the ARB
held a hearing and issued a determination on the
property from a timely filed protest; or the propertys
value was the result of a written agreement between
the owner or owners agent and the CAD. SB 1847
also adds that no correction if the property was the
subject of a previous correction on motion of the
property owner.
Proposed Effective: 9/1/2017.
Status: HB 2906 referred to House Ways & Means
3/22/17. SB 1847 referred to Senate Finance
3/23/17.
ARB MAY CORRECT APPROVED RECORD FOR
ERROR IN PROPERTYS SQUARE FOOTAGE
HB 2946 Sanford
Amends 25.25
The bill adds to the list of items that the ARB may
correct in the approved appraisal records to include an
error in the square footage of a property described in
the appraisal roll.
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 3/23/17.
ARB REQUIREMENTS AND PROTEST
PROCEDURES CHANGES; OFFICE OF LOCAL
PROPERTY TAX OMBUDSMAN CREATED
HB 3168 Geren
Designates Secs. 5.03 through 5.16 as Subchapter A
and adds Subchapter B to Ch. 5, adds 6.425; amends
5.041, 6.41, 6.412, 6.42, 25.19, 25.25(d), 41.03,
41.11, 41.44, 41.45, 41.66, 41.71, 41A.01, 41A.03,
41A.06, 42.01, 42.21, 42.29
ARB Education
This bill requires the Comptroller to consult with
property owners, tax agents and chief appraisers in
drafting the ARB Manual and adds requirements
regarding content of ARB education. Further, it
2017 Legislative Update; Page 33
requires the ARB to comply with procedural
requirements in the ARB Manual.
Local Property Tax Ombudsman
This bill creates the Office of Local Property Tax
Ombudsman (LPTO) in the Comptrollers office. The
LPTOs duty is to hear complaints involving alleged
violations of procedural requirements regarding
activities of an appraisal district, ARB, chief appraiser
or an ARB member. The bill sets forth the LPTOs
qualifications, duties and procedural requirements.
ARB Selection and Operation
The bill changes the minimum population threshold
whereby the administrative district judge is required
to appoint ARB members from 120,000 to 75,000. It
changes the population requirement from 100,000 to
120,000 regarding the eligibility to serve on an ARB
found in Section 6.412 and disallows service if the
person has served all or part of three previous terms;
requires the ARB rather than the appraisal district
board to select the ARB chair and secretary; requires
the Comptroller to determine and pay ARB members
a per diem, from funds assessed to the CAD;
establishes a special ARB panel, with specific
qualifications of those on the panel, to hear five types
of complex appraisal protests.
Appraisal Notices
The date of mailing all appraisal notices changes to
April 1, or a soon thereafter as practicable. The chief
appraiser in a county of 120,000 or more includes on
the appraisal notice if the property is one of the five
types of complex properties eligible for review by the
special ARB panel.
Protests and Challenges
The bill clarifies a property owners ability to file a
25.25(d) motion regarding unequal appraisal in
addition to excessive appraisal; removes a taxing
units ability to challenge the level of appraisals of
any category of property in the CAD; changes the
protest deadline from May 1 to before June 1; requires
an ARB to provide for hearings on Saturdays and after
5 p.m. on weekdays and prohibits a first hearing on a
weekday after 7 p.m. or on Sundays.
Binding Arbitration
The bill allows for a property owner to request
binding arbitration on a denial of a 25.25 motion and
extends the deadline to file from 45 to 60 days. For
the arbitration of non-residential homestead property
valued at more than $3,000,000 but less than
$5,000,000, the arbitration fee is $1,250.
CAD Litigation
The bill allows for the appeal of an ARB
determination on a procedural issue involving Section
25.25 of a Chapter 41 protest. The property owner
recovers attorneys fees if the owner prevails on the
merits of appealing the procedural issue.
See also CAD Administration and Appraisal District
Litigation.
Proposed Effective: 1/1/2018, with some sections
effective 9/1/2018.
Status: Referred to House Ways & Means 3/30/17.
UNEQUAL APPRAISAL WAIVED FOR
PROPERTY WITH TAX ABATEMENT
OR SUBJECT TO TAX RECAPTURE
HB 3230 Phelan
Amends 312.205, 313.027
The bill provides that a Chapter 312 tax abatement
agreement or Chapter 313 agreement include either a
waiver of the owners right to protest before the ARB
and to contest in court the unequal appraisal of the
property subject to the agreement or provisions to
recapture all or part of the property tax revenue abated
that does not attain a value specified in the agreement
for the year covered, along with paying penalty or
interest, or both, on the recaptured taxes. See also
Special & Miscellaneous Section.
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 3/30/17.
CAD HAS BURDEN TO PROVE VALUE WHEN
OWNER PROVIDES FEE APPRAISAL
HB 3758 Bell
Amends 41.43
The bill removes the restriction to a property with a
market or appraised value of $1 million or less from
Section 41.43(a-1). This section places the burden of
establishing the value by clear and convincing
evidence at the ARB hearing when the property owner
has provided a copy of a property appraisal performed
by a fee appraiser not later than 14 days before the
hearing. The change would allow any property owner
to do this for any value of property.
Proposed Effective: 9/1/2017.
Status: Filed.
2017 Legislative Update; Page 34
ARB SHOWS CLEAR AND CONVINCING
EVIDENCE THAT REQUIRED ARB NOTICE
WAS DELIVERED
HB 3760 Bell
Amends 41.411
The bill adds that a rebuttable presumption for a
failure to deliver a required notice by the ARB exists
if the owner alleges that the owner did not receive the
notice. The ARB may rebut the presumption by
presenting clear and convincing evidence that the
notice was sent to the owner at the correct address.
Clear and convincing evidence is defined as the
measure or degree of proof that will produce in the
mind of the trier of fact a firm belief or conviction as
to the truth of the allegations sought to be established.
Proposed Effective: 9/1/2017.
Status: Filed.
PROPERTY OWNER MAY ELECT WHEN TO
PRESENT EVIDENCE AT THE ARB HEARING
HB 3774 Darby, SB 1767 Buckingham
Amends 25.25, 41.47, 41.66
The bill adds that the property owner may elect to
present the owners evidence and argument at the
ARB hearing before, after or between cases presented
by the chief appraiser and each taxing unit (for a
challenge hearing). The ARBs hearing procedures
should state that the property owner may elect to
present the owners case at the ARB hearing before or
after the CAD presents the CADs case. The ARB
may not determine the propertys appraised value at
an ARB hearing to be greater than the appraised value
submitted by the chief appraiser, unless agreed to by
the parties to the protest.
Proposed Effective: 1/1/2018.
Status: SB 1767 scheduled for hearing in Senate
Finance 4/3/17.
CAD REQUIRED TO PRESENT CERTAIN
EVIDENCE FOR TWO YEARS DURING A
PROTEST HEARING
HB 4152 Gutierrez
Amends 41.43
The bill requires the CAD to present as evidence the
appraisal method used to appraise the property in the
current tax year and previous tax year and identify the
factors considered when applying that method. For
the cost approach, the CAD presents cost data and
adjustments for physical, functional or economic
obsolescence for both yeas. For the income approach,
the CAD presents the comparable rental income and
operating expense data and the capitalization rate for
both years. For the market data (sales) approach, the
CAD presents comparable sales data and any
adjustments for both years. If the CAD fails to
provide the evidence, the protest shall be determined
in favor of the property owner.
Proposed Effective: 9/1/2017.
Status: Filed.
PROPERTY VALUE LIMITED FOR TWO YEARS
AFTER REDUCTION IN VALUE BY ARB OR
APPEAL
SB 403 Kolkhorst
Adds 23.04
The bill prohibits the increase in the market value of
real property in the first two years following the tax
year in which the market value was reduced by at least
15% by the ARB, or as a result of the final
determination of an appeal of an ARB order. The
propertys appraisal of a commercial or residential
real property may increase for an improvement (other
than normal repair or maintenance) made after the
preceding years appraisal. The propertys restricted
value is used for the Comptrollers Property Value
Study but may not be used as a comparable property
or in a ratio study sample for determination of an
unequal appraisal.
Proposed Effective: 1/1/2018.
Status: Referred to Senate Finance 2/1/17.
CHANGES MADE TO COMPTROLLER
TRAINING PROGRAM FOR ARB MEMBERS,
SURVEYS AND NEW TRAINING PROGRAM
FOR ARBITRATORS, ALONG WITH
ADDITIONAL ARB CHANGES
SB 669 Nelson
Adds 5.043, 5.104, 41.462; amends 5.041, 5.103,
6.412, 6.42, 25.25, 41.45, 41.46, 41.461, 41.47, 41.66,
41.67, 41A.06, 41A.061, 41A.09
The substitute bill requires the beginning ARB
training class by the Comptroller to be at least eight
hours of classroom training and education. The
advanced ARB training class must be at least four
hours.
2017 Legislative Update; Page 35
The Comptroller shall provide an arbitration manual
and other materials in training arbitrators and
approved unanimously by a committee selected by the
Comptroller of taxpayers and chief appraisers. A
revision to the manual must be approved by
unanimous agreement; the person requesting the
revision must pay the costs of medication if the
Comptroller determines that mediation is required.
The Comptroller shall supervise a four-hour training
program for arbitrators on property tax law, including
equal and uniform appraisal. The Comptroller may
contract with a service provider for the arbitrator
training, but not with a CAD, chief appraiser, CAD
employee, CAD director, ARB member or a taxing
unit. The Comptroller fee may not exceed $50 per
person. A person may not serve as an arbitrator or be
renewed until completing the Comptroller training.
The training may be online and the Comptroller rule
shall prescribe the verification that the training
program was taken online and completed.
The Comptroller shall prepare a survey that allows
property owners or agents who file a protest under
Chapter 41 or a motion under 25.25 to the ARB or a
designated representative of the CAD to submit
comments and suggestions and comments on a
fairness and efficiency. The survey is provided at or
before each protest hearing or delivered by the ARB
for 25.25 (corrections) or Chapter 41 protests. The
person may submit the survey to the Comptroller in
person, by mail, by email or through the
Comptrollers website and may do so no later than the
45th day after sent to the owner or agent. The
designated CAD representative has 45 days from the
date the form is sent to the owner or agent. The CAD
may not require a property owner or agent to complete
the survey form at the appraisal office to be permitted
to submit the form to the Comptroller. The
Comptroller issues an annual report summarizing the
surveys, but not disclosing the identity the person
submitting the form.
In addition to other restrictions, a person may not
serve on the ARB who is related within the 3rd degree
by blood or 2nd degree by marriage to a member of
the CAD board of directors or ARB. A person
appointed to the ARB by an administrative law judge
may not be reappointed after serving all or part of
three previous terms as an ARB member or auxiliary
ARB member. The bill has the administrative law
judge in each county selecting the ARB chair and
secretary, rather than the CAD board in less populated
counties.
In a 25.25 panel hearing on correcting a value for an
error or overappraisal, the ARB panel shall provide
the owner or agent with the panels recommendation.
The ARB notice for a protest hearing shall also
include the subject matter of the hearing. The bill
clarifies that the chief appraiser sends the owner/agent
at least 14 days before the first scheduled hearing
certain information, so that same information is not
required to be sent for re-scheduled hearing dates.
New Section 41.462 provides that if requested by a
property owner or agent, the CAD shall make any
evidence to be sued in the protest hearing available to
the property owner or agent at least 14 days before the
hearing date. The CAD provides the evidence at no
charge to the requestor, regardless of the means of
delivery. An ARB panel shall make a written order of
the panels decision. The ARB may not determine the
appraised value of a protested property to an amount
greater than the value submitted by the chief
appraiser. The ARB determination sent by certified
mail is delivered not later than the 15th day after the
protest and is sent to either the owner or the
designated agent, along with a copy of the
Comptrollers ARB survey and instructions. The
ARB may also postpone a hearing at the request of the
agent (not just the owner). The ARB may schedule
hearings on all protests filed by an owner or agent to
be held consecutively, with the hearing notice stating
the date and time of first hearing, state the date the last
hearing will end and list the order of the hearings to
be held. The hearing order may not be changed
without agreement of the owner/agent, the chief
appraiser and the ARB. A re-scheduled hearing may
not be held before seven days after the last hearing
unless there is agreement by the owner/agent, chief
appraiser and ARB. Unless agreed by the parties, the
ARB must provide written notice of the date and time
of the rescheduled hearing to the owner or agent no
later than seven days before the hearing date. At the
end of a protest hearing, the ARB shall provide the
owner/agent with one or more documents that the
ARB members signed the ex-parte communications
affidavit and the panels recommendation on the
propertys value. Information not delivered at least
14 days before the first scheduled hearing may not be
used or offered in a form as evidence, including as a
document or through argument or testimony.
2017 Legislative Update; Page 36
Proposed Effective: 1/1/2018.
Status: Substitute reported from Senate Finance
3/20/17 and recommended for Local/Uncontested
Calendar.
PERSON IS INELIGIBLE TO SERVE ON ARB IF
CLOSE RELATIVE OF ANOTHER ARB
MEMBER
SB 804 Taylor
Amends 6.412
The bill adds another restriction to be appointed an
ARB member that a person is ineligible to serve if
related within the first degree by blood or marriage to
a member of the ARB, including an auxiliary ARB
member.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Finance 2/22/17.
ARB HEARING MAY NOT BE ON A SUNDAY
SB 870 Bettencourt
Amends 41.71
The bill changes the provision for evening and
weekend hearings to state that an ARB may not
schedule a protest hearing on a Sunday.
Proposed Effective: 9/1/2017.
Status: Placed on Senate Intent Calendar 3/30/17.
ARB TERM LIMITS REVISED FOR COUNTY
UNDER 100,000 POPULATION
SB 971 Zaffirini
Amends 6.412
The bill revises the limitation on consecutive terms by
an ARB member of all or part of three consecutive
terms. The bill adds that the limitation does not apply
to an ARB member in a county with a population of
less than 100,000 if, at the time the ARB members
term expires, there is no person seeking appointment
to the ARB who is eligible to serve and who could fill
that position on the ARB.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Finance 3/1/17.
COMPTROLLER BY RULE SETS OUT FORM
AND MANNER FOR PROPERTY OWNERS
EVIDENCE FOR ARB HEARING RECORD;
COMPTROLLER SELECTION AND REMOVAL
OF ARBITRATORS
SB 1286 Bettencourt; similar HB 3557 Murphy
Amends 41.45, 41A.061, 41A.07
The bills add that the Comptroller by rule shall set out
the manner and form, including security
requirements, for a person to provide a copy of written
evidence or other material for the ARB to retain as
part of the ARBs hearing record and to include
specifications for the audiovisual equipment provided
by the CAD for use by the property owner or owners
agent. For the Comptrollers registry of arbitrators,
the bill requires the Comptroller to select the
arbitrator, rather than the property owner and CAD.
To be appointed an arbitrator for a particular case, the
arbitrator must be a resident of the county where the
property is located or not be farther than 50 miles
from any part of that county if no one is available in
the county. A person may not serve as an arbitrator in
that county if, during the preceding five years, the
person was a paid tax agent, CAD officer, CAD
employee or ARB member in the CAD in which the
property is located. The Comptroller shall remove
from the registry a person who shows repeated bias or
misconduct while acting as an arbitrator. See also
Appraisal District Litigation.
Proposed Effective: 9/1/2017, with the Comptroller
rules adopted by January 1, 2018.
Status: SB 1286 referred to Senate Finance
3/13/17. HB 3557 referred to House Ways &
Means 3/23/17.
CORRECTING APPRAISAL ROLL CHANGED
FROM ONE-THIRD VALUE ERROR TO
CORRECT MARKET OR MEDIAN VALUE OF
COMPARABLE PROPERTIES
SB 2061 Kolkhorst
Amends 25.25
The bill changes the current provision for a late
appraisal roll change when the appraised value
exceeds by more than one-third the correct appraised
value. The new language is the error may be corrected
if the appraised value exceeds the market value of the
property or the median appraised value of a
reasonable number of comparable properties
appropriately adjusted.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Finance 3/28/17.
2017 Legislative Update; Page 37
Appraisal District Litigation
ARBITRATION CATEGORY EXPANDED TO
PROPERTIES $5 MILLION OR LESS
The Property Tax Reform and Relief Act of 2017
SB 2 Bettencourt
Amends 41A.01, 41A.03, 41A.06
The property value ceiling increases from $3 million
(or less) to $5 million (or less) in the ARB order to
appeal through binding arbitration as an alternative to
district court. For non-homestead residential
properties that are more than $3 million but less than
$5 million in value, the filing fee is $1,250, with the
arbitrators fee not more than $1,200 for such
properties. It also clarifies sales agents, instead of
salespersons, may serve as arbitrators.
For more analysis of SB 2, see also Appraisal District
Administration, Appraisal, Exemption, Appraisal
Review Board, Appraisal District Litigation,
Assessment and Truth in Taxation Sections.
Proposed Effective: 1/1/2018.
Status: SB 2 substitute, with four floor
amendments, passed Senate 3/21/17, and received
in House 3/22/17.
NO LIMIT ON ATTORNEYS FEES PROVIDED
IN CERTAIN CIRCUMSTANCES
HB 540 Metcalf
Amends 42.29
The bill provides that a property owner may recover
reasonable attorneys fees without the limits in
Section 42.29 if the property is the owners residence
homestead and the owner has prevailed in the prior
two years on the appraisal or unequal appraisal of the
same property.
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 2/16/17.
ALTERNATIVE DISPUTE RESOLUTION
ADDED TO EXPEDITE PROPERTY TAX CASES
HB 1248 Lucio
Amends 42.228
The bill allows a property owner to elect alternative
dispute resolution procedures to expedite the
resolution of property tax appeals. Such election will
limit discovery. The parties will not serve or answer
interrogatories, requests for admissions depositions
on written question or discovery on non-parties.
Requests for production will be severely curtailed.
For real property under excessive appraisal (Section
42.25), the property owner will provide a rent roll,
operating statement for the prior year, any appraisal
or valuation analysis made within the last three years
and documents supporting the owners value. The
CAD will provide the appraisal records, ARB
evidence, any appraisal analysis made within the last
three years and the information identified in the cost,
income and sales comparison methods of Sections
23.011 to 23.014. For real property under unequal
appraisal, the property owner will submit 10 or fewer
comparable properties and the CAD must provide the
info for Section 42.25 production above of each
comparable. For personal property, under excessive
or unequal appraisal (Section 42.25 or 42.26)
production is limited to 10 requests. The timing and
length of oral depositions will be limited, with owner
(or representative) depositions allowed by phone and
in the county of residence. Requests for disclosure
will continue but will require the disclosure of experts
within 30 days of retention. A party may seek
additional discovery upon motion to the court and
prove that the discovery is necessary to form a reliable
opinion. If the party does not prevail, the court shall
award attorneys fees for the motion.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017.
Status: Substitute left pending in House Ways &
Means 3/29/17.
FEES LOWERED FOR BINDING ARBITRATION
HB 1783 Faircloth
Amends 41A.03, 41A.06
The bill reduces some fees required to be paid to take
an ARB order to binding arbitration: $200 if the
homestead property is valued at $250,000 or less;
$300 if the homestead property is more than $250,000
up to $500,000; $450 if the homestead property
exceeds $500,000; $450 if not a homestead with value
of $1 million or less; $750 if not a homestead and
value more than $1 million up to $2 million; $1,000 if
not a homestead and value of more than $2 million up
to $3 million.
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 3/14/17.
2017 Legislative Update; Page 38
SETTLEMENT AGREEMENT MAY INCLUDE
WAIVING PENALTY AND INTEREST ON
ADDITIONAL TAX DUE
HB 1830 Anchia; SB 931 Seliger
Amends 42.42, 42.43
These bills provide that, for a settlement agreement
filed with the court, the property owner and chief
appraiser may agree to waive the penalties and
interest on the additional tax due each taxing unit as a
term of the agreement.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017.
Status: SB 931 left pending in Senate Finance
3/27/17. HB 1830 left pending in House Ways &
Means 3/29/17.
CAD EMPLOYEE MUST HAVE CERTIFICATION
TO TESTIFY ON VALUE AT COURT HEARING
SB 521 Creighton
Amends 42.29
The bill provides that a CAD employee may not
testify at a court hearing on the value of a property
unless the employee is authorized to perform real
estate appraisals under Occupations Code Chapter
1103, which is the registration and certification of
property tax professionals by TDLR.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Finance 2/6/17.
CAD EMPLOYEE MUST HAVE CERTIFICATION
TO TESTIFY ON VALUE AT COURT HEARING
HB 2043 Springer
Amends 42.23
The bill adds to current language about CAD
testifying at a court hearing on the value of a property
for the court to give preference to an employee who is
registered under Occupations Code 1103 if the
appraised or market value of the property is less than
$1 million, as provided in the ARB order. The bill
adds that for a property whose market value or
appraised value is $1 million or more the employee
must be registered under Occupations Code Chapter
1103 to testify on the propertys value.
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 3/13/17.
PROPERTY VALUE INCREASED FOR
APPEALING THROUGH ARBITRATION
SB 731 Bettencourt
Amends 41A.01, 41A.03, 41A.06
The bill increases the value of a property that an
owner may appeal the ARB decision to binding
arbitration from $3 million to $5 million or less. The
bill adds a fee of $1,550 for a property that is not an
owners residence homestead and the appraised value
of the property is more than $3 million but not more
than $5 million.
Proposed Effective: 9/1/2017.
Status: Reported from Senate Finance 3/16/17,
passed Senate 3/22/17 and received in House
3/23/17.
COURT DETERMINES INTEREST PAID ON TAX
REFUNDS FROM COURT APPEALS
HB 2253 Darby; SB 1749 Hinojosa
Amends 42.43
The bills provide that the court determines the amount
of interest is to be calculated on a tax refund from an
appeal from the ARB to district court.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017.
Status: HB 2253 left pending in House Ways &
Means 3/29/17. SB 1749 referred to Senate
Finance 3/23/17.
DISTRICT COURT GRANTED MORE
AUTHORITY TO DETERMINE TAX APPEALS
HB 2653 Geren
Adds 42.231 and amends 42.01
The bill adds that the property owner may appeal to
district court a motion filed under Section 25.25 for a
correction or for Section 41.411 no-notice appeal or
for a refund under Section 23.1243 without being one
that required the ARBs determination. The bill adds
that the owner may appeal the decision that the ARB
lacks jurisdiction to determine a protest or a motion
filed by an owner under Section 25.25 because the
owner failed to comply with a requirement of Section
25.25 or Chapter 41C. If the court determines that the
ARB did have jurisdiction, the court determines the
final determination of the protest. If the property
owner failed to exhaust the owners administrative
remedies, the court may remand the action to the ARB
2017 Legislative Update; Page 39
with instructions to allow the owner to cure the
owners failure, in lieu of dismissing the appeal.
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 3/23/17.
COMPTROLLER BY RULE SETS OUT FORM
AND MANNER FOR PROPERTY OWNERS
EVIDENCE FOR ARB HEARING RECORD;
COMPTROLLER SELECTION AND REMOVAL
OF ARBITRATORS
SB 1286 Bettencourt; similar HB 3557 Murphy
Amends 41.45, 41A.061, 41A.07
The bills add that the Comptroller by rule shall set out
the manner and form, including security
requirements, for a person to provide a copy of written
evidence or other material for the ARB to retain as
part of the ARBs hearing record and to include
specifications for the audiovisual equipment provided
by the CAD for use by the property owner or owners
agent. For the Comptrollers registry of arbitrators,
the bill requires the Comptroller to select the
arbitrator, rather than the property owner and CAD.
To be appointed an arbitrator for a particular case, the
arbitrator must be a resident of the county where the
property is located or not be farther than 50 miles
from any part of that county if no one is available in
the county. A person may not serve as an arbitrator in
that county if, during the preceding five years, the
person was a paid tax agent, CAD officer, CAD
employee or ARB member in the CAD in which the
property is located. The Comptroller shall remove
from the registry a person who shows repeated bias or
misconduct while acting as an arbitrator. See also
Appraisal Review Board.
Proposed Effective: 9/1/2017, with the Comptroller
rules adopted by January 1, 2018.
Status: SB 1286 referred to Senate Finance
3/13/17. HB 3557 referred to House Ways &
Means 3/23/17.
ARB REQUIREMENTS AND PROTEST
PROCEDURES CHANGES; OFFICE OF LOCAL
PROPERTY TAX OMBUDSMAN CREATED
HB 3168 Geren
Designates Secs. 5.03 through 5.16 as Subchapter A
and adds Subchapter B to Ch. 5, adds 6.425; amends
5.041, 6.41, 6.412, 6.42, 25.19, 25.25(d), 41.03,
41.11, 41.44, 41.45, 41.66, 41.71, 41A.01, 41A.03,
41A.06, 42.01, 42.21, 42.29
ARB Education
This bill requires the Comptroller to consult with
property owners, tax agents and chief appraisers in
drafting the ARB Manual and adds requirements
regarding content of ARB education. Further, it
requires the ARB to comply with procedural
requirements in the ARB Manual.
Local Property Tax Ombudsman
This bill creates the Office of Local Property Tax
Ombudsman (LPTO) in the Comptrollers office. The
LPTOs duty is to hear complaints involving alleged
violations of procedural requirements regarding
activities of an appraisal district, ARB, chief appraiser
or an ARB member. The bill sets forth the LPTOs
qualifications, duties and procedural requirements.
ARB Selection and Operation
The bill changes the minimum population threshold
whereby the administrative district judge is required
to appoint ARB members from 120,000 to 75,000. It
changes the population requirement from 100,000 to
120,000 regarding the eligibility to serve on an ARB
found in Section 6.412 and disallows service if the
person has served all or part of three previous terms;
requires the ARB rather than the appraisal district
board to select the ARB chair and secretary; requires
the Comptroller to determine and pay ARB members
a per diem, from funds assessed to the CAD;
establishes a special ARB panel, with specific
qualifications of those on the panel, to hear five types
of complex appraisal protests.
Appraisal Notices
The date of mailing all appraisal notices changes to
April 1, or a soon thereafter as practicable. The chief
appraiser in a county of 120,000 or more includes on
the appraisal notice if the property is one of the five
types of complex properties eligible for review by the
special ARB panel.
Protests and Challenges
The bill clarifies a property owners ability to file a
25.25(d) motion regarding unequal appraisal in
addition to excessive appraisal; removes a taxing
units ability to challenge the level of appraisals of
any category of property in the CAD; changes the
protest deadline from May 1 to before June 1; requires
an ARB to provide for hearings on Saturdays and after
5 p.m. on weekdays and prohibits a first hearing on a
weekday after 7 p.m. or on Sundays.
2017 Legislative Update; Page 40
Binding Arbitration
The bill allows for a property owner to request
binding arbitration on a denial of a 25.25 motion and
extends the deadline to file from 45 to 60 days. For
the arbitration of non-residential homestead property
valued at more than $3,000,000 but less than
$5,000,000, the arbitration fee is $1,250.
CAD Litigation
The bill allows for the appeal of an ARB
determination on a procedural issue involving Section
25.25 of a Chapter 41 protest. The property owner
recovers attorneys fees if the owner prevails on the
merits of appealing the procedural issue.
See also CAD Administration and Appraisal Review
Board.
Proposed Effective: 1/1/2018, with some sections
effective 9/1/2018.
Status: Referred to House Ways & Means 3/30/17.
BINDING ARBITRATION REVISED FOR
APPEAL OF ARB ORDER
HB 3191 Uresti
Amends 41A.04, 41A.06, 41A.07, 41A.08
The bill adds that the Comptroller form allow a
property owner requesting binding arbitration to elect
that the arbitrator be selected only from those
arbitrators listed in the Comptrollers registry who
reside in the county where the property is located. The
Comptroller form allows that a property owner may
request that the arbitration be conducted in person.
The Comptroller shall maintain the registry by county
of residence of the arbitrators. An arbitration hearing
may not be conducted at a CAD office.
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 3/30/17.
COURT APPEAL PLACES BURDEN OF PROOF
ON CAD
HB 3918 Burrows
Amends 42.23
The bill changes the burden of proof for an appeal to
district court. The review is still trial de novo. The
CAD has the burden of establishing the propertys
value by a preponderance of the evidence presented at
the hearing. If the CAD fails to meet that standard, the
protest shall be determined in favor of the property
owner.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Filed.
ATTORNEY FEES FOR SUCCESSFUL COURT
APPEALS CHANGED
SB 1848 Bettencourt
Adds 42.291 and amends 42.29
The bill sets the award of attorney fees for a
successful appeal by a property owner in certain
appeals to the greater of (1) $27,000 or the adjusted
amount under Section 42.291 or (2) an amount equal
to 20% of the total amount by which the owners tax
liability is reduced as a result of the appeal but not to
exceed $153,000, or the adjusted amount determined
under Section 42.291. These appeals include under
Section 42.25 or 42.26, for a 25.25 appeal and for the
denial of an exemption under certain provisions. New
Section 42.291 ties the attorneys fees to the cost of
living adjustment indicated by the consumer price
index. The index is set on January 1 of each odd-
numbered year, using the period from September 1,
2017 and ending on September 1 preceding the date
of the determination. The Comptroller shall make the
required determination and publish in the Texas
Register.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Finance 3/23/17.
COMPTROLLER DETERMINES IF
ARBITRATOR IS QUALIFED IF CAD
COMPLAINT IS FILED
SB 1908 Bettencourt
Amends 41A.07
The bill provides that if the property owner proposed
an arbitrator, the CAD may not reject the arbitrator
unless the CAD files a complaint with the
Comptroller objecting that the arbitrator is not
qualified. The Comptroller investigates. No later than
seven days, the Comptroller determines whether the
arbitrator is qualified or not. If the Comptroller rules
qualified, the complaint is dismissed and the CAD
must agree to that arbitrator. If not qualified, the
arbitrator is removed from the Comptrollers registry
and the parties select a different arbitrator. The
deadlines are extended.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Finance 3/23/17.
2017 Legislative Update; Page 41
INTEREST RATE CHANGED IN TAX CODE
SB 2198 Campbell
Adds 1.13 and 1.14 and amends 11.135, 11.181,
11.185, 11.201, 23.46, 23.55, 23.76, 23.86, 23.96,
23.9807, 26.09, 31.12, 33.01, 33.06, 33.065, 42.42,
The bill changes the interest rate used to accrued on
various provisions of the Tax Code, including special
valuation rollback taxes, omitted property, delinquent
taxes, tax refunds, tax deferrals and others. The
annual interest rate is the lesser of 12% or the sum of
2% and the prime rate published by the Federal
Reserve Board on the first business day of the
calendar year for which simple interest is calculated.
The Comptroller posts the interest rate on the
Comptrollers website, beginning with the 2018
calendar year. The parties to a motion, effort or appeal
may agree to waive or reduce the interest that accrues
on a tax, penalty or refund that is subject to a 25.25
error correction; on a delinquent tax or a delinquent
tax lawsuit to collect; or for an appeal to district court.
The written agreement is required before the court
issues the order for the delinquent tax lawsuit or
pending appeal. A district court may waive or reduce
interest that has accrued as part of the final judgment
to the extent the interest is waived or reduced by
agreement. See also Appraisal District
Administration and Delinquent Tax Collections.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Finance 3/29/17.
PROPERTY OWNER MAY APPEAL INCREASE
IF VALUE WAS LOWERED IN PRECEDING TAX
YEAR
SB 2207 Hancock
Adds 42.27 and amends 42.01
The bill provides that a property owner may appeal an
increase in appraised value if the appraised value was
lowered in the preceding tax year under
circumstances in Section 23.01(e). That subsection
provides that the chief appraiser must have substantial
evidence to increase a property owners value that
was lowered in the preceding tax year by the ARB, by
the arbitration process or by the court. For this appeal,
new Section 42.27 is for the limited purpose of
determining whether the chief appraiser met the
burden of proof required to increase the value. If the
chief appraiser did meet the burden of proof, the court
dismisses the appeal. If the chief appraiser failed to
meet the burden of proof, the court fixes the value and
orders the chief appraiser to correct the appraisal roll.
Neither party may conduct discovery. The court may
award court costs and reasonable attorneys fees. A
property owner may protest to the ARB an action
relating to the propertys value that, in the same tax
year, was the subject of a 42.27 appeal.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Finance 3/29/17.
Assessment & Truth-in-Taxation
INCREASE IN TAX RATE IS LIMITED TO 4%
ABOVE EFFECTIVE TAX RATE; ROLLBACK
ELECTIONS BECOME RATIFICATION
ELECTIONS FOR ALL TAXING UNITS; MAJOR
DEADLINES IN ASSESSMENT PROCESS
CHANGED
The Property Tax Reform and Relief Act of 2017
SB 2 Bettencourt
Adds 26.061 and 26.062 and amends 26.01, 26.012,
26.04, 26.041, 26.043, 26.044, 26.0441, 26.05,
26.052, 26.06, 26.08, 26.16, 31.12, 33.08; repeals
26.07; amends Local Government Code 102.007,
111.008, 111.039, 111.068 and repeals 140.010;
amends Education Code 45.105 and 130.016;
amends Health and Safety Code 281.124; amends
Special District Local Laws Code 1101.254,
1122.2522, 3828.157, 8876.152 and repeals
1063.255; amends Water Code 49.107 and 49.108,
49.236 and repeals 49.236 (2003) and 49.2361;
amends Government Code 403.302(o) and repeals
(m-1) and (n)
This omnibus tax bill limits the increase in the
rollback tax rates for all taxing units (except school
districts) to an increase of 5% (SB 2 substitute
changed the original 4% to 5%, current law is 8%). If
the taxing unit is located in a disaster area, as declared
by the governor or President, then the governing body
may instruct that 8% be used for the current year. All
rollback tax elections are converted to ratification tax
elections with no requirement of a citizen petition to
initiate a vote to retain the rate.
The chief appraiser certifies appraisal rolls to each
taxing unit by July 10, rather than July 25. The chief
appraiser has until May 15, rather than April 30, to
provide certified estimates of the amount of tax rolls
for each city, county and school district.
2017 Legislative Update; Page 42
The No-new-taxes rate replaces the effective rate.
By July 15 (rather than August 1), the taxing units
assessor submits the appraisal roll to the governing
body and the tax collector certifies the anticipated
collection rate. The governing bodys designated
officer or employee calculates the no-new-taxes
rate and rollback rate and submits the calculations to
the county tax assessor-collector. The county tax
assessor-collector or designee certifies in writing that
the values used are the same as shown on the appraisal
roll and that the tax rates are calculated correctly. The
county tax assessor-collector or designee executes a
written certification to that effect, attaches the
certification to each worksheet and submits them to
the governing body of the unit and notifies the
designated officer or employee about the submission.
The designated officer or employee of the unit may
not submit the rates calculations and the taxing units
governing body may not adopt until the county tax
assessor-collector does the certification. The
designated officer submits the rates to the governing
body by July 22, rather than by August 1. By July 27,
the designated officer or employee publishes the TNT
information in the newspaper or mails to the property
owners in the taxing unit. The no-new-taxes rate
and notice requirement do not apply to a school
district. The assessor may not certify an anticipated
collection rate that is lower than the lowest actual
collection rate in the preceding three years (note: the
substitute states assessor at one point and collector at
another for this duty). A taxing unit that imposes an
additional sales tax to reduce property tax may not
adopt the tax rate until the chief financial officer or
auditor submits to the governing body a written
certification that the amount of additional sales and
use tax revenue used to pay debt service has been
deducted from the total amount published. The
Comptroller adopts rules governing the certification
forms required with the new law.
The taxing units governing body must adopt its tax
rate before September 30 or 60 days after the roll is
received, unless the governing body votes to increase
the rate above the rollback rate, which must be done
by August 15. The vote on the tax rate must be before
the 7th day after the second notice is published under
the Tax Code (instead of the 14th. The language for
the Notice of Public Hearing on Tax Increase is
changed, based on if the proposed rate exceeds the
no-new-taxes rate and the rollback rate; exceeds the
no-new-taxes rate but not the rollback rate; does not
exceed the no-new-taxes rate but does exceed the
rollback rate (lower of the two rates). The Notice of
Tax Revenue Increase changes to the new terms. For
a taxing unit, other than a school district, a new notice,
Notice of Meeting to Vote on Tax Rate, is for a
proposed rate that does not exceed lower of no-new-
taxes rate or rollback tax rate.
For all of these notices, a statement that the tax
assessor maintains a website with tax calculations
available or, if no website, how to contact the tax
assessor. For all of the notices, the bill requires a
specific table, consisting of five row and four
columns, formatted in a specific way, with total rate,
preceding years adopted rate, proposed rate, nominal
and percentage difference of rate; average homestead
value, average taxable value for preceding year and
current year and percentage difference, tax on average
homestead preceding year and current year and
nominal and percentage differences; and total tax levy
last year and levy with the proposed rate and the
nominal and percentage differences. Water districts
have changes to their notice and specific requirements
about the petition and election process for a
ratification election. Counties and cities move back to
following the TNT notices in the Tax Code and not
the Local Government Code.
A ratification election, if necessary, must be held on
the November general election date by any taxing unit
that exceeds the rollback rate. The order calling the
election may not be issued later than August 15.
Each county is required to maintain an Internet
website. The county assessor-collector shall post the
five years of rate information, with the no-new-
taxes tax rate and no-new-taxes M&O rate. In
addition, the county tax assessor-collector shall post
on the countys website the worksheets used by the
designated officer or employee for each taxing unit
for the most recent five years beginning with the 2018
tax year and as certified by the county tax assessor-
collector, along with the name and contract
information for each member of the taxing units
governing body. The county tax assessor-collector
shall post the worksheets for the current tax year not
later than August 1.
For more analysis of SB 2, see also Appraisal District
Administration, Appraisal, Exemption, Appraisal
2017 Legislative Update; Page 43
Review Board, Appraisal District Litigation,
Assessment and Truth in Taxation Sections.
Proposed Effective: 1/1/2018, for the 2018 tax rates.
Status: SB 2 substitute, with four floor
amendments, passed Senate 3/21/17, and received
in House 3/22/17.
ANOTHER VERSION FILED FOR REVISIONS
TO TRUTH-IN-TAXATION
SB 2239 Bettencourt
Adds 5.092, 26.031 and 26.17, and amends 5.07,
5.091, 25.19, 26.012, 26.04, 26.041, 26.044, 26.0441,
26.05, 26.065; repeals 26.03, 26.045
The bill has some items in SB 2 dealing with Truth-
in-Taxation, but with revised language.
Comptroller duties
The Comptroller prescribes the worksheets used by
the designated officer or employee to calculate the
no-new-taxes rate and rollback rate and be
completed electronically with data entered by the
officer/employee, certified as complete and
electronically submitted to Comptroller. The
statewide list of tax rates will add the school districts
(currently not required) and be organized
alphabetically by county or counties in which each
taxing unit is located rather than descending order by
rate. The Comptroller shall maintain a searchable
property tax database, continuously updated as
preliminary and revised data is available, of each
property listed on an appraisal roll, including property
ID, market value, taxable value, taxing unit names and
rate information. For a unit, other than a school
district, the rates are the no-new-taxes rate, rollback
tax rate and proposed rate. For school districts, the
rates are the rate to maintain same state and local
revenue per student from the preceding tax year,
rollback rate and proposed rate. The databased
includes taxes imposed based on the no-new-taxes
rate and proposed rate; for a school, taxes imposed
with same level per student and proposed rate, along
with the differences between the taxes. The database
includes the date and location of each public hearing
and meeting to adopt the rate. The data base links to
the taxing units website.
Truth-in-Taxation rates
Definition of debt adds that it has been approved at an
election. For taxing units, other than a school district,
the rates calculated are for a no-new-taxes rate and
rollback rate. The rollback rate adds 4% to the no-
new-taxes M&O rate and continues the additional
rates for criminal justice mandate and indigent health
care and deducts for the additional sales tax. A school
district follows the current Section 26.04
requirements. The chief appraiser is required to
review the rates and certify in writing that the values
used are the same as the certified appraisal roll and the
chief financial officer/auditor for the unit certifies in
writing that the rollback rate is correctly calculated.
Tax assessor notice
By August 7 or thereafter, the tax assessor delivers by
mail or email to each property owner in the county
and posts on the assessors webpage a notice of
estimated taxes to be imposed on the owners property
by each taxing unit and found in the Comptrollers
database. The notice must include the address of the
website, a statement that the owner may request a
written copy of information for each taxing unit and
the address and phone number of the assessor.
Taxing unit action
The taxing units governing body may not hold a
public hearing or adopt the tax rate until 14 days after
the TNT rates are calculated and submitted to the
Comptroller. Other than a school district, the
governing body may not adopt a tax rate until the
Comptroller has included the current year information
in the database and the chief appraiser (? earlier said
by tax assessor?) has delivered the notice to each
property owner. If the unit has the additional sales tax,
the unit may not adopt the tax rate until the chief
financial officer or auditor has certified that the
amounts used and published are correct. If the
additional sales tax revenue exceeds the amount
published, the M&O expenses are reduced by the
additional amount.
Each taxing unit shall maintain a website and posts
tax rate and budget information. The Comptroller
prescribed the format of information, including
contact information of each elected official; taxing
units mailing address, email address and telephone
number; two preceding years budget; proposed /
adopted budget; change in budget amounts and
percentages; M&O rate and debt rate for two
preceding years and current year; recent financial
audit and the following for units other than a school
district: tax revenue for M&O for two preceding years
2017 Legislative Update; Page 44
and current year; debt service for two preceding years
and current year.
Notice of appraised value
For appraisal issues, the reappraisal notice removes
the estimated tax amounts.
Comptroller appoints advisory committee by
September 1, 2019 to assist with database. The
Comptroller has the database by June 1, 2020.
Proposed Effective: 1/1/2018, with some sections
9/1/2017 and others 1/1/2020.
Status: Referred to Senate Finance 3/29/17.
ROLLBACK TAX RATE ALLOWS 4%
INCREASE WITHOUT AN ELECTION; ALL
TAXING UNITS HAVE AUTOMATIC
RATIFICATION ELECTIONS INSTEAD OF
PETITION INITIATED ELECTIONS
HB 15 Bonnen
Adds 5.092, repeals 26.07 and amends 5.07, 5.091,
25.19, 26.12, 26.04, 26.041, 26.043, 26.044, 26.0441,
26.05, 26.052, 26.06, 26.065, 26.08, 26.16, 26.17,
32.12, 33.08; amends Education Code 45.105,
130.016; amends Health and Safety Code 281.124;
amends Local Government Code 102.017, 111.018,
111.039, 111.068; amends Special Districts Local
Laws Code 1101.254, 1122.2522, 3828.157,
8876.152 and repeals 1063.255; amends Water Code
49.107, 49.108, 49.236 and repeals 49.236.
This bill renames the effective tax rate to be the no
new taxes rate on all notices and calculations for all
taxing units. The bill lowers the percentage increase
allowed for taxing units in the calculation of the
rollback tax rate from 8% to 4%, unless the taxing unit
experienced a declared disaster. The debt rate
definition for these calculations shall include only
those debts approved by the voters. The person
designated by the governing body to perform the rate
calculations shall submit them for approval to the
chief appraiser to confirm the value total used and to
the auditor or CFO for the taxing unit to certify that
the calculation is correct. The Comptroller will
provide the worksheets used by all taxing units to
calculate the no new taxes rate and the rollback tax
rate.
The Comptrollers existing statewide listing of tax
rates will be reorganized by county and listed
alphabetically instead of in descending order. The
Comptroller will create a new database of property tax
information, constantly updated and searchable by
property address, containing for each account:
account number, market value, taxable value and
name of each taxing unit on the account. For each
taxing units, it will contain the no new taxes rate
and rollback rate. For school districts, it will include
the rate to maintain the same state and local revenue
per weighted student in the preceding school year and
the rollback rate. For each taxing unit, it will also
include the differences between the no new taxes
rate and the proposed rate or for schools the same
total revenue rate and the proposed rate, and the
differences between the no new taxes rate and the
rollback rate and for schools the differences between
the same total revenue rate and the rollback rate.
The 25.19 notice will no longer contain the taxes on
the difference between the proposed value and the
previous years value. By August 7 or as soon as
possible, the chief appraiser shall notify each property
owner by mail or email that the estimate of taxes on
each property may be found on the Comptrollers
database and include the web site, a statement that a
hard copy may be obtained from the tax assessor and
the address and telephone number of each assessor.
A taxing unit governing body may not hold a public
hearing on a tax rate until 14 days after the person
calculating the no new taxes rate and the rollback
rate has transmitted the calculations to the
Comptroller. A rate may not be adopted until after the
chief appraiser has sent the notice on August 7 and the
Comptroller has uploaded the taxing units rate
information to the website. A property owner who
files an injunction action to halt the rate setting
process must file within 15 days after the rate
adoption and need not pay taxes until the injunction
action is pending and is entitled to reasonable attorney
fees if he or she prevails.
Each taxing unit shall maintain a website. The site
must contain the names of governing body members
and their official contact information; the units
mailing address, email address and phone number; the
units budget for the previous two years, the proposed
or adopted budget for the current year, the difference
between the current year budget and the preceding
years budget in dollars and percentage; maintenance
and operations and debt budget amounts for current
year and previous two years; the M&O tax rates and
2017 Legislative Update; Page 45
budget rates for current and preceding two years; and
the most recent financial audit.
Proposed Effective: Effective: 1/1/2018; with some
parts on different date. Tax rate database changes,
posting on the taxing units websites and advisory
committee effective 9/1/17; Comptrollers truth-in-
taxation (TNT) forms, posting of statewide database
with TNT information, review of TNT calculations by
chief appraiser and auditor/CFO of each taxing unit,
delivery of new notice in August by chief appraiser to
taxpayers, postponement of the hearing and rate
adoptions until chief appraiser and auditor/CFO check
rate calculations, and changes to the taxpayers action
for injunction effective 1/1/2019.
Status: Referred to House Ways & Means 3/6/17.
INCREASE IN TAX RATE IS LIMITED TO 5%
UNLESS INFLATION EXCEEDS FIVE PERCENT
HB 345 Canales
Amends 26.012, 26.04, 26.041; amends Special
District Local Laws Code 8876.152(b); amends
Water Code 49.236 and repeals 49.236 and 49.2361
The bill limits the increase in the rollback tax rate that
a taxing unit may enact to five percent instead of the
current 8%. The Comptroller will estimate and
publish a price index of his choosing. If that price
index exceeds 5%, then the person calculating the
rollback rate will use the inflation rate instead of 5%,
but not to exceed 8%.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective the 91st day
after the session ends. Applies to the 2017 tax rate
unless that rate was adopted before the effective date
of this act.
Status: Referred to House Ways and Means
2/15/17.
SCHOOL DISTRICTS WHERE VOTERS HAVE
APPROVED HIGHER RATE GET A HIGHER
ROLLBACK TAX RATE
HB 390 Howard; HB 486 VanDeaver; SB 1267
Taylor
Amends 26.08
These bills permit school districts whose local voters
have approved higher M&O tax rates in elections held
since 2006 to use the higher of the current rollback tax
rate calculation or the highest M&O tax rate adopted
since 2007 by that school district, plus its current debt
rate. The Comptroller shall study and report to the
legislature the impact of this law.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Applies to the 2017 tax rate unless that rate was
adopted before the effective date of this act.
Status: HB 390 left pending in House Ways and
Means 3/22/17. HB 486 voted from House Ways
and Means 3/29/17. SB 1267 referred to Senate
Education 3/13/17.
BOND ELECTION BALLOT INCUDES MORE
INFORMATION
HB 739 Shaheen; similar to SB 1821 Burton
Adds Government Code Chapter 1251, Subchapter A
The bills require a county, municipality or school
district to include more information on bond election
ballots. The ballot must contain the total amount and
as a per capita amount of the combined current debt
obligations of the entity, the estimated principal and
interest required to pay and the annual increase in
property taxes on the average-priced home. HB 739
provides that the entity must post a sample online
ballot on its website as soon as the official ballot is
prepared. The Secretary of State shall develop a ballot
form. SB 1821 requires stating the projected tax
impact on property taxes from the date the bonds are
issued until they mature with a Comptroller rule to
prescribe the manner of projecting the tax impact.
Proposed Effective: 9/1/2017, with some parts
effective 1/1/2018. SB 1821 effective 9/1/2017.
Status: HB 739 referred to House Elections
2/20/17. SB 1821 referred to Senate
Intergovernmental Relations 3/23/17.
MUNICIPALITY MAY DECIDE TO FOLLOW
CURRENT ROLLBACK TAX RATE
CALCULATION IF LAW CHANGED FOR
FUTURE TAX YEAR
HB 1017 Perez
Amends 26.04, 26.041
The bill provides that if the 85th Legislature amends
the rollback tax rate calculation to reduce that rate, the
governing body of a municipality may direct the
employee calculating the rollback tax rate to follow
the law as it existed on January 1, 2016. This bill
applies to a tax rate beginning with the 2017 tax year.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
2017 Legislative Update; Page 46
Status: Referred to House Ways & Means 3/6/17.
MANDATORY ELECTION REQUIRED FOR TAX
RATE ADOPTED ABOVE ROLLBACK RATE
HB 1144 Davis
Amends 26.08, 26.16, 31.12, 33.08; repeals 26.07;
amends Local Government Code 140.010; amends
Education Code 130.016; amends Local Government
Code 140.010; amends Special District Local Laws
Code 1101.254, 1122.2522, 3828.157, 8876.152 and
repeals 1063.255; amends Water Code 49.107 and
49.108 and repeals 49.236 and 49.2361; repeals
Government Code 403.302(m-1) and (n)
The bill provides that all rollback tax elections are
converted to ratification tax elections with no
requirement of a citizen petition to initiate a vote to
retain the rate.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Referred to House Ways & Means 2/22/17.
INCREASE IN CALCULATING ROLLBACK TAX
RATE IS LIMITED TO INFLATION RATE;
MANDATORY ELECTION REQUIRED FOR TAX
RATE ADOPTED ABOVE ROLLBACK RATE
HB 1146 Davis
Amends 26.01, 26.04, 26.08, 26.16, 31.12, 33.08;
repeals 26.07; amends Local Government Code
140.010; amends Education Code 130.016; amends
Health and Safety Code 281.124; amends Special
District Local Laws Code 1101.254, 1122.2522,
3828.157, 8876.152 and repeals 1063.255; amends
Water Code 49.107 and 49.108 and repeals 49.236
and 49.2361
The bill combines the changes proposed in HB 1144
and HB 1147 by Davis. This bill limits the increase
allowed in the rollback tax rate to the inflation rate.
The Comptroller will estimate and publish the
inflation rate. All rollback tax elections are converted
to ratification tax elections with no requirement of a
citizen petition to initiate a vote to retain the rate.
Proposed Effective: 1/1/2018.
Status: Referred to House Ways & Means 2/22/17.
INCREASE IN CALCULATING ROLLBACK TAX
RATE IS LIMITED TO INFLATION RATE
HB 1147 Davis
Amends 26.012, 26.04, 26.041; amends Special
District Local Laws Code 8876.152; amends Water
Code 49.236 and repeals 49.236 and 49.2361
The bill limits the increase allowed in the rollback tax
rate to the inflation rate. The Comptroller will
estimate and publish the inflation rate.
Proposed Effective: 1/1/2018.
Status: Referred to House Ways & Means 2/22/17.
INCREASE IN CALCULATING ROLLBACK TAX
RATE IS LIMITED TO SIX PERCENT;
MANDATORY ELECTION REQUIRED FOR TAX
RATE ADOPTED ABOVE ROLLBACK RATE
HB 1165 Paul
Amends 26.04, 26.041, 26.08, 26.16, 31.12, 33.08;
repeals 26.07; amends Local Government Code
140.010; amends Education Code 130.016; amends
Health and Safety Code 281.124; amends Special
District Local Laws Code 1101.254, 1122.2522,
3828.157, 8876.152 and repeals 1063.255; amends
Water Code 49.107 and 49.108 and repeals 49.236
and 49.2361
The bill reduces the current 8% to 6% for the increase
allowed in the rollback tax rate, except a taxing unit
uses 8% if responding to a disaster declared in its
boundaries. All rollback tax elections are converted to
ratification tax elections with no requirement of a
citizen petition to initiate a vote to retain the rate.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 90 days
after sessions on 8/31/2017.
Status: Referred to House Ways & Means 2/21/17.
SCHOOL TAX RATE RATIFICATION ELECTION
HELD ON FIRST UNIFORM ELECTION DATE
HB 1496 G. Bonnen
Amends 26.08
The substitute bill provides that a school tax rate
ratification election be held on the first uniform
election date prescribed by Election Code 41.001 that
allows sufficient time to comply with all other
requirements of law. Current law requires the election
be held 30 to 90 days after adopting the tax rate.
2017 Legislative Update; Page 47
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 90 days
after sessions on 8/31/2017.
Status: Substitute reported favorably from House
Ways & Means 3/27/17 and recommended for
House General Calendar.
PUBLIC NOTICE PUBLISHED IN A MEDIA
OTHER THAN NEWSPAPER
HB 1530 Workman; similar HB 1541 Shaheen;
similar HB 3896 Gutierrez
Adds Government Code 2051.151
These bills allow a political subdivision to use another
media to publish a notice required by law to be
published in a newspaper. The political subdivision
determines the form that will provide sufficient public
notice, including its website or an Internet newspaper
(HB 1530) or social media website that the political
subdivision controls the content and is easily found by
Internet search (HB 1541). The notice must be
published for the period of time as required for
publishing in a newspaper. HB 3896 addresses a
municipality with a population of less than 25,000 and
in which no newspaper is published.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: HB 1530 and HB 1541 referred to
Government Transparency & Operations 3/9/17.
PUBLIC NOTICE PUBLISHED IN A MEDIA
OTHER THAN NEWSPAPER
HB 2073 Johnson
Amends Government Code 2051.044, 2051.049
The bill changes the requirements for a legal
newspaper for publishing a required notice to remove
the requirement that the newspaper be entered as
second-class postal matter in the county where
published. The bill also adds that, to encourage
development of minority-owned businesses, a
government entity shall consider selecting a minority-
owned business if a substantial percentage of
individuals residing in the area are members of one or
more minority and a newspaper in the area where the
notice is to be published is a minority-owned business
and is widely circulated in that area.
Proposed Effective: 9/1/2017.
Status: Referred to House Government
Transparency & Operation 3/16/17.
TAXING UNIT ADOPTS DEBT RATE
CALCULATED FOR DEBT; WATER DISTRICTS
DO NOT FOLLOW SOME TAX CODE
PROVISIONS, CHANGES TO ROLLBACK RATE
HB 1728 Faircloth
Amends 26.05; amends Water Code 49.107, 49.108,
49.236 and repeals 49.236 and 49.2361; amends
Special District Local Laws Code 8876.152
The bill changes the word published to calculated as
the rate required to be adopted for the debt service
(I&S) rate. The bill changes that water districts are
required to follow Section 26.04(a), receipt of the
appraisal roll, and (b), certified collection rate for debt
service by the tax collector. Water districts also would
follow Section 26.05(a) on the deadline for tax rate
adoption for the M&O and debt rate. The other
subsections of 26.04 and 25.06 do not apply to a water
district. A water districts Notice of Public Hearing on
Tax Rate would include a description of the purpose
of an increase if the proposed total rate exceeds the
rollback rate. The rollback rate for the water district is
the current years debt rate, current years contract tax
rate and the M&O rate that would impose 1.08 times
the amount of M&O tax imposed in the preceding
year on an average appraised residence homestead,
disregarding homestead exemptions to disabled or
over-65 homeowners.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Referred to House Ways & Means 3/13/17.
VOTER PERCENT REQUIRED FOR SUCCESSFUL
BOND OR TAX INCREASE ELECTION
HB 1773 Swanson; similar SB 2091 Hall
Adds Election Code 2.101, 41.0051, 271.015 and
amends 85.062; amends Government Code 1251.001,
1251.003, 1251.004 and repeals 1251.006
The bills provide that an election to authorize the
issuance of bonds or a tax increase has no effect
unless more than 25% of the registered voters of the
political subdivision vote in the elections. HB 1773
also provides that such elections must be held on the
November uniform election date. The bills add that an
election authorizing bonds or a tax increase shall be
held as a joint election. The bills require all types of
political subdivisions (not just county or city) to have
voter approval to issue bonds. A temporary branch
polling place must remain at the same location for the
entire period during early voting and allow for the
2017 Legislative Update; Page 48
same days and hours as voting at the main early voting
polling place.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: HB 1773 referred to House Elections
3/14/17. SB 2091 referred to Senate State Affairs
3/28/17.
SCHOOL BOND ELECTION HAS ONE PROJECT
HB 1910 Sanford; similar HB 2811 Swanson
Amends Education Code 45.003
The bills provide that a school bond election may not
include more than one project in any proposition.
Proposed Effective: 9/1/2017.
Status: HB 1910 scheduled for hearing in House
Elections 4/3/17. HB 2811 referred to House Public
Education 3/30/17.
SCHOOL VOTERS MAY APPROVE A HIGHER
DEBT RATE ABOVE CURRENT LIMIT
HB 2108 Huberty
Amends Education Code 45.003, 45.0031
The bill provides that a school district may exceed the
$0.50 debt rate limit with voter approval while the
M&O rate remains in compliance with the M&O tax
rate limit. The debt rate is increased while the M&O
rate is reduced.
Proposed Effective: 9/1/2017.
Status: Referred to House Public Education
3/13/17.
VOTERS MAY APPROVE A NEW CITY OR
REGIONAL LOCAL GOVERNMENT WITH
INITIAL TAX RATE
HB 2110 Keough; SB 1015 Creighton
Adds Local Government Code 43.0755
These bills provide for establishing a new
municipality or another regional form of government
by voter election as a Type A, B or C municipality,
with an initial tax rate stated in the ballot proposition.
The initial tax rate is not considered for calculating an
effective or rollback tax rate for Section 26.04.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: SB 1015 referred to Senate
Intergovernmental Relations 3/6/17. HB 2110
referred to House Urban Affairs 3/22/17.
COMPTROLLER EVALUATE STANDARDS
AND BEST PRACTICES FOR REPORTING
COUNTY BUDGET INFORMATION
HB 2384 Frank
None
The bill requires the Comptroller to identify and
evaluate uniform standards for reporting county
budget information. The Comptroller shall identify
best practices and methods for making the
information publicly accessible, with a report to the
Governor, Lt. Governor and Speaker of the House by
June 1, 2018.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Referred to House Ways & Means 3/22/17.
ELECTIONS HELD ON ONE OF TWO GENERAL
ELECTION DATES
HB 2485 Elkins
Amends Election Code 41.001, 41.0052
The bill provides that each general or special election
in this state shall be held on the first Saturday of May
in an odd-numbered year or the first Tuesday after the
first Monday in November. The governing body of a
political subdivision, other than a county or municipal
utility district, that holds its general election for
officers on a date other than the November uniform
date may, not later than January 1, 2018, change the
date to the November uniform election date.
Proposed Effective: 9/1/2017.
Status: Scheduled for hearing in House Public
Elections 4/3/17.
CERTAIN INFORMATION RQUIRED FOR
PROPOSED BOND ISSUE
HB 2642 Sanford
Adds Education Code 45.114 and Local Government
Code 140.013
The bill requires certain information by school
districts, counties and cities on the issuance of bonds.
Any publicly distributed materials for the proposed
bonds shall include the bonds purpose, amount and
likely interest rate and maximum estimated cost to
repay the bonds, including principal and interest. The
information shall be posted on the entitys website.
Proposed Effective: 9/1/2017.
Status: Referred to House Public Education
3/21/17.
2017 Legislative Update; Page 49
NEW PROPERTY DEFINITION CHANGED IN
TRUTH-IN-TAXATION CALCULATION
HB 3614 Morrison
Amends 26.012
The bill changes the definition of new property for
TNT calculations to include, for purposes of a county,
the increase in total taxable value of real property
interests in oil or gas in place listed on the appraisal
roll in the current year for production of oil or gas
wells completed after January 1 of the preceding year.
Proposed Effective: 1/1/2018.
Status: Referred to House Ways & Means 3/30/17.
TAXING UNIT SENDS NOTICE TO PROPERTY
OWNERS ABOUT PROPOSED TAX INCREASE
HB 3831 Guiterrez
Adds 26.053 and amends 26.05, 26.052; amends
Local Government Code 140.010; amends Special
District Local Laws Code 8876.152
The bill requires the governing body of a taxing unit
that proposes to adopt a tax rate that exceeds the lower
of the effective tax rate or rollback rate to adopt a
resolution before its first public hearing on the
proposed tax increase. The resolution indicates each
member in favor of the proposed tax rate and each
member opposed and provides written notice to each
property owner in the taxing unit of the total amount
of tax revenue in the preceding tax year, total amount
proposed for the current year at the proposed rate,
percentage change in revenue and name of each
governing body member in favor and opposed to the
proposed rate. This provision does not apply to a
school district and to a small taxing unit (50 cent rate
or lower generating $500,000 or less in taxes). The
taxing unit is responsible for mailing the notice to
property owners, or the unit may request the appraisal
district mail the notice. If more than one taxing unit
requests the CAD handle the notice, the CAD may
include property owners in more than one taxing unit
in the notice. The Comptroller adopts rules on the
form and timing of the notice.
Proposed Effective: 1/1/2018.
Status: Filed.
CERTAIN NAVIGATION DISTRICTS TAX
RATE REINSTATED UPON REQUEST
HB 3909 Lucio
Amends Water Code 62.160
The bill addresses a suspended tax rate for a
navigation district in a county with a population of
less than 400,000 and not than 4 million that borders
the Gulf of Mexico, or a county that borders the Gulf
of Mexico and is adjacent to such a county. The tax
may be reinstated upon request by the district to the
county tax assessor-collector.
Proposed Effective: 9/1/2017.
Status: Filed.
LEGISLATURE RESTRICTED ON POWER TO
MANDATE REQUIREMENTS ON A COUNTY
OR CITY
HJR 73 Burns
Adds Tex. Const. Art. 3, Sec. 68
The constitutional amendment would provide that a
law passed by the Legislature is not effective if it
requires a county or city to establish, expand or
modify a duty or activity and the Legislature does not
appropriate reimbursement of the costs, from a source
other than the revenue of the county or city.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: Referred to House State Affairs 3/22/17.
SPECIAL TRUST FUNDS LANGUAGE
REMOVED FROM TAX CODE SECTION 26.041
SB 105 Hall
Amends 26.041; repeals Local Government Code
335.087
The bill repeals Section 26.041(j) that the additional
sales tax component does not include sales tax
retained by the Comptroller for special events funds.
The bill abolishes these event funds: Pan American
Games trust fund, Olympic Games trust fund, Major
Events reimbursement program fund, Motor Sports
Racing trust fund and Events trust fund.
Proposed Effective: 9/1/2017.
Status: Left pending in Senate Natural Resources
and Economic Development 3/14/17.
2017 Legislative Update; Page 50
BOND BALLOT LANGUAGE CHANGED
SB 461 Lucio; HB 3335 Murphy
Amends Election Code 52.072; adds Government
Code Chapter 1251B and repeals 1251.002; amends
Local Government Code 271.049
The bills change the ballot language for bond
elections to require more information about the taxing
units taxes, maturity date of bonds, outstanding debt
secured by property taxes, taxes on $100,000 home
value to repay current debt for the increase to repay
new debt if approved. The taxing unit includes this
information on its website for at least 45 days before
the order issuing the bonds.
Proposed Effective: 9/1/2017.
Status: SB 461 left pending in Senate
Intergovernmental Relations 3/27/17.
PETITION AND BALLOT PROVISIONS
CHANGED FOR CITIES
SB 488 Bettencourt; HB 3332 Kuempel
Add Election Code Chapter 273, Subchapter F, and
233.0115 and amends Election Code 52.072, 253.094,
Chapter 277; amends Local Government Code 9.004,
These bills change requirements on petition and
ballots for cities and home-rule cities. A proposition
must substantially state the ballot with such
definiteness and certainty that the voters are not
misled. A city voter may submit the ballot language
to the Secretary of State for review at least seven days
before the election. The Secretary of State has
mandamus action to have the city cure defects. The
bills set out provisions for a home-rule city on petition
signatures and language. SB 488 substitute adds, if a
court orders a new election, a person may seek from
the court a writ of mandamus to compel the citys
governing body to comply with the ballot proposition
requirements regarding definiteness and certainty that
the voters are not mislead.
Proposed Effective: 9/1/2017.
Status: SB 488 substitute reported from Senate
Intergovernmental Relations 3/30/17.
SPECIAL DISTRICTS REQUIRED TO GIVE
ACCESS TO FINANCES AND TAX RATE
INFORMATION
SB 625 Kolkhurst; HB 1343 Stephenson
Adds Government Code 403.0241, 403.0242; adds
Local Government Code Chapter 203, Subchapter D
The bill requires the Comptroller to create a website
known as Special Purpose District Public Information
Database to include all active special purpose districts
that impose an ad valorem tax or a sales and use tax
or charge a fee. A special purpose district is not a
county, municipality, school district, junior college
district or statewide district. Each districts
information includes name, each board member or
employee, attorney that represents district, contact
information for main office, special districts website,
reports under Local Government Code Section
140.008, total annual revenue, unencumbered fund
balance at end of last fiscal year, rate of any sales and
use tax and table of property tax rates as required by
Tax Code Section 26.16. The Comptroller updates the
database annually, with no fee to access database.
The Comptroller sets how to transmit the information
and shall maintain a list of special districts that do not
comply. The Attorney General shall not approve a
public security submitted by the special district on the
noncompliance list.
Proposed Effective: 9/1/2017, with the website by the
Comptroller by January 1, 2018.
Status: SB 625 referred to Senate
Intergovernmental Relations 2/13/17. HB 1343
referred to House Special Purpose Districts
2/27/17.
BALLOT PROVISIONS CHANGED FOR TAX
RATE OR BOND ELECTION
SB 642 Bettencourt; similar HB 1658 Phelan
Amends Election Code 52.072; amends Government
Code Chapter 1251
These bills change requirements on the ballot of a
political subdivision, including a city, county, school
district or special taxing district, for the voters to
approve imposing, increasing or reducing a tax. The
ballot language includes the estimated additional tax
burden to be imposed on a median homestead value
and a detailed description of the purpose of the tax
imposed or increased. For reducing the tax rate, the
ballot includes the estimated tax reduction on a
median homestead value. The bills provide for
specific information to be included on the ballot for a
bond election, including total amount of debt secured
by property taxes, total amount of current property tax
debt payments, taxes to be imposed on the median
homestead value to repay current debt and estimated
taxes if approved. SB 642 adds that the ballot
language for a bond election may not exceed 5,000
2017 Legislative Update; Page 51
characters or a different limit prescribed by the
Secretary of State to ensure the bond language does
not exceed one page or one screen on electronic
voting machine.
Proposed Effective: 9/1/2017.
Status: SB 642 referred to Senate
Intergovernmental Relations 2/13/17. HB 1658
scheduled for hearing in House Elections 4/3/17.
ALL BOND ELECTIONS HELD ON NOVEMBER
GENERAL ELECTION DATE
SB 701 Huffines
Adds Election Code 41.0051
The bill provides that bond elections shall be held on
the November uniform election date.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Intergovernmental
Relations 2/21/17.
INCREASING MUNICIPAL FEE ADDS TO
CITYS BUDGET NOTICE
SB 737 Hancock; HB 1557 Parker
Adds Local Government Code 102.0001 and Chapter
109; amend Local Government Code 102.005,
102.006, 102.0065, 102.007, 102.008
These bills provide that a proposed budget that
includes estimated revenue from a new fee or increase
in an existing fee must contain a cover page with a
statutory statement in 18-point or larger type about the
fee. The governing body must ratify the use of that
revenue in the budget by a separate vote from the
budget or to adopt or increase the fee. The cover page
of the adopted budget must also include the
information. The municipality must maintain an email
notification service for any person to subscribe to
receive information about new or increased municipal
fees.
Proposed Effective: 9/1/2017.
Status: SB 737 reported from Senate
Intergovernmental Relations 3/27/17 and placed
on Senate Intent Calendar 3/29/17. HB 1557
referred to House Urban Affairs 3/9/17.
LOCAL BALLOT LANGUAGE REVISED
SB 1150 Buckingham; HB 273 Gonzales
Amends Election Code 52.095
These bills require that each proposition on a ballot
must identify the name of the authority ordering the
election and assign a number that corresponds to the
order in which it is placed on the ballot. The Secretary
of State prescribes procedures.
Proposed Effective: 9/1/2017.
Status: HB 273 referred to House Elections
2/13/17. SB 1150 referred to Senate State Affairs
3/7/17.
PANEL OF JUDGES APPROVES BALLOT
LANGUAGE IN SOME COUNTIES
SB 1296 Huffman
Adds Election Code 52.0721
The bill applies to an election by a political
subdivision located primarily in a county with a
population of more than 120,000, but not if a statute
sets out ballot proposition language. The political
subdivision submits to the regional presiding
administrative law judge the ballot proposition
language and purpose of the election. The judge
appoints a panel of three judges to review the ballot
proposition language before the election is held. If the
language is not clear and understandable to the
average voter or the panel does not make a ruling by
the 31st day of appointment, the language is
disapproved. The panel may provide rewritten ballot
language.
Proposed Effective: 9/1/2017.
Status: Left pending in Senate State Affairs
3/30/17.
ADJUSTED EFFECTIVE AND ROLLBACK TAX
RATES ADDED TO TNT RATES
SB 1426 Hancock
Amends 26.012, 26.04; amends Local Government
Code 140.010
The bill adds two additional rates to Truth-in-
Taxation: adjusted effective tax rate and adjusted and conditions that have brought the local state of
rollback tax rate which do not have new property
value deducted from the current total value. The
adjusted rollback tax rate does not deducted new
property value in calculating the effective M&O rate.
These two new rates are added to the required notices
published by a county or municipality.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Referred to Senate Finance 3/20/17.
2017 Legislative Update; Page 52
ROLLBACK TAX RATE FOR CHAPTER 41
SCHOOL DISTRICT ADJUSTED FOR
PURCHASING ATTENDANCE CREDITS
SB 1810 Taylor
Amends 26.04, 26.08; amends Education Code
41.093
The bill addresses a Chapter 41 wealthy school
district in calculating its rollback tax rate. The officer
or employee designated by the school board shall
calculate the positive percentage difference, if any,
between the rollback tax rate and the adopted tax rate
for the preceding tax year. The rollback tax rate is the
effective M&O rate using Section 26.08(i). The
percentage rate is provided by August 7 or as soon as
possible to the school board and the Education
Commissioner. The Commissioner may not require
the Chapter 41 district to purchase necessary
attendance credits during the preceding year by a
percentage greater that the percentage calculated for
the district and reported to the Commissioner. The
Commissioner certifies the necessary amount to the
school board for calculating the rollback tax rate.
Proposed Effective: 1/1/2018.
Status: Referred to Senate Education 3/23/17.
DISASTER MAY EXTEND DEADLINE
RELATING TO BUDGET OR PROPERTY TAX
RATE
SB 1897 Perry; HB 3906 Frullo
Amends Government Code 418.108
The bill provides that, if the presiding officer of a
political subdivision finds that a disaster has occurred
or is imminent, the officer may declare a local state of
disaster by order or proclamation. The order or
proclamation must include a description of the nature
of the disaster, a designation of the area threatened
disaster about or made it possible. A copy of the
order/proclamation is placed on the political
subdivisions website. The presiding officer may
request the Governor waive or suspend a deadline
imposed by a statute or rules of a state agency,
including one for a budget or ad valorem tax, if the
waiver is reasonably necessary to cope with the
disaster.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: HB 1897 referred to Senate Agriculture,
Water & Rural Affairs 3/23/17.

SECRETARY OF STATE CERTIFIES THAT
REGISTERED VOTERS SIGNED A PETITION
SB 2010 Taylor
Adds election Code 277.006 and 277.006
The bill authorizes the Secretary of State to adopt a
petition form that may be used for elections outside of
the Election Code. The authority to which a petition
is submitted shall provide the petition to the Secretary
of State for certification. The Secretary of State shall
certify the signers are registered voters of the
applicable territory and deliver the results to the
authority. An authority may not invalidate a petition
signature if the Secretary of State certified the signer.
Proposed Effective: 9/1/2017.
Status: Referred to Senate State Affairs 3/27/17.
NAVIGATION DISTRICT MAY REQUEST THAT
THE COUNTY OR THE CITIES IN THE
DISTRICT LEVY THE PROPERTY TAX FOR THE
DISTRICT
SB 2199 Lucio
Amends Water Code 62.160
The bill adds that the navigation district may request
that the commissioners court of the county levy assess
and collect the property taxes for the district, not to
exceed the 10 cents per $100 limit. Or, upon the
navigation districts request, the governing bodies of
the municipalities in the district levy, assess and
collect the taxes for the district. The navigation
district pays for the costs of levying, assessing and
collecting the tax.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Referred to Senate Transportation
3/29/17.
Tax Collections
INSTALLMENT PAYMENT OF CURRENT
TAXES EXTENDED TO ALL RESIDENCE
HOMESTEADS
HB 198 Bernal
Amends 31.031
The bill makes the right to pay current taxes in four
equal installments available to all homeowners who
2017 Legislative Update; Page 53
qualify for the residence homestead exemptions. The
right to make installment payments is presently
limited to the homeowners age 65 or older, to disabled
homeowners and to disabled veteran homeowners.
Proposed Effective: 1/1/2018.
Status: Referred to House Ways & Means 2/14/17.
RELIGIOUS ORGANIZATION REQUESTS TAX
REFUND ON LEASED PLACE OF WORSHIP
HB 758, HJR 49 Keough
Adds 31.112; amends 31.12; adds Tex. Const. Art. 3,
Section 521
The bill and constitutional amendment provides that a
religious organization that leases property for use as
an actual place of religious worship receives a refund
from each taxing unit of the taxes imposed on the
property and collected from the property owner. The
religious organization must apply for the refund no
later than the third anniversary of the date the taxes
were paid; otherwise, the organization waives the
right to the refund. The Comptroller prescribes the
refund application. The tax collector has 90 days to
respond to a refund request, or the request is denied.
The organization may file suit against the taxing unit
not later than 60 days after a refund denial. The
organization may be awarded court costs and attorney
fees.
Proposed Effective: 1/1/2018, if Texas voters approve
constitutional amendment November 7, 2017.
Status: Referred to House Ways & Means 2/20/17.
MUD BILLS INCLUDE BOND OR DIRECTOR
ELECTION NOTICE
HB 1272 Schofield; similar HB 1607 Schofield
Adds Water Code 54.104
HB 1272 provides that a municipal utility district
(MUD) shall print a notice of a director or bond
election to include with a bill or invoice that the MUD
sends to residents. The notice for a bond election
includes the amount of bonds to be issued, interest
rate and time and place of election. The notice for a
director election includes the names of candidates and
time and place of the election. HB 1607 includes more
details. For director elections, the notice with the bill
or invoice is sent two to three months before the board
elections and includes the procedure for becoming a
director, qualifications, filing process, application
form and deadline for filing. For bond elections, the
bill or invoice is sent one to two months before the
election and includes the amount of bonds to be
issued, interest rate, bonds purpose and time and
place of election.
Proposed Effective: 9/1/2017.
Referred: HB 1272 referred to House Special
Purpose Districts 2/28/17. HB 1607 referred to
House Elections 3/14/17.
TAX BILL INCLUDES NOTICE OF UPCOMING
SCHOOL TAX RATE RATIFICATION ELECTION
HB 1454 Rinaldi
Amends 31.01
The bill requires that the tax bill must provide notice
that registered school district voters will have an
opportunity to approve the adopted school tax rate if
the school board adopted a tax rate above the rollback
tax rate and the ratification election has not been held
by the date the tax bill is mailed. The notice must
include the election date and the maximum amount of
taxes the school district may impose on the property
if the voters do not approve the adopted tax rate.
Proposed Effective: 9/1/2017.
Status: Reported favorably from House Ways &
Means 3/27/17 and recommended for House
General Calendar.
INSTALLMENT PAYMENT OF CURRENT
TAXES REVISED FOR PROPERTY IN DISASTER
AREA
HB 1782 Faircloth; SB 1047 Creighton
Amends 31.032
These bills revise the language for four equal
installment payments by certain property owners in a
disaster area. It adds to current law that the first
installment may be paid in the first month of
delinquency, with the owner providing a notice that
the payment is the first installment.
Proposed Effective: 1/1/2018.
Status: SB 1047 referred to Senate Finance 3/6/17.
HB 1782 referred to House Ways & Means
3/14/17.
SCHOOL TAX BILLS CONTAIN PERCENTAGES
OF M&O TAXES FOR ROBIN HOOD AND
STATE FUNDS
HB 1890 Capriglione; SB 1407 Taylor
Amends 31.01
2017 Legislative Update; Page 54
The bills require that a school tax bill includes
additional information for a Chapter 41 (wealthy)
school district, which equalizes its wealth by
purchasing average daily attendance credits from
TEA, shall include or separately state the percentage
of M&O taxes imposed for the current tax year that
the school district is required to purchase the credits
and the percentage imposed not for that purpose. For
other districts, the school tax bill states the percentage
of M&O revenue that is derived from M&O taxes for
the current tax year, the percentage of M&O taxes in
the beginning of the preceding tax year, the
percentage of state funds for M&O operation to the
districts in the current year and the percentage of state
funds for M&O in the preceding tax year.
Proposed Effective: 1/1/2018.
Status: HB 1890 left pending in House Ways &
Means 3/22/17. SB 1407 referred to Senate
Finance 3/16/17.
PROPERTY OWNER WHO PAID TAX GETS
REFUND FOR CORRECTED TAX RECORD
HB 2989 Bonnen
Amends 26.15
The bill clarifies that the property owner who paid a
tax on a property that has a correction that decreases
the tax liability receives any tax refund on the
property.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Left pending in House Ways & Means
3/29/17.
MONTHLY INSTALLMENT PAYMENTS BY
DISABLED VETERANS OR SURVIVING
SPOUSE ADDED
HB 3148 Uresti
Adds 31.033 and amends 31.031, 31.08, 33.08
The bill revises the Tax Code sections on quarterly
installment payments by certain homeowners. Section
31.031 is changed to address quarterly payments by
disabled veterans or unmarried surviving spouse on
their homesteads or property that receives a
homestead exemption or the disabled veteran
exemption under Section 11.22. New Section 31.033
adds monthly payments by disabled veterans or
unmarried surviving spouse on property that receives
a homestead exemption or the disabled veteran
exemption. For 10 equal monthly payments, the
owner pays the first installment before November 1,
along with a notice to the taxing unit that the person
will pay the remaining in nine equal installments.
Each payment is due before the first day of the next
month with the 10th payment due before August 1. A
payment after January 1 that is not paid timely is
delinquent and incurs the 6% penalty and 1% monthly
interest rate. A person may not pay less than the due
amount, unless the collector accepts partial payments.
The unpaid amount remains delinquent.
Proposed Effective: 1/1/2018.
Status: Referred to House Ways & Means 3/29/17.
CHIEF APPRAISER LIMITED IN REQUESTING
IDENTIFICATION FOR HOMESTEAD
EXEMPTION; TAX COLLECTOR SENDS
REFUND TO ADDRESS STATED BY OWNER
HB 3446 Yvonne Davis
Amends 11.43, 25.027, 26.15, 31.12
The bill provides that the chief appraiser may not
require an applicant for a homestead exemption to
provide any other identification, except current law on
drivers license or state ID, to determine homestead
address, unless the chief appraiser possesses
reasonable evidence that the address is not the
applicants homestead. A chief appraiser may not
require both spouses of a married couple to sign the
residence homestead exemption application. A chief
appraiser may not require proof of marriage. The chief
appraiser may not deny or cancel an exemption for an
expired state ID or because the individual has a
temporary license or limited term license. The bill
changes Section 25.027, which provides that the CAD
may not post on its website a property owners age or
information that the owner is 65 years of age or older,
to state that this age information does not apply to a
non-searchable appraisal or tax roll dataset available
for download only. For a refund on a residence
homestead, the owner may request that the tax
collector send the refund to a particular address. If no
written request is made, the tax collector sends the
refund to the owners most recent mailing address in
the records of the tax collector. See also Exemptions.
Proposed Effective: 9/1/2017.
Status: Filed.
2017 Legislative Update; Page 55
INSTALLMENT PAYMENT OF CURRENT
TAXES ALLOWED BY LOW-INCOME
HOMEOWNER
SB 595 Lucio
Amends 31.031
The bill makes the right to pay current taxes in four
equal installments available to a homeowner whose
household income at the homeowners homestead is
not more than 80% of the applicable area median
family income established by HUD. The homeowner
must provide the tax collector with any income or
household information that the collector requires to
establish eligibility.
Proposed Effective: 1/1/2018.
Status: Referred to Senate Finance 2/8/17.
PRORATED TAXES ADDRESSED FOR
PROPERTY ACQUIRED BY EMINENT DOMAIN
SB 740 Kolkhorst; similar HB 2684 Burns; similar
HB 3687 Ashby
Amends 26.11; amends Property Code 21.0111,
21.0113, 21.047, 21.063
These bills address an entity acquiring a property by
eminent domain authority. The proration of the taxes
begins when the entity assumes possession of taxable
property under a possession and use agreement or a
similar agreement that is entered into under threat of
condemnation. The proration uses the effective date
of the agreement.
Proposed Effective: 9/1/2017.
Status: SB 740 scheduled for hearing in Senate
State Affairs 4/3/17. HB 2684 Referred to House
Land & Resource Management 3/23/17.
TAX INFORMATION INCLUDED ON NOTICE
AND TAX BILLS TO CERTAIN PROPERTY
OWNERS
SB 1360 Watson
Adds 25.191 and amends 1.085, 25.19, 31.01
The bill addresses specific statements of tax
information be added to a property owners notice of
appraised value for property in certain school
districts. These notices are for property that is in a
school district that must equalize its wealth by
purchasing student credits from the state. The notices
include these statements: Your local school district
property taxes are estimated on the tax rate for the
preceding year to be $___. Of those estimated taxes,
it is estimated that:
"$____ will be used by the school district to fund
maintenance and operations of the school district;
"$____ will be used by the school district to pay for
facilities; and
"$____ will be paid by the school district to the state.
"For the preceding year:
"$____ was used by the school district to fund
maintenance and operations of the school district;
"$____ was used by the school district to pay for
facilities; and
"$____ was paid by the school district to the state.
"For the year preceding the preceding year:
"$____ was used by the school district to fund
maintenance and operations of the school district;
"$____ was used by the school district to pay for
facilities; and
"$____ was paid by the school district to the state."
The bill states how the chief appraiser estimates the
taxes for these items. As an alternative to including
this statements on the notice of appraised value, the
CAD may do new Section 25.191, for which the
Comptroller adopts by rule the format and form. The
alternative Notice of Taxes Actually Imposed on
Property by Taxing Units provides these statements
on a notice sent after the taxing units have adopted
their current tax rates. The statements are modified for
adopted rates. Tax collectors also include these
statements on the owners tax bills for these properties
in these school districts. See also Appraisal District
Administration.
Proposed Effective: 1/1/2018.
Status: Referred to Senate Finance 3/16/17.
Delinquent Tax Litigation
RIGHT TO DEFER TAX COLLECTIONS
EXTENDED TO 100% DISABLED VETERANS
HB 217 Canales
Amends 33.06
The bill authorizes those who qualify for the 100%
disabled veterans homestead exemption to be able to
defer or abate the collection of delinquent taxes on
that homestead.
Proposed Effective: 9/1/2017.
2017 Legislative Update; Page 56
Status: Reported favorably from House Ways &
Means 3/27/17 and recommended for House Local
& Consent Calendar.
TAX DEFERRAL PROVISIONS ADDED FOR
HISTORIC PROPERTY, ALONG WITH
REVISIONS
HB 969 Metcalf
Adds 33.066; amends 6.035, 6.412, 33.06, 33.065;
amends Government Code 403.302
The bill adds a tax deferral for historic family property
that has been continuously owned for at least the
preceding 100 years by one or more individuals of the
same family. Family members are related with the
third degree by blood or marriage at the time the
property transferred from one to the other. An owner
may defer or abate the taxes if the owner has an
ownership interest equal to or greater than 50% of the
propertys market value. The owner files the affidavit
with the chief appraiser. The deferral ends on the first
January 1 when the owner no longer has the
ownership requirements.
The bill also drops the interest rate from 8% to 2%
during a tax deferral or abatement period. The bill
changes Section 33.065 to defer collection of taxes on
a residence homestead based on appreciating value or
owner equity, if the homeowner has an ownership
interest that is greater than 10% of the homes market
value for that year. Ownership interest is the
difference between the homes market value for that
year and the total outstanding debt secured by liens on
the home on January 1. The homeowner must file
annually a valid affidavit about ownership interest
with the chief appraiser. For Section 33.065, the
interest rate drops from 8% to 2% if the homeowners
ownership interest is equal to or greater than 50% of
the homes market value. The bill also provides that a
person with such a historic property tax deferral may
serve as an appraisal district director or ARB member.
The Comptroller adjusts the Property Value Study for
changes in tax deferral.
Proposed Effective: 1/1/2018.
Status: Referred to House Ways & Means 2/27/17.
ELDERLY OR DISABLED HOMEOWNER CAN
DEFER TAXES WITHOUT CONSENT OF
MORTGAGE COMPANY
HB 1564 Miller
Amends 33.06
The bill provides that an elderly or disabled
homeowner is not required to obtain the consent of the
mortgage company for the residence homestead that
the homeowner owns and occupies to obtain a tax
deferral, unless the mortgage balance is at least 60%
of the homesteads appraised value or the homeowner
has a default for a reason other than nonpayment of
taxes. In those cases, the homeowner must obtain
written consent from the mortgage company before
filing for a tax deferral.
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 3/9/17.
ACTIVE MILITARY PERSON HAS A WAIVER
OF PENALTY AND INTEREST AND CAN FILE
DEFERRAL
HB 1632 Greg Bonnen; SB 771 Creighton
Amends 31.02, 3301
These bills address the waiver of penalty and interest
on a delinquent tax of an active military person.
Current law provides for a 60-day period for the active
military person to pay with no penalty and interest
during a war or national emergency declared by
federal law. The bills remove the requirement of
being during a war or national emergency. These bills
also allow the active military person to defer payment
with interest accruing at 6% and incurring no penalty.
Proposed Effective: 9/1/2017.
Status: SB 771 referred to Senate Veteran Affairs
& Border Security 2/22/17. HB 1632 reported
favorably from House Ways & Means 3/27/17 and
recommended for House Local & Consent
Calendar.
TAXING UNIT MAY WAIVE PENALTY AND
INTEREST IF MORTGAGEE FAILS TO SEND
TAX BILL TO OWNER
HB 1634 Greg Bonnen
Amends 33.011
The bill adds that the governing body of a taxing unit
may waive penalties and interest on a delinquent tax
if the mortgagee failed to mail a copy of the tax bill to
the property owner, and the taxpayer paid the tax not
2017 Legislative Update; Page 57
later than the 21st day after the taxpayer knew or
should have known of the delinquency. The tax bill
was mailed or delivered by electronic means to the
mortgagee of the property.
Proposed Effective: 1/1/2018.
Status: Committee substitute left pending in
House Ways & Means 3/15/17.
TIME THAT DELINQUENT PROPERTY IS HELD
BETWEEN JUDGMENT AND SALE IS EXEMPT
FROM TAXES
HB 1833, no filed HJR Dutton
Adds 11.281 and amends 11.43, 33.52, 34.01, 34.05
The bill and constitutional amendment (no filed HJR
at this time) provides for exempting real property held
during the period between issuance of a judgement
foreclosing a tax lien on the property and the sale of
the property at a tax sale or the payment of the taxes
before the sale. If the owner pays the amount of the
judgment before the sale or redeems the property, a
penalty is imposed equal to the taxes that would have
been imposed during the exempt period, plus interest
at 7% from the date on which taxes would have
become due. A tax lien attaches to secure payment of
the penalty and interest. For the property to be
exempt, a person must file an exemption application.
No post-judgement taxes, penalties and interest may
be enforced. A sale by the taxing unit holding the
property discharges and extinguishes all liens
foreclosed by the judgement. See also Exemptions.
Proposed Effective: 1/1/2018, if voters approve
constitutional amendment November 7, 2017.
Status: Referred to House Ways & Means 3/9/17.
OWNER MAY APPLY FOR INSTALLMENT
AGREEMNT ON INHERITED PROPERTY WITH
A TAX DEFERRAL
HB 2635 Dutton
Adds 33.025 and amends 6.035,
The bill adds that a property owner who inherited a
property from a person who at the time of death was
receiving a tax deferral may pay the deferred taxes
and interest in installments. The owner makes a
written request to pay in installments and the collector
shall enter an installment agreement. The owner must
make the request not later than the date that the
deferral period expires. The written installment
agreement is for payments to be made monthly or
annually. The agreement expires on the earlier of the
date the owner no longer owns the property or the 30th
day after the owner fails to make a payment. The
property may not be seized or sold or filed for suit to
collect a delinquent tax subject to an installment
agreement until the date the agreement expires.
Interest continues to accrue on the unpaid balance at
1% per month. The collector must deliver a notice of
default of the agreement.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Referred to House Ways & Means 3/21/17.
PROPERTY OWNER NOTIFIES MORTGAGE
COMPANY BY CERTIFIED MAIL ABOUT TAX
LENDER CONTRACT
HB 2832 Oliveira; SB 1397 Nichols
Amends 32.06
The bills address the required notice to the mortgage
company by a property owner that has authorized a
property tax lender to pay the delinquent taxes on the
property. Not later than 10 days before the owner
executes a contract with a tax lender, the owner sends
by certified mail to the mortgage company a notice
that the owner intends to enter into a contract
authorizing the lender to pay the delinquent taxes.
Proposed Effective: 9/1/2017.
Status: SB 1397 referred to Senate Business &
Commerce 3/16/17. HB 2832 referred to House
Ways & Means 3/29/17 and re-referred to House
Business & Industry 3/30/17.
SPECIAL NOTICES REQUIRED TO CANCEL
TAX DEFERRAL FOR OVER-65 HOMEOWNER
SB 448 Burton; HB 2028 Goldman
Amends 1.07, 33.06
These bills require that the chief appraiser sends a
notice by certified mail to an over-65 homeowner
before the appraiser determines that the over-65
homeowner is no longer entitled to receive a tax
deferral or abatement on the home. The chief
appraiser includes a form, along with a self-addressed
postage prepaid envelope to return the form, on which
the homeowner may indicate if the home remains the
persons principal residence. If the chief appraiser
receives no response in 60 days after mailing, the
chief appraiser may determine the home is no longer
qualified for the tax deferral after 30 days and after
making a reasonable effort to locate the homeowner.
Reasonable effort includes mailing a second notice by
2017 Legislative Update; Page 58
first-class mail with RETURN SERVICE
REQUESTED in all caps and with the date in larger,
bold font that the chief appraiser will determine the
home no longer qualifies. The chief appraiser may
include this notice with a notice about cancelling the
homestead exemptions on the home.
Proposed Effective: 9/1/2017.
Status: SB 448 reported from Senate Finance
3/16/17, passed Senate 3/22/17 and received in
House 3/23/17. HB 2028 voted from House Ways
& Means 3/29/17.
CERTAIN MORTGAGE SERVICERS REQUIRED
TO ISSUE ACCOUNTING STATEMENTS TO
OWNERS WITH REAL PROPERTY LIENS
SB 830 Rodriquez
Adds Property Code Chapter 397
The bill applies to a loan secured by a first or
subordinate lien on real property that is not a federally
related mortgage loan, loan by a regulated credit
union or a loan primarily for business purposes or for
temporary financing. A mortgage servicers for a loan
other than those listed shall provide the borrower an
annual January statement about the amount of each
payment received during the preceding year, how
each payment was applied and the outstanding
balance. A borrower can bring action requiring
compliance and recover actual damages, $100 for
each violation and attorneys fees.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Business & Commerce
2/27/17.
INTEREST RATE CHANGED ON TAX
DEFERRAL
HB 2236 Murphy
Amends 33.06, 33.065
The bill changes the current 8% interest rate on a tax
deferral or abatement to the five-year Constant
Maturity Treasury Rate reported by the Federal
Reserve as of January 1 of the year in which the
deferral or abatement was obtained.
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 3/20/17.
QUALIFICATIONS DETAILED FOR PROCESS
SERVERS FOR LAWSUITS
HB 2412 Schofield
Adds Civil Practice and Remedies Code 30.022
The bill outlines the qualifications as a process server
for any process in a lawsuit, including citation and
other notices, writes, order and papers issued by a
court. The process server must be 18 years of age or
older and not be a party to the suit or interested in the
suits outcome. Only a sheriff or constable may serve
a citation in an action of forcible entry and detainer; a
writ that requires the actual taking of possession of a
person, property or thing; or a writ requiring that an
enforcement action be physically enforced.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Referred to House Judiciary and
Jurisprudence 3/22/17.
DELINQUENT TAX SALE MAY INCLUDE
PERSONAL PROPERTY AND OTHER
REVISIONS
HB 3062 Kacal
Amends 34.01, 34.015, Civil Practice and Remedies
Code 34.0445
The bill revises the delinquent tax sale procedures to
include personal property seized by a tax warrant and
to include the CAD board of directors (if the CAD
collects) for the authorization of on-line bidding and
sale. The sale of personal property, including a
manufactured home, may take place at the same place
as the sale of real property or at the location of the
personal property. The bill defines who is a purchaser
and person who is bidding. The officer conducting the
sale delivers the deed to the person who was the
successful bidder at the sale and on the request of that
bidder, to the legal spouse of the successful bidder or
to a business, religious, charitable or civic
organization giving written authorization to an
individual to submit a bid
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 3/27/17.
HOMEOWNER MAY ABATEMENT PENDING
TAX SALE OF HOMESTEAD
SB 1378 Zaffirini
Adds 33.061
2017 Legislative Update; Page 59
The bill allows a homeowner to abate a sale to
foreclose a tax lien on the home that the homeowner
owns and occupies. The homeowner delivers an
affidavit to the chief appraiser, to the tax collector(s)
or the delinquent tax attorney for the taxing unit(s)
and to the officer conducting the sale no later than five
days before the sale date. The homestead may not be
sold until either the second anniversary of the date the
homeowner delivered the affidavit or 181 days after
the homeowner no longer owns and occupies the
home, whichever date is earlier. If the home is sold in
violation, the homeowner may file a motion to set
aside the sale, if the motion is filed during the
applicable redemption period for the property or, if a
taxing unit is holding the property, on or before 180
days following the date the taxing units deed of
record is filed. This right is not transferable to a third
party. Annually, the chief appraiser advertises the
ability to abate a tax sale of a homestead.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Finance 3/16/17.
TIMES AND DATE SET FOR PUBLIC TAX SALE
OF REAL PROPERTY
HB 3311 Huberty
Amends 34.01, 34.07; amends Civil Practice and
Remedies Code 34.041, amends Property Code
51.002
The bill adds that a real property sale must take place
between 10 a.m. and 4 p.m. on the first Tuesday of the
month, or if a holiday, on the following business day.
This time and date also applies to a sale conducted by
a public auction using online bidding.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Filed.
APPOINTED MASTER RECEIVES FEES AS
COSTS OF DELINQUENT TAX LAWSUITS
HB 3389 Schofield
Amends 33.73
The bill adds that the district clerk shall collect fees
taxed as costs of suit and award the fees to the master
in each delinquent tax suit for which a master is
appointed, regardless of the disposition of the suit.
Proposed Effective: 9/1/2017.
Status: Filed.
PRIORITY OF TAX LIEN CHANGED TO
INFERIOR IF CONNECTED TO TAX LIEN
TRANSFER
HB 3725 Walle
Amends 32.05, 32.065
The bill adds an exception that the priority of a tax
lien is inferior to a debt, lien, future interest or other
encumbrance that existed before attaching the tax lien
if the tax lien is transferred to a transferee and the
closing costs of the loan secured by the transferred tax
lien exceeded $500 or discount points were charged
in connection with the loan secured by the transferred
tax lien.
Proposed Effective: 9/1/2017.
Status: Filed.
TAXING UNIT MAY WAIVE DELINQUENT
PENALTY AND INTEREST FOR CONSCIOUS
INDIFFERENCE BY PROPERTY OWNER
HB 4293 Craddick
Amends 33.011
The bill provides that the governing body of a taxing
unit may waive penalties and interest on a delinquent
tax if the taxpayer submits evidence showing that the
delinquency was not intentional or the result of
conscious indifference.
Proposed Effective: 1/1/2018.
Status: Filed 3/27/17, after filing deadline.
TAX LIEN ON ERRONEOUS EXEMPTION
ADDED TO APPRAISAL ROLL IS NOT
ENFORCED AGAINST NEW OWNER
SB 1745, SJR 55 Hinojosa
Amends 11.43; amends Tex. Const. Art. 8, Sec. 15
The bill and constitutional amendment provide that if
the chief appraiser adds property or appraised value
that was erroneously exempted in a prior year to the
appraisal roll, a tax lien may not be enforced against
the property for payment of taxes, penalties or interest
as a result of adding the property if at any time after
January 1 of that year the property was sold in an
arms length transaction to a person who was not
related to the seller within the first degree by blood or
marriage. See also Exemptions.
Proposed Effective: 9/1/2017. Not contingent on
voter approval of constitutional amendment
November 7, 2017.
2017 Legislative Update; Page 60
Status: SJR 55 referred to Senate Finance 3/21/17
and SB 1745 3/23/17.
INTEREST RATE CHANGED IN TAX CODE
SB 2198 Campbell
Adds 1.13 and 1.14 and amends 11.135, 11.181,
11.185, 11.201, 23.46, 23.55, 23.76, 23.86, 23.96,
23.9807, 26.09, 31.12, 33.01, 33.06, 33.065, 42.42,
The bill changes the interest rate used to accrued on
various provisions of the Tax Code, including special
valuation rollback taxes, omitted property, delinquent
taxes, tax refunds, tax deferrals and others. The
annual interest rate is the lesser of 12% or the sum of
2% and the prime rate published by the Federal
Reserve Board on the first business day of the
calendar year for which simple interest is calculated.
The Comptroller posts the interest rate on the
Comptrollers website, beginning with the 2018
calendar year. The parties to a motion, effort or appeal
may agree to waive or reduce the interest that accrues
on a tax, penalty or refund that is subject to a 25.25
error correction; on a delinquent tax or a delinquent
tax lawsuit to collect; or for an appeal to district court.
The written agreement is required before the court
issues the order for the delinquent tax lawsuit or
pending appeal. A district court may waive or reduce
interest that has accrued as part of the final judgment
to the extent the interest is waived or reduced by
agreement. See also Appraisal District
Administration and Appraisal District Litigation.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Finance 3/29/17.
County Tax Assessor-Collectors
ADDITIONAL PROCEDURE ADDED FOR
DISHONORED CHECK
HB 598 Koop; SB 492 West
Amends Local Government Code 130.006
These bills add to the list of procedures that the county
tax assessor-collector may establish to include the
referral of a dishonored check or credit card invoice
to a private collection agency. The private collection
agency may charge a fee equal to the amount
authorized for a returned check under Local
Government Code Section 118.011, which is
currently not less than $15 nor more than $30.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: SB 492 passed Senate 3/28/17 and received
in House 3/29/17. HB 598 reported favorably in
House Ways & Means 3/27/17 and recommended
for House Local & Consent Calendar.
CONTINUING EDUCATION HOURS SET FOR
NEW COUNTY TAX ASSESSOR-COLLECTOR
HB 1719 Thompson; similar SB 929 Hughes
Amends 6.231
These bills add that a county tax assessor-collector
who assesses or collects property taxes shall
successfully complete at least 40 hours of continuing
education courses on property tax assessment and
collection, including Truth-in-Taxation. HB 1719
requires the hours be completed not later than the first
anniversary of the date of taking office; the change
applies to a county tax assessor-collector whose first
term begins on or after the bills effective date. SB
929 substitute follows HB 1719 for one year, rather
than nine months, to complete the required course and
applies to a county tax assessor-collector whose first
term begins on or after the bills effective date.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: SB 929 substitute reported from Senate
Finance 3/29/17 and placed on Senate Calendar
4/3/17. HB 1719 voted from House Ways & Means
3/29/17.
COUNTY TAX ASSESSOR MAY
VOLUNTARILY REGISTER WITH TDLR
HB 1738 Greg Bonnen
Adds Occupations Code 1151.1515, repeals 1151.003
and amends 1151.151, 1151.160
The bill provides that county tax assessor-collectors
and their employees may voluntarily register with the
Texas Department of Licensing and Regulation
(TDLR). In 2013, the Texas Legislature added an
exemption for registration and certification for those
individuals. The bill requires TDLR to establish
procedures for the expedited reinstatement of a
certification held by one of these individuals on June
13, 2013. Those who had not received certification on
that date have a five-year extension from the fifth
anniversary of the original registration, in addition to
the one-year extension authorized in the Code.
Proposed Effective: 9/1/2017.
2017 Legislative Update; Page 61
Status: Left pending in House Ways & Means
3/15/17.
School Finance
HOUSE PLANS ADDITIONAL $1.6 BILLION FOR
PUBLIC SCHOOL FUNDING
HB 21 Huberty
Adds Education Code 30.0561, 42.1561, Chapter
42H; amends 11.158, 29.097, 29.098, 29.123, 29.918,
30.087, 34.002, 34.007, 39.0233, 41.002, 41.099,
41.1541, 41.257, 42.006, 42.151, 42.154, 42.1541,
42.302; repeals 39.233, 39.234, 42.155, 42.160 and
42.2513.
The substitute bill increases basic student allotment
by $210 to $5,350 per student, which decreases the
amount of tax revenue sent by Chapter 41 districts to
the state by $355 million over two years, or about
10%. A $200 million grant for two years is set aside
for the hold-harmless funding clause for about 156
school districts; the hold harmless clause in the
current law would expire. The Legislature will add
$1.6 billion more to fund these items above current
school funding levels. A county transportation system
may not receive funding directly from the state. The
funding formulas add additional funding for students
with dyslexia or related disorders. The Education
Commissioner may award financial hardship grants to
eligible districts whose M&O state and local revenue
per weighted student is less than it was in the 2016-
2017 school year. [Note: SB 1, the Senates version
of the state budget, passed the Senate with a $1.8
billion cut in state funding for public schools by
having local property tax revenue account for that
amount. SB 1 was referred to House Appropriations
3/28/17.]
Proposed Effective: 9/1/2017.
Status: Voted from House Education Committee
3/28/17.
STATE REPEALS ROBIN HOOD FOR SCHOOL
FUNDING
HB 286 Rinaldi; HB 1319 Landgraf
Amends 21.01, 21.02, 25.25, 26.08, 312.210; amends
Government Code 403.302; repeals Education Code
Chapter 41 and amends various sections
These bills repeal the provisions requiring school
districts to reduce their wealth per student to the
equalized wealth level, commonly referred to as
Robin Hood of state school funding. The bill
removes all references to Education Code Chapter 41.
Proposed Effective: 9/1/2017.
Status: HB 286 referred to House Public
Education 2/13/17. HB 1319 referred to House
Public Education 2/27/17.
ADDITIONAL STATE AID FOR TAX
REDUCTION CONTINUED
HB 308 Burrows, HB 527 Workman; HB 811
King; HB 856 Schubert; SB 419 Kolkhorst
Amends Education Code 42.2516, 42.2518
These bills continue the additional state aid for tax
reduction (ASATR). HB 527 and HB 856 extend
ASATR for two additional school years, through the
2018-2019 school year. HB 811 extends ASATR
through the 2020-2021 school year. SB 491 extends
ASATR through the 2022-2023 school year. HB 308
extends through 2026-2027.
Proposed Effective: HB 308, HB 527 and HB 856
immediately if passed by two-thirds of both houses;
otherwise, effective 9/1/2017. HB 811 and SB 491
immediately if passed by two-thirds of both houses;
otherwise, 8/31/2017.
Status: SB 419 referred to Senate Education
2/1/17. HB 308 referred to House Public
Education 2/15/17. HB 527 referred to House
Public Education 2/20/17. HB 811 left pending
House Public Education 3/7/17. HB 856 referred
to House Public Education 2/23/17.
EDUCATION COMMISSIONER RETURNS
DETACHED PROPERTY BACK TO CHAPTER 41
DISTRICT
HB 1059 Murphy; SB 1247 Huffman
Adds Education Code 41.2065 and amends various
sections of Education Code Chapter 41
These bills add that the Commissioner of Education
may propose the reattachment of taxable property
previously detached from a wealthy Chapter 41
school district to meet wealth requirements. For the
reattachment, the original districts wealth per student
for a subsequent school year must be $10,000 or more
below the specified wealth level. The Commissioner
returns one or more parcels in ascending order of
taxable value, beginning with the lowest property
value. Current law does not address moving the
2017 Legislative Update; Page 62
property back to a district if property values decrease
below the equalized wealth level. For the upcoming
school year, Houston ISD is a Chapter 41 district and
its voters decided to detach property to equalize its
wealth.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017.
Status: HB 1059 left pending in House Public
Education 3/28/17. SB 1247 referred to Senate
Education 3/13/17.
EDUCATION COMMISSIONER USE OF EXCESS
FUNDS AND THE PERCENTAGE HOMESTEAD
EXEMPTION
HB 1263 Bohac
Repeals Education Code 42.2522 and amends
Education Code 7.062
The bill addresses the Education Commissioners use
of excess funds to school districts. The use of excess
funds currently has priority over any provision of
Chapter 42, including funding the value loss for one-
half of the percentage homestead exemption in
Section 42.2422. That provision is repealed.
Proposed Effective: 9/1/2017.
Status: Referred to House Public Education
2/23/17.
STATE FUNDING CHANGED TO CHAPTER 41
WEALTHY ISDS
HB 1280 Gonzalez
Amends Education Code 42.251, 42.253, 43.001,
45.259
The bill removes money allocated from the available
school fund in the Education Commissioners
determination of state funds to a Chapter 41 wealthy
district.
Proposed Effective: 9/1/2017.
Status: Referred to House Public Education
2/23/17.
CHAPTER 41 RECAPTURE ADJUSTED FOR
HIGH PREVALENCE ON MINERAL VALUE
HB 1320 Landgraf
Adds Education Code 42.012, 42.2529, 42.25291,
42.25292 and amends various sections of Education
Code
The bill requires the Education Commissioners
determination of state funds to a Chapter 41 wealthy
district to consider federal concentration grant funds
and adjustment for high prevalence of mineral value.
The bill requires that each October 1, a 10-member
state committee of appointed members, each from the
House and Senate, consult with the Comptroller and
LBB to identify districts with a taxable value of
property unlikely to produce the projected district tax
revenue due to a high prevalence on mineral value.
Proposed Effective: 9/1/2017.
Status: Referred to House Public Education
2/27/17.
EDUCATION COMMISSIONER CONSIDERS
OPTIONAL HOMESTEAD EXEMPTION
ADJUSTMENT
HB 1324 Thompson
Amends Education Code 42.2522
The bill provides that the Education Commissioner
shall provide funding for one-half of the value loss to
a school district that is prohibited from reducing or
repealing the optional percentage homestead
exemption. This provision expires December 31,
2019. Current law provides funding for one-half of
the taxable value loss for the exemption if there are
available funds.
Proposed Effective: 9/1/2017.
Status: Referred to House Public Education
2/27/17.
STATE AID PROVIDED TO SCHOOLS FOR
DEBT PAYMENTS
HB 1788 Thompson
Amends Education Code 46.032 and 46.034
The bill provides that state school funding would
guarantee level of state and local funds per student per
cent of tax effort is $35 of the ISDs combined tax
effort that does not exceed the rate of $0.20 per $100
of value and $60 for each cent of the ISDs combined
tax effort that exceeds the effort above $0.20.
Proposed Effective: 9/1/2017.
Status: Referred to House Public Education
3/14/17.
RECAPTURE AMOUNTS ADJUSTED FOR A
CHAPTER 41 ISD
HB 1838 Meyer
Adds Education Code 41.0932
2017 Legislative Update; Page 63
The bill changes the agreement that a Chapter 41
(wealthy) school district must execute to reduce its
taxable wealth to provide that the district retains
sufficient M&O tax revenue to pay its average M&O
costs per student in average daily attendance, as
adjusted for inflation and may not be required to pay
for attendance credits that would reduce below that
amount. The Education Commissioner determines the
average M&O costs per student, based on the
districts M&O expenses per student for the preceding
three years, and adjusts for inflation. The
Commissioners decision is final and may not be
appealed.
Proposed Effective: 9/1/2017.
Status: Referred to House Public Education
3/9/17.
SCHOOL DISTRICT RECEIVES NO FUNDING
FOR GRANTING OPTIONAL PERCENTAGE
HOMESTEAD EXEMPTION
HB 2865 Gonzalez
Amends 311.011; amends Education Code 7.062 and
repeals 42.2522; amends Government Code 403.302
The bill deletes the deduction for one-half of the total
dollar amount of the optional percentage homestead
from the Comptrollers Property Value Study. A
school district receives no reduction in taxable wealth
for granting the exemption.
Proposed Effective: 9/1/2017, beginning with the
2018 Property Value Study.
Status: Referred to House Public Education
3/29/17.
RECAPTURE OF CERTAIN CHAPTER 41
WEALTHY ISD REVENUE CHANGED
SB 603 Huffines
Adds Education Code 41.0021
The bill provides that the Education Commissioner, at
the school boards request, shall consider the districts
wealth per student before exercising one or more
options to reduce wealth, if a Chapter 41 wealthy
school district has a difference between the districts
wealth per student and equalized wealth level greater
than the difference for the 2016-2017 school year.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Education 2/13/17.
HARRIS COUNTY EDUCATION BOARD LOSES
TAXING AUTHORITY OR IS ABOLISHED
SB 646 Bettencourt; HB 1366 Cain; similar SB
1167 Bettencourt
Adds Education Code 11.305 and amends 45.002; SB
1167 amends Election Code 52.092
These bills provide that the county board of education
in a county with a population of 3.3 million or more
(Harris County) may not levy, assess or collect a
countywide equalization tax. The bills begin with the
2017 tax year. SB 1167 abolishes the Harris County
Education Board and transfers all assets to the
commissioners court of the county. The component
school districts shall collect and use any delinquent
taxes imposed by the Board.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017. SB 1167
effective 9/1/2017.
Status: SB 646 referred to Senate Education
2/13/17. SB 1167 referred to Senate Education
3/9/17. HB 1366 referred to House Public
Education 3/14/17.
DALLAS COUNTY EDUCATION DISTRICT
ELIMINATED
HB 2329 Burkett
Adds Education Code 11.305 and amends 45.002
The bill applies to county school districts in a county
with a population of 2.2 million or more and that is
adjacent to a county with a population of more than
600,000 (Dallas County). On or after January 1, 2018,
the county school district may not impose a property
tax. The county school district may impose a tax to
pay the principal and interest on any bond issued
before the bills effective date. Delinquent taxes are
shared with the member school districts in the county
in proportion to its membership as of May 1, 2017.
The district shall be abolished unless the component
school districts in the county with 75% or more of the
student population elect each school year to
participate in services offered by the county school
district.
Proposed Effective: 9/1/2017.
Status: Referred to House Public Education
3/20/17.
2017 Legislative Update; Page 64
SCHOOL FINANCE SYSTEM OVERHAULED
HB 1474 Gonzalez; similar SB 704 Rodriquez
Adds Education Code 42.010 and 42.013 and amends
and repeals various sections of Education Code
These bills require a comprehensive review of the
public-school finance weights, allotments and
adjustments with a report to the Legislature by
December 1, 2018. The bills tie a schools wealth
level to the greater of the M&O per weighted student
available to Austin ISD or a district at the 95th
percentile in wealth per student. They remove the
current wealth of $319,500 of wealth per student. The
bills increase the basic allotment from $4,765 to
$5,440 or $5,840, based on the Comptroller
determination of Texas Consumer Price Index.
Proposed Effective: 9/1/2017.
Status: SB 704 referred to Senate Education
2/21/17. HB 1474 referred to House Public
Education 3/7/17.
STATE SCHOOL FUNDING ALLOTMENT
INCREASED AND ASATR CONTINUED
SB 649 Seliger
Amends Education Code 42.101, 42.2516, 42.2518
The bill increases the basic school allotment from
$4,765 per student to $5,140 for a Chapter 42 school
district. The Legislature sets aside an additional
amount of state appropriation not to exceed $150
million for 2017-2018 school year and $75 million for
2018-2019 school year. It also continues the
additional state aid for tax reduction (ASATR)
through the 2018-2019 school year.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective the 91st day
after the session ends. Applies to the 2017-2018
school year.
Status: Referred to Senate Education 2/13/17.
EDUCATION COMMISSIONER ADJUSTS FOR
OPTIONAL HOMESTEAD EXEMPTON
HB 2706 Gonzalez
Amends 42.2522
The bill gives authority to the Education
Commissioner to adjust school funding for the
optional homestead exemption.
Proposed Effective: 9/1/2017.
Status: Referred to House Public Education
3/28/17.

ADDITIONAL SCHOOL FUNDS GRANTED TO
ISD THAT ANNEXES AN UNACCEPTABLE ISD
SB 1353 Taylor; HB 3106 Faircloth; similar to HB
3722 King
Amends Education Code 13.054
The bills add additional state aid for costs of facility
renovation, repair and replacement for a school
district that annexes an unacceptable school district.
SB 1353 and HB 3106 provide for the additional state
aid for five years, beginning with the school year in
which the annexation occurs. HB 3722 does not have
a five-year period. The Education Commissioner
determines that the district would result in greater
payments, in addition to other funding.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
HB 3722 effective 9/1/2017.
Status: SB 1353 referred to Senate Finance
3/16/17. HB 3722 referred to House Public
Education 3/23/17 and left pending 3/28/17. HB
3106 referred to House Public Education 3/29/17.
EDUCATION COMMISSIONER ADJUSTS FOR
SCHOOL DISTRICTS RAPID VALUE DECLINE
HB 3251 King
Amends Education Code 42.2521
The bill removes the provision that money
specifically authorized must be available for the
Education Commissioner to adjust the taxable value
of a school district that, due to factors beyond its
control, experiences a raid decline in its tax base in
excess of four percent from the preceding year. This
change applies beginning with the 2017-2018 school
year.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, 9/1/2017.
Status: Referred to House Public Education
3/30/17.
SCHOOL FINANCE SYSTEM CHANGED TO
SUBSTANTIALLY EQUAL ACCESS
HB 3737 Hinojosa
Amends and repeals numerous sections of Education
Code
The bill revises the school funding system to be
substantially equal access to substantially equalized
financing for an instructional program that is rated
2017 Legislative Update; Page 65
acceptable or higher, meets other legal standards, is
suitable to students educational needs and has
adequate resources to provide each eligible student
with suitable facilities. A school district may not have
a wealth per student that exceeds the product of the
guaranteed level, multiplied by 10,000. The funding
formula is based on a point system.
Proposed Effective: 9/1/2017.
Status: Filed.
CERTAIN SCHOOL DISTRICTS REQUIRED TO
HAVE FINANCIAL INFORMATION ON
WEBSITE
HB 3597 Fallon; SB 1605 Creighton
Adds Education Code Chapter 44, Subchapter D
The bill requires the 50 largest school districts in
student enrollment to maintain certain financial
information on their websites, including total
expenditures, total revenue and total property taxes,
with each of these items also a dollar amount per
student in average daily attendance. Along with a
number of other required items and reports, the school
districts also include the adopted property tax rate.
Proposed Effective: 9/1/2017.
Status: SB 1605 referred to Senate Education
3/21/17. HB 3597 referred to House Public
Education 3/30/17.
CHAPTER 41 WEALTHY SCHOOL DISTRICT
LOWERS REQUIRED PAYMENT BY 25%
HB 4087 Faircloth
Adds Education Code 41.0933
The bill adds that a Chapter 41 school district may
reduce the amount required to be paid for attendance
credits by 25% in equalizing the districts taxable
wealth. The district uses the amounts available to pay
for M&O costs.
Proposed Effective: 9/1/2017.
Status: Filed.
PROPERTY VALUE STUDY FOR SPECIFIC
SCHOOL DISTRICT(S) CHANGED
HB 4209 Cyrier
Amends Government Code 403.302
The bill applies to a school district with less than
2,000 students located in a county contiguous to
counties with populations of more than 1 million. In
conducting the Property Value Study, the Comptroller
determines that local value is invalid, the taxable
value for the district is calculated by multiplying the
state value determined by the Comptroller by 1.05,
unless the local value exceeds the state value. The
Comptroller shall use a margin of error that does not
exceed 5% unless the Comptroller determines the
sample size of properties makes use of such a margin
not feasible, in which case the Comptroller shall use
a larger margin of error. The change applies beginning
with the 2016 Property Value Study.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective the 91st day
after the session ends.
Status: Filed.
SCHOOL INDIRECT COST ALLOTMENTS
REVISED TO REFLECT INCREASE IN M&O
FUNDING
HB 4191 Huberty
Amends Education Code 29.097, 29.098, 29.918,
39.0233, 42.1541 and repeals 39.233, 39.234, 42.160,
42.2513.
The bill adds that for the 2017-2018 and subsequent
school years, the State Board of Education shall by
rule revise the indirect cost allotments to reflect any
increase in the percentage of M&O funding
represented by the basic allotment as a result of the
2017 legislative session.
Proposed Effective: 9/1/2017.
Status: Filed.
SCHOOL FINANCE CHANGES
SB 2145 Taylor
Amends Education Code and adds 41.459, 41.460 and
41.461
The bill is 69 pages and changes the school finance
system. Some key parts are the state will pay to the
appraisal district(s) in which a Chapter 41 wealthy
school district participates, using funds received from
that school district. If a school district fails to collect
a delinquent M&O tax owed to the district for two
years after the tax is initially due, the collection of the
delinquent tax reverts to the state. The Comptroller
shall collect the delinquent M&O tax on behalf of the
district, with penalties and interest owed, at the
earliest opportunity. The Attorney General will assist.
If the Attorney General cannot successfully collect
the delinquent M&O taxes, the Comptroller may
contract with private attorneys for the collection,
2017 Legislative Update; Page 66
subject to terms and limitations that apply to a school
district contracting with private attorneys for that
purpose.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Education 3/29/17.
SCHOOL DISTRICTS CONSOLIDATED IN
CAMERON COUNTY
SB 2112 Lucio
Adds Education Code Chapter 13 Subchapter D-1
The bill consolidates school districts in a county that
contains an international border and borders the Gulf
of Mexico (Cameron County). The territory of a
school district that is partly located in Cameron
County shall be detached and that territory is annexed
and consolidated into a countywide school district.
The consolidation does not apply to territory for a
school district that provides only middle school,
junior high school and high school magnet programs.
Effective July 1, 2018, each school district in
Cameron County is a single countywide school
district and is an independent school district. The bill
details the temporary school board, election of school
board trustees, title to property and debt assumption.
By December 1 of even-numbered years (2018 and
2020), the countywide school board reports to the
Governor, Lt. Governor, Speaker and chairs of the
House and Senate education committees about the
operation of the district, any increase in efficiency or
any cost savings and recommendations for legislative
actions to enhance efficiency in operating a
countywide school district.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Referred to Senate Education 3/28/17.
Special & Miscellaneous
CHAPTER 313 JOBS REQUIRED FOR
APPRAISAL LIMITATION
HB 386 Murphy
Amends 313.021, 313.024, 313.032
The bill clarifies and eases somewhat the jobs
requirement for eligibility for the limitation of values
for school tax purposes. The bill permits a project to
qualify even if the jobs are transferred from elsewhere
in the state if the transfer results in net new jobs for
the state. The jobs created must be at least 110% of
the lesser of the statewide annual average income or
the county median income for manufacturing jobs.
Proposed Effective: 9/1/2017.
Status: Referred to House Ways and Means
2/16/17.
ABATEMENTS/SCHOOL TAX LIMITATIONS
FOR WIND FARMS PROHIBITED NEAR
MILITARY AIR STATIONS
HB 445 Frank; SB 277 Campbell
Adds 312.001; amends 312.024, 313.024
These bills prohibit the granting of an abatement or a
school tax limitation to a wind turbine located within
30 nautical miles of an airbase.
Proposed Effective: 1/1/2018.
Status: SB 277 placed on Senate Intent Calendar
3/28/17. HB 445 referred to House Ways and
Means 2/16/17.
CERTAIN CITIES AUTHORIZED TO HAVE
HOMESTEAD LAND BANK PROGRAM
HB 470 Johnson
Amends Local Government Code 373A.003,
373A.052
The bill revises the requirements about which cities
may implement a homestead land bank program.
Proposed Effective: 9/1/2017.
Status: Referred to House Urban Affairs 2/16/17.
HOMEOWNER RECEIVES ABATEMENT FROM
DALLAS COUNTY UTILITY AND
RECLAMATION DISTRICT
HB 549 Anderson; HB 1186 Anderson
Adds to Chapter 628, Section 4B, Acts of 68th Texas
Legislature
These bills provide that the tax assessor-collector for
the Dallas County URD may file an exemption
application with the appraisal district on behalf of a
homeowner granted a tax abatement on a portion of
the homes value.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Referred to House Ways & Means 2/20/17.
HB 1186 reported from House Ways & Means
3/21/17 and recommended to Local/Consent
Calendar.
2017 Legislative Update; Page 67
COMPTROLLER VERIFIES REPORTED
CHAPTER 313 INFORMATION
HB 559 Hernandez; SB 400 Kolkhorst
Amends 313.032
These bills are similar and provide that the
Comptroller shall verify reported Chapter 313
information using information from the Texas
Workforce Commission, the chief appraiser or other
reliable sources. HB 559 requires a random sample of
not less than 33% of the data certified to the
Comptroller. Personal information of an individual is
confidential.
Proposed Effective: 9/1/2017.
Status: SB 400 referred to Natural Resources and
Economic Development 2/1/17. HB 559 referred to
House Ways & Means 2/20/17.
LOCAL TAX INCENTIVES MAY NOT BE
OFFERED TO DEVELOP PROPERTY FOR
GAMBLING
HB 1252 Sanford; similar HB 2644 Sanford
Amends 312.204, 313.024; HB 2644 amends
Agriculture Coe 12.0272 and Government Code
481.078
HB 1251 provides that a taxing unit may not offer a
tax abatement agreement to property that may be used
as a gambling establishment, including a game room,
racetrack or casino. A school district may not offer a
Chapter 313 agreement to such property. HB 2644
provides that money in the Texas Economic
Development Fund may not finance a facility for
gambling, including bingo or racing greyhounds or
horses. The Governor may not award a grant to
finance a gambling facility.
Proposed Effective: 9/1/2017.
Status: HB 1252 referred to House Ways & Means
2/23/17. HB 2644 referred to House
Appropriations 3/21/17.
LIMIT ON CHAPTER 313 SUPPLEMENTAL
PAYMENTS INCREASED
HB 1618 Smithee; SB 913 Seliger
Amends 313.027
These bills increase the limit allowed for
supplemental payments to a school district by a
property owner who receives a Chapter 313
agreement to not exceed $75,000 per year. Current
law sets the limit at $60,000 per year.
Proposed Effective: 9/1/2017.
Status: SB 913 referred to Senate Natural
Resources & Economic Development 2/28/17. HB
1618 referred to House Ways & Means 3/9/17.
APPROVAL PROCESS ADDRESSED FOR
CERTAIN TAX ABATEMENT AGREEMENT IN
A TIF ZONE
HB 1626 Gutierrez
Amends 311.0125
The bill addresses a tax abatement agreement in a tax
increment financing (TIF) reinvestment zone that the
taxing unit is not required to deposit any of its funds
into the TIF fund. Such an agreement does not require
approval of the board of directors of the TIF zone and
the governing body of each taxing unit that does
deposit funds into the TIF fund.
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 3/6/17.
PROJECT LOCATED IN MULTIPLE SCHOOL
DISTRICTS GRANTED CHAPTER 313
AGREEMENT; COMPTROLLER VERIFIES
AGREEMENTS WITH RANDOM SAMPLE
HB 1674 Murphy
Adds 313.0255, 313.055; amends 313.032
The bill addresses a single unified project located in
more than one school district but not more than three
contiguous districts. Each school district must enter
into the agreement with the owner for the limitation.
For determining required minimum qualified
investment, a project is considered to be located in the
school district that has the highest taxable value in the
preceding tax year. The minimum amount of the
limitation is based on the fraction of investment made
in the school district to the whole project. The
Comptroller considers the single unified project for
determining eligibility requirements. For Chapter 313
agreements, the Comptroller shall verify a random
sample of not less than 33% of the data certified to the
Comptroller, and personal information of an
individual is confidential (also included in HB 559).
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 3/6/17.
WATER DESALINATION PROJECT IS ELIGIBLE
FOR A CHAPTER 313 AGREEMENT
HB 2219 Lozano
Amends 313.024
2017 Legislative Update; Page 68
The bill adds a water desalination project as one that
is eligible for a limitation on appraised value by a
school district under a Chapter 313 agreement.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Referred to House Ways & Means 3/20/17.
CERTAIN CHAPTER 311 TIF AGREEMENTS
ADDRESS AFFORDABLE HOUSING
HB 2480 Johnson
Adds 311.0112 and amends 311.003, 311.006,
311.016
The bill addresses a Chapter 311 tax increment
financing (TIF) agreement for affordable housing in a
reinvestment zone designated by a municipality with
a population of 1.18 million or more, that is located
predominately in a county that has a total area of less
than 1,000 square miles and that any part of the
municipality is located in an area composed of census
tracts to a central business district with fewer than
75,000 residents, a median family income of less than
$30,000 and a poverty rate that is two times that for
the municipality. The municipality prepares an
affordable housing impact statement, including
estimates of the impact on available housing in the
zone for the 30-year period, before adopting an
ordinance to designate the reinvestment zone. The
impact statement is available to the public and on the
municipalitys website for 60 days.
Proposed Effective: 9/1/2017.
Status: Referred to House Urban Affairs 3/21/17.
OVERSIGHT BOARD REVIEWS CHAPTER 313
AGREEMENTS
HB 2564 Button; similar to HB 3360 Button
Adds Government Code 490G.0055, 490G.0056,
490G.0065, 490.0066 and amends 490G.001,
490G.006, 490G.007
These bills require the Economic Incentive Oversight
Board to examine the effectiveness, efficiency and
financial impact on the state of the property tax
incentive program of Chapter 313, Texas Economic
Development Act, by school districts and the
Comptroller. HB 2564 includes Type A and Type B
corporations under the Title 12, Local Government
Code. The Board shall make reports and
recommendations to the Legislature and provide that
to the school districts and the Comptroller (with HB
2564 stating upon request).
Proposed Effective: 9/1/2017.
Status: HB 2564 referred to House Economic &
Small Business Development 3/27/17.
STATE AND LOCAL TAX INCENTIVES
GRANTED FOR ENHANCED OIL RECOVERY
PROJECTS
HB 2621 Darby
Adds Natural Resources Code Chapter 93
The bill provides for state and local tax incentives for
certain enhanced oil recovery projects, including an
appraised value limitation for property in a
reinvestment zone designated by the Texas Railroad
Commission. A hold-harmless appraised value is
the appraised value of the undivided or fractional
interest in oil in place on January 1 of the tax year in
the area designed by the Railroad Commission as an
enhanced recovery reinvestment zone and owned on
that date by the person designated by the Commission
as the first operator of record for the zone. The value
above the hold-harmless appraised value is the
amount of the limitation. The governing body of the
political subdivision that adopts the limitation on
appraised value may not repeal the limitation until the
date the applicable enhanced recovery reinvestment
zone expires. The operator of record who receives a
tax benefit must invest an amount equal to the total
taxes saved. The Comptroller adopts rules and the
appraisal districts must comply with the requirements
for the limitation on appraised value.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Referred to House Ways & Means 3/21/17.
CONFLICTS OF INTEREST AND
CLARIFICATIONS ADDED TO TEXAS
ECONOMIC DEVELOPMENT ACT
HB 3086 Murphy
Adds 313.034 and amends 313.021, 313.024,
313.025, 313.027
The bill refines the definition of a qualifying job,
which is one that is not transferred from one area in
the state to another area, unless the transfer represents
a net new job in this state. The qualifying job pays at
least 110 percent of the lesser of the state median
annual wage for manufacturing jobs in Texas or the
county average annual wage for manufacturing jobs
2017 Legislative Update; Page 69
in the county. County average annual wage and sate
median annual wage are defined. The school board
may not waive a requirement in a new jobs creation
requirement for a Chapter 313 agreement. The
agreement states the dollar amount of qualified
investment and the number of new qualifying jobs. A
new subsection addresses conflicts of interest for a
school board member, superintendent or school
employee
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Referred to House Ways & Means 3/28/17.
UNEQUAL APPRAISAL WAIVED FOR
PROPERTY WITH TAX ABATEMENT OR
SUBJECT TO TAX RECAPTURE
HB 3230 Phelan
Amends 312.205, 313.027
The bill provides that a Chapter 312 tax abatement
agreement or Chapter 313 agreement include either a
waiver of the owners right to protest before the ARB
and to contest in court the unequal appraisal of the
property subject to the agreement or provisions to
recapture all or part of the property tax revenue abated
that does not attain a value specified in the agreement
for the year covered, along with paying penalty or
interest, or both, on the recaptured taxes. See also
Appraisal Review Board Section.
Proposed Effective: 9/1/2017.
Status: Referred to House Ways & Means 3/30/17.
SCHOOL TRUSTEE DISCLOSES CONFLICT OF
INTEREST WITH CHAPTER 313 AGREEMENT
HB 3176 Button
Amends 313.008, 313.027
The bill adds conflict of interest that a school board
trustee must disclose in writing to the school board
president and the Comptroller that the trustee has an
interest in a Chapter 313 economic development
application or has a substantial financial interest in a
matter related to the application. The trustee recuses
himself or herself from the boards deliberation and
may not participate in any decision on the matter. A
substantial interest includes being an employee,
member, director or officer of the entity or has an
ownership or control directly or indirectly with more
than 5% interest in the entity. The Comptroller shall
verify the data using any source that the Comptroller
considers reliable.
Proposed Effective: 9/1/2017.
Status: Referred to House Economic & Small
Business Development 3/30/17.
CERTAIN TIF ZONES HAVE ELECTIONS FOR
BOARD OF DIRECTORS
HB 4046 Bohac
Adds 311.0092, 311.004
The bill sets out the board of directors for
reinvestment zones located wholly or partly in a
municipality with a population of at least 2 million.
The TIF board consists of at least 11 but not more than
15 members, unless more than 15 are required by the
law change. A majority are elected in a nonpartisan
election. Each taxing unit that approves paying into
the TIF fund is entitled to appoint a director, including
the county or municipality that designated the TIF
zone. The State Senator and State Representative for
the TIF area are members of the board; they may
designate another individual to serve in their place. If
there is more than one senate or house district, the
ones with the largest portion of the zone serve. For the
other directors, the municipality holds an election to
select 51 percent of the directors. Elections are in
even-numbered years on the uniform November
election date. Directors serve two-year, staggered
terms. Individuals residing in the zone or in an
adjacent area are entitled to vote. An adjacent area to
a TIF zone is within two miles of the zones
boundaries. Eligibility requirements are included.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Filed.
TEXAS COMPTROLLER CREATES POLITICAL
SUBDIVISION PUBLIC INFORMATION
WAREHOUSE
SB 200 Campbell
Adds Education Code 44.012; adds Government
Code 403.0243; adds Local Government Code
Chapter 203, Subchapter D;
The bill requires the Comptroller to create an
accessible database, called the Political Subdivision
Public Information Warehouse, to include all active
political subdivisions that are authorized to impose a
property tax or sales and use tax. Data shall include
the name of the political subdivision, rate of sales and
use tax, table of property tax rates, total debt amount,
subdivisions website or contact person if no website
2017 Legislative Update; Page 70
and appraisal district website. The data may include
(or link to) the political subdivisions boundaries,
budget for current year, current check registry and any
current financial audit or annual report. School
districts are required to send to the Comptroller
annually an electronic copy of the adopted budget and
financial reports. Special districts shall provide
boundaries and dissolution information. Political
subdivisions are required to transmit the most recently
adopted budget and annual financial report. The
Comptroller shall create and post the database by
December 31, 2019.
Proposed Effective: 9/1/2017.
Status: Left pending in Senate Finance 3/6/17.
TEXAS ECONOMIC DEVELOPMENT ACT FOR
SCHOOL DISTRICTS REPEALED
SB 600 Burton
Repeals 312.0025 and Chapter 313; adds 320.002;
amends 23.03, 26.012, 151.3595, 171.602 and
312.403; amends Education Code 42.2515; amends
Government Code 403.302 and 2303.507
The bill repeals the Texas Economic Development
Act, which allows school districts to grant tax value
limitations for economic growth. The bill does not
affect current agreements. The bill also changes the
name of the state agency to Texas Economic
Development and Tourism Office.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Referred to Senate Natural Resources &
Economic Development 2/8/17.
TAX INCREMENT FINANCING (TIF)
PROVISIONS CHANGED
SB 650 Bettencourt
Adds 311.0155; amends 311.005, 311.085, 311.010,
311.015; repeals 311.01005
The bill adds to the reinvestment zone that the area be
unproductive, underdeveloped or blighted. The
Attorney General determines the meaning of those
terms. The TIF agreement must be for a facility
located in the zone. At least seven days before voting
to issues TIF bonds or notes, the municipality will
deliver a notice to each owner in the city, to the
commissioners court in the county and to each state
senator and representative that represents the territory
in a county with a reinvestment zone of the date, time
and place of that meeting. When the municipality
submits TIF bonds for Attorney General STATE SENATOR AND/OR STATE
authorization, another notice will be delivered by mail REPRESENTATIVE SERVES AS EX-OFFICIO
to the commissioners court and to each state senator TIF DIRECTOR
and representative whose district includes the SB 1465 Taylor
reinvestment zone. Adds 311.0092
Proposed Effective: 9/1/2017.
Status: Referred to Senate Natural Resources and The bill requires the board of directors of a
Economic Development 2/13/17. reinvestment zone to send a written notice by certified
mail to each Senator and to each Representative who
METHOD TO DETERMINE QUALIFIED NEW is an ex officio member on the board about the
JOBS FOR CHAPTER 313 AGREEMENT membership. A Senator or Representative may elect
REPEALED not to serve or designate another individual in the
SB 1026 Estes members place by written notice to the board. The
Repeals 313.024(d-2) Senator and/or Representative are not counted as a
member of the board for voting or quorum purposes
The bill repeals the method for determining whether a Proposed Effective: 9/1/2017.
property owner has created the number of new Status: Referred to Senate Natural Resources &
qualifying jobs to be eligible for the tax limitation for Economic Development 3/20/17.
school M&O taxes..
Proposed Effective: 9/1/2017. CHAPTER 313 PROVISIONS CHANGED FOR
Status: Referred to Senate Natural Resources & VALUE LIMITATION AND SUPPLEMENTAL
Economic Development 3/6/17. PAYMENTS ALONG WITH CONSULTING
AGREEMENT AND FEES
SCHOOL BOARD WAIVING NEW JOB SB 1627 Estes
REQUIREMENTS FOR CHAPTER 313 Adds 313.008 and amends 313.022, 313.027,
AGREEMENT REPEALED 313.031, 313.052, 313.054, 313.027 and 313.031
SB 1027 Estes
Repeals 313.025(f-1) The bill addresses consulting agreements for Chapter
313. A person may not for compensation act as a
The bill repeals the provision for the school board to consultant on behalf of the school district for a value
waive the new jobs creation requirement to be eligible limitation agreement if the person is a district
for a tax limitation for school M&O taxes. employee or a school board trustee for that district or
Proposed Effective: 9/1/2017. related to one of these by first degree by blood or
Status: Referred to Senate Natural Resources & marriage for that district. The bill removes the school
Economic Development 3/6/17. districts application fee. The agreement establishes
each tax year and the limitation amount is equal to at
ECONOMIC DEVELOPMENT REVIEW ADDED least 33.3% of the market value of the owners
FOR LOCAL GOVERNMENT qualified property for that tax year. The agreement
SB 1028 Estes may include that the owner will protect the district, in
Adds Government Code 490G.0055, 490G.0065 and the event for a temporary increase in student
amends 490G.001 and 490G.007 enrollment for the project, by covering expenses
related to portable classrooms or hiring additional
The bill adds local government to a periodic review of personnel. The agreement must require the owner to
local government programs that award economic provide a supplemental payment to the district or
development incentives to businesses. The Economic another entity on behalf of the district equal to $25 per
Incentive Oversight Board shall examine the student per year for each year of the agreement, but
effectiveness, efficiency and financial impact on the not to exceed 2% of the school districts budget.
state for which local government awards incentives Proposed Effective: 9/1/2017.
Proposed Effective: 9/1/2017. Status: Referred to Senate Natural Resources &
Status: Filed. Economic Development 3/22/17.

2017 Legislative Update; Page 71

TAX INCREMENT FINANCING ZONE (TIF)
ADDS TRANSPARENCY AND
ACCOUNTABILITY
SB 1765 Garcia
Adds 311.0195 and amends 311.004, 311.005,
311.007, 311.009, 311.0091,
The bill adds that a TIF zone established on or after
September 1, 2017, terminates in 10 years after
ordinance adopting TIF zone. A current zone has
limitation added on when it terminates. The TIF zone
must be for an unproductive, underdeveloped or
blighted area. Directors of the TIF board have the
same limited terms as the city councilmembers. The
municipality that designates the TIF zone maintains a
website to provide residents with transparency about
the zone, including costs, budget, annual report,
revenues deposited to TIF fund and other items.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Natural Resources &
Economic Development 3/23/17.
Open Meetings, Chapter 551
TIME PERIOD ADDED TO PURSUE VIOLATION
OF OPEN MEETINGS LAW
HB 1784 Faircloth
Adds Government Code 551.1425
The bill provides that a person must bring a suit to
enforce voiding an action taken by a governing body
or to obtain a mandamus or injunction before the first
anniversary of the date of the alleged violation.
Proposed Effective: 9/1/2017.
Status: Scheduled for hearing in House
Government Transparency & Operation 4/3/17.
VIDEO AND AUDIO RECORDING OF
MEETINGS OF CERTAIN WATER DISTRICTS
MUST BE AVAILABLE ON INTERNET
SB 851 Nelson; HB 2012 Fallon
Amends Government Code 551.128; amends Water
Code 49.062
These bills add the governing body of a special district
subject to Water Code Chapters 51, 53, 54 or 55, with
a population of 500 or more, to those entities that shall
make a video and audio recording of reasonable
quality of each regularly scheduled meeting that is not
2017 Legislative Update; Page 72
a work session or special meeting. An archived copy
of the video and audio recording of each meeting must
be available on the Internet. The water districts board
shall designate a place inside the district for
conducting a meeting. If unable to find a suitable
meeting room inside the district, the board may
designate a place outside the district that is located not
farther than 10 miles from the districts boundaries.
Proposed Effective: 9/1/2017.
Status: SB 851 referred to Senate Business &
Commerce 2/27/17. HB 2012 referred to House
Special Purpose Districts 3/13/17.
MEMBER MARKED ABSENT FROM
VIDEOCONFERENCE CALL IF CALL
DISCONNECTED OR LOST
HB 3047 Dale
Amends Government Code 551.127
The bill clarifies that a member of a governmental
body who participates in a meeting by
videoconference call shall be considered absent from
any portion of the meeting that has audio or video
communication lost or disconnected. The
governmental body may only continue the meeting if
a quorum remains present or continues to participate.
Proposed Effective: 9/1/2017.
Status: Referred to House Government
Transparency & Operation 3/27/17.
OPEN MEETINGS REVISED TO ADDRESS
VIDEO RECORDING
HB 3203 Fallon; similar to HB 3708 Fallon
Adds Government Code 551.0215, 551.024,
551.1035, 551.147, 551.148 and amends 418.183,
551.000, 551.0725, 551.0726, 551.103, 551.104,
551.121, 551.122, 551.123, 551.126, 551.1281,
551.1282, 551.130, 551.131, 551.145; amends
Education Code 7.106, 11.1513; amends Health and
Safety Code 116.006; amends Transportation Code
370.262
The bills add a definition for video recording and that
meetings of a governmental body shall be kept of the
meeting and either a video recording or, if the meeting
is a telephone conference call, a recording of the
meeting. These bills vary about which entities to
which they apply. HB 3203 is for a city with a
population of less than 25,000, or a county with a
population of less than 100,000 or a school district
with student enrollment of less than 5,000, the
governmental body shall prepare and keep minutes or
make a recording and the minutes must state the
subject of each deliberation and each vote, order,
decision or other action taken. For other entities, a
governmental body shall archive and make available
on its website each open meeting recording. If other
entities do not have a website, they may make it
available on a public accessed video-sharing or social
networking site. The open meeting recording is posted
no later than the second business day after the meeting
date. A catastrophe or technical breakdown exempts
the requirement to post. A governmental boy shall
either keep a certified agenda or make a recording of
proceedings in each closed meeting. An offense of
open meeting or archive recording is a Class C
misdemeanor. HB 3708 addresses a county with a
population of more than two million adjacent to a
county with a one million population and a county
with a population of more than 600,000 adjacent to a
county with more than two million population, but not
all entities in those counties.
Proposed Effective: 9/1/2017.
Status: HB 3203 referred to House Government
Transparency & Operation 3/30/17.
PERSON REQUESTS MEETING HAVE
PROFESSIONAL SIMULTANEOUS
TRANSLATION FROM ENGLISH TO SPANISH
HB 4157 Gonzalez of El Paso
Adds Government Code 301.035; adds Local
Government Code 51.004; adds Local Government
Code 81.031
The bill requires professional simultaneous
translation from English to Spanish of certain
hearings and meetings held by a committee of the
Legislature, the governing body of a municipality or
the commissioners court of a county. A person must
request the translation in writing to the municipal
secretary/clerk for the city or the county clerk for the
county no later than the third day before the meeting
date.
Proposed Effective: 9/1/2017.
Status: Filed.
2017 Legislative Update; Page 73
Open Records, Chapter 552
BIRTHDATE OF LIVING PERSONS EXCEPTED
FROM PUBLIC DISCLOSURE
HB 760 Raney
Adds Government Code 552.157
The bill adds an exception about the date of birth of a
living person from public disclosure and that the
governmental body may redact the birth date from any
information disclosed without requesting an attorney
general decision. A county or district clerk and a
municipal secretary or clerk may disclose in the
ordinary course of business a persons date of birth
and that is not official misconduct or civil or criminal
liability.
Proposed Effective: 9/1/2017.
Status: Referred to House Government
Transparency & Operation 2/20/17.
COMPETITIVE BIDDING INFORMATION
EXCEPTED IN SOME CASES FROM PUBLIC
DISCLOSURE
HB 792 Capriglione; SB 407 Watson; also HB 839
Ortega; SB 425 Rodriguez
Amends Government Code 552.104, 552.305
These bills add that a governmental body may not
disclose bidding information if it demonstrates that
releasing the information harms its interests by
providing a bidder with a competitive advantage.
This exception does not apply to a bid or proposal
after the governmental body has executed or awarded
the contract. HB 839 and SB 425 only address the
exception.
Proposed Effective: 9/1/2017.
Status: SB 407 substitute passed Senate 3/28/17
and received in House 3/29/17. SB 425 referred to
Senate Business & Commerce 2/1/17. HB 839
referred to House Government Transparency &
Operation 2/21/17. HB 792 re-referred from
House General Investigating & Ethics to House
Government Transparency & Operation 3/6/17.
DEFINITION OF GOVERNMENTAL BODY
EXPANDED
HB 793 Capriglione; SB 408 Watson
Amends Government Code 552.003, 552.002
These bills add to the definition of governmental
body to include an organization, corporation,
commission, committee, institution or agency that
receives public funds, unless the funds are part of an
arms-length transaction for services between a vendor
and purchaser; is a party to a contract with a
governmental body that involves public funds and
creates an agency-type relationship between the entity
and one or more governmental bodies; or provides
services traditionally provided by the governmental
body. The floor amendment to SB 408 substitute adds
that information maintained by a governmental body
is public information subject to the part, section or
portion of an entity that receives or spends public
funds or uses real or personal property owned or
leased by the state or a political subdivision of the
state.
Proposed Effective: 9/1/2017.
Status: SB 408 substitute, with one floor
amendment, passed the Senate 3/28/17 and
received in House 3/29/17. HB 793 referred to
House Government Transparency & Operation
2/20/17.
COMPUTER SECURITY INFORMATION IS
CONFIDENTIAL
HB 1861 Elkins
Amends Government Code 552.139
The bill adds that information collected, assembled or
maintained by or for a governmental body to prevent,
detect or investigate a computer security incident,
including a breach of system security, is confidential.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Scheduled for hearing in House
Government Transparency & Operation 4/3/17.
EXPEDITED RESPONSE ADDED TO REQEUST
FOR PUBLIC INFORMATION
HB 2328 Lucio; SB 1347 Watson
Adds Government Code Chapter 5, Subchapter J, and
amends 552.2615, 552.263, 552.302, 552.352
The bills add that the governmental body may
withhold information that it deems confidential
2017 Legislative Update; Page 74
without requesting an Attorney Generals ruling. The
governmental body must inform the requestor in
writing within five business days of the request of the
list of exceptions and any judicial decisions or laws to
withhold the information; information that is open
records with the confidential information redacted; a
notice form set out by the Attorney General; and some
other items. The requestor may appeal the response
within 30 calendar days to the governmental body.
The appeal is considered a new request and subject to
an Attorney General decision.
Proposed Effective: 9/1/2017.
Status: SB 1347 referred to Senate Business and
Commerce 3/14/17. HB 2328 scheduled for
hearing in House Government Transparency &
Operation 4/3/17.
OPEN RECORDS RETURNED ON PERSONAL
DEVICES; ATTORNEY GENERAL RULES ON
FAILURE TO RESPOND TO OPEN RECORDS
REQUEST
HB 2670 Hunter; similar HB 3848 Hunter; similar
SB 1646 Watson
Adds Government Code 552.234 and amends
552.003, 552.004, 552.203, 552.353; HB 3848 adds
552.0222 and 552.328 and amends 552.101, 552.102,
552.221, 552.301
The bills add a definition for temporary custodian of
public records. They provide that a current or former
officer or employee of a governmental body who
maintains public information on a privately-owned
device shall forward or transfer the public information
to the governmental body to be preserved or preserve
the public information in its original form on the
privately-owned device. A current or former officer
or employee does not have a personal or property right
to public information created or received while acting
in an official capacity. A temporary custodian shall
surrender within 10 days of a request for the return of
the information. The governing body may request the
Attorney General to sue to compel the return. HB
3848 also includes that a governmental body is not
authorized to withhold a birthdate except as provided
by Section 551.018 or as provided by constitutional or
statutory law. The public information officer shall
send written notice to a requestor in 10 days if the
governmental body does not have any information for
the request. A requestor may send a written complaint
to the Attorney General for failure of a governmental
body to respond to a request. If the Attorney General
finds that the governmental body did fail in its duty,
the Attorney General shall notify the governmental
body, require open records training be completed
within six months and inform that no open records
charges may be assessed in response to the request. If
the governmental body seeks to withhold its response,
it must request an Attorney General decision within
five days and release the requested information unless
there is a compelling reason to withhold it. SB 1646
is a mixture of both HB 2670 and HB 3848.
Proposed Effective: 9/1/2017.
Status: SB 1646 referred to Senate Business and
Commerce 3/22/17. HB 2670 referred to House
Government Transparency & Operation 3/23/17.
HB 3848 referred to House Government
Transparency & Operation 3/30/17.
COURT COSTS AND ATTORNEYS FEES
ADDRESSED FOR LAWSUIT ON OPEN
RECORDS
HB 2783 Smithee
Amends Government Code 552.323
The bill adds that the court shall assess reasonable
court costs and attorneys fees to whom a
governmental body voluntarily released requested
information after filing an answer to the lawsuit.
Current law only addresses court costs and attorneys
fees to the plaintiff who substantially prevails.
Proposed Effective: 9/1/2017.
Status: Referred to House Judiciary & Civil
Jurisprudence 3/30/17.
OPEN RECORDS PROCEDURES ADDRESSES
MONTHLY AND YEARLY LIMITS ON A
REQUESTOR WHO DOES NOT PAY OR
WITHDRAW REQUESTS
HB 3107 Ashby
Amends 552.221, 552.261, 552.275, 552.3215
The bill adds that an open records request is
considered withdrawn if the requestor fails to inspect
or duplicate the public information in the
governmental bodys office on or before the 60th day
after the information is available or fails to pay the
postage and accrued open record charges. All requests
received in one calendar day from an individual may
be treated as a single request for calculating costs. A
governmental body may not combine multiple
requests from separate individuals who submit
requests on behalf of an organization. A governmental
2017 Legislative Update; Page 75
body may establish reasonable monthly and yearly
limits on time that personnel are required to spend
producing public information. All county officials
who have designated the same officer for public
information may calculate the time that personnel are
required to spend collectively for purposes of the
monthly or yearly limit. A monthly time limit may not
be less than 15 hours for a requestor for a one-month
period. If a requestor submitted an unpaid request that
was not withdrawn, the governmental body is not
required to compile a new request by that requestor
until the date the requestor pays each unpaid
statement with a previous request or withdraws the
previous request. The news media is exempted for
these requirements, including an individual who
supervises or assist in gathering new or information
or to an individual who is or was a journalist, scholar
or researcher employed by higher education
institution. A complainant may file with the Attorney
General on or after the 90th day that the complainant
filed with the district or county attorney who has not
brought action on the complaint.
Proposed Effective: 9/1/2017.
Status: Scheduled for hearing in House
Government Transparency & Operation 4/3/17.
PUBLIC REQUEST FOR INFORMATION IN
ELECTRONIC INFORMATION INCLUDES FILE
FORMAT INFORMATION
HB 3581 Capriglione
Adds Government Code 552.0224 and amends
552.003, 552.228, 552.231
The bill adds definitions for file format to be
specifications by which information in electronic
form is encoded for computer storage, including file
type and extension, and record layout to describe
type or category for data field, location in a data file
and number of characters. The record layout of a data
file maintained by a governmental body or vender on
behalf its behalf is public information and not
confidential and not excepted from required
disclosure. A requestor is entitled to a detailed
description of specific programming or manipulation
task required of the information.
Proposed Effective: 9/1/2017.
Status: Referred to House Government
Transparency & Operation 3/30/17.
INFORMATION REQUESTS ADDRESSED TO
ENTITY THAT MAY OR MAY NOT BE A
GOVERNMENTAL BODY
HB 4144 Paddie
Amends Government Code 552.003, 552.301,
552.306, 552.324, 552.325
The bill adds that a person may submit a request to an
organization, corporation, commission, committee,
institution or agency for inspection or copies of
information with the written assertion that the entity
is a governmental body. If the entity is not a
governmental body, it must ask for a decision from
the Attorney General if there is not a previous
determination. The Attorney General may adopt rules
for this provision.
Proposed Effective: 9/1/2017.
Status: Filed.
GOVERNMENTAL BODY PROVIDES PUBLIC
RECORDS ON PUBLIC WEBSITE
SB 79 Nelson
Amends Government Code 552.221
The bill changes the term political subdivision to
governmental body for the requirements of
providing requested public records on a website
maintained by the governmental body.
Proposed Effective: 9/1/2017.
Status: Set on Senate Local Calendar 4/3/17.
CERTAIN PUBLIC OFFICIALS HAVE ACCESS
TO PUBLIC INFORMATION AND PROPERTY
SB 515 Taylor; HB 3271 Shaheen
Adds Local Government Code Chapter 206 and
Chapter 305, Subchapter C; adds Government Code
Chapter 674
The bills add that a county, municipal or special
district elected or appointed public official has right
of access to information that is public information of
the entity and access to public property. Confidential
information must be held confidential by the public
official. The bills include that appointed state board
members have access to public information and
property. The Attorney General shall adopt rules for
procedures and deadlines by January 1, 2018.
Proposed Effective: 1/1/2018, except provision for
Attorney General rules effective immediately if
passed by two-thirds of both houses; otherwise,
effective 9/1/2017.
2017 Legislative Update; Page 76
Status: SB 515 substitute placed on Senate
Calendar 4/3/17. HB 3271 referred to House
General Investigating & Ethics 3/28/17.
PUBLIC INFORMAITON WEBSITE
ESTABLISHED BY STATE
SB 623 Burton
Adds Government Code Chapter 561
The bill requires the Comptroller to establish a public
information searchable website to include state and
local government information. A governmental entity
would post public information to the Comptrollers
site or send to the Comptroller for posting. A person
could subscribe to email notices of public information
for a specific government entity. The government
entity is still required to post information as required
by law in a newspaper or locally.
Proposed Effective: 9/1/2017, with the website ready
no later than 9/1/2018.
Status: Referred to Senate Business and
Commerce 2/13/17.
PUBLIC OFFICERS HAVE RIGHT TO
INFORMATION OF THEIR GOVERNMENT
BODY
SB 1357 Hall
Adds Government Code Chapter 620
The bill provides that an elected or appointed officer
of a governmental body has the right to access to
information of that body. Chapter 551, Open Records
Act, does not apply to this access. The official does
not have to obtain approval from the governing body
to obtain information. The governing body may not
adopt or enforce a measure to restrict or limit access.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Referred to Senate Business and
Commerce 3/16/17.
Other Codes and Statutes
SETTLEMENT AGREEMENTS WITH
GOVERNMENT CANNOT RESTRICT MEDIA
ACCESS
HB 53 Romero; HB 1463 Huffman
Adds Civil Practice and Remedies Code Chapter 116
The bills prohibit a governmental unit in a settlement
agreement of $30,000 or greater to include a condition
of the settlement that the parties agree not to disclose
any fact, allegation, evidence or other matter to any
other person, including the media. HB 53 substitute
provides that a settlement agreement provision
entered into in violation of this is void and
unenforceable. This does not affect information that
is privileged or confidential under other law.
Proposed Effective: 9/1/2017.
Status: HB 53 substitute reported from House
Judiciary and Civil Jurisprudence 3/23/17. HB
1463 referred to House State Affairs 3/20/17.
CELL PHONES RESTRICTED WHEN DRIVING
HB 62 Craddick; HB 160 Lucio; SB 31 Zaffirini;
also HB 520 Turner
Adds Transportation Code 545.4251 and amends
521.161, 545.424, 545.425, 708.052
These bills restrict the use of cell phones while
driving. They allow for hands free use. They
contain penalties for violations, with higher penalties
after first conviction. The first three bills are
identical, and HB 520 addresses the same areas
differently.
Proposed Effective: 9/1/2017.
Status: SB 31 placed on Senate Intent Calendar
3/21/17. House passed HB 62 with six amendments
3/16/17 and received in Senate 3/20/17. HB 160
referred to House Transportation 2/14/17. HB 520
left pending in House Transportation 3/9/17.
THE SAGA OF CARRYING HANDGUNS
CONTINUE
HB 99 Keough; HB 191 Bernal; HB 234 Anchia;
HB 556 Keough; HB 560 Springer; HB 899
Nevarez; HB 927 White; SB 459 Huffines; SJR 30
Huffines; SB 618 Estes
Amends various provisions as noted below
These bills continue the review of carrying concealed
and open-carry handguns in public places. HB 99
adds Chapter 40 to the Texas Penal Code, to be called
the Texas Firearm Protection Act. HB 191 adds
Government Code 411.2045, for the Department of
Public Safety to adopt rules on signs, along with a
Spanish translation, with printable copies available on
the DPS website. HB 234 amends Government Code
411.209 and Penal Code 30.06 and 30.07 to remove
the word concealed regarding a licensed handgun
2017 Legislative Update; Page 77
holder to carry on property owned or leased by a
governmental entity. HB 556 adds Chapter 95A to
Civil Practice and Remedies Code, on liability of
certain persons in allowing or forbidding handguns on
certain premises. HB 560 amends Penal Code 30.06,
46.03, 46.035 and 46.15 to revise current language.
HB 556 adds Civil Practice and Remedies Code
Chapter 95A on the liability of persons in allowing or
forbidding handguns on certain premises, but does not
apply to an entity required to display a sign under
Government Code Section 411.204. HB 899 amends
Penal Code 30.06 to require the Department of Public
Safety to adopt rules and make available online a
printable electronic sign to be posted on a building or
property where the property owner seeks to prohibit a
license holder from carrying a concealed or open-
carry handgun.
HB 927 and SB 459 amend Local Government Code
29.001 that prohibits local regulation by a political
subdivision of firearms, knives and ammunition that
is not authorized by state law. HB 927 also adds
Chapter 247 and sets a civil penalty between $1,000
and $1,500 for the first violation and between $10,000
to $10,500 for a second or subsequent violation if the
political subdivision does. Each day of a continuing
violation constitutes a separate violation enforced and
collected by the Attorney General from a filed
complaint. The political subdivision has 15 days to
cure a violation. If approved by voters November 7,
SJR 30 adds Article 1, Section 23-a, that the state or a
political subdivision may not adopt or enforce a law,
ordinance, order or regulation requiring the
registration of a firearm.
SB 618 adds Civil Practice and Remedies Act Chapter
95A that there is no cause of action against an owner
or lessee for allowing the carrying of handguns on
property by giving notice.
Proposed Effective: 9/1/2017. HB 99 effective
immediately if passed by two-thirds of both houses;
otherwise, effective 9/1/2017.
Status: SJR 30 referred to Senate State Affairs
1/30/17; SB 459 referred to Senate State Affairs
2/6/17.
HB 191 referred to House Homeland Security and
Public Safety 2/14/17. HB 234 referred to House
Homeland Security and Public Safety 2/13/17. SB
618 referred to Senate State Affairs 2/13/17. HB
556 left pending in House Judiciary and Civil
Jurisprudence 3/28/17. HB 560 referred to House
Homeland Security and Public Safety 2/20/17. HB
927 referred to House Homeland Security &
Public Safety 2/21/17. HB 899 referred to House
Homeland Security and Public Safety 2/23/17. HB
99 referred to House Select/Federal Power
Responsibility 3/1/17.
AREAS FOR BREASTFEEDING CONTINUE
HB 443 Walle; SB 279 Zaffirini; HB 742 Farrar
Amends Government Code 619.004; SB 279 also
adds Government Code 443.0134; HB 742 amends
Health and Safety Code 165.001 and 165.002
HB 443 and SB 279 remove the language of multiple
user before bathroom. A public employer shall
provide a place, other than a bathroom, for
breastfeeding. SB 279 also requires a place in the
Texas Capitol, other than a bathroom, for
breastfeeding. HB 742 provides that a person may not
interfere with, or restrict the right of, a mother to
breast-feed on the premises. The mother may bring
civil action for injunctive relief, damages up to $500
each day of violation, attorneys fees and court costs.
The Comptroller annually shall include in its tax
policy e-newsletter the rights of breastfeeding.
Proposed Effective: 9/1/2017.
Status: SB 279 referred to Senate Business &
Commerce 1/30/17. HB 443 left pending in House
Business and Industry 3/6/17. HB 742 left pending
in House Business & Industry 3/6/17.
EMPLOYEE RESIGNING WITH ADVANCED
NOTICE GETS NO UNEMPLOYMENT
BENEFITS
HB 463 Dale
Amends Labor Code 207.045
The bill disqualifies a person from unemployment
benefits when the person resigned with advance
notice and the employer terminated the person before
the date stated in the advanced notice of resignation.
Proposed Effective: 9/1/2017.
Status: Left pending in House Economic & Small
Business Development 3/23/17.
CRIMINAL HISTORY QUESTION PROHIBITED
ON EMPLOYMENT APPLICATION
HB 548 Deshotel
Adds Labor Code Chapter 52, Subchapter H
2017 Legislative Update; Page 78
The bill prohibits an employer from including a
question about an applicants criminal history on an
initial employment application. The employer may
inquire and consider any criminal history if the
applicant is conditionally offered employment or
invited for an interview. The employer may not
consider any offense that occurred or was alleged to
have occurred more than seven years before the
employment decision.
Proposed Effective: 9/1/2017.
Status: Left pending in House Business & Industry
3/20/17.
OCCUPATIONS REGULATION MAY NOT BE
SUBSTANTIALLY BURDENSOME
HB 552 White
Adds Occupations Code Chapter 60
The bill requires regulation of an occupation only if
the state agency demonstrates that the regulation is
necessary to fulfill state law and not substantially
burdensome. An individual may present evidence that
a regulation substantially burdens the individuals
right to engage in a lawful occupation. The state has
the burden of establishing by clear and convincing
evidence that the regulation is necessary to fulfill the
purpose and intent of state law. The individual may
file suit against the state for declaratory judgment.
Proposed Effective: 9/1/2017.
Status: Referred to House Licensing &
Administrative Procedures 2/20/17.
PUBLIC EMPLOYEE REPORTS STATE OR
LOCAL GOVERNMENT VIOLATIONS
HB 563 Israel
Amends Government Code 554.002
The bill expands to whom a public employee may in
good faith report a violation of law without being
suspended or terminated. The employee may report
the violation to the employees supervisor, an
individual or office designated for reporting
grievances, a member of the human resources staff,
the Attorney General or an appropriate law
enforcement authority.
Proposed Effective: 9/1/2017.
Status: Left pending in House Government
Transparency & Operations 3/27/17.
POLITICAL SUBDIVISION CANNOT SET
RULES ON PRIVATE EMPLOYERS USE OF
CRIMINAL HISTORY FOR EMPLOYMENT
HB 577 Workman; SB 1262 Huffman
Adds Labor Code Chapter 106
The bills prohibit a political subdivision for adopting
or enforcing any ordinance or other local regulation
that prohibits, limits or regulates a private employers
ability to request, consider or take employment action
based on the criminal history of an applicant. The bills
address actions by the City of Austin regarding
private employers and their application process. A
political subdivision may adopt or enforce an
ordinance/regulation on criminal history of an
individual for a contract, grant, license, permit or
business with the political subdivision.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Left pending in House Business & Industry
3/20/17. SB 1262 referred to Senate Business &
Commerce 3/13/17.
MAXIMUM SERVICE ANNUITY SET FOR A
PUBLIC RETIREMENT SYSTEM
HB 632 Fallon
Adds Government Code 810.002
The bill limits a public retirement systems service
annuity to an eligible retiring member on or after
September 1, 2017, to not exceed the lesser of (1)
basic pay of a member of the U. S. Armed Forces on
active duty at the highest salary for pay grade 0-10, or
(2) the annual rate of basic pay for a position under
level II of the Executive Schedule as defined by 5
U.S.C. Section 5313.
Proposed Effective: 9/1/2017.
Status: Left pending in House Pensions 3/13/17.
COMPOSITION OF THE BOARD OF TRUSTEES
CHANGED FOR TCDRS
HB 737 Shaheen
Amends Government Code 845.001
The bill changes the composition of the nine-member
board of trustees of the Texas County and District
Retirement System to be four county commissioners,
one special district board member, one employee or
retiree of a county and three members of the public.
The public member may not be a member or retiree of
2017 Legislative Update; Page 79
TCDRS, hold or have held an elected office or is or
has been a governmental entity employee.
Proposed Effective: 9/1/2017.
Status: Referred to House Pensions 2/20/17.
LOCAL GOVERNMENT REQUIRED TO
PARTICPATE IN FEDERAL E-VERIFY
PROGRAM
HB 765 Shaheen
Adds Local Government Code Chapter 179
The bill requires political subdivisions to register and
participate in the federal E-verify program for all new
employees. Beginning September 1, 2018, a political
subdivision may not receive state funds if it fails to do
so. The Governors Office shall adopt rules.
Proposed Effective: 9/1/2017.
Status: Referred to House State Affairs 3/1/17.
REGULATORY TAX DEFINITION ADDED TO
TEXAS CONSTITUTION
HB 888, HJR 22 Raymond
Adds Tax Code Chapter 102; adds Government Code
325.0124; adds Tex. Const. Art. 8, Section 2-a
The bill and constitutional amendment, titled the
honesty in state taxation, adds a definition of
regulatory tax as a fee, levy, surcharge, assessment,
penalty or other charge to raise revenue for general
purposes. After the election, the Legislature may not
enact a law if the tax is identified as a fee, levy,
surcharge, assessment or penalty. By January 1,
2020, the Legislature shall revise every reference in
state statute.
Proposed Effective: 9/1/2017; amendment effective if
voters approve constitutional amendment November
7, 2017.
Status: HB 888 referred to House Ways & Means
2/23/17 and HJR 22 3/20/17.
GOVERNING BODY ADOPTS POLICY ON
HEDGING IN INVESTMENT OF PUBLIC FUNDS
HB 1003 Capriglione
Adds Government Code 2256.0206 and amends
Government Code 2256.009, 2256.010, 2256.011,
2256.014, 2256.015, 2256.016, 2256.019
The bill adds interesting-bearing bank accounts and
negotiable certificates of deposits with a rating of a
least 1 to the list of investments. A governing body
shall establish a policy regarding hedging
transactions.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Left pending in House Investment &
Financial Services 3/28/17.
RENEWAL FEE FOR STATE LICENSES
LIMITED
HB 1055 Burkett
Amends Occupations Code 57.003
The bill limits a state agency from increasing the fee
for a license or renewal of a license to not exceed the
fee on January 1, 2017.
Proposed Effective: 9/1/2017.
Status: Left pending in House Licensing &
Administrative Procedures 3/20/17.
RECIPIENT OF STATE FUNDS PROHIBITED
FROM LOBBYING
HB 1316 Swanson
Amends Government Code 556.0055
The bill prohibits a political subdivision or private
entity that receives state funds from paying for
lobbying.
Proposed Effective: 9/1/2017.
Status: Referred to House General Investigating
& Ethics 2/27/17.
DISCLOSURE REQUIREMENTS CHANGED FOR
BUSINESSES CONTRACTING WITH
GOVERNMENT ENTITIES
HB 1610 Kuempel; similar HB 1295 Capriglione
Amends Government Code 2252.908
The bills revise requirements for disclosure of
interested parties by a business that contracts with a
governmental entity or the state. HB 1610 addresses
a contract that required an action by the governing
body and has a value of at least $10 million. Current
law sets the value at $1 million. The business entity
submits a disclosure of interested parties to the Texas
Ethics Commission annually and not later than the
30th day of any material change in the parties. The
Texas Ethics Commission shall adopt any necessary
rules by December 1, 2017. HB 1295 adds definitions
for controlling interest, intermediary, signed and
value. It retains the $1 million value. It also adds to
the list of 10 types of contracts that the requirements
2017 Legislative Update; Page 80
do not apply. It adds penalties for failure to file the
disclosure.
Proposed Effective: 9/1/2017.
Status: HB 1295 and HB 1610 left pending in
House General Investigating & Ethics 3/23/17.
INVESTMENT POLICY PRESENTATION
REVISED TO BE ANY BUSINESS
ORGANIZATION
HB 1701 Parker
Amends Government Code 2256.005
The bill revises the presentation of the investment
policy to be any business organization offering to
engage in an investment transaction that has accepted
authority granted by the entity under the contract to
exercise investment discretion in investing the
entitys funds.
Proposed Effective: 9/1/2017.
Status: Left pending in House Investments &
Financial Services 3/28/17.
LBB FACES SUNSET REVIEW AND A REVIEW
OF ITS FISCAL NOTE ACCURACY
HB 1841 Burrows; SB 1358 Hall
Adds Government Code 322.026 and 403.0146
The bills provide that the Legislative Budget Board
(LBB) is subject to sunset review and, if not
continued, is abolished September 1, 2019. It requires
that the Comptroller conduct a study for each fiscal
biennium to determine the accuracy of fiscal notes
prepared by the LBB, including the proposal cost
estimate to the actual cost of the bill or resolution. The
Comptroller reports to the Legislature by December 1
of even-numbered years with the results, issues of
concerns and areas of improvement.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: HB 1841 referred to House Appropriations
3/13/17. SB 1358 referred to Senate Finance
3/16/17.
INDIVIDUAL MUST CONSENT TO HIS OR HER
IMAGE PUBLICATION
HB 2024 Davis of Dallas
Adds Business & Commerce Code Chapter 113
The bill provides that a person may not publish an
unauthorized image on the Internet. A business entity
operating an Internet website and receives a request
from an individual depicted in an unauthorized image
shall remove the image within 48 hours from the
request. Civil penalty for violation is $200 or less. The
Attorney General or local prosecuting attorney may
bring action to collect civil penalty. The bill applies to
any publication of an image regardless of whether the
image was initially published before the bills
effective date. The bill does not apply to an image
published by the news media, by law enforcement or
in the public domain by an individual who appears in
the image.
Proposed Effective: 9/1/2017.
Status: Referred to House Business and Industry
3/13/17.
PUBLIC FUNDS PROHIBITED FOR USE FOR
POLITICAL CONTRIBUTIONS OR
EXPENDITURES
HB 2471 Davis of Harris
Adds Election Code 253.007
The bill provides that it is unlawful to use public funds
for political contributions or political expenditures or
to directly or indirectly employ a person to use public
funds in such a way. A violation is a Class A
misdemeanor.
Proposed Effective: 9/1/2017.
Status: Referred to House General Investigating
and Ethics 3/21/17.
VENDOR FILES DISCLOSURE FORM
QUARTERLY FOR GIFT TO LOCAL OFFICIAL
HB 2473 Davis of Harris
Adds Local Government Code Chapter 176A and
amends 176.001, 176.003, 176.006, 176.009, 176.013
The bill provides for the disclosure by vendors of gifts
to certain local government officers and of certain
relationships with local officers. Each calendar
quarter, by the 15th of the month, a vendor shall submit
a completed disclosure form to a local government
entity if the vendor has a contract or is seeking a
contract and has given one or more gifts during the
preceding calendar quarter with an aggregate value of
more than $100 to a local government officer. It does
not apply to a gift given directly as part of a
sponsorship or contribution to a non-profit
organization. Failure to file the disclosure is a Class
C misdemeanor.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
2017 Legislative Update; Page 81
Status: Referred to House General Investigating
and Ethics 3/21/17.
LEGISLATORS STUDY UNFUNDED
MANDATES
HB 2789 White; similar SB 1438 Zaffirini
HB 2789 none stated. SB 1438 adds Government
Code 320.002 and 320.003 and amends 320.001
The bills set up a study group to look at unfunded
mandates by legislative action. HB 2789 sets up a
nine-member study group by October 1, 2017, with
three members appointed by the Governor, three
appointed by the Lt. Governor and 3 appointed by the
Speaker. The group will study the mandates imposed
by state statutes or agency rules to require counties to
establish, expand or modify activities that requires
increased expenses and for which the state provided
no funding to the counties. The group reports by
August 31, 2018 and is abolished September 1, 2019.
SB 1438 sets up an unfunded mandates interagency
work group of the State Auditor, Legislative Budget
Board Director, Comptroller, one Senator and one
Representative to publish by September 1 an advisory
list of unfunded mandates following a legislative
session. The group removes mandates from previous
legislative sessions that receive funding and adds
back those where funding ends. A mandate does not
include one that complies with federal law, received
voter approval or affects employee pensions and
benefits.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: SB 1438 referred to Senate Finance
3/20/17. HB 2789 referred to House State Affairs
3/30/17.
COUNTY PUBLIC WORKS PROJECT MAY
REQUIRE AN ELECTION
HB 2797 Munoz
Adds Local Government Code Chapter 120
The bill adds election required to fund certain public
works of a county using county revenue or incurring
county debt. A project cost of $50 million or more
requires an election to approve the funding.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Referred to House County Affairs 3/27/17.
FISCAL NOTE BY LEGISLATIVE STATES
INCLUDES COUNTY OR CITY IMPACT
HB 3030 Burns
Adds Government Code 314.006
The bill requires the Legislative Budget Board to
include in each fiscal note a statement indicating
whether the bill may create increased cost for one or
more counties or municipalities.
Proposed Effective: 9/1/2017.
Status: Referred to House Appropriations 3/27/17.
VOTERS DECIDE WHETHER TO REPEAL
PROHIBITION ON STATE CORPORATE
INCOME TAX
HJR 58 Schofield; similar HJR 79 Klick; SJR 45
Bettencourt
Adds Tex. Const. Art. 8, Section 24-a and amends
Section 1; HJR 79 repeals Art. 8, Sec. 24
These bills provide for a constitutional amendment to
allow the Legislature to impose a corporate income
tax, but not an individual income tax. HJR 79 would
require imposing an individual income tax only if
two-thirds of Texas voters voted to repeal the
prohibition on an individual income tax.
Proposed Effective: Amendment effective if voters
approve constitutional amendment November 7,
2017.
Status: SJR 45 referred to Senate Finance 3/9/17.
HJR 58 and HJR 79 referred to House Ways &
Means 3/20/17.
TWO-THIRDS VOTE REQUIRED TO PASS TAX
BILL BY TEXAS LEGISLATURE
HJR 63 Shaheen
Adds Tex. Const. Art. 8, Section 30
The constitutional amendment would allow require a
two-thirds vote of all members of the Senate and
House on the final consideration of a bill that imposes
a new state tax or increases the rate of an existing state
tax. The state tax does not include a tax or other levy
by a political subdivision.
Proposed Effective: Amendment effective if voters
approve constitutional amendment November 7,
2017.
Status: Referred to House Ways & Means 3/20/17.
2017 Legislative Update; Page 82
POLITICAL SUBDIVISIONS SET TERMS LIMITS
NOT TO EXCEED 12 YEARS
SB 110 Huffines
Adds Government Code 601.010
The bill requires the governing body of a political
subdivision to establish term limits no later than
January 1, 2018, to ensure that a person may not serve
longer than 12 years in an office, regardless of
whether the person serves consecutive terms. Terms
that began before January 1, 2019 are not counted.
Proposed Effective: If Texas voters approve
constitutional amendment November 7, 2017.
Status: Referred to Senate State Affairs 1/25/17.
POLITICAL SUBDIVISION PROHIBITED FROM
LOBBYING; ALTERNATIVE IS TO REQUIRE
REPORTING TO ETHICS COMMISSION AND
ON WEBSITE
SB 241 Burton; SB 445 Burton
Amends Local Government Code 89.002; amends
Government Code 556.0056
These bills apply to a political subdivision that
imposes a tax or to a regional mobility authority, toll
road authority or transit authority. SB 241 provides
that the governing body of a political subdivision may
not spend public money to directly or indirectly
influence or attempt to influence the outcome of any
pending legislation. Exceptions are an elected official
acting as an officer of the political subdivision; an
employee who would not be required to register as a
lobbyist; or an officer or employee providing
information to a member of the Legislature or
appearing before a legislative committee at the
request of the member or committee. The governing
body may spend public money for membership fees
in a nonprofit state association only if a majority of
the governing body approves the membership; the
association exists for betterment of local government
and local government officials; the association if not
with a labor organization; the association does not
directly or indirectly influence or attempt to influence
the outcome of pending legislation; and the
association does not directly or indirectly contribute
any money, services or other thing to a political
campaign or endorse a candidate. A taxpayer in the
political subdivision may seek injunctive relief for
any violation to prevent any further prohibited
activity. The taxpayer may recover attorney fees and
court costs. SB 445 provides that a political
subdivision may spend money directly or indirectly to
influence pending legislation only if a majority of the
governing body approves the expenditure in open
meeting as a stand-alone item. The political
subdivision shall post on its website and file a report
with the Texas Ethics Commission about the money
spent, name of any person required to register as a
lobbyist, an electronic copy of lobbyists contract and
membership fees/dues of any nonprofit state
association that directly or indirectly influences
legislation. The Texas Ethics Commission shall make
the information available as an online searchable
database. Noncompliance entitles an interested party
to appropriate injunctive relief to prevent further
violation.
Proposed Effective: 9/1/2017.
Status: SB 241 referred to Senate State Affairs
1/30/1. SB 445 substitute voted from Senate State
Affairs 3/30/17.
EMPLOYERS GIVE TIME OFF TO VOTE AND
TO OBTAIN VOTER ID
SB 283 Watson; SB 285 Watson
SB 283 amends Election Code 276.004; SB 285 adds
Labor Code Chapter 84
These bills address voting rights. SB 283 provides
that a person may not refuse to permit a person to be
absent from work to vote on election date or while
early voting is in progress. SB 285 allows time off to
obtain an election ID certificate by requesting time off
not later than 24 hours before the time the employee
will be absent from work. The employer may not
require the employee to use existing leave time or
reduce the pay for any pay period of lasting eight
hours or less. On return to work, the employee
provides reasonable documentation about absence to
obtain election ID. Texas Workforce Commission
shall design a sign that each employer shall place in a
prominent location.
Proposed Effective: 9/1/2017.
Status: Both bills referred to Senate State Affairs
1/30/17.
PUBLIC EMPLOYEE HAS RIGHT TO
REPRESENTATION IN CERTAIN INTERNAL
INVESTIGATIONS
SB 369 Garcia; HB 2587 Alonzo
Adds Government Code 617.0045
2017 Legislative Update; Page 83
These bills give a public employee, on request, the
right to representation in any investigatory interview
of the employee initiated by the employees public
employer that may result in disciplinary action.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: SB 369 referred to Senate Natural
Resources and Economic Development 2/1/17. HB
2587 referred to House State Affairs 3/30/17.
STATE AUDITOR STUDIES LEGISLATIVE BILL
COST ESTIMATES
SB 398 Kolkhurst
Adds Government Code 321.0139
The bill requires the State Auditor to conduct a study
on the probable cost estimates used in Legislative
Budget Board fiscal notes with the actual cost for
passed legislation. The study shall be a random
sampling of 10% of the fiscal notes. The State
Auditor reports to the Legislature by September 1,
2018.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Referred to Senate Administration 2/1/17.
RETIREMENT SYSTEM EVALUATES
INVESTMENT PRACTICES AND
PERFORMANCE
SB 509 Huffman
Adds Government Code 802.109 and amends
Government Code 802.002
The substitute bill requires that a public retirement
system shall include in its annual report a listing, by
asset class, of all direct and indirect commissions and
fees paid during the previous fiscal year for the sale,
purchase or management of system assets and the
names of investment managers. A public retirement
system is required to select an independent firm with
substantial experience in evaluating institutional
investment practices and performance, with specific
items to be evaluated. The evaluation is required once
every three years if at least $100 million in book
value; once every six years if at least $30 million but
less than $100 million; and no evaluation required if
less than $30 million in book value. A retirement
system files investment performance reports with the
Texas Legislature.
Proposed Effective: 9/1/2017.
Status: Substitute reported from Senate State
Affairs 3/22/17.
ETHICS REQUIREMENTS CHANGED
SB 14 Taylor; HB 1283 Geren
Adds Government Code 601.011, 810.002 and
amends various sections of the Government Code
The bill changes ethic requirements for public
officers, including that certain elected officials are
ineligible for their retirement annuity if they
committed a qualifying felony while in office.
Proposed Effective: 1/8/2019.
Status: SB 14 passed Senate and received in House
2/8/17. HB 1283 referred to House General
Investigating & Ethics 3/22/17.
LINE ITEM FOR PUBLIC NOTICE
EXPENDITURES REQUIRED IN PROPOSED
BUDGET
SB 622 Burton; HB 1596 Lozano
Adds Local Government Code 140.0045
These bills require that the proposed budget of a
political subdivision must include a line item showing
expenditures for public notices required by law to be
published in a newspaper or a clear comparison
between those expenditures in the proposed budget
and actual expenditures in the preceding year. The
floor amendment provides that this provision does not
apply to a county with a population of less than 50,000
or to a political subdivision located in such a county.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: SB 622 reported from Senate
Intergovernmental Relations 3/27/17; with one
floor amendment, passed Senate 3/29/17 and
received in House 3/30/17. HB 1596 referred to
House Government Transparency & Operations
3/20/17.
PERSON RECOUPS ATTORNEYS FEES AND
COURT COSTS FOR CHALLENGE IN COURT
SB 635 Huffines
Adds Civil Practice and Remedies Code Chapter 38A
The bill authorizes a court to award attorneys fees
and court costs to a person who prevails in the action
of challenging an order, ordinance or measure of a
political subdivision as unenforceable because that
action was preempted by state constitution or state
2017 Legislative Update; Page 84
law. The bill also provides for the award of attorneys
fees and court costs if an officer of a political
subdivision failed to perform an act of the office
required by state constitution or state law. The
political subdivision for whom the public officer
served at the time pays those amounts.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Intergovernmental
Relations 2/13/17.
CERTAIN COUNTIES FOLLOW SPECIFIC
FINANCIAL ACCOUNTING AND REPORTING
REQUIREMENTS
SB 753 Perry; HB 1930 Frullo; HB 3320 Frank
Repeals Government Code 2266; amends Local
Government Code 112.002
These bills address a county with a county auditor and
with a population of 190,000 or more. It requires that
a regulation adopted may not be inconsistent with
generally accepted accounting principles as
established by the Governmental Accounting
Standards Board.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: SB 753 referred to Senate State Affairs
2/22/17. HB 1930 left pending in House
Government Transparency & Operation 3/27/17.
TEXAS RAILROAD COMMISSION CONTINUED
SB 300 Taylor; HB 1818 Gonzales; similar SB 2120
Seliger
Amends Natural Resources Code 81.01001 and adds
81.065, 81.066, 81.071
These bills continue the Texas Railroad Commission
to 2029.
Proposed Effective: 9/1/2017.
Status: SB 300 referred to Senate Natural
Resources & Economic Development 2/27/17. HB
1818 substitute, with five floor amendments,
passed House 3/29/17 and received in Senate
3/30/17. SB 2120 referred to Senate Natural
Resources & Economic Development 3/28/17.
WATER DISTRICT DISSOLUTION ADDRESSED
SB 1175 Hinojosa
Adds Water Code Chapter 49, Subchapter P, and
amends Water Code 49.323
The bill addresses the dissolution of a water district
and transferring the assets and obligations to another
political subdivision by election.
Proposed Effective: 9/1/2017.
Status: Referred to Senate Intergovernmental
Relations 3/9/17.
CODE REVISIONS AND OTHER
NONSUBSTANTIVE CHANGES CLEAN UP
STATUTES
SB 1488 West; HB 3502 Landgraf
Amends various Codes
legislation. The governmental body may not employ
a registered lobbyist. If the governmental entity does
engage in the prohibited activity, a taxpayer of the
entity may seek injunctive relief and is entitled to
recover reasonable attorneys fees and court costs.
Proposed Effective: 9/1/2017.
Status: Referred to Senate State Affairs 3/28/17.
LOCAL GOVERNMENT REQUIRED TO REPORT
LOBBYING EXPENDITURES
SB 2045 Bettencourt
Adds Local Government Code 140.0051

The bills clean up non-substantive additions to and
corrections in enacted Codes and conforms
codifications enacted by the 84th Legislature to other
Acts of that legislature
Proposed Effective: 9/1/2017.
Status: SB 1488 referred to Senate Administration
3/20/17.
RAILROAD COMMISSION RENAMED TO
TEXAS OIL & GAS COMMISSION
HB 4113 Alonzo
Adds Natural Resources 81.010015 and amends
80.001, 81.01005, 81.0521; amends Election Code
52.092
The bill renames the Railroad Commission to Texas
Oil & Gas Commission. Any reference to the old
name is to be the new name. The renamed
Commission has three commissioners serving
staggered, six-year terms
Proposed Effective: 9/1/2017.
Status: Filed.
The bill requires a local government entity, including
a county, city, school district or hospital district, but
not a junior college district, to report lobbying
expenditures. The entity submits to the Texas Ethics
Committee a clear and concise statement on total
expenditures during a regular legislative session,
including with whom the entity has contracted for
lobbying and the amount paid to the registered
lobbyist. The entity files two statements: the first is
due by the second Tuesday in January of odd-
numbered years and the second by the 21st day after
the legislative session ends.
Proposed Effective: Immediately if passed by two-
thirds of both houses; otherwise, effective 9/1/2017.
Status: Referred to Senate State Affairs 3/28/17.

USING TAX PROCEEDS PROHIBITED FOR

LOBBYING ACTIVITIES OR LOBBYISTS
SB 2044 Bettencourt
Adds Government Code 556.0056

The bill applies to a governmental entity, including a

political subdivision, that is wholly or partly funded
by tax proceeds. A governmental entity may not
spend tax proceeds to directly or indirectly influence
or attempt to influence the outcome of legislation
before the Legislature. It does not prevent an officer
or employee of a governmental entity or an elected
officer from appearing before a committee at the
request of the committee or legislative member about
the entitys budget needs or effect of pending

2017 Legislative Update; Page 85