HBA-MPM H.B. 3526 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3526
By: Hochberg
Public Education
4/16/2001
Introduced



BACKGROUND AND PURPOSE 

Beginning with the 2001-2002 school year, a school district's fiscal year
begins on July 1 or September 1 of each year as determined by the board of
trustees of the district.  To adopt a budget prior to the beginning of the
fiscal year, school districts must comply with truth-in-taxation
requirements, including holding a public meeting.  At least 10 days prior
to the meeting, the district is required to publish a notice that includes
certain calculations that currently use the district's taxable value as
certified by the chief appraiser.  However, the chief appraiser is not
required by law to provide this information until July 25th, which does not
allow for the timely publication of the notice for public hearing for
districts whose fiscal year starts July 1.  House Bill 3526 authorizes such
a school district to use the chief appraiser's certified estimate of the
taxable value of district property rather than the actual certified taxable
value for purposes of publishing the notice of and holding a public
meeting. 

RULEMAKING AUTHORITY

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

ANALYSIS

House Bill 3526 amends the Education Code to provide that if the chief
appraiser for a county which includes a school district with a fiscal year
beginning July 1 is unable to provide by July 7 a certified taxable value,
the district is authorized to substitute the chief appraiser's certified
estimate of the taxable value in place of the certified taxable value in
all calculations for the required notice of a budget and tax rate meeting. 

The bill authorizes a district using a certified estimate to adopt the
budget at the public meeting designated in the notice, but prohibits the
district from setting a tax rate until the chief appraiser has certified a
taxable value.  The bill provides that the district must publish a
corrected notice and hold a second public meeting only if the tax rate to
be adopted by the district exceeds either the proposed tax rate in the
original notice or the district's rollback rate computed using the chief
appraiser's certified taxable value. 

H.B. 3526 amends the Tax Code to require the chief appraiser to prepare and
certify to the assessor for each school district participating in the
appraisal district an estimate of the taxable value of school district
property by June 7, rather than June 15. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.