Senate Local Government Releases Interim Report to the 89th Legislature

The Senate Committee on Local Government has released its interim report to the 89th Legislature. Sens. Sarah Eckhardt (D-Austin) and Roland Gutierrez (D-San Antonio) did not sign the interim report. The report includes details on public testimony taken during committee hearings and written materials submitted to the Committee. See below for a spotlight on recommendations from the report.

Charge 1: Additional Property Tax Relief and Reform

• The Legislature should consider adopting legislation requiring the citation and sourcing of data used on a taxing entity’s tax rate calculation worksheet.
• The Legislature should consider adopting legislation clarifying that tax rate calculations from prior tax years may not be amended for purposes of calculating a current year tax rate.
• The Legislature should consider adopting legislation amending the definition of debt for purposes of calculating a tax rate to ensure that only voter-approved debt is included in the calculation of a debt tax rate.
• The Legislature should consider adopting legislation requiring oversight and periodic audit reviews of taxing entities’ tax rate calculations.
• The Legislature should consider adopting legislation repealing taxing entities’ ability to adopt a de minimis tax rate.
• The Legislature should ensure that all tax rate and bond elections are held on a uniform election date and placed on a consolidated ballot.
• The Legislature should consider creating a statewide database for ordered tax rate elections and bond elections.
• The Legislature should consider adopting legislation clarifying a specific calculation of the following for taxing entities’ tax rate calculation worksheets:
  • Taxable value lost because court appeals of ARB decisions reduced prior year appraised value.
  • Prior year taxable value subject to an appeal under Chapter 42
  • Total taxable value on the current year certified appraisal roll
  • Total value of properties under protest or not included on certified appraisal roll.
• The Legislature should adopt legislation clarifying the duties and responsibilities of appraisal districts’ board of directors, ensuring boards implement the property tax code as passed by the Legislature.
• The Legislature should consider an additional increase to the ISD homestead exemption, given the success of the $100,000 homestead exemption, which provided approximately half of the historic SB 2 property tax reductions for homeowners.

Charge 2: Extra-Territorial Jurisdictions

• The 89th Legislature should consider passing legislation emphasizing cities may not pass resolutions to cancel or invalidate statutes enacted by the legislature, without a judicial ruling.
• The 89th Legislature should consider repealing the extra-territorial jurisdiction, taking potential implications for landowners currently residing in an extra-territorial jurisdiction into consideration.
• The 89th Legislature should consider ensuring all property owners affected by an ETJ removal effort receive adequate notice of the potential for ETJ status change and provide landowners who do not wish to be removed to exempt their property from a removal effort.
• The 89th Legislature should consider eliminating statutory conflicts creating confusion for landowners seeking to connect utilities to land removed from a municipal ETJ that remains in a CCN.

Charge 3: Local Government Spending of Directly Distributed Federal Funds

• The 89th Legislature should pass legislation prohibiting local governments from implementing unrestricted cash transfer programs.
• The Legislature should ensure that appropriate transparency and audit controls are applied to public assistance programs, to ensure public assistance programs do not violate constitutional gift clause prohibitions.

Charge 4: Housing Affordability

• The Legislature should consider passing legislation strengthening personal property rights, which are the bedrock of free market exchange and economic development, by identifying specific instances of local overregulation to cull. This will preserve the economic freedom of homeowners and home builders to meet the needs of the Texas housing market.
• The Legislature should consider passing legislation prohibiting local governments and any corporations acting on their behalf from owning or investing in affordable housing properties outside of the district’s boundaries.
• The Legislature should consider passing legislation requiring all affordable housing projects to be approved by the local taxing units in which the property is located, disallowing the approval by a taxing unit from another jurisdiction.

Charge 5: Secure Texas Against “Squatters”

• The 89th Texas Legislature should consider increasing criminal penalties for:
  • unlawful occupation of residential property and intentionally causing damage.
  • advertising the sale or lease of property without legal authority.
  • providing falsified information through statements or in writing to obtain real property.
• The Legislature should consider passing legislation to expedite eviction proceedings.
  • Allow property owners to file affidavit of ownership and be granted ex-parte hearing within 24-48 hours.
  • Allow for notice to an offender to be served by posting on property door, do not require notice be served in person or service at alternate address.
  • Allow 48-72 hours for offender to provide evidence by affidavit to court of rights to possession (felony penalties for providing false statements).
  • Provide for summary disposition in eviction proceedings if there is no genuine issue or fact for the court to resolve at trial. (Additional benefit of clearing docket space, making courts more efficient)
  • Provide for immediate grant of writ of possession.
  • Create strict timelines for judicial proceedings, absent agreement of the parties.
• Provide law enforcement tools to immediately remove “squatters.”
  • Allow property owners to file affidavit stating three criteria:
    • The offender has unlawfully entered and remains on the property.
    • The individual has been directed to leave the property by the owner but has not done so; and
    • The individual is not a current or former tenant in legal dispute then law enforcement shall take immediate action to remove a “squatting” individual.
    • Create Penalties for filing false affidavit.
    • Allow for law enforcement fee-for-service.
    • Ensure that property owners or their agents are not liable for loss or destruction of personal property in removal, unless found to be wrongfully removed
•  Allow law enforcement to review appraisal and deed records to timely determine ownership rights in “squatting” disputes. Consider creating intergovernmental database to efficiently share records in real time.
• The Legislature should require standardized training on responding to squatting cases for JPs and law enforcement.