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A full plate of interim studies could affect the rental housing industry
By: David Mintz, TAA Vice-President of Government Affairs
The legislature is out of session and everybody’s focused on the elections. Everything’s quiet on the legislative front, right? Actually, the next nine months leading up to the session may prove to be extremely busy for TAA’s legislative team.
One area of particular importance will be monitoring committee interim studies. Before each session, the Speaker of the House and Lieutenant Governor give House and Senate committees respectively “charges” about issues the committees should study to determine whether there should be legislation on those topics introduced during the next session.
While there are always a few issues that TAA follows, this interim we are following more than 45 topics in 24 committees. At the top of our list are studies in both the House and Senate on the property appraisal system and property taxes. In addition, there is a study by the Senate Intergovernmental Relations Committee on the adequacy of laws protecting residents from health and safety problems. Other topics include a number of affordable housing topics, land use issues and reintegration of ex-offenders into society. TAA will actively monitor these studies and participate where appropriate.
This article spotlights some of the major studies.
SENATE INTERIM COMMITTEE CHARGES
Business & Commerce
Study and make recommendations on options for encouraging residential and small commercial consumers to switch electric products or providers.
Study the advantages and disadvantages of developing a building code specific to coastal properties in order to mitigate hurricane damage. Focus on avoiding catastrophic losses of property during a major storm.
Criminal Justice
Study the system of deferred adjudication in Texas courts and make recommendations for resolving any problems and reducing the potential for release of dangerous criminals.
Review the process for reentry of criminal offenders into communities. Identify barriers to the successful return to law-abiding behavior, including the absence of employment opportunities created by restriction on obtaining certain state occupational licenses.
Finance—Subcommittee on Property
Appraisal and Revenue Caps
Review the property tax appraisal system, including the following:
•the duties and responsibilities of chief appraisers and appraisal districts
•any abuses that occur in the appraisal process
•the process of appointing the members of boards of directors of appraisal districts
•the impact of adding members to the boards of directors of appraisal districts who are not appointed by the taxing jurisdictions of the district and methods for appointing these additional directors
•the usefulness of information provided in a notice of appraised value
•any benefit from requiring more uniformity in appraisal standards used by appraisal districts, and
•any revisions to the property valuation appeal system that could reduce the cost of dispute resolution.
Study the benefits and limitations of property tax appraisal caps compared to a limit on revenue a local jurisdiction can receive without the approval of the voters in the locality. Consider alternative sources of funding to replace property tax revenues.
Government Organization
Study whether Texas should adopt high-performance building standards. In light of the potential impact of Texas’ population growth on the need for electricity and water, study whether high-performance buildings can cost-effectively lower utility costs and make more efficient use of natural resources.
Intergovernmental Relations
Study and make recommendations on Texas housing programs, with particular focus upon:
•increasing the effectiveness of the Texas Department of Housing and Community Affairs’ (TDHCA) Housing Tax Credit (HTC) Program.
•evaluating the progress of affordable housing programs within the state and developing recommendations to boost the capacity of non-profits to build increased affordable housing developments, and
•examining the incidence of health and safety violations and concerns for general habitability among multifamily and single-family rental properties across the state, including properties financed or supported by the state. Consider the adequacy of existing authority conferred by the state upon local governments to address violations of habitability standards. Make recommendations for extension of local capacity for redress.
HOUSE INTERIM COMMITTEE CHARGES
Business and Industry
Study the problem of identity theft and the impact of identity theft legislation enacted in recent legislative sessions. Examine the problem of electronic data breaches, as well as the feasibility of requiring periodic destruction of records for businesses and state entities to limit exposure to identity theft. Examine the issue of personal information contained in publicly available government records. Recommend any legislative changes needed to combat the problem.
Monitor the Texas workers’ compensation system and the continued implementation of the reforms of HB 7, 79th Legislature, Regular Session, by the Texas Department of Insurance and other state agencies. Specifically evaluate the recent decision by the Texas Supreme Court in Entergy v. Summers in terms of its impact on the system. (Joint Interim Charge with the House Committee on Insurance)
Corrections
Consider new strategies for meeting prisoner reentry challenges in Texas, including the evaluation of programs with documented success. This review should include the availability of housing and occupational barriers.
County Affairs
Examine recent attempts by municipalities to exert regulatory authority beyond city limits and extraterritorial jurisdiction. Evaluate the current relationship between and possible conflicts related to regulatory authority expressly given to state agencies by the legislature and regulatory authority delegated to home-rule municipalities. (Joint Interim Charge with the House Committee on Land and Resource Management)
Criminal Jurisprudence
Examine problems associated with the current system of deferred adjudication in Texas.
Insurance
Study the need for a state catastrophe fund to protect the Texas economy against major disasters. Examine the structure and performance of such funds in other states and assess the potential of such a fund to reduce the reinsurance costs and premiums borne by Texas homeowners.
Local Government Ways and Means
Review provisions for local government notices on potential tax rate increases and clarify potentially conflicting statutes. Look at requiring two (rather than one) public hearings on the tax rate increase.
Examine the addition of members to the board of directors of appraisal districts who are not appointed by the taxing jurisdictions of the district. Determine methods for appointing these additional directors.
Examine the system for appraising property for property tax purposes:
•Consider whether the statutory system for choosing the Central Appraisal District Board of Directors and governing the board’s operation adequately protects the public interest.
•Evaluate whether the authority of the chief appraiser should be limited.
•Consider alternative methods and procedures for conducting the Comptroller’s School Value Study to ensure both the equitable distribution of state school aid and a more stringent review of local appraisal practices.
•Examine constitutional and statutory constraints on the enforcement of uniform appraisal standards across the state and the ability of the state to provide oversight of appraisal districts.
•Consider ways to improve appraisal district efficiencytransparency and services, including, but not limited to, the reconfiguration of appraisal districts.
•Evaluate changes in the property valuation appeal system that could expedite and reduce the cost of dispute resolution.
Research the policies and procedures by which local tax appraisers value rent-restricted affordable housing properties and authorize legislatively established tax exemptions. Evaluate application and interpretation of existing statutes by local appraisal districts to affordable housing properties throughout the life cycle of developments. Make recommendations for statutory changes. (Joint Interim Charge with the House Committee on Urban Affairs)
Ways and Means
Monitor receipts of the franchise tax.
If you have any questions about these charges, email david@taa.org for more information.
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