Texas Association of Business

As you may know, on Tuesday, November 3, voters will decide on 11 amendments to the Texas Constitution. Unlike the U. S. Constitution, our Texas Constitution is a very long and detailed document. Since its original adoption in 1876, voters have often been called upon to make changes to the Texas Constitution and have approved more than 400 changes. These amendments are not subject to a Governor's Veto. As you can see, the amendments on the upcoming ballot cover a wide range of issues, from important to relatively trivial.

Proposition 1
"The constitutional amendment authorizing the financing, including through tax increment financing, of the acquisition by municipalities and counties of buffer areas or open spaces adjacent to a military installation for the prevention of encroachment or for the construction of roadways, utilities, or other infrastructure to protect or promote the mission of the military installation."

Background: Military bases located in Texas provide economic benefits to the state, as well as to the counties and cities in which they are located. However, developments immediately next to a military base make it difficult for bases to expand when necessary. Military bases also need roads, sewers and other public works improvements to continue to operate and grow, and cities and counties need to be able to fund such improvements. This proposition would allow the Legislature to authorize cities and counties to issue bonds to finance these purchases, and to finance other public improvements needed to serve the bases.

Recommendation: Support. Military bases should be protected from encroaching developments that could restrict training and operational missions, and ultimately cause a military base to close. This proposed amendment would give local governments the power to borrow funds necessary to buy land and build infrastructure to help keep the bases functioning.

Proposition 2
"The constitutional amendment authorizing the legislature to provide for the ad valorem taxation of a residence homestead solely on the basis of the property's value as a residence homestead."

Background: When an appraisal district determines the value of property for property tax purposes, the district is allowed to consider what the property would be worth if it were used for a more valuable purpose. The Legislature recently voted to require that the tax on a person's home be based only on the property's value as a residence, regardless of whether the property might be worth more if used for another purpose.

Recommendation: Support. Many Texas homeowners have seen their appraisals rise substantially, not because the value of their homes increased, but because the land was considered more valuable as a potential business site. Texas already prohibits agricultural land and timber land from being appraised based on other possible uses, but no similar protection exists for homeowners.

Proposition 3
"The constitutional amendment providing for uniform standards and procedures for the appraisal of property for ad valorem tax purposes."

Background: The Texas Legislature sets the standards that county appraisal districts must follow when appraising property for property tax purposes. However, while the state sets the standards, the state has no power to force the appraisal districts to follow the standards. The state currently tries to enforce the standards by reducing state aid to school districts located in counties where appraisal standards are not followed. Unfortunately, this penalizes the schools for something they have no control over, since the appraisal districts, not the school districts, conduct the appraisals.

Recommendation: Support. This amendment would make sure that properties in different counties are appraised according to the same uniform, statewide standards. Further, the proposition would allow appraisal standards to be enforced by direct action against appraisal districts, rather than relying on penalties against school districts.

Proposition 4
"The constitutional amendment establishing the national research university fund to enable emerging research universities in this state to achieve national prominence as major research universities and transferring the balance of the higher education fund to the national research university fund."

Background: Texas has two public national academic research universities--The University of Texas at Austin and Texas A&M University. This proposition would establish a National Research University Fund (NRUF) to help other state universities build their research activities to achieve national prominence. Currently, there are seven universities in the state that are considered as likely contenders for NRUF funding.

Recommendation: Support. Texas is behind other states in its number of nationally recognized research universities. UT-Austin and Texas A&M have more applicants than they can admit so, as a result, Texas loses thousands of high-achieving high school graduates to universities in other states every year. By having more universities at a nationally recognized level, Texas would expand the educational opportunities available to Texans, keep more Texas students at home in our state, and generate important research, job and economic growth.

Proposition 5
"The constitutional amendment authorizing the legislature to authorize a single board of equalization for two or more adjoining appraisal entities that elect to provide for consolidated equalizations."

Background: Appraisal review boards are authorized to resolve disputes between taxpayers and property tax appraisal districts, and most Texas counties each have their own appraisal review board. The Legislature has recently authorized adjoining counties to combine their review boards to save taxpayer money.

Recommendation: Support. Many rural counties have a difficult time finding enough qualified and willing candidates to sit on their appraisal review boards. This proposition would allow counties to join together to form consolidated appraisal review boards, and help to ensure a more professional appraisal review process.

Proposition 6
"The constitutional amendment authorizing the Veterans' Land Board to issue general obligation bonds in amounts equal to or less than amounts previously authorized."

Background: The Texas Veterans Land Board provides low-interest loans to Texas veterans for buying and improving homes and for purchasing land. The board issues bonds to raise the money needed to fund these loans. This proposition would authorize the board to issue new bonds, without needing new approval, to replace any bonds that have been issued earlier and then paid back. The board would be limited to the total amount that voters have authorized under previous constitutional amendments and that has been approved by the Legislature. The amendment would eliminate the current $500 million cap on total bonds that the board may have outstanding at any one time.

Recommendation: Support. This proposition would the Veterans Land Board to continue its housing assistance program without an interruption. Voters have approved $4 billion in these types of bonds in the past, of which about $2 billion has already been paid back. Since voters already approved the entire $4 billion in borrowing, the board should be able to reissue the bonds that have been paid back so that they can continue to make new loans.

Proposition 7
"The constitutional amendment to allow an officer or enlisted member of the Texas State Guard or other state militia or military force to hold other civil offices."

Background: The Constitution prohibits a person from holding more than one civil office for which the person would receive compensation. Those considered to be "holding a civil office" also include appointed officials and officers of the military. The Constitution specifically exempts officers in the United States armed forces and those serving in the National Guard from this restriction. This proposition would go a step further by adding officers and enlisted members of the Texas State Guard and other state military forces to the military exemption.

Recommendation: Support. This proposed amendment would correct an oversight in the Texas Constitution. The Texas State Guard and other Texas military forces were overlooked during earlier amendments to this section exempting other members of the armed forces.

Proposition 8
"The constitutional amendment authorizing the state to contribute money, property, and other resources for the establishment, maintenance, and operation of veterans hospitals in this state."

Background: Veterans' hospitals are run by the U.S. Department of Veterans Affairs. Texas currently has nine in-patient veterans' hospitals that serve the 1.7 million veterans who live in the state. State funds could be combined with federal funds to expand and improve these federal facilities in Texas, but our state government has no authority to contribute funding to a federal veterans hospital. This proposition would give the state government that authority.

Recommendation: Support. Establishment of additional veterans' hospitals in the state helps Texas veterans. The rising cost of traveling to the existing facilities can delay necessary health care for some veterans. This proposed amendment would make it clear that state resources can be used to help establish, maintain, or operate a veterans' hospital that is run by the federal government.

Proposition 9
"The constitutional amendment to protect the right of the public, individually and collectively, to access and use the public beaches bordering the seaward shore of the Gulf of Mexico."

Background: Under a Texas law known as the Open Beaches Act, the public has the right of free and unrestricted access to beaches in the state. The public has access to the beach anywhere from the ocean to the line where the natural grasses grow. While the public has access to the beach, this does not mean that the land is publically owned. Land above where the high tide comes in, known as the “dry beach", may be privately owned. Since the Open Beaches Act is a state law but is not in the Constitution, it can be changed or eliminated by a majority vote of the Legislature at any time. This proposition would add the public's right to unrestricted access to Texas beaches to the Texas Constitution, so that it could only be weakened or eliminated through another constitutional amendment requiring approval by the voters.

Recommendation: Support. This proposition would strengthen the Open Beaches Act by including it in the Texas Constitution. Millions of Texans and visitors from other states enjoy our many miles of accessible beaches, and we want to keep these dollars coming to Texas.

Proposition 10
"The constitutional amendment to provide that elected members of the governing boards of emergency services districts may serve terms not to exceed four years."

Background: Emergency services districts are established for the purpose of funding emergency fire, ambulance, and rescue services, typically in areas where these services are not provided by a city government. Each district is governed by a board of commissioners whose members serve two-year terms. The Legislature recently voted to allow these board members to serve for four years, rather than the current two-year term.

Recommendation: Support. Longer terms for board members would promote stability and continuity on emergency services district boards and allow board members more time to acquire experience and fully learn the duties of the position.

Proposition 11
"The constitutional amendment to prohibit the taking, damaging, or destroying of private property for public use unless the action is for the ownership, use, and enjoyment of the property by the State, a political subdivision of the State, the public at large, or entities granted the power of eminent domain under law or for the elimination of urban blight on a particular parcel of property, but not for certain economic development or enhancement of tax revenue purposes, and to limit the legislature's authority to grant the power of eminent domain to an entity."

Background: The Fifth Amendment to the U.S. Constitution prohibits the government from taking away a person's private property for public use without giving the property owner fair compensation. This proposition would add restrictions on the use of eminent domain to the Texas Constitution, and would prohibit the Legislature from weakening these restrictions without voter approval. The amendment would prohibit the government from using eminent domain power to take property from one individual or company and then transfer that property to another private individual or company for purposes of economic development or increasing tax revenues. Further, it would prohibit the Legislature from giving the power of eminent domain to additional entities, such as management districts, unless such a proposal passed the Legislature by at least a two-thirds vote.

Recommendation: Support. This proposition would add key protections against abuses of the power of eminent domain by stating the legitimate purposes for eminent domain in the Constitution. Further, the proposition would require the government to keep any property it takes through eminent domain in its possession, to occupy the property, and to use the property for some productive purpose.