Untitled Texas Attorney General Opinion

.~ ATTORNEYGENERALOP TEXAS GREG ABBOTT November 4,2004 The Honorable Stephen E. Ogden Opinion No. GA-0269 Chair, Senate Finance Committee Texas State Senate Re: Whether home-rule city charter provisions Post Office Box 12068 governing the frequency of elections apply to Austin, Texas 78711 elections implementing a tax freeze under article VI@ 5 l-b(h) ofthe TexasConstitution (RQO242-GA) Dear Senator Ogden: You ask whether home-rule city charter provisions goveming the frequency of elections apply to elections implementing a tax freeze under article VIII, section l-b(h) of the Texas Constitution.’ See TEX. CONST.art. VIII, 5 l-b(h). Article WI, section 1-b(h) (the “amendment”), adopted in 2003, authorizes “a county, a city or town, or a junior college district,” to limit increases of the total amount of ad valorem taxes imposed on the homesteads ofpersons with disabilities or persons sixty-five years of age or older. Id. Such action is commonly referred to as a tax freeze. The enumerated entities may adopt a tax I?eeze either by official action of its governing body or by an election called by the governing body upon receipt ofaproper voter-petition. Id.; seegenerally Tex. Att’y Gen. Op. No. GA-0222 (2004)? The City of Georgetown (the “City”) is incorporated as a home-rule municipality. GEORGETOWN,?EX., CODEOFORDINANCES,HOMERULE CHARTER,art. I, $3 l.Ol-.02 (2004): See Request Letter, sapra note 1 (attachment). Its charter recites that the “people of the City reserve the power of direct legislation by initiative, and in the exercise of such power may propose any ordinance not in conflict with this Charter, the State Constitution, or the State laws.” ‘LetterfromHonorableStephenE.Ogden,Chair,SenateFinanceCommittee,TexasStateSenate,to Honorable Greg Abbott, Texas Attorney General (May 17, 2004) (on tile with opinion Committee,also available at www.oag.+te.tx.us)@~einafierRequestLetter]. 2InAttomeyGeneralOpinionGA-O222,thisofficeaddressedotherissuesconcemingarticleVIII, sectionl-b(h) of the TexasConstitution,concludingthat (1) the provisionauthorizesa gowning body of a home-rulemunicipality to call an electionto adopta tax freezewithouta voter’spetition;(2)onceadoptedby a home-rulemunicipality,the tax freezemaynot berepealedby an electioncalledpursuantto a petitionof the city’svoters;and (3)implementationof the constitutionalprovisiondoesnot permituseof a yearprior to implementationas the basetax year. Tex.Att’yGen.op. No. GA-0222(2004)at 5. 3Available at http://www.georgetow.org/citygovemment/. The Honorable Stephen E. Ogden - Page 2 (GA-0269) GEORGETOWN, TEX., CODEOFORDINANCES, HOMERULECHARTER,art. IV, $4.01(2004). Under the charter, when the city council receives a petition for an ordinance signed by the requisite number of voters and certified by the city secretary, the council must either (1) pass the voter-initiated ordinance without amendment within thirty days after receipt, or (2) submit the “initiated ordinance without amendments to a vote of the qualified voters of the City at a regular or special election to be held on the next uniform election date in order to comply with State election laws.” Id. art. IV, § 4.05. Article IV, section 4.05 of the charter states that special elections to consider voter-initiated ordinances “shall not be held more frequently than once each six (6) months.” Id. Additionally, the section provides that “no ordinance on the same subject as an initiated ordinance which has been defeated . . . may be initiated by the voters within two (2) years from the date of such election.” Id. You wish to know whether article IV, section 4.05 of the City’s charter, which limits the frequency of elections on voter-initiated ordinances, applies to elections pursuant to voter petitions under article VIII, section 1-b(h) of the Texas Constitution. Request Letter, supra note 1, at 1. For example, if the City holds an election on a voter petition to adopt the tax freeze, but the measure is defeated, you ask whether the City must refuse to call an election on subsequent voter petitions for a tax freeze for two years. Id. You also ask if the city charter provision that special elections on voter-initiated ordinances may not be held more frequently than once every six months applies to voter petitions for the adoption of the tax freeze under the amendment. Id. Subsequent to your request, the City held an election on whether to adopt the tax tieeze and, according to unofficial election results, the proposal passed.4 The tax limitation adopted under the amendment cannot be repealed by the goveming body or by another petitibn election. See TEX. CONST.art. VIII, 5 l-b(h); Tex. Att’y Gen. Op. No. GA-0222 (2004) at 3. Consequently, it appears that the City will not have occasicm to consider new voter petitions for a tax freeze, and for the City the issue is largely moot. Nevertheless, we will address your questions, bearing in mind that there may be other home-rule municipalities with similar ordinances. The Texas Constitution authorizes a home-rule city to be governed generally by ordinances adopted pursuant to its municipal charter. TEX.CONST.art. XI, 3 5; Wilson v. Andrews, 10 S.W.3d 663, 666 (Tex. 1999). A home-rule city’s charter may expressly or implicitly limit the voters’ initiative power. See Quick v. City ofAustin, 7 S.W.3d 109,124 (Tex. 1998). See also Tex. Att’y Gen. Op. No. GA-0222 (2004) at 3 (citing Glass v. Smith, 244 S.W.2d 645, 648 (Tex. 1951)). Moreover, a home-rule city’s charter is presumed to be valid, and courts will not interfere unless such a provision “is unreasonable or arbitrary, amounting to a clear abuse of municipal discretion.” In resanchez, 81 S.W.3d 794,796 (Tex. 2002) (concerning election application deadline established by municipal ordinance). Under the Texas Constitution, “no charter or any ordinance passed under said charter shall contain any provision inconsistent with the Constitution of the State, or of the general laws enacted ‘See GEORGETOWN, TEX.,ELECTIONS OVERVIEW, af hnp://www.georgetown.org/citygovemment/electio~/ (reportingthe unofficialvote as 4,747(76.7%)for, and 1,442(23.3%)against)(lastvisitedSept.24, 2004);see also JenniferBarrios,Tax Cap, Liquor Changes Approved; Packed Polls in Sun City Seen as Crucial to Results, AUSTIN AMERICAN-STATESMAN, Sept.12,2004,at Al. The Honorable Stephen E. Ogden - Page 3 (GA-0269) by the Legislature of this State.” TEX. CONST.art. XI, $ 5. A home-rule city charter provision “is unenforceable to the extent it conflicts with [a] state statute.” See Sanchez, 81 S.W.3d at 796. However, “courts will not hold a state law and a city charter provision repugnant to each other if they can reach a reasonable construction leaving both in effect.“s Id. Consequently, we consider pertinent provisions of the constitution and the statutes for potential soumes of conflict with the City’s charter. Article VIII, section l-b(h) provides that upon receipt of a proper voter petition, the governing body of a municipality shall order an election concerning adoption ofthe tax freeze. TEX. CONST.art. VIII, $ l-b(h).6 The provision does not address the timing of such elections, and is also silent about calling an election on a tax freeze proposition that has previously been submitted for an election and defeated. Id. Section 11.261 of the Tax Code provides generally for implementing a 5Compnre Tex. Att’y Gen. op. No. GA-0025(2003)(detemining that stahmry runoffrequirementsand a municipalinstant-runoffprovisionirreconcilablyconflict),with Op. Tex. Sec’y StateNo. JH-I (1991)at 2 (home-rule city may require,by charteror ordinancepursuantto charter,that write-incandidatesfile a declarationof write-in candidacy,because“[h]omerule citiesare givenbroadauthorityunderarticleXI, section5, of the TexasConstitution to adopta charterand enactordinancespursuantto that charter. The only limitationunderthe constitutionis that the charteror ordinancesbe consistentwiththe constitutionor the generallawsof the state.“). 6ArticleVIII, sectionl-b(h) provides: The governingbodyof a county,a city or town,or ajuniorcollegedistrictby officialaction may providethat if a personwho is disabledor is sixty-five(65) years of age or older receivesa residencehomesteadexemptionprescribedm authorizedby this section, the total amountof ad valoremtaxesimposedon thathomesteadby thecounty,thecityOItom, or thejunior collegedistrict maynot be increasedwhileit remainsthe residencehomesteadof thatpersonor thatperson’sspouse whois disabledor sixty-five(65)yearsof ageor olderandreceivesa residencehomesteadexemption on the homestead. As an alternative,cmreceiptof a petitionsignedby five percent(5%) of the registeredvotersof the county,the city or town,or thejunior collegedistrict,the governingbody of the county,the cityortom, or thejunior collegedistrictshallcallanelectionto determineby majority vote whetherto establisha tax limitationprovidedby this subsection.If a county,a city or town,or a junior collegedistrictestablishesa tax limitationprovidedby this subsectionand a disabledperscm or a personsixty-five(65)yearsof age01olderdiesin a yearin whichthe personreceiveda residence homesteadexemption,the totalamountof ad valoremtaxesimposedon the homesteadby the county, the city or town, or the junior collegedistrictmaynot be increasedwhile it remainsthe residence homesteadof thatperson’ssurvivingspcmseif the spouseis fifty-five(55)yearsof age or olderat the time of the person’sdeath,subjectto any exceptionsprovidedby generallaw. The legislature,by generallaw,mayprovidefor thetransferof all 01a proportionateamountof a tax limitationprovided by this subsectionfor a personwho qualitiesfor the limitationand establishesa differentresidence homesteadwithinthe samecounty,within the samecity or town,or withinthe samejunior college district. A county,a cityor town,or ajunior collegedistrictthatestablishesa tax limitationunderthis subsectionmustcomplywitha lawprovidingfor the transferof the limitation,evenif the legislature enacts the law subsequentto the county’s,the city’s or town’s,or the junior college district’s establishmentof thelimitation.Taxesotherwiselimitedbya county,a cityor town,or a juniorcollege districtunderthis subsectionmaybe increasedto the extentthe valueof the homesteadis increased by improvementsotherthanrepairsandotherthanimprovements madeto complywithgovernmental requirementsand except as may be consistentwith the transfer of a tax limitationunder a law authorizedby this subsection.The governingbody of a county,a city or town,or a junior college districtmaynot repealor rescinda tax limitationestablishedunderthis subsection. TEX.CONST.art. VIII, 5 l-b(h). The Honorable Stephen E. Ogden - Page 4 (GA-0269) tax limitation that has been adopted under the amendment. TEX.TAXCODEANN. 4 11.261 (Vernon Supp. 2004-05). It is likewise silent about the timing for calling an election. Compare with id. $5 6.26(e) (Vernon 2003) (providing for an election on whether to consolidate tax assessing and collecting functions within certain period following a voter petition); 26.08(b) (providing for a rollback election on tax rates within certain period following a voter petition); 26.085(d) (providing for an election on dedication of funds to a college district within a certain period following a voter petition). Concerning the timing of elections, the Election Code specifies four dates in the year as uniform election dates for general and special elections. TEX.ELEC.CODEANN. 5 41 .OOl(Vernon Supp. 2004-05). Section 41.0041(a) provides that when a “law outside this code other than the constitution prohibits another election from being held on the same or a similar measure for a specified number of years after an election on a measure,” the election must be held on the corresponding uniform election date even if it “falls a number of days short of the requisite period.” Id. 8 4 1.0041(a) (Vernon 2003). That section anticipates the existence of limitations such as the City charter’s two-year limitation on voter initiative elections, although the statute may shorten the required period. Id. Under particular circumstances, other provisions in the Election Code may limit application of a particular city charter’s election provisions to the extent of any conflict. See, e.g., id. 9 3.005 (Vernon Supp. 2004-05) (providing that elections ordered bypolitical subdivisions “shall be ordered not later than the 62nd day before election day”). But concerning the frequency of voter initiative elections, the Election Code is silent. In sum, we have located no state law that would expressly conflict with charter provisions such as the City’s that limit special elections to once in six months, or limit calling an election on a measure for two years after a similar measure has been defeated. The legislature has not preempted the subject matter, because, “if the Legislature chooses to preempt a subject matter usually encompassed by the broad powers of a home-rule city, it must do so with umnistakable clarity.” Dallas Merchant’s & Concessionaire’s Ass% v. City ofDallas, 852 S.W.2d 489,491 (Tex. 1993). Provisions limiting special elections on initiated ordinances to once every six months, and prohibiting elections on defeated measures for two years, aimed at mitigating voter fatigue and the expense of calling additional elections, would likely be determined to be reasonable. We beheve a court would likely conclude that charter provisions similar to the City’s are not unreasonable or arbitraty, and applicable to petitions to adopt the tax limitation under the amendment. The Honorable Stephen E. Ogden - Page 5 (GA-0269) SUMMARY Home-rule municipality charter provisions limiting special elections on voter-initiated ordinances to once every six months and prohibiting an election on an initiated ordinance for two years after an ordinance on the same subject has been defeated may apply to an election called pursuant to a voter petition under article VIII, section l-b(h) of the Texas Constitution. BARRY R. MCBEE First Assistant Attorney General DON R. WILLETT Deputy Attorney General for Legal Counsel NANCY S. FULLER Chair, Opinion Committee William A. Hill Assistant Attorney General, Opinion Committee