SB2073

Regular Session

Relating to the authority of an appraisal district to purchase, finance the purchase of, or lease real property or construct or finance the construction of improvements to real property.

ModeratePlan for compliance

Low Cost

Effective:2025-09-01

Enforcing Agencies

Appraisal District Board of Directors • Governing Bodies of Taxing Units (Cities, Counties, School Districts, Special Districts)

SB2073

Moderate

Relating to the authority of an appraisal district to purchase, finance the purchase of, or lease real property or construct or finance the constructi...

Moderate Compliance Urgency

Requires near-term attention

Cost Impact

Low

Effective

2025-09-01

Enforcing Agencies

Appraisal District Board of Dire...Governing Bodies of Taxing Units

Primary Author: Sen. Judith Zaffirini

89th Texas Legislature

jdkey.com

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025
Compliance Deadline: September 1, 2025 (Applies to any notification sent by a Chief Appraiser on or after this date).
Agency Rulemaking: No state-level rulemaking is required. However, Appraisal District Boards and Taxing Unit Governing Bodies must update internal bylaws and notice protocols prior to Q3 2025 to manage the new deadlines.

Immediate Action Plan

Update Mail Protocols: Reclassify correspondence from the Chief Appraiser as time-sensitive legal notices immediately.
Revise Board Agendas: Create a standing rule that CAD real estate proposals are automatically placed on the next available agenda; "tabling" the item is now a liability.
Standardize Disapproval: Draft a template "Resolution of Disapproval" to keep on file for rapid deployment.
Engage CAD Boards: Request a written policy from your local CAD defining what constitutes a "renovation" versus standard maintenance to avoid procedural confusion.

Operational Changes Required

Contracts

Lending Agreements: Commercial lenders may remove clauses requiring proof of 75% taxing unit approval for *financing* terms. Due diligence is now limited to verifying the *project* approval (or proof of non-rejection).
Real Estate PSAs: Purchase and Sale Agreements involving CADs should align "Governmental Approval" contingency periods with the new 40-day statutory finality window (30 days for action + 10 days for filing).

Hiring/Training

Administrative Intake: City Managers, Superintendents, and County Clerks must train administrative staff to flag mail from the Chief Appraiser as "High Priority/Time Sensitive."
Legal Counsel: In-house counsel for taxing units must be briefed to draft "Resolutions of Disapproval" immediately upon receipt of a proposal, as the default "wait and see" approach now results in automatic approval.

Reporting & Record-Keeping

Proof of Filing: Taxing units must implement a certified mail or courier protocol to ensure "Resolutions of Disapproval" are filed with the Chief Appraiser by the 40th day (10 days after the 30-day action period). Failure to prove delivery invalidates the vote.
Alternative Cost Analysis: Chief Appraisers must now generate and file a cost analysis of alternatives alongside any acquisition proposal.

Fees & Costs

Budgetary Risk: No new statutory filing fees. However, taxing units face significant unbudgeted capital costs if they miss the 30-day deadline and are forced to fund their share of a CAD’s real estate acquisition by operation of law.

Strategic Ambiguities & Considerations

"Costs of Other Available Alternatives": The statute mandates the Chief Appraiser provide cost comparisons but fails to define the depth of this analysis (e.g., full market study vs. simple estimate). Taxing units should establish a standard for sufficiency now to prevent disputes over vague proposals.
Definition of "Renovation": The law applies to "renovation" but sets no monetary threshold. It is unclear if minor capital improvements (e.g., HVAC replacement) trigger this process or if it is reserved for major structural changes.

Need Help Understanding Implementation?

Our government affairs experts can walk you through this bill's specific impact on your operations.

Schedule Consultation

Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

Legislative Timeline

This bill's path through the Texas Legislature

TopicsProperty Interests Property Interests--real Property Taxation Taxation--property-appraisals & Appraisal Districts

Official Analysis

View HRO Analysis View All Bill Documents

Senate Authors

Sen. Judith ZaffiriniDemocrat · Primary Author

House Sponsor

Rep. Ryan GuillenRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

Explore more bills from this author and on related topics

More from Sen. Judith Zaffirini

View all bills by Sen. Judith Zaffirini

Frequently Asked Questions

Common questions about SB2073

What does Texas SB2073 do?

SB 2073 reverses the approval presumption for Appraisal District (CAD) real estate transactions: effective September 1, 2025, a taxing unit's silence constitutes legal consent, not rejection. This legislation primarily impacts cities, counties, and school districts, requiring immediate action to actively disapprove proposed acquisitions or renovations within a strict 30-day window, while simultaneously streamlining the lending process for financial institutions servicing CADs. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: September 1, 2025 (Applies to any notification sent by a Chief Appraiser on or after this date).

Who authored SB2073?

SB2073 was authored by Texas Senator Judith Zaffirini during the Regular Session.

When was SB2073 signed into law?

SB2073 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce SB2073?

SB2073 is enforced by Appraisal District Board of Directors and Governing Bodies of Taxing Units (Cities, Counties, School Districts, Special Districts).

How urgent is compliance with SB2073?

The compliance urgency for SB2073 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB2073?

The cost impact of SB2073 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does SB2073 address?

SB2073 addresses topics including property interests, property interests--real property, taxation and taxation--property-appraisals & appraisal districts.

Legislative data provided by LegiScanLast updated: November 25, 2025

Need Strategic Guidance on This Bill?

Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.