Municipal Corner

The Attorney General resolves question concerning public service appointments and nepotism laws. Tex. Att’y Gen. Op. KP-0471 (2024).

The Erath County Attorney requested an opinion from the Texas Attorney General (the “AG”) to resolve questions relating to the Erath County Appraisal District Chief Appraiser’s employment if their sibling is elected as the County Tax Assessor-Collector, and the effect of the siblings’ simultaneous public service.

Appraisal districts, responsible for valuing property for ad valorem tax purposes, are managed by a board of five directors (the “Board”) appointed by the taxing units in counties with fewer than 75,000 residents, such as Erath County. If the County Tax Assessor-Collector is not an appointed director on the Board, the Tax Assessor-Collector generally serves as a sixth, nonvoting director. The Chief Appraiser serves as the chief administrator of the appraisal office. The appraisal district’s Board appoints the Chief Appraiser, who serves at the pleasure of the Board, and the Board sets the compensation of the Chief Appraiser.

The Erath County Attorney asked for guidance about Chapter 6, subsection 6.05(f) of the Texas Tax Code and whether this statute bars the Chief Appraiser’s employment at the Erath County Appraisal District if their sibling becomes a member of the Board. This statute prohibits the Chief Appraiser from hiring individuals related to them, but the statute does not address whether the Board may employ someone as the Chief Appraiser if a member of the Board is related to the Chief Appraiser. The AG found that a court would likely conclude the Texas Tax Code does not prevent the Board from continuing to employ the Chief Appraiser if their sibling later joins the Board.

The AG also addressed whether the Chief Appraiser’s employment violated nepotism laws outlined in the Texas Government Code, specifically Section 573.041. This statute prevents public officials from appointing, or confirming the appointment of, individuals related to them if those positions are compensated with public funds. Importantly, Section 573.041 does not apply if the public official does not hold appointment or confirmation authority. The AG determined here that the Chief Appraiser’s sibling, who serves as the Erath County Tax Assessor-Collector and sits on the Board as a nonvoting director, lacks appointment authority over the Chief Appraiser since the sibling does not hold voting powers on the Board. Therefore, the AG concluded the nepotism prohibition in Section 573.041 doesn’t apply here. However, if the Chief Appraiser continues serving in their role, their sibling cannot participate in any Board decisions related to the Chief Appraiser’s employment or compensation.

The AG further determined that, even if the nepotism prohibition of Section 573.041 hypothetically applied in this circumstance, the Chief Appraiser could still retain their position under the continuous-employment exception in Section 573.062 of the Texas Government Code. This exception allows individuals to retain their positions if the individual was employed for at least 30 days before the related public official’s appointment. Thus, if the Chief Appraiser was employed for 30 days prior to their sibling joining the Board, they could remain in their position.

Jake Steen is an Associate in the Firm’s Water, Districts, and Litigation Practice Groups. If you would like additional information or have questions related to these or other matters, please contact Jake at 512.322.5811 or jsteen@lglawfirm.com.