81R8774 JD-F
By: Villarreal H.B. No. 1401
A BILL TO BE ENTITLED
AN ACT
relating to an appeal from an order of an appraisal review board
determining a protest.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 41A.01, Tax Code, is amended to read as
follows:
Sec. 41A.01. RIGHT OF APPEAL BY PROPERTY OWNER. As an
alternative to filing an appeal under Section 42.01, a property
owner is entitled to appeal through binding arbitration under this
chapter an appraisal review board order determining a protest
brought under Section 41.41(a)(1) or (2) concerning the appraised
or market value of [real] property if[:
[(1)] the appraised or market value, as applicable, of
the property as determined by the order is $1 million or less[; and
[(2) the appeal does not involve any matter in dispute
other than the determination of the appraised or market value of the
property].
SECTION 2. Section 41A.03(a), Tax Code, is amended to read
as follows:
(a) To appeal an appraisal review board order under this
chapter, a property owner must file with the appraisal district not
later than the 45th day after the date the property owner receives
notice of the order:
(1) a completed request for binding arbitration under
this chapter in the form prescribed by Section 41A.04; and
(2) an arbitration deposit [in the amount of $500,]
made payable to the comptroller in the amount of:
(A) $500; or
(B) $250, if the property owner requests
expedited arbitration under Section 41A.031.
SECTION 3. Chapter 41A, Tax Code, is amended by adding
Section 41A.031 to read as follows:
Sec. 41A.031. EXPEDITED ARBITRATION. (a) A property owner
is entitled to an expedited arbitration if the property owner
includes a request for expedited arbitration in the request filed
under Section 41A.03 and pays the required deposit.
(b) An expedited arbitration must provide for not more than
one hour of argument and testimony on behalf of the property owner
and not more than one hour of argument and testimony on behalf of
the appraisal district.
(c) The comptroller shall adopt rules and processes to
assist in the conduct of an expedited arbitration, including rules
relating to the evidence required to be produced by each party.
SECTION 4. Sections 41A.09(c) and (d), Tax Code, are
amended to read as follows:
(c) If the arbitrator determines that the appraised or
market value, as applicable, of the property that is the subject of
the appeal is less [nearer to the property owner's opinion of the
appraised or market value, as applicable, of the property as stated
in the request for binding arbitration submitted under Section
41A.03] than the value determined by the appraisal review board:
(1) the comptroller, on receipt of a copy of the award,
shall refund the property owner's arbitration deposit, less the
amount retained by the comptroller under Section 41A.05(b);
(2) the appraisal district, on receipt of a copy of the
award, shall pay the arbitrator's fee; and
(3) the chief appraiser shall correct the appraised or
market value, as applicable, of the property as shown in the
appraisal roll to reflect the arbitrator's determination.
(d) If the arbitrator determines that the appraised or
market value, as applicable, of the property that is the subject of
the appeal is [not nearer to the property owner's opinion of the
appraised or market value, as applicable, of the property as stated
in the request for binding arbitration submitted under Section
41A.03 than] the value determined by the appraisal review board, [:
[(1)] the comptroller, on receipt of a copy of the
award, shall:
(1) [(A)] pay the arbitrator's fee out of the owner's
arbitration deposit; and
(2) [(B)] refund to the owner the owner's arbitration
deposit, less the arbitrator's fee and the amount retained by the
comptroller under Section 41A.05(b)[; and
[(2) the chief appraiser shall correct the appraised
or market value, as applicable, of the property as shown in the
appraisal roll to reflect the arbitrator's determination if the
value as determined by the arbitrator is less than the value as
determined by the appraisal review board].
SECTION 5. Section 42.21, Tax Code, is amended by amending
Subsection (a) and adding Subsection (a-1) to read as follows:
(a) A party who appeals as provided by this chapter must
file a petition for review with the district court within 60 [45]
days after the party received notice that a final order has been
entered from which an appeal may be had or at any time after the
hearing but before the 60-day deadline. Failure to timely file a
petition bars any appeal under this chapter.
(a-1) A petition for review may include more than one party
if the parties have a common legal connection or the same client
representative and may include more than one property owned by the
parties.
SECTION 6. Subchapter B, Chapter 42, Tax Code, is amended by
adding Section 42.231 to read as follows:
Sec. 42.231. MASTERS FOR TAX APPEALS. (a) The court shall
give preference to the use of a master in chancery to resolve an
appeal brought under this chapter. In connection with an appeal
that seeks a remedy under Section 42.25 or 42.26, the court may, and
on request of a party to the appeal shall, appoint a master in
chancery.
(b) To be eligible to serve as a master in chancery, a person
must be a resident of this state and an attorney who is licensed in
this state. The person may not be an attorney for or related to a
party to the action. In appointing a master, the court shall give
preference to a qualified person who has judicial experience.
(c) A master in chancery shall perform all of the duties
required by the court, is subject to the orders of the court, and
has the power that a master in chancery in a court of equity has.
(d) Subject to any limitations or specifications stated in
the order of reference, a master in chancery may:
(1) regulate the proceedings in a hearing before the
master and do all acts and take all measures necessary or proper for
the efficient performance of the master's duties under the order;
(2) require the production of evidence regarding any
matter covered by the order and may require the production of books,
papers, vouchers, documents, and other writings applicable to the
case;
(3) require that parties produce all documentary
evidence in advance of the hearing;
(4) rule on the admissibility of evidence, unless
otherwise directed by the order;
(5) administer oaths to and examine witnesses;
(6) call and examine under oath the parties to the
action; and
(7) set a reasonable time limit on the proceedings
based on the complexity of the case, which may not be less than four
hours for a case involving property that is a residence homestead or
less than eight hours for a case involving any other type of
property, unless otherwise agreed to by the parties.
(e) A decision of a master in chancery is not binding on the
parties to the appeal but may be admitted into evidence in a trial
of the matter.
SECTION 7. Section 42.23, Tax Code, is amended by adding
Subsection (f) to read as follows:
(f) The court has jurisdiction over any issue listed in
Section 41.41 on which evidence or argument was offered at the
hearing held by the appraisal review board unless at the hearing the
parties agreed to waive this subsection.
SECTION 8. Section 42.24, Tax Code, is amended to read as
follows:
Sec. 42.24. ACTION BY COURT. (a) In determining an appeal,
the district court may:
(1) fix the appraised value of property in accordance
with the requirements of law if the appraised value is at issue;
(2) enter the orders necessary to ensure equal
treatment under the law for the appealing property owner if
inequality in the appraisal of the owner's [his] property is at
issue; or
(3) enter other orders necessary to preserve rights
protected by and impose duties required by the law.
(b) The district court shall enter an order that requires
the parties to participate in mediation.
SECTION 9. Section 42.26, Tax Code, is amended by adding
Subsections (e) and (f) to read as follows:
(e) Except as provided by Subsection (d), for purposes of
this section, the value of the property subject to the suit and the
value of a comparable property or sample property that is used for
comparison is the appraised value determined by the appraisal
review board.
(f) A comparable property that requires an overall
adjustment of more than 25 percent is presumed to be not comparable
to the subject property. The presumption may be rebutted by
evidence relating to the number of comparable properties or the
strength of the comparability.
SECTION 10. Subchapter D, Chapter 1152, Occupations Code,
is amended by adding Section 1152.163 to read as follows:
Sec. 1152.163. PROHIBITED ACTS. A person required to
register under this chapter may not:
(1) appear at a settlement conference for or attempt
to settle an appeal filed under Chapter 42, Tax Code, unless the
property owner or the property owner's attorney of record is
present;
(2) represent in a public solicitation for business
that the fee for services rendered includes the hiring of legal
services;
(3) engage the services of an attorney for purposes of
filing a suit under Chapter 42, Tax Code, unless the client has
previously given written consent; or
(4) solicit a client for an attorney for the purpose of
filing an appeal under Chapter 42, Tax Code, if the solicitation
results in compensation to the person.
SECTION 11. The change in law made by this Act applies only
to an appeal under Chapter 41A or 42, Tax Code, that is filed on or
after the effective date of this Act. An appeal under Chapter 41A
or 42, Tax Code, that is filed before the effective date of this Act
is governed by the law in effect on the date the appeal was filed,
and the former law is continued in effect for that purpose.
SECTION 12. This Act takes effect September 1, 2009.