81R21107 JAM-F By: Thompson H.B. No. 2591 Substitute the following for H.B. No. 2591: By: Hamilton C.S.H.B. No. 2591 A BILL TO BE ENTITLED AN ACT relating to the regulation of property tax consultants. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 1152.152, Occupations Code, is amended by adding Subsection (c) to read as follows: (c) A registered senior property tax consultant or an attorney described by Subsection (a)(2) may not employ, claim an association with, or sponsor more than 10 registered property tax consultants. SECTION 2. Section 1152.156(a), Occupations Code, is amended to read as follows: (a) In addition to satisfying the requirements of Section 1152.155, an applicant for registration as a property tax consultant must: (1) complete at least 40 [15] classroom hours of educational courses approved by the executive director, including at least four hours of instruction on laws and legal issues in this state related to property tax consulting services and pass a competency examination under Section 1152.161; or (2) if the person is eligible for registration under Section 1152.155(b), submit to the commission evidence that the applicant has completed at least four classroom hours of educational programs or courses on the laws and legal issues in this state related to property tax consulting services. SECTION 3. Subchapter D, Chapter 1152, Occupations Code, is amended by adding Section 1152.161 to read as follows: Sec. 1152.161. PROPERTY TAX CONSULTANT REGISTRATION EXAMINATION. (a) The executive director shall: (1) adopt a competency examination for registration as a property tax consultant; and (2) establish the standards for grading and passing the examination. (b) To be eligible to take the examination, an applicant must pay to the department an examination fee. (c) The examination must: (1) test the applicant's knowledge of: (A) property taxation; (B) the property tax system; (C) property tax administration; (D) ethical standards; and (E) general principles of appraisal, accounting, and law as they relate to property tax consulting services; and (2) be graded according to rules adopted by the commission. (d) The department shall offer the examination at times and places designated by the executive director. SECTION 4. Chapter 1152, Occupations Code, is amended by adding Subchapter E-1 to read as follows: SUBCHAPTER E-1. PROHIBITED ACTS Sec. 1152.231. GENERAL PROHIBITED ACTS. (a) A person required to register under this chapter may not serve as a registered senior property tax consultant for more than 10 registered property tax consultants. (b) A person required to register under this chapter may not file a protest under Chapter 41, Tax Code, without the approval of the property owner. (c) A person required to register under this chapter may not falsify an agent appointment, exemption application, protest, or other legal document that is filed with or presented to an appraisal district, an appraisal review board, or a taxing unit. (d) A person required to register under this chapter may not file a motion or protest concerning residential property on behalf of a person whom the registrant does not represent unless the registrant has authorization from: (1) that person; or (2) another person, other than the agent or the firm that employs the agent, who is authorized by the person to designate agents under Section 1.111, Tax Code. Sec. 1152.232. PROHIBITED ACTS: SOLICITATION OF BUSINESS AND ADVERTISING. (a) A person required to register under this chapter may not, in a public solicitation for business, represent that the fee for services rendered includes the hiring of legal services. (b) A person required to register under this chapter may not solicit a property tax consulting assignment by assuring a specific outcome. Sec. 1152.233. PROHIBITED ACTS: USE OF INTERNET WEBSITE. (a) A person required to register under this chapter may not maintain an Internet website for any purpose associated with the provision of tax consulting services by the registrant that has a domain name or other Internet address that implies that the website is a government website. (b) A person required to register under this chapter may not use or maintain an Internet website for the purpose of soliciting clients if the website does not identify the company prominently on the home page of the website. Sec. 1152.234. PROHIBITED ACTS: CERTAIN LEGAL ACTIONS. A person required to register under this chapter may not engage the services of an attorney for purposes of filing an appeal under Chapter 42, Tax Code, without the prior consent of the client. SECTION 5. Not later than December 31, 2009, the executive director of the Texas Commission of Licensing and Regulation shall adopt the examination required by Section 1152.161, Occupations Code, as added by this Act. SECTION 6. The change in law made by this Act to Section 1152.156(a), Occupations Code, applies only to an application for registration as a property tax consultant that is submitted to the Texas Department of Licensing and Regulation on or after March 1, 2010. An application for registration submitted before that date is governed by the law in effect at the time the application was submitted, and the former law is continued in effect for that purpose. SECTION 7. This Act takes effect January 1, 2010.