By: Williams S.B. No. 1497
(In the Senate - Filed March 6, 2009; March 17, 2009, read
first time and referred to Committee on Finance; May 1, 2009,
reported adversely, with favorable Committee Substitute by the
following vote: Yeas 14, Nays 0; May 1, 2009, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1497 By: Deuell
A BILL TO BE ENTITLED
AN ACT
relating to binding arbitration of certain appraisal review board
orders.
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 filed
under Section 41.41(a)(1) concerning the appraised or market value
of [real] property if:
(1) the property qualifies as the owner's residence
homestead under Section 11.13; or
(2) 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. Subsection (a), Section 41A.03, 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. The heading to Section 41A.06, Tax Code, is
amended to read as follows:
Sec. 41A.06. REGISTRY AND INITIAL QUALIFICATION
[QUALIFICATIONS] OF ARBITRATORS.
SECTION 5. Subsection (b), Section 41A.06, Tax Code, is
amended to read as follows:
(b) To initially qualify to serve as an arbitrator under
this chapter, a person must:
(1) have completed at least 30 hours of training in
arbitration and alternative dispute resolution procedures from a
university, college, or legal or real estate trade association;
(2) have been licensed or certified continuously
during the five years preceding the date the person agrees to serve
as an arbitrator, as:
(A) [be licensed as] a real estate broker or
salesperson under Chapter 1101, Occupations Code;
(B) [, or be licensed or certified as] a real
estate appraiser under Chapter 1103, Occupations Code; or
(C) a certified public accountant under Chapter
901, Occupations Code; and
(3) agree to conduct an arbitration for a fee that is
not more than 90 percent of the amount of the arbitration deposit
required by Section 41A.03.
SECTION 6. Chapter 41A, Tax Code, is amended by adding
Section 41A.061 to read as follows:
Sec. 41A.061. CONTINUED QUALIFICATION OF ARBITRATOR;
RENEWAL OF AGREEMENT. (a) The comptroller shall include a
qualified arbitrator in the registry until the second anniversary
of the date the person was added to the registry. To continue to be
included in the registry after the second anniversary of the date
the person was added to the registry, the person must renew the
person's agreement with the comptroller to serve as an arbitrator
on or as near as possible to the date on which the person's license
or certification issued under Chapter 901, 1101, or 1103,
Occupations Code, is renewed.
(b) To renew the person's agreement to serve as an
arbitrator, the person must:
(1) file a renewal application with the comptroller at
the time and in the manner prescribed by the comptroller;
(2) continue to meet the requirements provided by
Section 41A.06(b); and
(3) during the preceding two years have completed at
least eight hours of continuing education in arbitration and
alternative dispute resolution procedures offered by a university,
college, real estate trade association, or legal association.
(c) The comptroller shall remove a person from the registry
if the person fails or declines to renew the person's agreement to
serve as an arbitrator in the manner required by this section.
SECTION 7. Section 41A.07, Tax Code, is amended by adding
Subsection (e) to read as follows:
(e) Notwithstanding any other provision of this section, an
arbitrator selected or appointed to arbitrate an appeal under this
chapter regarding property other than real property must be
licensed as a certified public accountant under Chapter 901,
Occupations Code.
SECTION 8. Subsection (b), Section 41A.08, Tax Code, as
added by Chapters 372 (S.B. 1351) and 912 (H.B. 182), Acts of the
79th Legislature, Regular Session, 2005, is reenacted and amended
to read as follows:
(b) The parties to an arbitration proceeding under this
chapter may represent themselves or, at their own cost, may be
represented by:
(1) an employee of the appraisal district;
(2) an attorney who is licensed in this state;
(3) a person who is licensed as a real estate broker or
salesperson under Chapter 1101, Occupations Code, or is licensed or
certified as a real estate appraiser under Chapter 1103,
Occupations Code; [or]
(4) a property tax consultant registered under Chapter
1152, Occupations Code; or
(5) an individual who is licensed as a certified
public accountant under Chapter 901, Occupations Code.
SECTION 9. (a) Sections 41A.01, 41A.03, 41A.07, and
41A.08, Tax Code, as amended by this Act, and Section 41A.031, Tax
Code, as added by this Act, apply only to an appeal through binding
arbitration under Chapter 41A of that code that is requested on or
after the effective date of this Act.
(b) Section 41A.06, Tax Code, as amended by this Act,
applies only to a person who initially qualifies to serve as an
arbitrator under Chapter 41A, Tax Code, on or after the effective
date of this Act.
(c) Section 41A.061, Tax Code, as added by this Act, does
not affect the eligibility of a person who is included on the
registry list of qualified arbitrators on the effective date of
this Act to continue to remain on that registry list before the date
on which the person's license or certificate under Chapter 901,
1101, or 1103, Occupations Code, expires unless renewed.
SECTION 10. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2009.
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