By: Eltife S.B. No. 1826
A BILL TO BE ENTITLED
AN ACT
relating to procedural and administrative requirements for
appraisal review boards; providing a penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 5.041, Tax Code, is amended by amending
Subsections (b), (e-2), and (f) and adding Subsection (b-1) to read
as follows:
(b) A member of the appraisal review board established for
an appraisal district must complete the courses [course]
established under Subsections [Subsection] (a) and (e-1). A member
of the appraisal review board may not participate in a hearing
conducted by the board unless the person has completed the courses
[course] established under Subsections [Subsection] (a) and (e-1)
and has received a certificate of course completion.
(b-1) At the conclusion of a course established under
Subsection (a) or (e-1), each member of the appraisal review board
in attendance shall complete a statement, on a form prescribed by
the comptroller, indicating that the member will abide by the
requirements of this title in conducting hearings.
(e-2) During [As soon as practicable after the beginning of]
the second year and each succeeding year of an appraisal review
board member's term of office, the member must successfully
complete the course established under Subsection (e-1). A person
who fails to timely complete the course established under
Subsection (e-1) may not participate in a hearing conducted by the
appraisal review board and may not vote on any determination of
protest. Furthermore, a person who fails to complete the courses
established under Subsections (a) and (e-1) may not be reappointed
to an additional term on the appraisal review board. Appraisal
review board members [If the person is reappointed to an additional
term on the appraisal review board, the person] must successfully
complete the course established under Subsection (e-1) in each year
the member continues to serve after the first year of service.
(f) The comptroller may not advise a property owner, a
property owner's agent, the chief appraiser, or an employee of an
appraisal district[, or an appraisal review board] on a matter that
the comptroller knows is the subject of a protest to the appraisal
review board. The comptroller may provide advice to the appraisal
review board as authorized by Subsection (a)(4) of this section and
Section 5.103 and may communicate with the chairpersons of
appraisal review boards and taxpayer liaison officers concerning
complaints described under Section 6.052.
SECTION 2. Chapter 5, Tax Code, is amended by adding Section
5.103 to read as follows:
Sec. 5.103. APPRAISAL REVIEW BOARD OVERSIGHT. (a) The
comptroller shall prepare model hearing procedures for appraisal
review boards.
(b) The model hearing procedures shall address:
(1) the statutory duties of an appraisal review board;
(2) the process for conducting a hearing;
(3) the scheduling of hearings;
(4) the postponement of hearings;
(5) the notices required under this code;
(6) the determination of good cause under Section
41.44(b);
(7) the determination of good cause under Sections
41.45(e) and (g);
(8) a party's right to offer evidence and argument;
(9) a party's right to examine or cross-examine
witnesses or other parties;
(10) a party's right to appear by agent;
(11) the prohibition against consideration by an
appraisal review board of information not provided at the hearing;
(12) ex parte communication;
(13) exclusion of evidence under Section 41.461;
(14) postponement for failure to comply with Section
41.461;
(15) conflict of interest;
(16) the process for the administration of
applications for membership on an appraisal review board; and
(17) other matters related to fair and efficient
appraisal review board hearings and processes.
(c) In the development of model hearing procedures, the
comptroller may develop different procedures for different
districts based on such factors as the size of the district, the
number of protests filed in the district, and other similar
characteristics.
(d) An appraisal review board shall follow the model hearing
procedures prepared by the comptroller when establishing its
procedures as required by Section 41.66(a).
(e) The comptroller shall develop and implement procedures
that provide the public with a reasonable opportunity to register
complaints or suggestions with the comptroller for improvement
concerning an appraisal review board.
(f) The comptroller shall, before February 1 of each year,
issue a report summarizing the complaints and suggestions
concerning each appraisal review board received during the previous
calendar year under Subsection (e). The report shall not identify
the person making the complaint.
(g) The chairperson of an appraisal review board in a county
with a population of more than 120,000 shall, before May 1 of the
year in which the comptroller's report under Subsection (f) is
received, make a written response to the issues raised in the
report. The comptroller shall prescribe the requirements of this
response.
SECTION 3. Section 6.052, Tax Code, is amended by amending
Subsections (a), (b), (c), and (e) and adding Subsections (f) and
(g) to read as follows:
(a) The board of directors for an appraisal district created
for a county with a population of more than 120,000 [125,000] shall
appoint a taxpayer liaison officer who shall serve at the pleasure
of the board. The taxpayer liaison officer shall administer the
public access functions required by Sections 6.04(d), (e), and (f),
and is responsible for resolving disputes not involving matters
that may be protested under Section 41.41. The taxpayer liaison
officer is also responsible for receiving and compiling a list of
complaints filed by the chief appraiser, a property owner, or a
property owner's agent concerning the matters set forth in Section
5.103(b) or any other matters related to the fairness and
efficiency of the appraisal review board.
(b) The taxpayer liaison officer shall [may] provide to the
public information and materials designed to assist property owners
in understanding the appraisal process, protest procedures, how to
file complaints under Subsection (a) of this section and Section
6.04(g), and other related matters. Information concerning the
process for registering complaints and comments with the
comptroller shall be provided at each protest hearing.
(c) The taxpayer liaison officer shall report to the board
at each meeting on the status of all complaints filed with the board
under Section 6.04(g) and with the officer under Subsection (a).
(e) The chief appraiser or any other person who performs
appraisal or legal services for the appraisal district for
compensation is not eligible to be the taxpayer liaison officer
[for the appraisal district].
(f) The taxpayer liaison officer shall forward to the
comptroller complaints filed under Subsection (a) in the form and
manner prescribed by the comptroller.
(g) In counties with a population of more than 120,000, the
taxpayer liaison officer shall be responsible for providing
clerical assistance to the local administrative judge in the
selection of appraisal review board members. The officer shall be
the intake point for applications and shall forward the
applications to the local administrative judge and perform other
duties as requested. The officer is prohibited from influencing
the selection process in any way. The comptroller shall prescribe
model procedures for this process.
SECTION 4. Section 6.41, Tax Code, is amended by amending
Subsections (d-1) and (e) and adding Subsections (d-10), (d-11),
(d-12), (d-13), (d-14), (d-15), and (i) to read as follows:
(d-1) In a county with a population of 120,000 [3.3 million
or more or a county with a population of 550,000 or more that is
adjacent to a county with a population of 3.3 million] or more the
members of the board are appointed by the local administrative
district judge in the county in which the appraisal district is
established. All applications submitted to the appraisal district
or to the appraisal review board seeking appointment as a member of
the board shall be delivered to the local administrative district
judge. The comptroller shall provide information and assistance to
the local administrative judge to aid in the selection of appraisal
review board members.
(d-10) In a county with a population of more than 120,000,
an appraisal review board member may be removed for good cause. The
board of directors of the appraisal district, the chairperson of
the appraisal review board, or a property owner in the district may
file a motion with the local administrative district judge for the
purpose of removing a member of the appraisal review board for good
cause. The motion shall contain detailed information with regard
to the basis for a request for removal. Good cause for removal
shall be found only on a repeated pattern of behavior constituting
good cause for removal.
(d-11) Good cause under Subsection (d-10) includes:
(1) failure to follow the provisions of this code;
(2) failure to follow rules adopted by the
comptroller;
(3) a demonstration of bias or prejudice;
(4) participation in ex parte communication
prohibited by this code;
(5) making decisions or recommendations with regard to
membership on a panel or chairpersonship of a panel based on a
member's voting record in previous cases;
(6) failure to regularly attend meetings;
(7) failure to provide a response under Section
5.103(g);
(8) inattention to hearings or the hearing process;
and
(9) failure to implement or follow the model hearing
procedures developed by the comptroller under Section 5.103.
(d-12) The district judge has complete discretion in the
selection of the appropriate procedure for the implementation of a
removal process under Subsection (d-10). The district judge may or
may not hold a hearing. The decision of the district judge is final
and may not be appealed and may not be the subject of mandamus or
other similar proceeding.
(d-13) If the district judge determines that an
investigation of a motion filed under Subsection (d-10) is
warranted, the district judge shall allow the member an opportunity
to respond to the motion. If good cause for removal is found, the
member shall be removed from the appraisal review board
immediately. The removal shall have no effect on prior decisions in
which the member participated.
(d-14) The district judge may appoint a special master to
determine the motion for removal of a member of an appraisal review
board under Subsection (d-10). The special master shall be
compensated by the appraisal district at the same rate as an
appraisal review board member.
(d-15) The local administrative district judge shall
appoint the replacement if a member of an appraisal review board is
removed.
(e) Members of the board hold office for terms of four [two]
years beginning January 1. The appraisal district board of
directors by resolution shall provide for staggered terms, so that
the terms of as close to one-half of the members as possible expire
each year. In making the initial or subsequent appointments, the
board of directors or the local administrative district judge or
the judge's designee shall designate those members who serve terms
of one year as needed to comply with this subsection.
(i) Service on a board does not constitute employment for
the purposes of Chapter 201, Labor Code, and does not authorize a
person to receive unemployment benefits by virtue of such service.
SECTION 5. Section 6.411, Tax Code, is amended by amending
Subsection (c-1) and adding Subsections (c-2) and (c-3) to read as
follows:
(c-1) This section does not apply to communications with a
member of an appraisal review board by a [involving the] chief
appraiser, [or] another employee or a member of the board of
directors of an appraisal district, or a property tax consultant or
attorney representing a party to a proceeding before [and a member
of] the appraisal review board:
(1) during a hearing on a protest or other proceeding
before the appraisal review board;
(2) that constitute social conversation;
(3) that are specifically limited to and involve
administrative, clerical, or logistical matters related to the
scheduling and operation of hearings, the processing of documents,
the issuance of orders, notices, and subpoenas, and the operation,
appointment, composition, or attendance at training of the
appraisal review board; or
(4) that are necessary and appropriate to enable the
board of directors of the appraisal district to determine whether
to appoint, reappoint, or remove a person as a member or the
chairman or secretary of the appraisal review board.
(c-2) Any communication from the chief appraiser, employees
or agents of the appraisal district, members of the appraisal
review board, or board of directors of the appraisal district with
the local administrative judge regarding the appointment of
appraisal review board members constitutes an offense. This
prohibition does not apply to communications between current
appraisal review board members and the local administrative judge
regarding their own reappointment to the board. This provision
does not apply to the taxpayer liaison officer with regard to the
provision of clerical services; however, the taxpayer liaison
officer may not offer an opinion or comment regarding the
appointment of appraisal review board members.
(c-3) Any communication consisting of a ranking, scoring,
or reporting of the percentage of value reductions determined by an
appraisal review board or panel of the appraisal review board to
members of the appraisal review board, appraisal district board of
directors, or local administrative district judge constitutes an
offense.
SECTION 6. Chapter 21, Tax Code, is amended by adding
Section 21.09 to read as follows:
Sec. 21.09. ALLOCATION APPLICATION. (a) To receive an
allocation authorized by Section 21.021, 21.03, 21.031, 21.05, or
21.055, a person claiming the allocation must apply for the
allocation. To apply for an allocation, a person must file an
allocation application form with the chief appraiser in the
appraisal district in which the property subject to the claimed
allocation has situs.
(b) A person claiming an allocation must apply for the
allocation each year the person claims an allocation. A person
claiming an allocation must file a completed allocation application
form before May 1 and must furnish the information required by the
form. For good cause shown, the chief appraiser shall extend the
deadline for filing an allocation application by written order for
a period not to exceed 60 days.
(c) The comptroller shall prescribe the contents of the
allocation application form and shall ensure that the form requires
an applicant to furnish the information necessary to determine the
validity of the allocation application.
(d) If the chief appraiser learns of any reason indicating
that an allocation previously allowed should be canceled, the chief
appraiser shall investigate. If the chief appraiser determines
that the property is not entitled to an allocation, the chief
appraiser shall cancel the allocation and deliver written notice of
the cancelation not later than the fifth day after the date the
chief appraiser cancels the allocation. A person may protest the
cancelation of an allocation.
(e) The filing of a rendition under Chapter 22 is not a
condition of qualification for an allocation.
(f) If the property was not on the appraisal roll in the
preceding year, the deadline for filing an application for an
allocation is extended to 45 days after receipt of the notice of
appraised value required by Section 25.19(a)(1).
SECTION 7. Chapter 21, Tax Code, is amended by adding
Section 21.10 to read as follows:
Sec. 21.10. LATE APPLICATION FOR ALLOCATION. (a) The
chief appraiser shall accept and approve or deny an application for
allocation under Section 21.09 after the deadline for filing the
application has passed if the application is filed before the date
the appraisal review board approves the appraisal records.
(b) If an application described by Subsection (a) is
approved, the property owner is liable to each taxing unit for a
penalty in an amount equal to 10 percent of the difference between
the amount of tax imposed by the taxing unit on the property without
the allocation and the amount of tax imposed on the property with
the allocation.
(c) The chief appraiser shall make an entry on the appraisal
records for the property indicating the property owner's liability
for the penalty and shall deliver a written notice of imposition of
the penalty, which must include an explanation of the reason for the
penalty, to the property owner.
(d) The tax assessor for a taxing unit that taxes the
property shall add the amount of the penalty to the property owner's
tax bill, and the tax collector for the unit shall collect the
penalty at the time and in the manner the collector collects the
tax. The amount of the penalty constitutes a lien on the property
against which the penalty is imposed as if the lien were a tax and
accrues penalty and interest in the same manner as a delinquent tax.
SECTION 8. Section 31.11, Tax Code, is amended by adding
Subsection (j) to read as follows:
(j) At any time after a taxing unit denies an application
for a refund, a taxpayer may file suit in district court to compel
the payment of the refund. If a taxpayer prevails in the suit, the
taxpayer may be awarded the costs of court and reasonable
attorney's fees. If a taxing unit does not respond to an
application for a refund within 90 days after the date the
application is filed, the application is presumed to have been
denied.
SECTION 9. Section 41.45, Tax Code, is amended by adding
Subsection (n) to read as follows:
(n) A property owner does not waive the right to appear in
person by filing an affidavit. An affidavit shall be used by the
appraisal review board only in the event the property owner does not
appear in person. For the purposes of scheduling a hearing, a
property owner shall designate on the affidavit that the property
owner either does not intend to appear at the hearing or does intend
to appear at the hearing and that the affidavit shall be used only
in the event that the property owner does not appear at the hearing.
If the affidavit does not designate an intention either to appear or
not appear, the appraisal review board shall consider the absence
of a designation as an intention not to appear. If the affidavit
states that the property owner does not intend to appear at the
hearing, the appraisal review board is not required to consider the
affidavit at the scheduled hearing and may consider the affidavit
at a hearing designated for the specific purpose of processing
affidavits.
SECTION 10. Section 41.66, Tax Code, is amended by adding
Subsections (i), (j), (k), (l), (m), (n), and (o) to read as
follows:
(i) A protest hearing for a property owner not represented
by an agent designated under Section 1.111 shall be set for a time
and date certain. If the protest hearing for a property owner not
represented by an agent designated under Section 1.111 is not
commenced within two hours of the time certain, the hearing on
request shall be postponed.
(j) On request of a property owner or a designated agent, an
appraisal review board shall schedule a maximum of 20 designated
properties for hearing on the same day. The request shall be
contained on a separate protest for only the designated properties
and must contain in bold "request for same-day protest hearings." A
property owner or designated agent may make only one request for
same-day protest hearings per county. The appraisal review board
may follow customary scheduling practices in the scheduling of the
same-day hearings.
(k) Property owners or their designated agents shall be
randomly assigned to panels. However, the assignment may consider
the property type subject to protest or the grounds raised for the
utilization of panel expertise for a particular property type or
particular grounds raised. If a property owner or designated agent
is assigned to a panel for a day, the property owner or designated
agent may not be reassigned to another panel without the property
owner's or designated agent's consent. If the appraisal review
board has cause for reassignment, a property owner or designated
agent may agree to reassignment or may request and be granted a
postponement of the hearing. A change of members of a panel due to
conflict of interest, illness, or inability to continue for the day
does not constitute reassignment.
(l) Evidence and argument provided by a property owner,
attorney or agent in support of a protest brought under Section
41.41(a)(1) or (2) is not subject to Chapter 1103, Occupations
Code, unless the person offering such evidence or argument states
that the person is offering evidence or argument as a person holding
a license or certification under Chapter 1103, Occupations Code.
(m) Appraisal districts and appraisal review boards may not
make decisions with regard to membership on a panel or
chairpersonship of a panel based on a member's voting record in
previous cases.
(n) An appraisal review board shall respond in writing or by
e-mail to a request for postponement, which request must contain
the mail and e-mail address of the person requesting the hearing not
later than the seventh day after the date the request is received.
(o) The chairperson of an appraisal review board or member
designated by the chairperson may make decisions with regard to the
scheduling or postponement of a hearing. The chief appraiser or
person designated by the chief appraiser may agree to a
postponement of an appraisal review board hearing.
SECTION 11. 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 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 12. Subsections (b), (b-1), and (c), Section 42.08,
Tax Code, are amended to read as follows:
(b) Except as provided in Subsection (d), a property owner
who appeals as provided by this chapter must pay taxes on the
property subject to the appeal in the amount required by this
subsection before the delinquency date or the property owner
forfeits the right to proceed to a final determination of the
appeal. The amount of taxes the property owner must pay on the
property before the delinquency date to comply with this subsection
is [the lesser of]:
(1) the amount of taxes due on the portion of the
taxable value of the property that is not in dispute; [or]
(2) the amount of taxes due on the property under the
order from which the appeal is taken; or
(3) the amount of taxes paid on the property in the
prior year.
(b-1) This subsection applies only to an appeal in which the
property owner elects to pay the amount of taxes described by
Subsection (b)(1). The appeal filed by the property owner must be
accompanied by a statement in writing of the amount of taxes the
property owner proposes to pay. The statement required under this
subsection is not jurisdictional.
(c) A property owner that pays an amount of taxes greater
than that required by Subsection (b) does not forfeit the property
owner's right to a final determination of the appeal by making the
payment. The property owner may elect to pay additional taxes at
any time. If the property owner files a timely appeal under this
chapter, taxes paid on the property are considered paid under
protest, even if paid before the appeal is filed. A property owner
may use Section 31.03 to comply with this section for a taxing unit
that has adopted split payment of taxes by paying one-half of the
amount owed under Subsection (b) before December 1 and the
remaining one-half before to July 1 of the following year.
SECTION 13. Section 42.21, Tax Code, is amended by adding
Subsections (f), (g), and (h) to read as follows:
(f) A petition may include multiple properties of a similar
type owned or leased by the same plaintiff or that are part of the
same economic unit.
(g) A petition may be amended within the period provided
under Subsection (a) for the same year to include additional
properties owned by the same owner that are of a similar type or
part of the same economic unit and are the subject of an appraisal
review board order for that tax year.
(h) The court has jurisdiction over an appeal under this
chapter, and an exhaustion of administrative remedies has occurred,
regardless of the plaintiff identified in the petition, if the
property was the subject of an appraisal review board hearing for
the current tax year and the petition was filed within the period
provided under Subsection (a). A petition must provide sufficient
information to identify the property that is the subject of the
petition. An issue of a proper party or the clarification of the
identity of a property shall be the subject of a special exception
and correction through amendment and not subject to a plea to the
jurisdiction or failure to exhaust administrative remedies.
SECTION 14. Section 42.23, Tax Code, is amended by adding
Subsection (h) to read as follows:
(h) Evidence, argument, and other testimony offered at an
appraisal review board hearing by a property owner or agent are not
admissible under this chapter except to establish the court's
jurisdiction for purposes of evidence in a no-evidence motion for
summary judgment or unless the property owner or agent is
designated as a witness for purposes of trial.
SECTION 15. Section 41A.031, Tax Code, is repealed.
SECTION 16. The changes in law made by this Act are
procedural and are applicable to any proceedings pending or not
finalized as of the effective date of the sections of this Act that
are applicable to the proceedings.
SECTION 17. (a) Sections 1, 2, 3, 9, and 10 of this Act
take effect January 1, 2014.
(b) Except as provided by Subsection (c) of this section,
Section 4 of this Act takes effect January 1, 2014.
(c) Subsection (i), Section 6.41, Tax Code, as added by
Section 4 of this Act, takes effect September 1, 2013, and applies
to any claim pending on that date.
SECTION 18. Except as provided by Section 17 of this Act,
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, 2013.