By: Lucio III H.B. No. 1248
A BILL TO BE ENTITLED
AN ACT
relating to alternative resolution procedures for ad valorem tax
suits brought under Chapter 42 of the Texas Property Tax Code for
purposes of enhancing the public policy of this state of reducing
the delay and the costs of litigation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 42, Tax Code, is amended by adding
Section 42.228 to read as follows:
Sec. 42.228. ALTERNATIVE DISPUTE RESOLUTION FOR EXPEDITING
APPEALS.
(a) A party to a lawsuit brought under Chapter 42 of the
Property Tax Code may elect alternative dispute resolution
procedures for the purpose of expediting the resolution of the
lawsuit.
(b) The alternative dispute resolution procedures contained
in this section may be implemented by the request of a plaintiff
included in the filing of the plaintiff's original petition or by a
defendant included in the filing of the defendant's answer to
plaintiff's original petition. The alternative dispute resolution
procedures contained in this section shall be an alternative to and
in place of the procedures contained in the Texas Rules of Civil
Procedure to the extent they conflict.
(c) Limitations on Certain Discovery: Discovery shall be
limited as follows except as set by order of the court upon hearing
or by agreement of the parties:
(1) Document Production: The parties shall not serve
and shall not be required to answer a Request for Production of
Documents except as provided herein.
(2) Written Interrogatories: The parties shall not
serve and shall not be required to answer written interrogatories.
(3) Requests for Admission: The parties shall not
serve and shall not be required to answer requests for admission.
(4) Depositions on Written Questions. The parties
shall not serve and shall not be required to answer depositions on
written questions.
(5) Discovery from Non-Parties. The parties shall not
serve discovery on non-parties.
(d) Request for Production of Documents: Document
production shall be required and limited as follows:
(1) Document Production by Property Owner in Section
42.25 Lawsuit Involving Real Property: A property owner who files
an appeal concerning real property under Sections 42.25 of this
Chapter shall without request produce the following documents in
the property owner's possession at least thirty days prior to a
scheduled mediation or within 14 days of a disclosure of a
testifying witness under subsection (f):
(i) any rent roll for the subject property
for the year prior to the year subject to the appeal;
(ii) the operating statement for the year
prior to the year subject to appeal if the subject property is
leased for use;
(iii) any fee simple appraisal report of
the subject property done within the last three years or any other
appraisal done in the prior year in possession of the plaintiff;
(iv) any document stating or supporting the
owner's opinion, if any, of deferred maintenance or costs to cure,
(v) any document stating or supporting the
owner's opinion of value.
(2) Document Production by Appraisal District in
Section 42.25 Lawsuit Involving Real Property: The Appraisal
District shall produce the following documents in the appraisal
district's possession without request to the property owner at
least thirty days prior to a scheduled mediation or within 14 days
of a disclosure of a testifying witness under subsection (f,
whichever is earlier:
(i) the appraisal records as set forth in
Section 25.02 of this Code for the subject property for the tax year
at issue,
(ii) the evidence submitted by the
Appraisal District or Property Owner to the Appraisal Review Board
concerning the subject property for the tax year at issue,
(iii) any appraisal reports or valuation
analysis within its possession, custody, or control concerning the
subject property relating to the tax year at issue for any of the
three years preceding the tax year at issue,
(iv) the information and material
identified in Sections 23.011, 23.012, 23.013, and 23.014 of
Chapter 23 of this Title used in appraising the market value of the
property.
(3) Production Involving Personal Property: In a suit
concerning personal property filed under Sections 42.25 or 42.26 of
this Chapter, the parties may serve Requests for Production. The
Requests for Production shall be limited to ten discreet requests
with each subpart of a request considered to be a discreet request.
(4) Production by Appraisal District in Section 42.26
Lawsuit Involving Real Property: For purposes of an appeal filed
under Section 42.26 of this Code, the property owner may identify in
a Request for Production to the appraisal district, the properties
claimed as comparable to the subject which shall not exceed ten. The
Appraisal District shall produce to the property owner at least
thirty days prior to a scheduled mediation or within 14 days of a
disclosure under subsection (f) for the comparables identified by
the property owner:
(i) the appraisal records as set forth in
Section 25.02 of this Code for the property for the tax year at
issue,
(ii) the evidence submitted by the
Appraisal District or Property Owner to the Appraisal Review Board
concerning the property for the tax year at issue,
(iii) any appraisal reports or valuation
analysis within its possession, custody, or control concerning the
property relating to the tax year at issue or identified comparable
properties for any of the three years preceding the tax year at
issue unless otherwise prohibited from disclosure under this code,
(iv) the information and material
identified in Sections 23.011, 23.012, 23.013, and 23.014 of
Chapter 23 of this Title used in appraising the market value of the
property,
(e)Oral Depositions. Oral depositions shall be limited as
follows:
(1) Witnesses. The parties may take the oral
depositions of testifying experts, the property owner or a
corporate representative of the property owner, and a corporate
representative of the Appraisal District.
(2) Timing. No party shall be required to submit
itself or its testifying expert witnesses for oral deposition until
the parties have attended settlement discussions pursuant to
Section 42.227 of this Chapter, if such settlement discussions were
requested.
(3) Scheduling. The parties shall cooperate in good
faith to schedule oral depositions at a time and place convenient
for the parties, witnesses, and counsel. The deposition of an owner
or owner representative may be taken in the county in which the
owner resides or may be taken by telephone.
(4) Length. Depositions of fact witnesses are limited
to three hours per deposition. Depositions of testifying expert
witnesses are limited to six hours per deposition.
(5) Court Reporter. The parties shall cooperate in
good faith to use the same court reporter or videographer service.
(6) Exhibits. The parties shall cooperate in good
faith to number documents, photographs, and other information used
as exhibits at oral depositions sequentially, regardless of the
identity of the deponent or the party introducing the exhibit. The
parties shall use the same exhibit numbers when referring to such
exhibits in pretrial motions and at trial. The written opinion of an
expert shall be admitted in to evidence.
(7) Documents for a Deposition: The parties upon
request shall produce any documents set forth in subsection (d) of
this section, the witness's written opinions, if any, and the
witnesses's work file , if any, supporting the witnesses's opinion.
(f)
Expert Witnesses. The parties may serve Requests for
Disclosure as in civil suits generally. In addition to the
requirements for a Request for Disclosure set forth in the Rules of
Civil Procedure, within 30 days of retaining an expert witness, a
party shall disclose the identity of the expert and whether the
expert has been retained to perform an appraisal under section
42.25 or 42.26 or both.
(g) Pre-trial Disputes. The parties shall attempt in good
faith to resolve any disputes concerning pre-trial matters. Before
the court may be asked to intervene, the lead attorneys for the
parties shall try to resolve the dispute by telephone or by meeting
in person without either party filing any motion with the court or
sending any correspondence concerning the dispute.
(h) Hearings. The parties shall cooperate in good faith to
set hearings at a time convenient for the court, witnesses, and the
attorneys. Before the court may be asked to set a hearing, the party
seeking a hearing must contact opposing counsel to inquire about
availability.
(i) Exceptions. Except where specifically prohibited by
this Chapter, the procedures and limitations set forth in this
Section may be modified in any suit by agreement of the parties or
by court order for good cause
(j) Additional Discovery Requests. A party seeking
additional discovery, as in civil suits generally, may file a
motion with the court. The motion shall include the specific
discovery requests, a written reason in support of good cause for
each specific request and a certificate that a good faith effort has
been made to have a telephone or in person conference with opposing
counsel. The court may grant the motion if the party requesting the
additional discovery demonstrates a need for the additional
discovery is necessary for an expert to form a reliable opinion of
the market value of the subject property under Section 42.25, Tax
Code or the equal and uniform value of the property under Section
42.26, Tax Code. In a suit brought under Section 42.25 of this code,
a defendant may file a Request for Production limited to the closing
statement for the purchase of the subject property if the subject
property was purchased in the two years prior to the tax year which
is the subject of the lawsuit.
(k) Award of Attorney's Fees: If a party files a motion with
the court and does not prevail in the motion, the court shall award
reasonable attorney fees related to the motion.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all 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, 2017.