Texas 2017 - 85th Regular

Texas Senate Bill SB447 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R1756 CJC-D
2	2	By: Burton S.B. No. 447
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the selection of certain appraisal district officials.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 1.15, Tax Code, is amended to read as
10	10	follows:
11	11	Sec. 1.15. APPRAISERS FOR TAXING UNITS PROHIBITED. A
12	12	taxing unit may not employ any person for the purpose of appraising
13	13	property for taxation purposes [except to the extent necessary to
14	14	perform a contract under Section 6.05(b) of this code].
15	15	SECTION 2. Sections 5.041(c), (e-1), (e-3), (f), and (g),
16	16	Tax Code, are amended to read as follows:
17	17	(c) The comptroller may contract with service providers to
18	18	assist with the duties imposed under Subsection (a), but the course
19	19	required may not be provided by an appraisal district, the chief
20	20	appraiser of an appraisal district, an [or another] employee of an
21	21	appraisal district, a member of the board of directors of an
22	22	appraisal district, a member of an appraisal review board, or a
23	23	taxing unit. The comptroller may assess a fee to recover a portion
24	24	of the costs incurred for the training course, but the fee may not
25	25	exceed $50 per person trained.
26	26	(e-1) In addition to the course established under
27	27	Subsection (a), the comptroller shall approve curricula and provide
28	28	materials for use in a continuing education course for members of an
29	29	appraisal review board. The curricula and materials must include
30	30	information regarding:
31	31	(1) the cost, income, and market data comparison
32	32	methods of appraising property;
33	33	(2) the appraisal of business personal property;
34	34	(3) the determination of capitalization rates for
35	35	property appraisal purposes;
36	36	(4) the duties of an appraisal review board;
37	37	(5) the requirements regarding the independence of an
38	38	appraisal review board from the board of directors, [and] the chief
39	39	appraiser, and [other] employees of the appraisal district;
40	40	(6) the prohibitions against ex parte communications
41	41	applicable to appraisal review board members;
42	42	(7) the Uniform Standards of Professional Appraisal
43	43	Practice;
44	44	(8) the duty of the appraisal district to substantiate
45	45	the district's determination of the value of property;
46	46	(9) the requirements regarding the equal and uniform
47	47	appraisal of property;
48	48	(10) the right of a property owner to protest the
49	49	appraisal of the property as provided by Chapter 41; and
50	50	(11) a detailed explanation of each of the actions
51	51	described by Sections 25.25, 41.41(a), 41.411, 41.412, 41.413,
52	52	41.42, and 41.43 so that members are fully aware of each of the
53	53	grounds on which a property appraisal can be appealed.
54	54	(e-3) The comptroller may contract with service providers
55	55	to assist with the duties imposed under Subsection (e-1), but the
56	56	course required by that subsection may not be provided by an
57	57	appraisal district, the chief appraiser of an appraisal district,
58	58	an [or another] employee of an appraisal district, a member of the
59	59	board of directors of an appraisal district, a member of an
60	60	appraisal review board, or a taxing unit. The comptroller may
61	61	assess a fee to recover a portion of the costs incurred for the
62	62	continuing education course, but the fee may not exceed $50 for each
63	63	person trained.
64	64	(f) The comptroller may not advise a property owner, a
65	65	property owner's agent, [or] the chief appraiser of an appraisal
66	66	district, or an [another] employee of an appraisal district on a
67	67	matter that the comptroller knows is the subject of a protest to the
68	68	appraisal review board. The comptroller may provide advice to an
69	69	appraisal review board member as authorized by Subsection (a)(4) of
70	70	this section or Section 5.103 and may communicate with the chairman
71	71	of an appraisal review board or a taxpayer liaison officer
72	72	concerning a complaint filed under Section 6.052.
73	73	(g) Except during a hearing or other appraisal review board
74	74	proceeding and as provided by Subsection (h) and Section
75	75	6.411(c-1), the following persons may not communicate with a member
76	76	of an appraisal review board about a course provided under this
77	77	section or any matter presented or discussed during the course:
78	78	(1) the chief appraiser of the appraisal district for
79	79	which the appraisal review board is established;
80	80	(2) an [another] employee of the appraisal district
81	81	for which the appraisal review board is established;
82	82	(3) a member of the board of directors of the appraisal
83	83	district for which the appraisal review board is established;
84	84	(4) an officer or employee of a taxing unit that
85	85	participates in the appraisal district for which the appraisal
86	86	review board is established; and
87	87	(5) an attorney who represents or whose law firm
88	88	represents the appraisal district or a taxing unit that
89	89	participates in the appraisal district for which the appraisal
90	90	review board is established.
91	91	SECTION 3. Section 5.042, Tax Code, is amended by adding
92	92	Subsection (b-1) to read as follows:
93	93	(b-1) For purposes of removal under Chapter 87, Local
94	94	Government Code, "incompetency" in the case of a chief appraiser
95	95	includes the failure of the chief appraiser to complete, within the
96	96	period provided by Subsection (b) after the date the chief
97	97	appraiser is first elected or appointed, the course of training
98	98	required by Subsection (a).
99	99	SECTION 4. Section 5.103(b), Tax Code, is amended to read as
100	100	follows:
101	101	(b) The model hearing procedures shall address:
102	102	(1) the statutory duties of an appraisal review board;
103	103	(2) the process for conducting a hearing;
104	104	(3) the scheduling of hearings;
105	105	(4) the postponement of hearings;
106	106	(5) the notices required under this title;
107	107	(6) the determination of good cause under Section
108	108	41.44(b);
109	109	(7) the determination of good cause under Sections
110	110	41.45(e) and (e-1);
111	111	(8) a party's right to offer evidence and argument;
112	112	(9) a party's right to examine or cross-examine
113	113	witnesses or other parties;
114	114	(10) a party's right to appear by an agent;
115	115	(11) the prohibition of an appraisal review board's
116	116	consideration of information not provided at a hearing;
117	117	(12) ex parte and other prohibited communications;
118	118	(13) the exclusion of evidence at a hearing as
119	119	required by Section 41.67(d);
120	120	(14) the postponement of a hearing as required by
121	121	Section 41.66(h);
122	122	(15) conflicts of interest; and
123	123	(16) [the process for the administration of
124	124	applications for membership on an appraisal review board; and
125	125	[(17)] any other matter related to fair and efficient
126	126	appraisal review board hearings.
127	127	SECTION 5. Sections 6.035(a), (b), and (d), Tax Code, are
128	128	amended to read as follows:
129	129	(a) An individual is ineligible to serve on an appraisal
130	130	district board of directors or [and is disqualified from
131	131	employment] as chief appraiser if the individual:
132	132	(1) is related within the second degree by
133	133	consanguinity or affinity, as determined under Chapter 573,
134	134	Government Code, to an individual who is engaged in the business of
135	135	appraising property for compensation for use in proceedings under
136	136	this title or of representing property owners for compensation in
137	137	proceedings under this title in the appraisal district; or
138	138	(2) owns property on which delinquent taxes have been
139	139	owed to a taxing unit for more than 60 days after the date the
140	140	individual knew or should have known of the delinquency unless:
141	141	(A) the delinquent taxes and any penalties and
142	142	interest are being paid under an installment payment agreement
143	143	under Section 33.02; or
144	144	(B) a suit to collect the delinquent taxes is
145	145	deferred or abated under Section 33.06 or 33.065.
146	146	(b) A member of an appraisal district board of directors or
147	147	a chief appraiser commits an offense if the board member or chief
148	148	appraiser continues to hold office [or the chief appraiser remains
149	149	employed] knowing that an individual related within the second
150	150	degree by consanguinity or affinity, as determined under Chapter
151	151	573, Government Code, to the board member or chief appraiser is
152	152	engaged in the business of appraising property for compensation for
153	153	use in proceedings under this title or of representing property
154	154	owners for compensation in proceedings under this title in the
155	155	appraisal district in which the member or chief appraiser serves
156	156	[or the chief appraiser is employed]. An offense under this
157	157	subsection is a Class B misdemeanor.
158	158	(d) An appraisal performed by a chief appraiser in a private
159	159	capacity or by an individual related within the second degree by
160	160	consanguinity or affinity, as determined under Chapter 573,
161	161	Government Code, to the chief appraiser may not be used as evidence
162	162	in a protest or challenge under Chapter 41 or an appeal under
163	163	Chapter 42 concerning property that is taxable in the appraisal
164	164	district in which the chief appraiser serves [is employed].
165	165	SECTION 6. The heading to Section 6.05, Tax Code, is amended
166	166	to read as follows:
167	167	Sec. 6.05. APPRAISAL OFFICE; CHIEF APPRAISER.
168	168	SECTION 7. Sections 6.05(b), (c), and (d), Tax Code, are
169	169	amended to read as follows:
170	170	(b) The board of directors of an appraisal district may
171	171	contract with an appraisal office in another district [or with a
172	172	taxing unit in the district] to perform the duties of the appraisal
173	173	office for the district.
174	174	(c) The chief appraiser is the chief administrator of the
175	175	appraisal office. The [Except as provided by Section 6.0501, the]
176	176	chief appraiser is elected at the general election for state and
177	177	county officers by the voters of the county in which the appraisal
178	178	district is established. The chief appraiser serves a two-year
179	179	term beginning January 1 of each odd-numbered year. To be eligible
180	180	to serve as chief appraiser, an individual must be a resident of the
181	181	county in which the appraisal district is established and must have
182	182	resided in the county for at least two years preceding the date the
183	183	individual takes office [appointed by and serves at the pleasure of
184	184	the appraisal district board of directors. If a taxing unit
185	185	performs the duties of the appraisal office pursuant to a contract,
186	186	the assessor for the unit is the chief appraiser. To be eligible to
187	187	be appointed or serve as a chief appraiser, a person must be
188	188	certified as a registered professional appraiser under Section
189	189	1151.160, Occupations Code, possess an MAI professional
190	190	designation from the Appraisal Institute, or possess an Assessment
191	191	Administration Specialist (AAS), Certified Assessment Evaluator
192	192	(CAE), or Residential Evaluation Specialist (RES) professional
193	193	designation from the International Association of Assessing
194	194	Officers. A person who is eligible to be appointed or serve as a
195	195	chief appraiser by having a professional designation described by
196	196	this subsection must become certified as a registered professional
197	197	appraiser under Section 1151.160, Occupations Code, not later than
198	198	the fifth anniversary of the date the person is appointed or begins
199	199	to serve as chief appraiser. A chief appraiser who is not eligible
200	200	to be appointed or serve as chief appraiser may not perform an
201	201	action authorized or required by law to be performed by a chief
202	202	appraiser, including the preparation, certification, or submission
203	203	of any part of the appraisal roll. Not later than January 1 of each
204	204	year, a chief appraiser shall notify the comptroller in writing
205	205	that the chief appraiser is either eligible to be appointed or serve
206	206	as the chief appraiser or not eligible to be appointed or serve as
207	207	the chief appraiser].
208	208	(d) The [Except as provided by Section 6.0501, the] chief
209	209	appraiser is entitled to compensation as provided by the budget
210	210	adopted by the board of directors. The chief appraiser's
211	211	compensation may not be directly or indirectly linked to an
212	212	increase in the total market, appraised, or taxable value of
213	213	property in the appraisal district. The [Except as provided by
214	214	Section 6.0501, the] chief appraiser may employ and compensate
215	215	professional, clerical, and other personnel as provided by the
216	216	budget, with the exception of a general counsel to the appraisal
217	217	district.
218	218	SECTION 8. Sections 6.41(a), (c), (d), (e), (f), (j), and
219	219	(k), Tax Code, are amended to read as follows:
220	220	(a) An [The] appraisal review board is established for each
221	221	appraisal district.
222	222	(c) To be eligible to serve on the board, an individual must
223	223	be a resident of the county in which the appraisal district is
224	224	established and must have resided in the county [district] for at
225	225	least two years.
226	226	(d) Members [Except as provided by Subsection (d-1),
227	227	members] of the board are appointed by the chief appraiser of the
228	228	appraisal district [resolution of a majority of the appraisal
229	229	district board of directors]. A vacancy on the board is filled in
230	230	the same manner for the unexpired portion of the term.
231	231	(e) Members of the board hold office for terms of two years
232	232	beginning January 1. The appraisal district board of directors by
233	233	resolution shall provide for staggered terms, so that the terms of
234	234	as close to one-half of the members as possible expire each
235	235	year. In making the initial or subsequent appointments, the chief
236	236	appraiser [board of directors or the local administrative district
237	237	judge or the judge's designee] shall designate those members who
238	238	serve terms of one year as needed to comply with this subsection.
239	239	(f) A member of the board may be removed from the board by
240	240	the chief appraiser [a majority vote of the appraisal district
241	241	board of directors, or by the local administrative district judge
242	242	or the judge's designee, as applicable, that appointed the
243	243	member]. Grounds for removal are:
244	244	(1) a violation of Section 6.412, 6.413, 41.66(f), or
245	245	41.69;
246	246	(2) good cause relating to the attendance of members
247	247	at called meetings of the board as established by written policy
248	248	adopted by a majority of the appraisal district board of directors;
249	249	[or]
250	250	(3) clear and convincing evidence of repeated bias or
251	251	misconduct; or
252	252	(4) failure to complete a course required by Section
253	253	5.041.
254	254	(j) The [A] chief appraiser of an appraisal district or an
255	255	[another] employee or agent of an appraisal district commits an
256	256	offense if the person communicates with a member of the appraisal
257	257	review board for the appraisal district or [,] a member of the board
258	258	of directors of the appraisal district[, or, if the appraisal
259	259	district is an appraisal district described by Subsection (d-1),
260	260	the local administrative district judge] regarding a ranking,
261	261	scoring, or reporting of the percentage by which the appraisal
262	262	review board or a panel of the board reduces the appraised value of
263	263	property.
264	264	(k) An offense under Subsection [(i) or] (j) is a Class A
265	265	misdemeanor.
266	266	SECTION 9. Sections 6.411(a), (b), and (c-1), Tax Code, are
267	267	amended to read as follows:
268	268	(a) A member of an appraisal review board commits an offense
269	269	if the member communicates with the chief appraiser of, an [or
270	270	another] employee of, or a member of the board of directors of the
271	271	appraisal district for which the appraisal review board is
272	272	established in violation of Section 41.66(f).
273	273	(b) The [A] chief appraiser of an appraisal district, an [or
274	274	another] employee of an appraisal district, a member of a board of
275	275	directors of an appraisal district, or a property tax consultant or
276	276	attorney representing a party to a proceeding before the appraisal
277	277	review board commits an offense if the person communicates with a
278	278	member of the appraisal review board established for the appraisal
279	279	district with the intent to influence a decision by the member in
280	280	the member's capacity as a member of the appraisal review board.
281	281	(c-1) This section does not apply to communications with a
282	282	member of an appraisal review board by the chief appraiser of an
283	283	appraisal district, an [or another] employee of an appraisal
284	284	district, [or] a member of the board of directors of an appraisal
285	285	district, or a property tax consultant or attorney representing a
286	286	party to a proceeding before the appraisal review board:
287	287	(1) during a hearing on a protest or other proceeding
288	288	before the appraisal review board;
289	289	(2) that constitute social conversation;
290	290	(3) that are specifically limited to and involve
291	291	administrative, clerical, or logistical matters related to the
292	292	scheduling and operation of hearings, the processing of documents,
293	293	the issuance of orders, notices, and subpoenas, and the operation,
294	294	appointment, composition, or attendance at training of the
295	295	appraisal review board; or
296	296	(4) that are necessary and appropriate to enable the
297	297	chief appraiser [board of directors] of the appraisal district to
298	298	determine whether to appoint, reappoint, or remove a person as a
299	299	member or the chairman or secretary of the appraisal review board.
300	300	SECTION 10. Section 6.412(a), Tax Code, is amended to read
301	301	as follows:
302	302	(a) An individual is ineligible to serve on an appraisal
303	303	review board if the individual:
304	304	(1) is related within the second degree by
305	305	consanguinity or affinity, as determined under Chapter 573,
306	306	Government Code, to an individual who is engaged in the business of
307	307	appraising property for compensation for use in proceedings under
308	308	this title or of representing property owners for compensation in
309	309	proceedings under this title in the appraisal district for which
310	310	the appraisal review board is established;
311	311	(2) owns property on which delinquent taxes have been
312	312	owed to a taxing unit for more than 60 days after the date the
313	313	individual knew or should have known of the delinquency unless:
314	314	(A) the delinquent taxes and any penalties and
315	315	interest are being paid under an installment payment agreement
316	316	under Section 33.02; or
317	317	(B) a suit to collect the delinquent taxes is
318	318	deferred or abated under Section 33.06 or 33.065; or
319	319	(3) is related within the third degree by
320	320	consanguinity or within the second degree by affinity, as
321	321	determined under Chapter 573, Government Code, to a member of the
322	322	appraisal district's board of directors or to the chief appraiser
323	323	of the appraisal district.
324	324	SECTION 11. Section 6.42(a), Tax Code, is amended to read as
325	325	follows:
326	326	(a) A majority of the appraisal review board constitutes a
327	327	quorum. The chief appraiser [board of directors] of the appraisal
328	328	district [by resolution] shall select a chairman and a secretary
329	329	from among the members of the [appraisal review] board. The chief
330	330	appraiser [board of directors of the appraisal district] is
331	331	encouraged to select as chairman of the [appraisal review] board a
332	332	member of the [appraisal review] board, if any, who has a background
333	333	in law and property appraisal.
334	334	SECTION 12. Section 22.28(d), Tax Code, is amended to read
335	335	as follows:
336	336	(d) To help defray the costs of administering this chapter,
337	337	a collector who collects a penalty imposed under Subsection (a)
338	338	shall remit to the appraisal district of [that employs] the chief
339	339	appraiser who imposed the penalty an amount equal to five percent of
340	340	the penalty amount collected.
341	341	SECTION 13. Section 41.66(g), Tax Code, is amended to read
342	342	as follows:
343	343	(g) At the beginning of a hearing on a protest, each member
344	344	of the appraisal review board hearing the protest must sign an
345	345	affidavit stating that the board member has not communicated with
346	346	another person in violation of Subsection (f). If a board member has
347	347	communicated with another person in violation of Subsection (f),
348	348	the member must be recused from the proceeding and may not hear,
349	349	deliberate on, or vote on the determination of the protest. The
350	350	chief appraiser [board of directors] of the appraisal district
351	351	shall adopt and implement a policy concerning the temporary
352	352	replacement of an appraisal review board member who has
353	353	communicated with another person in violation of Subsection (f).
354	354	SECTION 14. Section 42.21(d), Tax Code, is amended to read
355	355	as follows:
356	356	(d) An appraisal district is served by service on the chief
357	357	appraiser at any time or by service on any other officer or an
358	358	employee of the appraisal district present at the appraisal office
359	359	at a time when the appraisal office is open for business with the
360	360	public. An appraisal review board is served by service on the
361	361	chairman of the appraisal review board. Citation of a party is
362	362	issued and served in the manner provided by law for civil suits
363	363	generally.
364	364	SECTION 15. Section 52.092(e), Election Code, is amended to
365	365	read as follows:
366	366	(e) County offices shall be listed in the following order:
367	367	(1) county judge;
368	368	(2) judge, county court at law;
369	369	(3) judge, county criminal court;
370	370	(4) judge, county probate court;
371	371	(5) county attorney;
372	372	(6) district clerk;
373	373	(7) district and county clerk;
374	374	(8) county clerk;
375	375	(9) sheriff;
376	376	(10) sheriff and tax assessor-collector;
377	377	(11) county tax assessor-collector;
378	378	(12) county treasurer;
379	379	(13) county school trustee (county with population of
380	380	3.3 million or more);
381	381	(14) county surveyor;
382	382	(15) chief appraiser.
383	383	SECTION 16. Section 87.041(a), Local Government Code, is
384	384	amended to read as follows:
385	385	(a) The commissioners court of a county may fill a vacancy
386	386	in the office of:
387	387	(1) county judge;
388	388	(2) county clerk;
389	389	(3) district and county clerk;
390	390	(4) sheriff;
391	391	(5) county attorney;
392	392	(6) county treasurer;
393	393	(7) county surveyor;
394	394	(8) county tax assessor-collector;
395	395	(9) justice of the peace; [or]
396	396	(10) constable; or
397	397	(11) chief appraiser.
398	398	SECTION 17. Section 1151.164, Occupations Code, is amended
399	399	to read as follows:
400	400	Sec. 1151.164. CHIEF APPRAISER TRAINING PROGRAM. (a) The
401	401	department shall implement a training program for newly elected or
402	402	appointed chief appraisers and shall prescribe the curriculum for
403	403	the training program as provided by this section.
404	404	(b) The training program must provide the chief appraiser
405	405	[appointee] with information regarding:
406	406	(1) this chapter;
407	407	(2) the programs operated by the department;
408	408	(3) the role and functions of the department;
409	409	(4) the rules of the commission, with an emphasis on
410	410	the rules that relate to ethical behavior;
411	411	(5) the role and functions of the chief appraiser, the
412	412	appraisal district board of directors, and the appraisal review
413	413	board;
414	414	(6) the importance of maintaining the independence of
415	415	an appraisal office from political pressure;
416	416	(7) the importance of prompt and courteous treatment
417	417	of the public;
418	418	(8) the finance and budgeting requirements for an
419	419	appraisal district, including appropriate controls to ensure that
420	420	expenditures are proper; and
421	421	(9) the requirements of:
422	422	(A) the open meetings law, Chapter 551,
423	423	Government Code;
424	424	(B) the public information law, Chapter 552,
425	425	Government Code;
426	426	(C) the administrative procedure law, Chapter
427	427	2001, Government Code;
428	428	(D) other laws relating to public officials,
429	429	including conflict-of-interest laws; and
430	430	(E) the standards of ethics imposed by the
431	431	Uniform Standards of Professional Appraisal Practice.
432	432	SECTION 18. The following provisions of the Tax Code are
433	433	repealed:
434	434	(1) Section 5.042(c);
435	435	(2) Section 6.0501;
436	436	(3) Section 6.052(f); and
437	437	(4) Sections 6.41(d-1), (d-2), (d-3), (d-4), (d-5),
438	438	(d-6), (d-7), (d-8), (d-9), and (i).
439	439	SECTION 19. The first election required by Section 6.05(c),
440	440	Tax Code, as amended by this Act, shall be held to fill the term of
441	441	office of the chief appraiser that begins January 1, 2019. The
442	442	change in law made by this Act to Section 6.05, Tax Code, does not
443	443	affect the appointment by an appraisal district board of directors
444	444	of a person to serve as chief appraiser before the effective date of
445	445	this Act, and that person continues to serve at the pleasure of the
446	446	appraisal district board of directors as provided by the former law
447	447	until removed by the board of directors or until the person elected
448	448	to that position for the term that begins January 1, 2019, has
449	449	qualified for office. A vacancy in the office of chief appraiser
450	450	that occurs on or after the effective date of this Act is filled by
451	451	appointment by the commissioners court, as provided by Section
452	452	87.041(a), Local Government Code, as amended by this Act.
453	453	SECTION 20. Appraisal review board members and auxiliary
454	454	appraisal review board members shall be appointed as provided by
455	455	this Act beginning January 1, 2019. The change in the manner of
456	456	selection of appraisal review board members and auxiliary appraisal
457	457	review board members made by this Act does not affect the selection
458	458	of those members serving on the appraisal review board before
459	459	January 1, 2019. The term of an appraisal review board member or
460	460	auxiliary appraisal review board member serving on December 31,
461	461	2018, expires on January 1, 2019.
462	462	SECTION 21. The repeal by this Act of Section 6.41(i), Tax
463	463	Code, and the change in law made by this Act to Section 6.41(j), Tax
464	464	Code, do not apply to an offense committed under either of those
465	465	subsections before the effective date of this Act. An offense
466	466	committed before the effective date of this Act is governed by the
467	467	applicable subsection as it existed on the date the offense was
468	468	committed, and the former law is continued in effect for that
469	469	purpose. For purposes of this section, an offense was committed
470	470	before the effective date of this Act if any element of the offense
471	471	occurred before that date.
472	472	SECTION 22. This Act takes effect September 1, 2017.