Texas 2017 - 85th 1st C.S.

Texas House Bill HB203 Compare Versions

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

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1	1	85S10562 TJB-D
2	2	By: Miller H.B. No. 203
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the administration of the ad valorem tax system;
8	8	authorizing a fee.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 403.302(c), Government Code, is amended
11	11	to read as follows:
12	12	(c) If after conducting the study the comptroller
13	13	determines that the local value for a school district is valid, the
14	14	local value is presumed to represent taxable value for the school
15	15	district. In the absence of that presumption, taxable value for a
16	16	school district is the state value for the school district
17	17	determined by the comptroller under Subsections (a) and (b) unless
18	18	the local value exceeds the state value, in which case the taxable
19	19	value for the school district is the district's local value. In
20	20	determining whether the local value for a school district is valid,
21	21	the comptroller shall use a margin of error that does not exceed 10
22	22	[five] percent unless the comptroller determines that the size of
23	23	the sample of properties necessary to make the determination makes
24	24	the use of such a margin of error not feasible, in which case the
25	25	comptroller may use a larger margin of error.
26	26	SECTION 2. Sections 5.041(b) and (e-1), Tax Code, are
27	27	amended to read as follows:
28	28	(b) A member of the appraisal review board established for
29	29	an appraisal district must complete the course established under
30	30	Subsection (a). The course must provide at least eight hours of
31	31	classroom training and education. A member of the appraisal review
32	32	board may not participate in a hearing conducted by the board unless
33	33	the person has completed the course established under Subsection
34	34	(a) and received a certificate of course completion.
35	35	(e-1) In addition to the course established under
36	36	Subsection (a), the comptroller shall approve curricula and provide
37	37	materials for use in a continuing education course for members of an
38	38	appraisal review board. The course must provide at least four hours
39	39	of classroom training and education. The curricula and materials
40	40	must include information regarding:
41	41	(1) the cost, income, and market data comparison
42	42	methods of appraising property;
43	43	(2) the appraisal of business personal property;
44	44	(3) the determination of capitalization rates for
45	45	property appraisal purposes;
46	46	(4) the duties of an appraisal review board;
47	47	(5) the requirements regarding the independence of an
48	48	appraisal review board from the board of directors and the chief
49	49	appraiser and other employees of the appraisal district;
50	50	(6) the prohibitions against ex parte communications
51	51	applicable to appraisal review board members;
52	52	(7) the Uniform Standards of Professional Appraisal
53	53	Practice;
54	54	(8) the duty of the appraisal district to substantiate
55	55	the district's determination of the value of property;
56	56	(9) the requirements regarding the equal and uniform
57	57	appraisal of property;
58	58	(10) the right of a property owner to protest the
59	59	appraisal of the property as provided by Chapter 41; and
60	60	(11) a detailed explanation of each of the actions
61	61	described by Sections 25.25, 41.41(a), 41.411, 41.412, 41.413,
62	62	41.42, and 41.43 so that members are fully aware of each of the
63	63	grounds on which a property appraisal can be appealed.
64	64	SECTION 3. Section 5.103(b), Tax Code, is amended to read as
65	65	follows:
66	66	(b) The model hearing procedures shall address:
67	67	(1) the statutory duties of an appraisal review board;
68	68	(2) the process for conducting a hearing;
69	69	(3) the scheduling of hearings;
70	70	(4) the postponement of hearings;
71	71	(5) the notices required under this title;
72	72	(6) the determination of good cause under Section
73	73	41.44(b);
74	74	(7) the determination of good cause under Sections
75	75	41.45(e) and (e-1);
76	76	(8) a party's right to offer evidence and argument;
77	77	(9) a party's right to examine or cross-examine
78	78	witnesses or other parties;
79	79	(10) a party's right to appear by an agent;
80	80	(11) the prohibition of an appraisal review board's
81	81	consideration of information not provided at a hearing;
82	82	(12) ex parte and other prohibited communications;
83	83	(13) the exclusion of evidence at a hearing as
84	84	required by Section 41.67(d);
85	85	(14) the postponement of a hearing as required by
86	86	Section 41.66(h);
87	87	(15) conflicts of interest; and
88	88	(16) [the process for the administration of
89	89	applications for membership on an appraisal review board; and
90	90	[(17)] any other matter related to fair and efficient
91	91	appraisal review board hearings.
92	92	SECTION 4. Sections 6.41(a), (b), (c), (d), (f), (j), and
93	93	(k), Tax Code, are amended to read as follows:
94	94	(a) An [The] appraisal review board is established for each
95	95	appraisal district.
96	96	(b) The board consists of five [three] members elected by
97	97	the voters of the county in which the district is established at the
98	98	general election for state and county officers. The members serve
99	99	two-year terms beginning on January 1 of odd-numbered years.
100	100	[However, the district board of directors by resolution of a
101	101	majority of its members may increase the size of the appraisal
102	102	review board to the number of members the board of directors
103	103	considers appropriate.]
104	104	(c) To be eligible to serve on the board, an individual must
105	105	be a resident of the county in which the appraisal district is
106	106	established and must have resided in the county [district] for at
107	107	least two years before the date of the individual's election or
108	108	appointment.
109	109	(d) [Except as provided by Subsection (d-1), members of the
110	110	board are appointed by resolution of a majority of the appraisal
111	111	district board of directors.] A vacancy on the board is filled by
112	112	appointment by the commissioners court of the county in which the
113	113	appraisal district is established [in the same manner] for the
114	114	unexpired portion of the term.
115	115	(f) For purposes of Chapter 87, Local Government Code,
116	116	grounds [A member of the board may be removed from the board by a
117	117	majority vote of the appraisal district board of directors, or by
118	118	the local administrative district judge or the judge's designee, as
119	119	applicable, that appointed the member. Grounds] for removal of a
120	120	member of an appraisal review board include [are]:
121	121	(1) a violation of Section 6.412, 6.413, 41.66(f), or
122	122	41.69;
123	123	(2) good cause relating to the attendance of members
124	124	at called meetings of the board as established by written policy
125	125	adopted by a majority of the appraisal district board of directors;
126	126	[or]
127	127	(3) clear and convincing evidence of repeated bias or
128	128	misconduct; or
129	129	(4) failure to complete a course required by Section
130	130	5.041.
131	131	(j) A chief appraiser or another employee or agent of an
132	132	appraisal district commits an offense if the person communicates
133	133	with a member of the appraisal review board for the appraisal
134	134	district or[,] a member of the board of directors of the appraisal
135	135	district[, or, if the appraisal district is an appraisal district
136	136	described by Subsection (d-1), the local administrative district
137	137	judge] regarding a ranking, scoring, or reporting of the percentage
138	138	by which the appraisal review board or a panel of the board reduces
139	139	the appraised value of property.
140	140	(k) An offense under Subsection [(i) or] (j) is a Class A
141	141	misdemeanor.
142	142	SECTION 5. Subchapter C, Chapter 6, Tax Code, is amended by
143	143	adding Section 6.4101 to read as follows:
144	144	Sec. 6.4101. BALLOT PROCEDURES FOR APPRAISAL REVIEW BOARD
145	145	MEMBER; FILING FEE. (a) Except as provided by this section,
146	146	Chapter 144, Election Code, applies to a candidate for the office of
147	147	member of the appraisal review board of an appraisal district.
148	148	(b) An application for a place on the ballot must be filed
149	149	with the county judge of the county in which the appraisal district
150	150	is established and be accompanied by a filing fee of $250.
151	151	(c) A candidate's name may appear on the ballot only as an
152	152	independent candidate.
153	153	(d) A filing fee received under this section shall be
154	154	deposited in the county treasury to the credit of the county general
155	155	fund.
156	156	SECTION 6. Section 6.411(c-1), Tax Code, is amended to read
157	157	as follows:
158	158	(c-1) This section does not apply to communications with a
159	159	member of an appraisal review board by the chief appraiser or
160	160	another employee or a member of the board of directors of an
161	161	appraisal district or a property tax consultant or attorney
162	162	representing a party to a proceeding before the appraisal review
163	163	board:
164	164	(1) during a hearing on a protest or other proceeding
165	165	before the appraisal review board;
166	166	(2) that constitute social conversation;
167	167	(3) that are specifically limited to and involve
168	168	administrative, clerical, or logistical matters related to the
169	169	scheduling and operation of hearings, the processing of documents,
170	170	the issuance of orders, notices, and subpoenas, and the operation,
171	171	appointment, composition, or attendance at training of the
172	172	appraisal review board; or
173	173	(4) that are necessary and appropriate to enable the
174	174	appraisal review board [of directors of the appraisal district] to
175	175	determine whether to appoint, reappoint, or remove a person as an
176	176	auxiliary board [a] member or as the chairman or secretary of the
177	177	appraisal review board.
178	178	SECTION 7. Section 6.413(a), Tax Code, is amended to read as
179	179	follows:
180	180	(a) An individual is not eligible to be elected or appointed
181	181	to or to serve on the appraisal review board established for an
182	182	appraisal district if the individual or a business entity in which
183	183	the individual has a substantial interest is a party to a contract
184	184	with the appraisal district or with a taxing unit that participates
185	185	in the appraisal district.
186	186	SECTION 8. Sections 6.414(a), (b), and (f), Tax Code, are
187	187	amended to read as follows:
188	188	(a) An [The board of directors of an] appraisal review board
189	189	[district] by resolution of a majority of the members may provide
190	190	for a number of auxiliary appraisal review board members that the
191	191	board considers appropriate to hear taxpayer protests before the
192	192	appraisal review board and to assist the board in performing its
193	193	duties.
194	194	(b) An auxiliary board member is appointed to a one-year
195	195	term by resolution of a majority of the [in the same manner and for
196	196	the same term as an] appraisal review board members. An auxiliary
197	197	board member may not serve more than two consecutive terms. This
198	198	subsection does not limit a person's eligibility for appointment to
199	199	serve nonconsecutive terms. An auxiliary board member [under
200	200	Section 6.41 and] is subject to the same eligibility requirements
201	201	and restrictions as a board member under Sections 6.41, 6.411,
202	202	6.412, and 6.413. A vacancy among the auxiliary board members is
203	203	filled in the same manner as the original appointment to the
204	204	appraisal review board.
205	205	(f) An auxiliary board member is entitled to compensation
206	206	and [as provided by the appraisal district budget and is not
207	207	entitled to a per diem or] reimbursement of expenses as provided by
208	208	[under] Section 6.42(c).
209	209	SECTION 9. Section 6.42(a), Tax Code, is amended to read as
210	210	follows:
211	211	(a) A majority of the appraisal review board constitutes a
212	212	quorum. The board [of directors of the appraisal district] by
213	213	resolution shall select a chairman and a secretary from among the
214	214	board's [the] members [of the appraisal review board]. The board
215	215	[of directors of the appraisal district] is encouraged to select as
216	216	chairman [of the appraisal review board] a member of the [appraisal
217	217	review] board, if any, who has a background in law and property
218	218	appraisal.
219	219	SECTION 10. Section 41.66(g), Tax Code, is amended to read
220	220	as follows:
221	221	(g) At the beginning of a hearing on a protest, each member
222	222	of the appraisal review board hearing the protest must sign an
223	223	affidavit stating that the board member has not communicated with
224	224	another person in violation of Subsection (f). If a board member
225	225	has communicated with another person in violation of Subsection
226	226	(f), the member must be recused from the proceeding and may not
227	227	hear, deliberate on, or vote on the determination of the protest.
228	228	The appraisal review board [of directors of the appraisal district]
229	229	shall adopt and implement a policy concerning the temporary
230	230	replacement of an appraisal review board member who has
231	231	communicated with another person in violation of Subsection (f).
232	232	SECTION 11. Section 52.092, Election Code, is amended by
233	233	adding Subsection (h) to read as follows:
234	234	(h) The secretary of state shall prescribe procedures for
235	235	the listing of the office of member of the appraisal review board of
236	236	an appraisal district on the ballot.
237	237	SECTION 12. The following provisions of the Tax Code are
238	238	repealed:
239	239	(1) Section 6.052(f);
240	240	(2) Sections 6.41(d-1), (d-2), (d-3), (d-4), (d-5),
241	241	(d-6), (d-7), (d-8), (d-9), (e), and (i); and
242	242	(3) Section 6.412(e).
243	243	SECTION 13. Section 403.302(c), Government Code, as amended
244	244	by this Act, applies only to the annual study conducted under
245	245	Section 403.302, Government Code, for a tax year that begins on or
246	246	after January 1, 2018. The annual study for a tax year that begins
247	247	before January 1, 2018, is covered by the law in effect immediately
248	248	before that date, and the prior law is continued in effect for that
249	249	purpose.
250	250	SECTION 14. Section 5.041, Tax Code, as amended by this Act,
251	251	applies only to an appraisal review board member appointed or
252	252	elected to serve a term of office that begins on or after the
253	253	effective date of this Act.
254	254	SECTION 15. (a) Appraisal review board members shall be
255	255	elected under Section 6.41, Tax Code, as amended by this Act,
256	256	beginning with the general election conducted in 2018. Members
257	257	then elected take office January 1, 2019.
258	258	(b) The change in the manner of selection of appraisal
259	259	review board members made by Section 6.41, Tax Code, as amended by
260	260	this Act, does not affect the selection of members who serve on the
261	261	board before January 1, 2019.
262	262	(c) The term of an appraisal review board member serving on
263	263	December 31, 2018, expires on January 1, 2019.
264	264	(d) Auxiliary members may be appointed under Section 6.414,
265	265	Tax Code, as amended by this Act, by the elected appraisal review
266	266	board members on or after January 1, 2019.
267	267	(e) The change in the manner of selection of auxiliary
268	268	members made by Section 6.414, Tax Code, as amended by this Act,
269	269	does not affect the selection of auxiliary members who serve before
270	270	January 1, 2019.
271	271	(f) The term of an auxiliary member serving on December 31,
272	272	2018, expires on January 1, 2019.
273	273	SECTION 16. The repeal by this Act of Section 6.41(i), Tax
274	274	Code, and the change in law made by this Act to Section 6.41(j), Tax
275	275	Code, do not apply to an offense committed under either of those
276	276	subsections before January 1, 2019. An offense committed before
277	277	January 1, 2019, is governed by the applicable subsection as it
278	278	existed on the date the offense was committed, and the former law is
279	279	continued in effect for that purpose. For purposes of this section,
280	280	an offense was committed before January 1, 2019, if any element of
281	281	the offense occurred before that date.
282	282	SECTION 17. (a) Except as otherwise provided by this
283	283	section, this Act takes effect January 1, 2018.
284	284	(b) Sections 3, 4, 6, 7, 8, 9, 10, 12, and 16 of this Act take
285	285	effect January 1, 2019.