H.B. No. 585
 
 
 
 
AN ACT
  relating to ad valorem taxation; creating an offense.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1151.1581, Occupations Code, is amended
  by adding Subsection (f) to read as follows:
         (f)  As part of the continuing education requirements for a
  registered professional appraiser who is the chief appraiser of an
  appraisal district, the commission by rule shall require the
  registrant to complete:
               (1)  at least half of the required hours in a program
  devoted to one or more of the topics listed in Section 1151.164(b);
  and
               (2)  at least two of the required hours in a program of
  professional ethics specific to the chief appraiser of an appraisal
  district, including a program on the importance of maintaining the
  independence of an appraisal office from political pressure.
         SECTION 2.  Section 5.041, Tax Code, is amended by adding
  Subsection (b-1) and amending Subsections (e-2) and (f) to read as
  follows:
         (b-1)  At the conclusion of a course established under
  Subsection (a), each member of an appraisal review board in
  attendance shall complete a statement, on a form prescribed by the
  comptroller, indicating that the member will comply with the
  requirements of this title in conducting hearings.
         (e-2)  During [As soon as practicable after the beginning of]
  the second year of an appraisal review board member's term of
  office, the member must successfully complete the course
  established under Subsection (e-1).  At the conclusion of the
  course, the member must complete a statement described by
  Subsection (b-1). A person may not participate in a hearing
  conducted by the board, vote on a determination of a protest, or be
  reappointed to an additional term on the board until the person has
  completed [who fails to timely complete] the course established
  under Subsection (e-1) and has received a certificate of course
  completion [may not be reappointed to an additional term on the
  appraisal review board].  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) and comply with the other requirements of this subsection in
  each year the member continues to serve.
         (f)  The comptroller may not advise a property owner, a
  property owner's agent, or the chief appraiser or another 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 an
  appraisal review board member as authorized by Subsection (a)(4) of
  this section or Section 5.103 and may communicate with the chairman
  of an appraisal review board or a taxpayer liaison officer
  concerning a complaint filed under Section 6.052.
         SECTION 3.  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 title;
               (6)  the determination of good cause under Section
  41.44(b);
               (7)  the determination of good cause under Sections
  41.45(e) and (e-1);
               (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 an agent;
               (11)  the prohibition of an appraisal review board's
  consideration of information not provided at a hearing;
               (12)  ex parte and other prohibited communications;
               (13)  the exclusion of evidence at a hearing as
  required by Section 41.67(d);
               (14)  the postponement of a hearing as required by
  Section 41.66(h);
               (15)  conflicts of interest;
               (16)  the process for the administration of
  applications for membership on an appraisal review board; and
               (17)  any other matter related to fair and efficient
  appraisal review board hearings.
         (c)  The comptroller may:
               (1)  categorize appraisal districts based on the size
  of the district, the number of protests filed in the district, or
  similar characteristics; and
               (2)  develop different model hearing procedures for
  different categories of districts.
         (d)  An appraisal review board shall follow the model hearing
  procedures prepared by the comptroller when establishing its
  procedures for hearings as required by Section 41.66(a).
         (e)  The comptroller shall prescribe the contents of a survey
  form for the purpose of providing the public a reasonable
  opportunity to offer comments and suggestions concerning the
  appraisal review board established for an appraisal district. The
  survey form must permit a person to offer comments and suggestions
  concerning the matters listed in Subsection (b) or any other matter
  related to the fairness and efficiency of the appraisal review
  board. The survey form, together with instructions for completing
  the form and submitting the form, shall be provided to each property
  owner at or before each hearing on a protest conducted by an
  appraisal review board. The appraisal office may provide clerical
  assistance to the comptroller for purposes of the implementation of
  this subsection, including assistance in providing and receiving
  the survey form. The comptroller, or an appraisal office providing
  clerical assistance to the comptroller, may provide for the
  provision and submission of survey forms electronically.
         (f)  The comptroller shall issue an annual report
  summarizing the survey forms submitted by property owners
  concerning each appraisal review board. The report may not
  disclose the identity of a person who submits a survey form.
         SECTION 4.  Section 6.035, Tax Code, is amended by adding
  Subsection (a-1) to read as follows:
         (a-1)  An individual is ineligible to serve on an appraisal
  district board of directors if the individual has engaged in the
  business of appraising property for compensation for use in
  proceedings under this title or of representing property owners for
  compensation in proceedings under this title in the appraisal
  district at any time during the preceding five years.
         SECTION 5.  Sections 6.05(c) and (d), Tax Code, are amended
  to read as follows:
         (c)  The chief appraiser is the chief administrator of the
  appraisal office. Except as provided by Section 6.0501, the [The]
  chief appraiser is appointed by and serves at the pleasure of the
  appraisal district board of directors. If a taxing unit performs
  the duties of the appraisal office pursuant to a contract, the
  assessor for the unit is the chief appraiser. To be eligible to be
  appointed or serve as a chief appraiser, a person must be certified
  as a registered professional appraiser under Section 1151.160,
  Occupations Code, possess an MAI professional designation from the
  Appraisal Institute, or possess an Assessment Administration
  Specialist (AAS), Certified Assessment Evaluator (CAE), or
  Residential Evaluation Specialist (RES) professional designation
  from the International Association of Assessing Officers. A person
  who is eligible to be appointed or serve as a chief appraiser by
  having a professional designation described by this subsection must
  become certified as a registered professional appraiser under
  Section 1151.160, Occupations Code, not later than the fifth
  anniversary of the date the person is appointed or begins to serve
  as chief appraiser.  A chief appraiser who is not eligible to be
  appointed or serve as chief appraiser may not perform an action
  authorized or required by law to be performed by a chief appraiser,
  including the preparation, certification, or submission of any part
  of the appraisal roll.  Not later than January 1 of each year, a
  chief appraiser shall notify the comptroller in writing that the
  chief appraiser is either eligible to be appointed or serve as the
  chief appraiser or not eligible to be appointed or serve as the
  chief appraiser.
         (d)  Except as provided by Section 6.0501, the [The] chief
  appraiser is entitled to compensation as provided by the budget
  adopted by the board of directors.  The chief appraiser's
  compensation may not be directly or indirectly linked to an
  increase in the total market, appraised, or taxable value of
  property in the appraisal district.  Except as provided by Section
  6.0501, the [The] chief appraiser may employ and compensate
  professional, clerical, and other personnel as provided by the
  budget, with the exception of a general counsel to the appraisal
  district.
         SECTION 6.  Subchapter A, Chapter 6, Tax Code, is amended by
  adding Section 6.0501 to read as follows:
         Sec. 6.0501.  APPOINTMENT OF ELIGIBLE CHIEF APPRAISER BY
  COMPTROLLER. (a) The comptroller shall appoint a person eligible
  to be a chief appraiser under Section 6.05(c) or a person who has
  previously been appointed or served as a chief appraiser to perform
  the duties of chief appraiser for an appraisal district whose chief
  appraiser is ineligible to serve.
         (b)  A chief appraiser appointed under this section serves
  until the earlier of:
               (1)  the first anniversary of the date the comptroller
  appoints the chief appraiser; or
               (2)  the date the board of directors of the appraisal
  district:
                     (A)  appoints a chief appraiser under Section
  6.05(c); or
                     (B)  contracts with an appraisal district or a
  taxing unit to perform the duties of the appraisal office for the
  district under Section 6.05(b).
         (c)  The comptroller shall determine the compensation of a
  chief appraiser appointed under this section. A chief appraiser
  appointed under this section shall determine the budget necessary
  for the adequate operation of the appraisal office, subject to the
  approval of the comptroller. The board of directors of the
  appraisal district shall amend the budget as necessary to
  compensate the appointed chief appraiser and fund the appraisal
  office as determined under this subsection.
         (d)  An appraisal district that does not appoint a chief
  appraiser or contract with an appraisal district or a taxing unit to
  perform the duties of the appraisal office by the first anniversary
  of the date the comptroller appoints a chief appraiser shall
  contract with an appraisal district or a taxing unit to perform the
  duties of the appraisal office or with a qualified public or private
  entity to perform the duties of the chief appraiser, subject to the
  approval of the comptroller.
         SECTION 7.  Section 6.052, Tax Code, is amended by amending
  Subsections (a), (b), (c), and (e) and adding Subsection (f) 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. In addition, the
  taxpayer liaison officer is responsible for receiving, and
  compiling a list of, comments and suggestions filed by the chief
  appraiser, a property owner, or a property owner's agent concerning
  the matters listed in Section 5.103(b) or any other matter related
  to the fairness and efficiency of the appraisal review board
  established for the appraisal district. The taxpayer liaison
  officer shall forward to the comptroller comments and suggestions
  filed under this subsection in the form and manner prescribed by the
  comptroller.
         (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, the
  procedure for filing comments and suggestions under Subsection (a)
  of this section or a complaint under Section 6.04(g), and other
  [related] matters. Information concerning the process for
  submitting comments and suggestions to the comptroller concerning
  an appraisal review board 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 comments and suggestions 
  [complaints] filed with the officer under Subsection (a) of this
  section and all complaints filed with the board under Section
  6.04(g).
         (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 for an appraisal district
  described by Section 6.41(d-1) is responsible for providing
  clerical assistance to the local administrative district judge in
  the selection of appraisal review board members. The officer shall
  deliver to the local administrative district judge any applications
  to serve on the board that are submitted to the officer and shall
  perform other duties as requested by the local administrative
  district judge. The officer may not influence the process for
  selecting appraisal review board members.
         SECTION 8.  Section 6.41, Tax Code, is amended by amending
  Subsections (d-1) and (f) and adding Subsections (i), (j), and (k)
  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 under Subchapter D, Chapter 74, Government Code, in
  the county in which the appraisal district is established. All
  applications submitted to the appraisal district or to the
  appraisal review board from persons seeking appointment as a member
  of the appraisal review board shall be delivered to the local
  administrative district judge.  The appraisal district may provide
  the local administrative district judge with information regarding
  whether an applicant for appointment to or a member of the board
  owes any delinquent ad valorem taxes to a taxing unit participating
  in the appraisal district.
         (f)  A member of the board may be removed from the board by a
  majority vote of the appraisal district board of directors, or by
  the local administrative district judge or the judge's designee, as
  applicable, that appointed the member.  Grounds for removal are:
               (1)  a violation of Section 6.412, 6.413, 41.66(f), or
  41.69; [or]
               (2)  good cause relating to the attendance of members
  at called meetings of the board as established by written policy
  adopted by a majority of the appraisal district board of directors;
  or
               (3)  clear and convincing evidence of repeated bias or
  misconduct.
         (i)  This subsection applies only to an appraisal district
  described by Subsection (d-1). A chief appraiser or another
  employee or agent of the appraisal district, a member of the
  appraisal review board for the appraisal district, a member of the
  board of directors of the appraisal district, a property tax
  consultant, or an agent of a property owner commits an offense if
  the person communicates with the local administrative district
  judge regarding the appointment of appraisal review board members.
  This subsection does not apply to:
               (1)  a communication between a member of the appraisal
  review board and the local administrative district judge regarding
  the member's reappointment to the board;
               (2)  a communication between the taxpayer liaison
  officer for the appraisal district and the local administrative
  district judge in the course of the performance of the officer's
  clerical duties so long as the officer does not offer an opinion or
  comment regarding the appointment of appraisal review board
  members; or
               (3)  a communication between a chief appraiser or
  another employee or agent of the appraisal district, a member of the
  appraisal review board for the appraisal district, or a member of
  the board of directors of the appraisal district and the local
  administrative district judge regarding information described by
  Subsection (d-1) of this section or Section 411.1296, Government
  Code.
         (j)  A chief appraiser or another employee or agent of an
  appraisal district commits an offense if the person communicates
  with a member of the appraisal review board for the appraisal
  district, a member of the board of directors of the appraisal
  district, or, if the appraisal district is an appraisal district
  described by Subsection (d-1), the local administrative district
  judge regarding a ranking, scoring, or reporting of the percentage
  by which the appraisal review board or a panel of the board reduces
  the appraised value of property.
         (k)  An offense under Subsection (i) or (j) is a Class A
  misdemeanor.
         SECTION 9.  Section 6.411(c-1), Tax Code, is amended to read
  as follows:
         (c-1)  This section does not apply to communications with a
  member of an appraisal review board by [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.
         SECTION 10.  Chapter 21, Tax Code, is amended by adding
  Sections 21.09 and 21.10 to read as follows:
         Sec. 21.09.  ALLOCATION APPLICATION. (a) To receive an
  allocation authorized by Section 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 taxable
  situs.
         (b)  A person claiming an allocation must apply for the
  allocation each year the person claims the allocation. A person
  claiming an allocation must file a completed allocation application
  form before May 1 and must provide the information required by the
  form. If the property was not on the appraisal roll in the
  preceding year, the deadline for filing the allocation application
  form is extended to the 45th day after the date of receipt of the
  notice of appraised value required by Section 25.19(a)(3). For
  good cause shown, the chief appraiser shall extend the deadline for
  filing an allocation application form 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 provide the information necessary to determine the
  validity of the allocation claim.
         (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 cancellation not later than the fifth day after the date the
  chief appraiser makes the cancellation. A person may protest the
  cancellation of an allocation.
         (e)  The filing of a rendition under Chapter 22 is not a
  condition of qualification for an allocation.
         Sec. 21.10.  LATE APPLICATION FOR ALLOCATION. (a) The chief
  appraiser shall accept and approve or deny an application for an
  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 the application 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, explaining the reason for its imposition, 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 against the
  property against which the penalty is imposed, as if the penalty
  were a tax, and accrues penalty and interest in the same manner as a
  delinquent tax.
         SECTION 11.  Section 22.01, Tax Code, is amended by adding
  Subsections (c-1), (c-2), and (d-1) to read as follows:
         (c-1)  In this section:
               (1)  "Secured party" has the meaning assigned by
  Section 9.102, Business & Commerce Code.
               (2)  "Security interest" has the meaning assigned by
  Section 1.201, Business & Commerce Code.
         (c-2)  With the consent of the property owner, a secured
  party may render for taxation any property of the property owner in
  which the secured party has a security interest on January 1,
  although the secured party is not required to render the property by
  Subsection (a) or (b). This subsection applies only to property
  that has a historical cost when new of more than $50,000.
         (d-1)  A secured party who renders property under Subsection
  (c-2) shall indicate the party's status as a secured party and shall
  state the name and address of the property owner. A secured party
  is not liable for inaccurate information included on the rendition
  statement if the property owner supplied the information or for
  failure to timely file the rendition statement if the property
  owner failed to promptly cooperate with the secured party. A
  secured party may rely on information provided by the property
  owner with respect to:
               (1)  the accuracy of information in the rendition
  statement;
               (2)  the appraisal district in which the rendition
  statement must be filed; and
               (3)  compliance with any provisions of this chapter
  that require the property owner to supply additional information.
         SECTION 12.  Section 22.24(e), Tax Code, is amended to read
  as follows:
         (e)  To be valid, a rendition or report must be sworn to
  before an officer authorized by law to administer an oath. The
  comptroller may not prescribe or approve a rendition or report form
  unless the form provides for the person filing the form to swear
  that the information provided in the rendition or report is true and
  accurate to the best of the person's knowledge and belief. This
  subsection does not apply to a rendition or report filed by a
  secured party, as defined by Section 22.01, the property owner, an
  employee of the property owner, or an employee of a property owner
  on behalf of an affiliated entity of the property owner.
         SECTION 13.  The heading to Section 23.02, Tax Code, is
  amended to read as follows:
         Sec. 23.02.  REAPPRAISAL OF PROPERTY DAMAGED IN [NATURAL]
  DISASTER AREA.
         SECTION 14.  Sections 23.02(a) and (d), Tax Code, are
  amended to read as follows:
         (a)  The governing body of a taxing unit that is located
  partly or entirely inside an area declared to be a [natural]
  disaster area by the governor may authorize reappraisal of all
  property damaged in the disaster at its market value immediately
  after the disaster.
         (d)  If property damaged in a [natural] disaster is
  reappraised as provided by this section, the governing body shall
  provide for prorating the taxes on the property for the year in
  which the disaster occurred. If the taxes are prorated, taxes due
  on the property are determined as follows: the taxes on the property
  based on its value on January 1 of that year are multiplied by a
  fraction, the denominator of which is 365 and the numerator of which
  is the number of days before the date the disaster occurred; the
  taxes on the property based on its reappraised value are multiplied
  by a fraction, the denominator of which is 365 and the numerator of
  which is the number of days, including the date the disaster
  occurred, remaining in the year; and the total of the two amounts is
  the amount of taxes on the property for the year.
         SECTION 15.  Section 23.23, Tax Code, is amended by adding
  Subsection (g) to read as follows:
         (g)  In this subsection, "disaster recovery program" means
  the disaster recovery program administered by the General Land
  Office that is funded with community development block grant
  disaster recovery money authorized by the Consolidated Security,
  Disaster Assistance, and Continuing Appropriations Act, 2009 (Pub.
  L. No. 110-329) and the Consolidated and Further Continuing
  Appropriations Act, 2012 (Pub. L. No. 112-55). Notwithstanding
  Subsection (f)(2), and only to the extent necessary to satisfy the
  requirements of the disaster recovery program, a replacement
  structure described by that subdivision is not considered to be a
  new improvement if to satisfy the requirements of the disaster
  recovery program it was necessary that:
               (1)  the square footage of the replacement structure
  exceed that of the replaced structure as that structure existed
  before the casualty or damage occurred; or
               (2)  the exterior of the replacement structure be of
  higher quality construction and composition than that of the
  replaced structure.
         SECTION 16.  Section 23.129(b), Tax Code, is amended to read
  as follows:
         (b)  A chief appraiser or collector may waive a penalty under
  Subsection (a) only if:
               (1)  the taxpayer seeking the waiver files a written
  application for the waiver with the chief appraiser or collector,
  as applicable, not later than the 30th day after the date the
  declaration or statement, as applicable, was required to be filed;
               (2)  the taxpayer's failure to file or failure to timely
  file the declaration or statement was a result of:
                     (A)  a [natural] disaster that made it effectively
  impossible for the taxpayer to comply with the filing requirement;
  or
                     (B)  an event beyond the control of the taxpayer
  that destroyed the taxpayer's property or records; and
               (3)  the taxpayer is otherwise in compliance with this
  chapter.
         SECTION 17.  Section 31.11, Tax Code, is amended by adding
  Subsections (j) and (k) to read as follows:
         (j)  If the collector for a taxing unit does not respond to an
  application for a refund on or before the 90th day after the date
  the application is filed with the collector, the application is
  presumed to have been denied.
         (k)  Not later than the 60th day after the date the collector
  for a taxing unit denies an application for a refund, the taxpayer
  may file suit against the taxing unit in district court to compel
  the payment of the refund. If the collector collects taxes for more
  than one taxing unit, the taxpayer shall join in the suit each
  taxing unit on behalf of which the collector denied the refund. If
  the taxpayer prevails in the suit, the taxpayer may be awarded:
               (1)  costs of court; and
               (2)  reasonable attorney's fees in an amount not to
  exceed the greater of:
                     (A)  $1,500; or
                     (B)  30 percent of the total amount of the refund
  determined by the court to be due.
         SECTION 18.  Section 33.48(a), Tax Code, is amended to read
  as follows:
         (a)  In addition to other costs authorized by law, a taxing
  unit is entitled to recover the following costs and expenses in a
  suit to collect a delinquent tax:
               (1)  all usual court costs, including the cost of
  serving process and electronic filing fees;
               (2)  costs of filing for record a notice of lis pendens
  against property;
               (3)  expenses of foreclosure sale;
               (4)  reasonable expenses that are incurred by the
  taxing unit in determining the name, identity, and location of
  necessary parties and in procuring necessary legal descriptions of
  the property on which a delinquent tax is due;
               (5)  attorney's fees in the amount of 15 percent of the
  total amount of taxes, penalties, and interest due the unit; and
               (6)  reasonable attorney ad litem fees approved by the
  court that are incurred in a suit in which the court orders the
  appointment of an attorney to represent the interests of a
  defendant served with process by means of citation by publication
  or posting.
         SECTION 19.  Section 33.49(a), Tax Code, is amended to read
  as follows:
         (a)  Except as provided by Subsection (b), a taxing unit is
  not liable in a suit to collect taxes for court costs, including any
  fees for service of process or electronic filing, an attorney ad
  litem, arbitration, or mediation, and may not be required to post
  security for costs.
         SECTION 20.  (a)  Section 41.43, Tax Code, is amended by
  amending Subsection (a) and adding Subsections (a-3), (a-4), and
  (a-5) to read as follows:
         (a)  Except as provided by Subsections (a-1), (a-3), and (d),
  in a protest authorized by Section 41.41(a)(1) or (2), the
  appraisal district has the burden of establishing the value of the
  property by a preponderance of the evidence presented at the
  hearing.  If the appraisal district fails to meet that standard, the
  protest shall be determined in favor of the property owner.
         (a-3)  In a protest authorized by Section 41.41(a)(1) or (2),
  the appraisal district has the burden of establishing the value of
  the property by clear and convincing evidence presented at the
  hearing if:
               (1)  the appraised value of the property was lowered
  under this subtitle in the preceding tax year;
               (2)  the appraised value of the property in the
  preceding tax year was not established as a result of a written
  agreement between the property owner or the owner's agent and the
  appraisal district under Section 1.111(e); and
               (3)  not later than the 14th day before the date of the
  first day of the hearing, the property owner files with the
  appraisal review board and delivers to the chief appraiser:
                     (A)  information, such as income and expense
  statements or information regarding comparable sales, that is
  sufficient to allow for a determination of the appraised or market
  value of the property if the protest is authorized by Section
  41.41(a)(1); or
                     (B)  information that is sufficient to allow for a
  determination of whether the property was appraised unequally if
  the protest is authorized by Section 41.41(a)(2).
         (a-4)  If the appraisal district has the burden of
  establishing the value of property by clear and convincing evidence
  presented at the hearing on a protest as provided by Subsection
  (a-3) and the appraisal district fails to meet that standard, the
  protest shall be determined in favor of the property owner.
         (a-5)  Subsection (a-3)(3) does not impose a duty on a
  property owner to provide any information in a protest authorized
  by Section 41.41(a)(1) or (2). That subdivision is merely a
  condition to the applicability of the standard of evidence provided
  by Subsection (a-3).
         (b)  The change in law made by this section applies only to a
  protest filed with an appraisal review board on or after the
  effective date of this section. A protest filed with an appraisal
  review board before the effective date of this section is covered by
  the law in effect at the time the protest was filed, and the former
  law is continued in effect for that purpose.
         (c)  Notwithstanding any other provision of this Act, this
  section takes effect September 1, 2013.
         SECTION 21.  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 at the protest hearing by submitting an affidavit to the
  appraisal review board. The board may consider the affidavit only
  if the property owner does not appear at the protest hearing in
  person. For purposes of scheduling the hearing, the property owner
  shall state in the affidavit that the property owner does not intend
  to appear at the hearing or that the property owner intends to
  appear at the hearing and that the affidavit may be used only if the
  property owner does not appear at the hearing. If the property
  owner does not state in the affidavit whether the owner intends to
  appear at the hearing, the board shall consider the submission of
  the affidavit as an indication that the property owner does not
  intend to appear at the hearing. If the property owner states in
  the affidavit that the owner does not intend to appear at the
  hearing or does not state in the affidavit whether the owner intends
  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 22.  Section 41.66, Tax Code, is amended by adding
  Subsections (i), (j), (k), (l), (m), (n), and (o) to read as
  follows:
         (i)  A hearing on a protest filed by a property owner who is
  not represented by an agent designated under Section 1.111 shall be
  set for a time and date certain. If the hearing is not commenced
  within two hours of the time set for the hearing, the appraisal
  review board shall postpone the hearing on the request of the
  property owner.
         (j)  On the request of a property owner or a designated
  agent, an appraisal review board shall schedule hearings on
  protests concerning up to 20 designated properties on the same day.
  The designated properties must be identified in the same notice of
  protest, and the notice must contain in boldfaced type the
  statement "request for same-day protest hearings." A property
  owner or designated agent may not file more than one request under
  this subsection with the appraisal review board in the same tax
  year. The appraisal review board may schedule hearings on protests
  concerning more than 20 properties filed by the same property owner
  or designated agent and may use different panels to conduct the
  hearings based on the board's customary scheduling. The appraisal
  review board may follow the practices customarily used by the board
  in the scheduling of hearings under this subsection.
         (k)  If an appraisal review board sits in panels to conduct
  protest hearings, protests shall be randomly assigned to panels,
  except that the board may consider the type of property subject to
  the protest or the ground of the protest for the purpose of using
  the expertise of a particular panel in hearing protests regarding
  particular types of property or based on particular grounds. If a
  protest is scheduled to be heard by a particular panel, the protest
  may not be reassigned to another panel without the consent of the
  property owner or designated agent. If the appraisal review board
  has cause to reassign a protest to another panel, a property owner
  or designated agent may agree to reassignment of the protest or may
  request that the hearing on the protest be postponed. The board
  shall postpone the hearing on that request.  A change of members of
  a panel because of a conflict of interest, illness, or inability to
  continue participating in hearings for the remainder of the day
  does not constitute reassignment of a protest to another panel.
         (l)  A property owner, attorney, or agent offering evidence
  or argument in support of a protest brought under Section
  41.41(a)(1) or (2) of this code is not subject to Chapter 1103,
  Occupations Code, unless the person offering the evidence or
  argument states that the person is offering evidence or argument as
  a person holding a license or certificate under Chapter 1103,
  Occupations Code.  A person holding a license or certificate under
  Chapter 1103, Occupations Code, shall state the capacity in which
  the person is appearing before the appraisal review board.
         (m)  An appraisal district or appraisal review board may not
  make decisions with regard to membership on a panel or chairmanship
  of a panel based on a member's voting record in previous protests.
         (n)  A request for postponement of a hearing must contain the
  mailing address and e-mail address of the person requesting the
  postponement. An appraisal review board shall respond in writing
  or by e-mail to a request for postponement of a hearing not later
  than the seventh day after the date of receipt of the request.
         (o)  The chairman of an appraisal review board or a member
  designated by the chairman may make decisions with regard to the
  scheduling or postponement of a hearing. The chief appraiser or a
  person designated by the chief appraiser may agree to a
  postponement of an appraisal review board hearing.
         SECTION 23.  Section 41A.03(a), 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 24.  Sections 42.08(b), (b-1), and (c), 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 imposed on the property in the
  preceding tax 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 failure to provide the
  statement required by this subsection is not a jurisdictional
  error.
         (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 pay an additional amount of 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. If the taxes are
  subject to the split-payment option provided by Section 31.03, the
  property owner may comply with Subsection (b) of this section by
  paying one-half of the amount otherwise required to be paid under
  that subsection before December 1 and paying the remaining one-half
  of that amount before July 1 of the following year.
         SECTION 25.  Section 42.21, Tax Code, is amended by adding
  Subsections (f), (g), and (h) to read as follows:
         (f)  A petition filed by an owner or lessee of property may
  include multiple properties that are owned or leased by the same
  person and are of a similar type or are part of the same economic
  unit and would typically sell as a single property. If a petition
  is filed by multiple plaintiffs or includes multiple properties
  that are not of a similar type, are not part of the same economic
  unit, or are part of the same economic unit but would not typically
  sell as a single property, the court may on motion and a showing of
  good cause sever the plaintiffs or the properties.
         (g)  A petition filed by an owner or lessee of property may be
  amended to include additional properties in the same county that
  are owned or leased by the same person, are of a similar type as the
  property originally involved in the appeal or are part of the same
  economic unit as the property originally involved in the appeal and
  would typically sell as a single property, and are the subject of an
  appraisal review board order issued in the same year as the order
  that is the subject of the original appeal. The amendment must be
  filed within the period during which a petition for review of the
  appraisal review board order pertaining to the additional
  properties would be required to be filed under Subsection (a).
         (h)  The court has jurisdiction over an appeal under this
  chapter brought on behalf of a property owner or lessee and the
  owner or lessee is considered to have exhausted the owner's or
  lessee's administrative remedies regardless of whether the
  petition correctly identifies the plaintiff as the owner or lessee
  of the property or correctly describes the property so long as the
  property was the subject of an appraisal review board order, the
  petition was filed within the period required by Subsection (a),
  and the petition provides sufficient information to identify the
  property that is the subject of the petition. Whether the plaintiff
  is the proper party to bring the petition or whether the property
  needs to be further identified or described must be addressed by
  means of a special exception and correction of the petition by
  amendment as authorized by Subsection (e) and may not be the subject
  of a plea to the jurisdiction or a claim that the plaintiff has
  failed to exhaust the plaintiff's administrative remedies.  If the
  petition is amended to add a plaintiff, the court on  motion shall
  enter a docket control order to provide proper deadlines in
  response to the addition of the plaintiff.
         SECTION 26.  Section 42.23, Tax Code, is amended by adding
  Subsection (h) to read as follows:
         (h)  Evidence, argument, or other testimony offered at an
  appraisal review board hearing by a property owner or agent is not
  admissible in an appeal under this chapter unless:
               (1)  the evidence, argument, or other testimony is
  offered to demonstrate that there is sufficient evidence to deny a
  no-evidence motion for summary judgment filed by a party to the
  appeal or is necessary for the determination of the merits of a
  motion for summary judgment filed on another ground;
               (2)  the property owner or agent is designated as a
  witness for purposes of trial and the testimony offered at the
  appraisal review board hearing is offered for impeachment purposes;
  or
               (3)  the evidence is the plaintiff's testimony at the
  appraisal review board hearing as to the value of the property.
         SECTION 27.  Section 42.29(a), Tax Code, is amended to read
  as follows:
         (a)  A property owner who prevails in an appeal to the court
  under Section 42.25 or 42.26, [or] in an appeal to the court of a
  determination of an appraisal review board on a motion filed under
  Section 25.25, or in an appeal to the court of a determination of an
  appraisal review board of a protest of the denial in whole or in
  part of an exemption under Section 11.17, 11.22, 11.23, 11.231, or
  11.24 may be awarded reasonable attorney's fees.  The amount of the
  award may not exceed the greater of:
               (1)  $15,000; or
               (2)  20 percent of the total amount by which the
  property owner's tax liability is reduced as a result of the appeal.
         SECTION 28.  Section 41A.031, Tax Code, is repealed.
         SECTION 29.  The changes in law made by this Act apply to a
  proceeding that is pending on the effective date of this Act or is
  filed on or after the effective date of this Act.
         SECTION 30.  The Texas Commission of Licensing and
  Regulation shall adopt the rules required by Section 1151.1581(f),
  Occupations Code, as added by this Act, not later than January 1,
  2014.
         SECTION 31.  Section 6.035, Tax Code, as amended by this Act,
  does not affect the eligibility of an individual serving on an
  appraisal district board of directors immediately before the
  effective date of this Act to continue to serve on the appraisal
  district board of directors for the term to which the member was
  appointed.
         SECTION 32.  A person appointed or serving as a chief
  appraiser in an appraisal district established in a county with a
  population of 100,000 or less on the effective date of this Act who
  is not eligible to be appointed or serve as a chief appraiser under
  Section 6.05(c), Tax Code, as amended by this Act, but who is
  registered with the Texas Department of Licensing and Regulation
  and classified as a Class III appraiser under the rules of the Texas
  Commission of Licensing and Regulation may continue to serve as the
  chief appraiser until January 1, 2016.
         SECTION 33.  (a)  As soon as practicable on or after January
  1, 2014, the local administrative district judge or the judge's
  designee in a county described by Section 6.41(d-1), Tax Code, as
  amended by this Act, in the manner provided by Section 6.41, Tax
  Code, shall appoint the members of the appraisal review board for
  the appraisal district established in the county. In making the
  initial appointments, the judge or judge's designee shall designate
  those members who serve terms of one year as necessary to comply
  with Section 6.41(e), Tax Code.
         (b)  The changes made to Section 6.41, Tax Code, by this Act
  apply only to the appointment of appraisal review board members to
  terms beginning on or after January 1, 2014. This Act does not
  affect the term of an appraisal review board member serving on
  December 31, 2013, if the member was appointed before January 1,
  2014, to a term that began before December 31, 2013, and expires
  December 31, 2014.
         SECTION 34.  Section 6.411, Tax Code, as amended by this Act,
  applies only to an offense committed on or after the effective date
  of this Act. An offense committed before the effective date of this
  Act is governed by the law in effect on the date the offense was
  committed, and the former law is continued in effect for that
  purpose. For purposes of this section, an offense was committed
  before the effective date of this Act if any element of the offense
  occurred before that date.
         SECTION 35.  Sections 22.01 and 22.24, Tax Code, as amended
  by this Act, apply only to the rendition of property for ad valorem
  tax purposes for a tax year that begins on or after January 1, 2014.
         SECTION 36.  Section 23.02, Tax Code, as amended by this Act,
  applies to all properties affected by a disaster as defined by
  Section 418.004, Government Code, that were appraised as of January
  1, 2013. Property affected by a disaster and appraised prior to
  January 1, 2013, is governed by the law in effect at that time.
         SECTION 37.  The change in law made by Section 23.23(g), Tax
  Code, as added by this Act, applies only to the appraisal of a
  residence homestead for ad valorem tax purposes for a tax year that
  begins on or after January 1, 2014.
         SECTION 38.  (a)  Except as provided by Subsection (b) of
  this section:
               (1)  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; and
               (2)  if this Act does not receive the vote necessary for
  immediate effect, this Act takes effect September 1, 2013.
         (b)  Sections 1, 2, 3, 5, 6, 7, 8, 11, 12, 15, 21, 22, and 35
  of this Act take effect January 1, 2014.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 585 was passed by the House on May 3,
  2013, by the following vote:  Yeas 143, Nays 2, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 585 on May 24, 2013, by the following vote:  Yeas 146, Nays 0, 2
  present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 585 was passed by the Senate, with
  amendments, on May 22, 2013, by the following vote:  Yeas 28, Nays
  3.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor