By: Villarreal H.B. No. 585
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to procedural requirements under the Property Tax Code.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 5.041, Tax Code, is amended to read as
  follows:
         (b)  A member of the appraisal review board established for
  an appraisal district must complete the course established under
  Subsections (a) and (e-1).  A member of the appraisal review board
  may not participate in a hearing conducted by the board unless the
  person has completed the course established under Subsections (a)
  and (e-1) and has received a certificate of course completion.
         (b-1)  At the conclusion of a course established under
  Subsections (a) and (e-1), each member of the appraisal review
  board in attendance shall complete a statement, on a form
  prescribed by the comptroller, indicating that the member will
  abide by the requirements of this title in conducting hearings.
         (e-2)  During [As soon as practicable after the beginning of]
  the second year and each year thereafter of an appraisal review
  board member's term of office, the member must successfully
  complete the course established under Subsection (e-1).  A person
  who fails to [timely] complete the course established under
  Subsection (e-1) may not participate in a hearing conducted by the
  board and may not vote on any determination of protest. Further, a
  person who fails to complete the courses established under
  Subsections (a) and (e-1) may not be reappointed to an additional
  term on the appraisal review board.  Appraisal review board members
  [If the person is reappointed to an additional term on the appraisal
  review board, the person] must successfully complete the course
  established under Subsection (e-1) in each year the member
  continues to serve after the first year of service.
         (f)  The comptroller may not advise a property owner, a
  property owner's agent, the chief appraiser, or an employee of an
  appraisal district [or an appraisal review board] on a matter that
  the comptroller knows is the subject of a protest to the appraisal
  review board.  The comptroller may provide advice to the appraisal
  review board as authorized by subsection (a)(4) of this section and
  may communicate with the chairmen of appraisal review boards and
  taxpayer liaison officers concerning complaints filed under
  Section 6.052 of this code.
         SECTION 2.  Section 5.103, Tax Code, is added to read as
  follows:
         Section 5.103.  Appraisal Review Board Oversight.  (a)  The
  comptroller shall adopt uniform practice and procedure rules for an
  appraisal review board.
         (b)  The rules shall address:
               (1)  duties of an appraisal review board;
               (2)  scheduling of hearings;
               (3)  notices required under this code;
               (4)  determination of what constitutes substantially
  all timely filed protests under Section 41.12;
               (5)  determination of good cause under Section
  41.44(b);
               (6)  determination of good cause under Section 41.45(e)
  and (g);
               (7)  hearing procedures for the hearings the appraisal
  review conducts under Subchapters A and C of this chapter;
               (8)  a party's right to offer evidence and argument;
               (9)  a party's right to examine or cross examine
  witnesses or other parties;
               (10)  a party's right to appear by agent;
               (11)  the prohibition of an appraisal review board on
  consideration of information not provided at the hearing;
               (12)  ex parte communication;
               (13)  exclusion of evidence under Section 41.461;
               (14)  postponement for failure to comply with Section
  41.461;
               (15)  conflict of interest; and
               (16)  other matters related to fair and efficient
  appraisal review board hearings.
         (b)  An appraisal review board shall follow the rules of
  practice and procedure adopted by the comptroller.
         (c)  The comptroller shall develop and implement policies
  that provide the public with a reasonable opportunity to register
  complaints or suggestions for improvement concerning an appraisal
  review board with the comptroller.
         (d)  The comptroller shall prior to January 1 of the tax year
  issue a report summarizing the complaints and suggestions
  concerning each appraisal review board.  The report shall not
  identify the person making the complaint.
         (e)  The chairman of an appraisal review board in a county in
  excess of 200,000 shall review the report and issue a written
  response to the issues raised in the report prior to April 1 of the
  succeeding year.  The comptroller shall by rule set forth the
  requirements of this report.
         SECTION 3.  Section 6.052, Tax Code, is amended to read as
  follows:
         (a)  The board of directors for an appraisal district created
  for a county with a population of more than 125,000 shall [appoint]
  employ a taxpayer liaison officer who shall serve at the pleasure of
  the board.  The taxpayer liaison officer shall administer the
  public access functions required by Sections 6.04(d), (e), and (f),
  and is responsible for resolving disputes not involving matters
  that may be protested under Section 41.41.  The taxpayer liaison
  officer also is responsible for receiving and compiling a list of
  complaints filed by the chief appraiser, a property owner, or a
  property owner's agent concerning, but not limited to, the
  following matters related to the appraisal review board:
               (1)  application of hearing procedures;
               (2)  provision of notices;
               (3)  scheduling of hearings;
               (4)  postponement of hearings;
               (5)  admission of evidence presented at hearings;
               (6)  issuance of subpoenas;
               (7)  conflicts of interest;
               (8)  restrictions on membership eligibility;
               (9)  assignment of protests to panels;
               (10)  ex parte communications; and
               (11)  any other procedural matter.
         (b)  The taxpayer liaison officer [may] shall provide to the
  public information and materials designed to assist property owners
  in understanding the appraisal process, protest procedures, how to
  file complaints under subsection (a) and Section 6.04(g), and other
  matters.
         (c)  The taxpayer liaison officer shall report to the board
  at each meeting on the status of all complaints filed with the board
  under section 6.04(g) and with the officer under subsection (a).
         (d)  The taxpayer liaison officer is entitled to
  compensation as provided by the budget adopted by the board of
  directors.
         (e)  The chief appraiser or any other person who performs
  appraisal or legal services for the appraisal district or is
  employed by the appraisal district in another capacity is not
  eligible to be the taxpayer liaison officer [for the appraisal
  district].
         (f)  The taxpayer liaison officer shall provide to the
  comptroller the list of complaints filed under subsection (a) in
  the form and manner and according to the schedule prescribed by the
  comptroller.
         SECTION 4.  SECTION 6.41, Tax Code is amended to read as
  follows:
         (d-1)  In a county with a population of 200,000 [3.3 million
  or more or a county with a population of 550,000 or more that is
  adjacent to a county with a population of 3.3 million] or more the
  members of the board are appointed by the local administrative
  district judge in the county in which the appraisal district is
  established.
         (d-10)  In a county with a population greater than 200,000,
  an appraisal review board member may be removed for good cause as
  follows:
               (1)  The Board of Directors of the appraisal district,
  the Chairman of the appraisal review board or a property owner in
  the district may file a motion with the local administrative
  district judge for purposes of the removal of a member of the
  appraisal review board for good cause.
               (2)  Good cause includes but is not limited to:
                           (i)  failure to follow the Tax Code,
                           (ii)  failure to follow the Rules of the
  Comptroller of Public Accounts,
                           (iii)  demonstration of bias or prejudice,
                           (iv)  participation in ex parte
  communication prohibited by this code,
                           (v)  maintenance of statistics of changes in
  values of properties,
                           (vi)  failure to regularly attend meetings,
                           (vii)  failure to provide a report under
  Section 5.103(e); and
                           (viii)  inattention to hearings or the
  hearing process.
               (3)  The district judge shall have complete discretion
  in selection of the appropriate procedure for implementation of
  this process.  The district judge may or may not hold a hearing.  The
  decision of the district judge is final and may not be appealed.
               (4)  If good cause for removal is found, the member
  shall be removed from the appraisal review board immediately.  The
  removal shall have no effect upon prior decisions in which the
  member participated.
               (5)  The district judge may appoint a special master to
  determine the motion for removal.  The special master shall be
  compensated by the appraisal district at the same rate as an
  appraisal review board member.
               (6)  The local administrative district judge shall
  appoint the replacement if a member is removed.
               (7)  The comptroller of public accounts shall adopt
  rules for the implementation of this section.
         (e)  Members of the board hold office for terms of four [two]
  years beginning January 1.  The appraisal district board of
  directors by resolution shall provide for staggered terms, so that
  the terms of as close to one-half of the members as possible expire
  each year.  In making the initial or subsequent appointments, the
  board of directors or the local administrative district judge or
  the judge's designee shall designate those members who serve terms
  of one year as needed to comply with this subsection.
         (i)  The decisions of a member of an appraisal review shall
  be made in compliance with this Code and the rules of the
  Comptroller of Public Accounts.  A member shall at the conclusion of
  the training required under Section 5.041 or prior to the first
  appraisal review board hearing of the tax year sign an affidavit
  agreeing to compliance with these provisions.
         (j)  Service on a board does not constitute employment for
  the purposes of Chapter 201, Labor Code and does not authorize a
  person to receive unemployment benefits by virtue of such service.
         SECTION 5. SECTION 21.09, Tax Code, is added to read as
  follows:
         Sec. 21.09  ALLOCATION APPLICATION (a) To receive an
  allocation authorized by Section 21.021, 21.03, 21.031, 21.05 or
  21.055, a person claiming the allocation must apply for the
  allocation.  To apply for an allocation, a person must file an
  allocation application form with the chief appraiser in the
  appraisal district in which the property subject to the claimed
  allocation has situs.
         (b)  A person claiming allocation must apply for the
  allocation each year the person claims allocation.  A person
  claiming allocation must file a completed allocation application
  form before May 1 and must furnish the information required by the
  form.  For good cause shown, the chief appraiser shall extend the
  deadline for filing an allocation application by written order for
  a period not to exceed 60 days.
         (c)  The comptroller shall prescribe the contents of the
  allocation application form and shall ensure that the form requires
  an applicant to furnish the information necessary to determine the
  validity of the allocation application.
         (d)  If the chief appraiser learns of any reason indicating
  that an allocation previously allowed should be cancelled, he shall
  investigate.  If he determines that the property is not entitled to
  an allocation, he shall cancel the allocation and deliver written
  notice of the cancellation within five days after the date he 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 allocation.
         (f)  If the property was not on the appraisal roll in the
  preceding year, the deadline for filing an application for
  allocation is extended to 45 days after receipt of the notice of
  appraised value required by Section 25.19(a)(1) of this code.
         SECTION 6.  SECTION 22.10, Tax Code, is added to read as
  follows:
         Sec. 21.10.  LATE APPLICATION FOR ALLOCATION.  (a)  The chief
  appraiser shall accept and approve or deny an application for
  allocation under Section 21.09 after the deadline for filing it has
  passed if it 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 it were a tax,
  and accrues penalty and interest in the same manner as a delinquent
  tax.
         SECTION 7.  SECTION 41.45(n), Tax Code, is added to read as
  follows:
         (n)  A property owner does not waive the right to appear in
  person by the filing of an affidavit and the affidavit shall be used
  by the appraisal review board only in the event the property owner
  does not appear in person.  For purposes of the scheduling of a
  hearing, a property owner shall designate on the affidavit that the
  property owner does not intend to appear at the hearing or shall
  designate that the affidavit shall be used only in the event that
  the property owner does not appear at the hearing.  If the property
  owner states that the property owner does not intend to appear at
  the hearing, the appraisal review board is not required to consider
  the affidavit at the scheduled hearing and may consider the
  affidavit at a hearing designated for the specific purpose of
  processing affidavits.
         SECTION 8.  SECTION 41.66, Tax Code, is amended by adding
  subsections (i), (j), (k), (1), (m), (n) and (o) to read as follows:
         (i)  A protest hearing shall be set for a time and date
  certain.  If the protest hearing for a property owner not
  represented by an agent designated under Section 1.111 is not
  commenced within two hours of the time certain, the hearing upon
  request shall be postponed.  If a protest hearing is not commenced
  on the date noticed, a designated agent may request a postponement
  of the protest hearing and the request is automatically granted.  
  The postponed hearing may be set no sooner than 14 days from the
  original hearing date unless by other agreement and the appraisal
  review board shall provide written notice of the new hearing.
         (j)  At the written request of a property owner filed with
  the protest, the appraisal review board shall schedule requested
  protest hearings for that property owner for consecutive hearings.  
  At the written request of an attorney or an agent designated under
  Section 1.111 filed with the protest, the appraisal review board
  shall schedule the requested protest hearings for that attorney,
  agent, or agent's company for consecutive hearings.  The district
  is not required to schedule more than twenty hearings
  consecutively.  A district may use more than one panel for
  scheduling the hearings for an agent's company.  In a county in
  which an attorney or an agent designated under Section 1.111
  protests fewer than twenty properties, the hearings upon request
  shall be on the same day.
         (k)  At the request of a property owner or an agent
  designated under Section 1.111, the appraisal review board shall
  schedule all parcels for a property or economic unit of real
  property for the same protest hearing.  The parcels comprising a
  single property or economic unit shall be identified in the
  protest.
         (l)  Property owners or their designated agents shall be
  randomly assigned to panels.  However, the assignment may consider
  the property type subject to protest for utilization of panel
  expertise for a particular property type.  If a property owner or
  designated agent is assigned to a panel for a day, the property
  owner or designated agent may not be reassigned to another panel
  without the property owner or designated agent's consent.  
  Reassignment without consent is good cause for postponement of a
  hearing.
         (m)  Evidence and argument provided by a property owner,
  attorney or agent in support of a protest brought under Section
  41.41(a) (1) or (2) is not subject to Chapter 1103, Occupation Code,
  unless the person offering such evidence or argument states that
  they are offering evidence or argument as a person holding a license
  or certification under Chapter 1103, Occupation Code.  A person
  licensed under Chapter 1103, Occupation Code shall state the
  capacity in which they are appearing before the appraisal review
  board.
         (n)  Appraisal districts and appraisal review boards may not
  make decisions with regard to membership on a panel or chairmanship
  of a panel based upon consideration of a member's voting record in
  previous cases.
         (o)  An appraisal review board shall respond in writing to a
  request for postponement of a hearing within seven days of receipt
  of the request.
         (p)  The chairman of an appraisal review board or member
  designated by the chairman may make decisions with regard to the
  scheduling or postponement of a protest hearing.  The chief
  appraiser or person designated by the chief appraiser may agree to a
  postponement of an appraisal review board hearing.
         SECTION 9.  Section 41A.01, 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 10.  SECTION 42.21, Tax Code, is amended by adding
  subsections (f) and (g) to read as follows:
         (f)  A petition may include multiple properties owned or
  leased by the same plaintiff.
         (g)  A petition may include multiple plaintiffs if the
  plaintiffs are or related entities. Related entities include
  parents and subsidiaries, affiliates, joint ventures, partnerships
  with overlapping partners or companies with overlapping members.  
  The court upon motion may sever the action of related entities upon
  a showing that the entities are not related.  Evidence of a related
  entity includes identical management of the entities, identical
  principal place of business of the entities, same representative
  for purposes of an entity representative for an entity deposition
  and same person retaining the attorney for purposes of filing the
  lawsuit.
         (h)  A petition may be amended within the time period set
  forth in subsection (a) for the same year to include additional
  properties owned by the same owner or related entities that are the
  subject of an appraisal review board order.
         (i)  The court has jurisdiction over an appeal under this
  chapter regardless of the plaintiff identified in the petition if
  the property was the subject of an appraisal review board hearing
  for the current year and the petition was filed within the time
  period set forth in subsection (a).  A petition may be amended at
  any time to insure proper parties in interest to the lawsuit or to
  correct an error in the identification of the property. Upon
  motion, the court shall determine proper parties in interest to the
  suit.  An incorrect party or property shall be the subject of a
  special exception and correction through amendment.
         SECTION 11.  SECTION 42.26 is amended by adding subsection
  (e) to read as follows:
         (e)  For purposes of this section, the appraised value of the
  property the subject of the suit and the appraised value of the
  comparable properties is the appraised value determined by the
  appraisal review board.  This subsection does not apply to chemical
  processing property, utility property, or other properties in which
  a reasonable number of comparable properties constitutes all the
  comparable properties.
         SECTION 12.  Section 42.23, Tax Code, is amending by adding
  subsection (h) to read as follows:
         (h)  Evidence, argument and other testimony offered at an
  appraisal review board hearing by a property owner or agent is not
  admissible under this chapter except to establish the court's
  jurisdiction or for purposes of evidence in a no evidence motion for
  summary judgment.
         SECTION 13.  Section 41A.031 is repealed.
         SECTION 14.  The changes in law made by this Act are
  procedural changes to existing law and are applicable to any
  proceedings pending or not finalized as of the effective date of
  this bill.
         SECTION 15.  Sections 1, 2, 3, 4, 5, 8, and 9 take effect
  January 1, 2014.
         SECTION 16.  This Act takes effect immediately if it
  receives a vote of two-thirds of all members elected to each house,
  as provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2013.