87R16031 SMT-F
 
  By: Shine, Rodriguez, Lucio III, Button, H.B. No. 988
      et al.
 
  Substitute the following for H.B. No. 988:
 
  By:  Sanford C.S.H.B. No. 988
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the administration of the system for appraising
  property for ad valorem tax purposes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 5.103, Tax Code, is amended by amending
  Subsection (d) and adding Subsection (e) to read as follows:
         (d)  An appraisal review board shall incorporate [follow]
  the model hearing procedures prepared by the comptroller when
  adopting the board's [establishing its] procedures for hearings as
  required by Section 41.01(c). An appraisal review board may adopt
  procedures that supplement the model hearing procedures, provided
  that the supplemental procedures do not contradict or circumvent
  the model hearing procedures.
         (e)  Each year the comptroller shall review the hearing
  procedures adopted by each appraisal review board to determine
  whether the hearing procedures incorporate the model hearing
  procedures prepared by the comptroller under this section
  [41.66(a)].
         SECTION 2.  Section 5.104(l), Tax Code, is amended to read as
  follows:
         (l)  The comptroller shall issue an annual report that
  summarizes the information included in the surveys submitted during
  the preceding tax year. The report must also include a summary of
  the comments, complaints, and suggestions forwarded to the
  comptroller during the preceding tax year by taxpayer liaison
  officers under Section 6.052(a), the results of the comptroller's
  review of appraisal review board hearing procedures during the
  preceding tax year under Section 5.103(e), and the results of
  requests for limited binding arbitration filed with the comptroller
  during the preceding tax year under Section 41A.015. The report may
  not disclose the identity of an individual who submitted a survey,
  comment, complaint, suggestion, or request for arbitration.
         SECTION 3.  Section 6.04(d), Tax Code, is amended to read as
  follows:
         (d)  The board shall develop and implement policies that
  provide the public with reasonable opportunity to appear before the
  board to speak on any issue under the jurisdiction of the board.
  Reasonable time shall be provided during each board meeting for
  public comment on appraisal district and appraisal review board
  policies and procedures, and a report from the taxpayer liaison
  officer [if one is required by Section 6.052].
         SECTION 4.  Section 6.052, Tax Code, is amended by amending
  Subsections (a), (b), and (c) and adding Subsection (g) 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] 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, complaints, 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,
  complaints, and suggestions filed under this subsection in the form
  and manner prescribed by the comptroller not later than December 31
  of each year. A person may serve as the taxpayer liaison officer
  for more than one appraisal district if each appraisal district for
  which the person is appointed to serve as taxpayer liaison officer
  is established for a county with a population of less than 120,000.
         (b)  The taxpayer liaison officer shall provide to the public
  information and materials designed to assist property owners in
  understanding the appraisal process, protest procedures, the
  procedure for filing comments, complaints, and suggestions under
  Subsection (a) of this section or a complaint under Section
  6.04(g), and other matters. Information concerning the process for
  submitting comments, complaints, 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, complaints, and
  suggestions filed with the officer under Subsection (a) of this
  section and all complaints filed with the board under Section
  6.04(g).
         (g)  Notwithstanding any other provision of this chapter, a
  taxpayer liaison officer does not commit an offense under this
  chapter if the officer communicates with the chief appraiser or
  another employee or agent of the appraisal district, a member of the
  appraisal review board established for the appraisal district, a
  member of the board of directors of the appraisal district, a
  property tax consultant, a property owner, an agent of a property
  owner, or another person if the communication is made in the good
  faith exercise of the officer's statutory duties.
         SECTION 5.  Section 41.01, Tax Code, is amended by adding
  Subsections (c), (d), and (e) to read as follows:
         (c)  The appraisal review board by rule shall adopt
  procedures for hearings the board conducts under this subchapter
  and Subchapter C. Before adopting the hearing procedures, the
  board shall hold a public hearing to consider the hearing
  procedures proposed for adoption by the board. Not later than May
  15 of each year, the board shall hold the hearing, make any
  amendments to the proposed hearing procedures the board determines
  are necessary, and by resolution finally adopt the hearing
  procedures. The board must comply with Section 5.103(d) when
  adopting the hearing procedures. The chairman of the board has
  exclusive authority over the administration of hearing procedures
  adopted by the board.
         (d)  The appraisal review board shall distribute copies of
  the hearing procedures adopted by the board to the board of
  directors of, and the taxpayer liaison officer for, the appraisal
  district for which the appraisal review board is established and to
  the comptroller not later than the 15th day after the date the board
  adopts the hearing procedures.
         (e)  The appraisal review board shall post a copy of the
  hearing procedures adopted by the board:
               (1)  in a prominent place in each room in which the
  board conducts hearings under this subchapter and Subchapter C; and
               (2)  if the appraisal district for which the board is
  established maintains an Internet website, on the appraisal
  district's website.
         SECTION 6.  Section 41.461(a), Tax Code, is amended to read
  as follows:
         (a)  At least 14 days before a hearing on a protest, the chief
  appraiser shall:
               (1)  deliver a copy of the pamphlet prepared by the
  comptroller under Section 5.06 to the property owner initiating the
  protest, or to an agent representing the owner if requested by the
  agent;
               (2)  inform the property owner that the owner or the
  agent of the owner is entitled on request to a copy of the data,
  schedules, formulas, and all other information the chief appraiser
  will introduce at the hearing to establish any matter at issue; and
               (3)  deliver a copy of the hearing procedures adopted
  [established] by the appraisal review board under Section 41.01
  [41.66] to the property owner.
         SECTION 7.  Section 41.66, Tax Code, is amended by amending
  Subsection (a) and adding Subsection (q) to read as follows:
         (a)  The appraisal review board shall conduct hearings in
  accordance with the hearing procedures adopted by the appraisal
  review board under Section 41.01(c) [establish by rule the
  procedures for hearings it conducts as provided by Subchapters A
  and C of this chapter]. On request made by a property owner in the
  owner's notice of protest or in a separate writing delivered to the
  appraisal review board on or before the date the notice of protest
  is filed, the property owner is entitled to a copy of the hearing
  procedures. The copy of the hearing procedures shall be delivered
  to the property owner not later than the 10th day before the date
  the hearing on the protest begins and may be delivered with the
  notice of the protest hearing required under Section 41.46(a). The
  notice of protest form prescribed by the comptroller under Section
  41.44(d) or any other notice of protest form made available to a
  property owner by the appraisal review board or the appraisal
  office shall provide the property owner an opportunity to make or
  decline to make a request under this subsection. [The appraisal
  review board shall post a copy of the hearing procedures in a
  prominent place in the room in which the hearing is held.]
         (q)  A person who owns property in an appraisal district or
  the chief appraiser of an appraisal district may file a complaint
  with the taxpayer liaison officer for the appraisal district
  alleging that the appraisal review board established for the
  appraisal district has adopted or is implementing hearing
  procedures that are not in compliance with the model hearing
  procedures prepared by the comptroller under Section 5.103 or is
  not complying with procedural requirements under this chapter. The
  taxpayer liaison officer shall investigate the complaint and report
  the findings of the investigation to the board of directors of the
  appraisal district.  The board of directors shall direct the
  chairman of the appraisal review board to take remedial action if,
  after reviewing the taxpayer liaison officer's report, the board of
  directors determines that the allegations contained in the
  complaint are true. The board of directors may remove the member of
  the appraisal review board serving as chairman of the appraisal
  review board from that member's position as chairman if the board
  determines that the chairman has failed to take the actions
  necessary to bring the appraisal review board into compliance with
  Section 5.103(d) or this chapter, as applicable.
         SECTION 8.  Chapter 41A, Tax Code, is amended by adding
  Section 41A.015 to read as follows:
         Sec. 41A.015.  LIMITED BINDING ARBITRATION TO COMPEL
  COMPLIANCE WITH CERTAIN PROCEDURAL REQUIREMENTS RELATED TO
  PROTESTS. (a) A property owner who has filed a notice of protest
  under Chapter 41 may file a request for limited binding arbitration
  under this section to compel the appraisal review board or chief
  appraiser, as appropriate, to:
               (1)  rescind procedural rules adopted by the appraisal
  review board that are not in compliance with the model hearing
  procedures prepared by the comptroller under Section 5.103;
               (2)  schedule a hearing on a protest as required by
  Section 41.45;
               (3)  deliver information to the property owner in the
  manner required by Section 41.461;
               (4)  allow the property owner to offer evidence,
  examine or cross-examine witnesses or other parties, and present
  arguments as required by Section 41.66(b);
               (5)  set a hearing for a time and date certain and
  postpone a hearing that does not begin within two hours of the
  scheduled time as required by Section 41.66(i);
               (6)  schedule hearings on protests concerning multiple
  properties identified in the same notice of protest on the same day
  at the request of the property owner or the property owner's
  designated agent as required by Section 41.66(j); or
               (7)  refrain from using or offering as evidence
  information requested by the property owner under Section 41.461
  that was not delivered to the property owner at least 14 days before
  the hearing as required by Section 41.67(d).
         (b)  A property owner may not file a request for limited
  binding arbitration under this section unless:
               (1)  the property owner has delivered written notice to
  the chairman of the appraisal review board, the chief appraiser,
  and the taxpayer liaison officer for the applicable appraisal
  district by certified mail, return receipt requested, of the
  procedural requirement with which the property owner alleges the
  appraisal review board or chief appraiser failed to comply on or
  before the fifth business day after the date the appraisal review
  board or chief appraiser was required to comply with the
  requirement; and
               (2)  the chairman of the appraisal review board or
  chief appraiser, as applicable, fails to deliver to the property
  owner on or before the 10th day after the date the notice is
  delivered a written statement confirming that the appraisal review
  board or chief appraiser, as applicable, will comply with the
  requirement or cure a failure to comply with the requirement.
         (c)  Except as otherwise provided by this subtitle, the
  failure to comply with a procedural requirement listed under
  Subsection (a) is not a ground for postponement of a hearing on a
  protest. An appraisal review board may cure an alleged failure to
  comply with a procedural requirement that occurred during a hearing
  by rescinding the order determining the protest for which the
  hearing was held and scheduling a new hearing on the protest.
         (d)  A property owner must request limited binding
  arbitration under this section by filing a request with the
  comptroller. The property owner may not file the request earlier
  than the 11th day or later than the 30th day after the date the
  property owner delivers the notice required by Subsection (b)(1) to
  the chairman of the appraisal review board, the chief appraiser,
  and the taxpayer liaison officer for the applicable appraisal
  district.
         (e)  A request for limited binding arbitration under this
  section must be in a form prescribed by the comptroller and be
  accompanied by an arbitration deposit payable to the comptroller in
  the amount of:
               (1)  $450, if the property that is the subject of the
  protest to which the arbitration relates qualifies as the property
  owner's residence homestead under Section 11.13 and the appraised
  or market value, as applicable, of the property is $500,000 or less,
  as determined by the appraisal district for the most recent tax
  year; or
               (2)  $550, for property other than property described
  by Subdivision (1).
         (f)  The comptroller shall prescribe the form to be used for
  submitting a request for limited binding arbitration under this
  section. The form must require the property owner to provide:
               (1)  a statement that the property owner has provided
  the written notice required by Subsection (b);
               (2)  a statement that the property owner has made the
  arbitration deposit required by this section;
               (3)  a brief statement identifying the procedural
  requirement with which the property owner alleges the appraisal
  review board or chief appraiser, as applicable, has failed to
  comply;
               (4)  a description of the action taken or not taken by
  the appraisal review board or chief appraiser regarding the
  procedural requirement identified under Subdivision (3);
               (5)  a description of the property to which the award
  will apply; and
               (6)  any other information reasonably necessary for the
  comptroller to appoint an arbitrator.
         (g)  On receipt of the request and deposit under this
  section, the comptroller shall appoint an arbitrator from the
  registry maintained under Section 41A.06 who is eligible to serve
  as an arbitrator under Subsection (p) of this section. Section
  41A.07(h) does not apply to the appointment of an arbitrator under
  this section.
         (h)  The appraisal review board, the chief appraiser, and the
  property owner are parties to a limited binding arbitration
  conducted under this section. The appraisal review board may
  appear by counsel, by the chairman, or by a person designated by the
  chairman. The chief appraiser may appear by counsel, in person, or
  by a designated employee. The property owner may appear in the
  manner provided by Section 41A.08(b)(2), (3), (4), or (5).
         (i)  The arbitrator shall make an arbitration award and
  deliver an electronic copy of the award to:
               (1)  the property owner;
               (2)  the chairman of the appraisal review board;
               (3)  the chief appraiser; and
               (4)  the comptroller.
         (j)  An award under this section:
               (1)  shall include a determination of whether the
  appraisal review board or chief appraiser failed to comply with a
  procedural requirement as alleged in the request for limited
  binding arbitration;
               (2)  if the arbitrator determines that the appraisal
  review board or chief appraiser failed to comply with a procedural
  requirement as alleged in the request, shall direct the appraisal
  review board or chief appraiser, as applicable, to:
                     (A)  comply with the procedural requirement; or
                     (B)  if the hearing on the protest has been held
  and the appraisal review board has issued an order determining the
  protest, rescind the order and hold a new hearing on the protest
  that complies with the procedural requirement;
               (3)  shall specify the arbitrator's fee;
               (4)  is final and may not be appealed; and
               (5)  is enforceable as provided by Section 41A.09.
         (k)  If the arbitrator determines that the appraisal review
  board or chief appraiser failed to comply with the procedural
  requirement that was the subject of the limited binding
  arbitration:
               (1)  the comptroller, on receipt of a copy of the award,
  shall refund the property owner's arbitration deposit, less the
  amount retained by the comptroller under Section 41A.05(b); and
               (2)  the appraisal district shall pay the arbitrator's
  fee.
         (l)  If the arbitrator determines that the appraisal review
  board or chief appraiser complied with the procedural requirement
  that was the subject of the limited binding arbitration, the
  comptroller shall:
               (1)  pay the arbitrator's fee out of the owner's
  arbitration deposit; and
               (2)  refund to the owner the owner's arbitration
  deposit, less the arbitrator's fee and the amount retained by the
  comptroller under Section 41A.05(b).
         (m)  As soon as practicable after receiving notice of an
  award, the appraisal review board or the chief appraiser shall:
               (1)  take any action required to comply with the
  requirements of the award; and
               (2)  if the award requires the appraisal review board
  to conduct a new hearing under Chapter 41, schedule and conduct the
  hearing.
         (n)  An award under this section does not affect the property
  owner's right to appeal the final determination of a protest by the
  appraisal review board under Chapter 42.
         (o)  A property owner may request a single limited binding
  arbitration under this section that covers more than one property,
  more than one protest hearing, or an allegation of the failure by
  the appraisal review board or chief appraiser to comply with more
  than one procedural requirement so long as the requirements of
  Subsection (b) are met with regard to each alleged failure to
  comply. The amount of the arbitration deposit and the amount of the
  arbitrator's fee are computed as if a single property were the
  subject of the arbitration. If the arbitration involves property
  described by Subsection (e)(1) and property described by Subsection
  (e)(2), the amount of the arbitration deposit and the amount of the
  arbitrator's fee are computed as if only the property described by
  Subsection (e)(2) were the subject of the arbitration. If the
  arbitration involves an allegation of the failure by the appraisal
  review board or chief appraiser to comply with more than one
  procedural requirement, Subsection (k) applies if the arbitrator
  determines that the appraisal review board or chief appraiser
  failed to comply with one or more of the procedural requirements
  that were the subject of the arbitration and Subsection (l) applies
  if the arbitrator determines that the appraisal review board or
  chief appraiser complied with all of the procedural requirements
  that were the subject of the arbitration.
         (p)  Section 41A.06 applies to the registration and
  qualification of an arbitrator under this section except that an
  arbitrator under this section must:
               (1)  be a licensed attorney; and
               (2)  agree to conduct an arbitration for a fee that is
  not more than:
                     (A)  $400 if the property is described by
  Subsection (e)(1); or
                     (B)  $500 if the property is described by
  Subsection (e)(2).
         (q)  Except as otherwise provided by this section, the
  provisions of this chapter apply to a limited binding arbitration
  under this section. In the event of a conflict between this section
  and another provision of this chapter, this section controls.
         SECTION 9.  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. If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2021.