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A BILL TO BE ENTITLED
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AN ACT
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relating to the administration of the system for appraising |
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property for ad valorem tax purposes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 5.103, Tax Code, is amended by amending |
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Subsection (d) and adding Subsection (e) to read as follows: |
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(d) An appraisal review board shall incorporate [follow] |
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the model hearing procedures prepared by the comptroller when |
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adopting the board's [establishing its] procedures for hearings as |
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required by Section 41.01(c). An appraisal review board may adopt |
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procedures that supplement the model hearing procedures, provided |
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that the supplemental procedures do not contradict or circumvent |
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the model hearing procedures. |
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(e) Each year the comptroller shall review the hearing |
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procedures adopted by each appraisal review board to determine |
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whether the hearing procedures incorporate the model hearing |
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procedures prepared by the comptroller under this section |
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[41.66(a)]. |
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SECTION 2. Section 5.104(l), Tax Code, is amended to read as |
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follows: |
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(l) The comptroller shall issue an annual report that |
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summarizes the information included in the surveys submitted during |
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the preceding tax year. The report must also include a summary of |
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the comments, complaints, and suggestions forwarded to the |
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comptroller during the preceding tax year by taxpayer liaison |
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officers under Section 6.052(a), the results of the comptroller's |
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review of appraisal review board hearing procedures during the |
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preceding tax year under Section 5.103(e), and the results of |
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requests for limited binding arbitration filed with the comptroller |
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during the preceding tax year under Section 41A.015. The report may |
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not disclose the identity of an individual who submitted a survey, |
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comment, complaint, suggestion, or request for arbitration. |
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SECTION 3. Section 6.04(d), Tax Code, is amended to read as |
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follows: |
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(d) The board shall develop and implement policies that |
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provide the public with reasonable opportunity to appear before the |
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board to speak on any issue under the jurisdiction of the board. |
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Reasonable time shall be provided during each board meeting for |
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public comment on appraisal district and appraisal review board |
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policies and procedures, and a report from the taxpayer liaison |
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officer [if one is required by Section 6.052]. |
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SECTION 4. Section 6.052, Tax Code, is amended by amending |
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Subsections (a), (b), and (c) and adding Subsection (g) to read as |
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follows: |
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(a) The board of directors for an appraisal district |
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[created for a county with a population of more than 120,000] shall |
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appoint a taxpayer liaison officer who shall serve at the pleasure |
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of the board. The taxpayer liaison officer shall administer the |
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public access functions required by Sections 6.04(d), (e), and (f), |
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and is responsible for resolving disputes not involving matters |
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that may be protested under Section 41.41. In addition, the |
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taxpayer liaison officer is responsible for receiving, and |
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compiling a list of, comments, complaints, and suggestions filed by |
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the chief appraiser, a property owner, or a property owner's agent |
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concerning the matters listed in Section 5.103(b) or any other |
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matter related to the fairness and efficiency of the appraisal |
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review board established for the appraisal district. The taxpayer |
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liaison officer shall forward to the comptroller comments, |
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complaints, and suggestions filed under this subsection in the form |
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and manner prescribed by the comptroller not later than December 31 |
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of each year. A person may serve as the taxpayer liaison officer |
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for more than one appraisal district if each appraisal district for |
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which the person is appointed to serve as taxpayer liaison officer |
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is established for a county with a population of less than 120,000. |
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(b) The taxpayer liaison officer shall provide to the public |
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information and materials designed to assist property owners in |
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understanding the appraisal process, protest procedures, the |
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procedure for filing comments, complaints, and suggestions under |
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Subsection (a) of this section or a complaint under Section |
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6.04(g), and other matters. Information concerning the process for |
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submitting comments, complaints, and suggestions to the |
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comptroller concerning an appraisal review board shall be provided |
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at each protest hearing. |
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(c) The taxpayer liaison officer shall report to the board |
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at each meeting on the status of all comments, complaints, and |
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suggestions filed with the officer under Subsection (a) of this |
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section and all complaints filed with the board under Section |
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6.04(g). |
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(g) Notwithstanding any other provision of this chapter, a |
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taxpayer liaison officer does not commit an offense under this |
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chapter if the officer communicates with the chief appraiser or |
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another employee or agent of the appraisal district, a member of the |
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appraisal review board established for the appraisal district, a |
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member of the board of directors of the appraisal district, a |
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property tax consultant, a property owner, an agent of a property |
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owner, or another person if the communication is made in the good |
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faith exercise of the officer's statutory duties. |
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SECTION 5. Section 41.01, Tax Code, is amended by adding |
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Subsections (c), (d), and (e) to read as follows: |
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(c) The appraisal review board by rule shall adopt |
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procedures for hearings the board conducts under this subchapter |
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and Subchapter C. Before adopting the hearing procedures, the |
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board shall hold a public hearing to consider the hearing |
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procedures proposed for adoption by the board. Not later than May |
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15 of each year, the board shall hold the hearing, make any |
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amendments to the proposed hearing procedures the board determines |
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are necessary, and by resolution finally adopt the hearing |
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procedures. The board must comply with Section 5.103(d) when |
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adopting the hearing procedures. The chairman of the board has |
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exclusive authority over the administration of hearing procedures |
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adopted by the board. |
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(d) The appraisal review board shall distribute copies of |
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the hearing procedures adopted by the board to the board of |
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directors of, and the taxpayer liaison officer for, the appraisal |
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district for which the appraisal review board is established and to |
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the comptroller not later than the 15th day after the date the board |
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adopts the hearing procedures. |
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(e) The appraisal review board shall post a copy of the |
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hearing procedures adopted by the board: |
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(1) in a prominent place in each room in which the |
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board conducts hearings under this subchapter and Subchapter C; and |
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(2) if the appraisal district for which the board is |
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established maintains an Internet website, on the appraisal |
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district's website. |
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SECTION 6. Section 41.461(a), Tax Code, is amended to read |
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as follows: |
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(a) At least 14 days before a hearing on a protest, the chief |
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appraiser shall: |
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(1) deliver a copy of the pamphlet prepared by the |
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comptroller under Section 5.06 to the property owner initiating the |
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protest, or to an agent representing the owner if requested by the |
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agent; |
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(2) inform the property owner that the owner or the |
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agent of the owner is entitled on request to a copy of the data, |
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schedules, formulas, and all other information the chief appraiser |
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will introduce at the hearing to establish any matter at issue; and |
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(3) deliver a copy of the hearing procedures adopted |
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[established] by the appraisal review board under Section 41.01 |
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[41.66] to the property owner. |
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SECTION 7. Section 41.66, Tax Code, is amended by amending |
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Subsection (a) and adding Subsection (q) to read as follows: |
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(a) The appraisal review board shall conduct hearings in |
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accordance with the hearing procedures adopted by the appraisal |
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review board under Section 41.01(c) [establish by rule the |
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procedures for hearings it conducts as provided by Subchapters A |
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and C of this chapter]. On request made by a property owner in the |
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owner's notice of protest or in a separate writing delivered to the |
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appraisal review board on or before the date the notice of protest |
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is filed, the property owner is entitled to a copy of the hearing |
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procedures. The copy of the hearing procedures shall be delivered |
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to the property owner not later than the 10th day before the date |
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the hearing on the protest begins and may be delivered with the |
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notice of the protest hearing required under Section 41.46(a). The |
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notice of protest form prescribed by the comptroller under Section |
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41.44(d) or any other notice of protest form made available to a |
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property owner by the appraisal review board or the appraisal |
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office shall provide the property owner an opportunity to make or |
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decline to make a request under this subsection. [The appraisal |
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review board shall post a copy of the hearing procedures in a |
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prominent place in the room in which the hearing is held.] |
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(q) A person who owns property in an appraisal district or |
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the chief appraiser of an appraisal district may file a complaint |
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with the taxpayer liaison officer for the appraisal district |
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alleging that the appraisal review board established for the |
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appraisal district has adopted or is implementing hearing |
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procedures that are not in compliance with the model hearing |
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procedures prepared by the comptroller under Section 5.103 or is |
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not complying with procedural requirements under this chapter. The |
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taxpayer liaison officer shall investigate the complaint and report |
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the findings of the investigation to the board of directors of the |
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appraisal district. The board of directors shall direct the |
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chairman of the appraisal review board to take remedial action if, |
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after reviewing the taxpayer liaison officer's report, the board of |
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directors determines that the allegations contained in the |
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complaint are true. The board of directors may remove the member of |
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the appraisal review board serving as chairman of the appraisal |
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review board from that member's position as chairman if the board |
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determines that the chairman has failed to take the actions |
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necessary to bring the appraisal review board into compliance with |
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Section 5.103(d) or this chapter, as applicable. |
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SECTION 8. Chapter 41A, Tax Code, is amended by adding |
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Section 41A.015 to read as follows: |
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Sec. 41A.015. LIMITED BINDING ARBITRATION TO COMPEL |
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COMPLIANCE WITH CERTAIN PROCEDURAL REQUIREMENTS RELATED TO |
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PROTESTS. (a) A property owner who has filed a notice of protest |
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under Chapter 41 may file a request for limited binding arbitration |
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under this section to compel the appraisal review board or chief |
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appraiser, as appropriate, to: |
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(1) rescind procedural rules adopted by the appraisal |
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review board that are not in compliance with the model hearing |
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procedures prepared by the comptroller under Section 5.103; |
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(2) schedule a hearing on a protest as required by |
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Section 41.45; |
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(3) deliver information to the property owner in the |
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manner required by Section 41.461; |
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(4) allow the property owner to offer evidence, |
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examine or cross-examine witnesses or other parties, and present |
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arguments as required by Section 41.66(b); |
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(5) set a hearing for a time and date certain and |
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postpone a hearing that does not begin within two hours of the |
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scheduled time as required by Section 41.66(i); |
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(6) schedule hearings on protests concerning multiple |
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properties identified in the same notice of protest on the same day |
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at the request of the property owner or the property owner's |
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designated agent as required by Section 41.66(j); or |
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(7) refrain from using or offering as evidence |
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information requested by the property owner under Section 41.461 |
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that was not delivered to the property owner at least 14 days before |
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the hearing as required by Section 41.67(d). |
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(b) A property owner may not file a request for limited |
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binding arbitration under this section unless: |
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(1) the property owner has delivered written notice to |
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the chairman of the appraisal review board, the chief appraiser, |
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and the taxpayer liaison officer for the applicable appraisal |
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district by certified mail, return receipt requested, of the |
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procedural requirement with which the property owner alleges the |
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appraisal review board or chief appraiser failed to comply on or |
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before the fifth business day after the date the appraisal review |
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board or chief appraiser was required to comply with the |
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requirement; and |
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(2) the chairman of the appraisal review board or |
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chief appraiser, as applicable, fails to deliver to the property |
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owner on or before the 10th day after the date the notice is |
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delivered a written statement confirming that the appraisal review |
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board or chief appraiser, as applicable, will comply with the |
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requirement or cure a failure to comply with the requirement. |
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(c) Except as otherwise provided by this subtitle, the |
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failure to comply with a procedural requirement listed under |
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Subsection (a) is not a ground for postponement of a hearing on a |
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protest. An appraisal review board may cure an alleged failure to |
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comply with a procedural requirement that occurred during a hearing |
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by rescinding the order determining the protest for which the |
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hearing was held and scheduling a new hearing on the protest. |
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(d) A property owner must request limited binding |
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arbitration under this section by filing a request with the |
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comptroller. The property owner may not file the request earlier |
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than the 11th day or later than the 30th day after the date the |
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property owner delivers the notice required by Subsection (b)(1) to |
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the chairman of the appraisal review board, the chief appraiser, |
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and the taxpayer liaison officer for the applicable appraisal |
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district. |
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(e) A request for limited binding arbitration under this |
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section must be in a form prescribed by the comptroller and be |
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accompanied by an arbitration deposit payable to the comptroller in |
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the amount of: |
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(1) $450, if the property that is the subject of the |
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protest to which the arbitration relates qualifies as the property |
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owner's residence homestead under Section 11.13 and the appraised |
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or market value, as applicable, of the property is $500,000 or less, |
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as determined by the appraisal district for the most recent tax |
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year; or |
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(2) $550, for property other than property described |
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by Subdivision (1). |
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(f) The comptroller shall prescribe the form to be used for |
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submitting a request for limited binding arbitration under this |
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section. The form must require the property owner to provide: |
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(1) a statement that the property owner has provided |
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the written notice required by Subsection (b); |
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(2) a statement that the property owner has made the |
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arbitration deposit required by this section; |
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(3) a brief statement identifying the procedural |
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requirement with which the property owner alleges the appraisal |
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review board or chief appraiser, as applicable, has failed to |
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comply; |
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(4) a description of the action taken or not taken by |
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the appraisal review board or chief appraiser regarding the |
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procedural requirement identified under Subdivision (3); |
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(5) a description of the property to which the award |
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will apply; and |
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(6) any other information reasonably necessary for the |
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comptroller to appoint an arbitrator. |
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(g) On receipt of the request and deposit under this |
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section, the comptroller shall appoint an arbitrator from the |
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registry maintained under Section 41A.06 who is eligible to serve |
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as an arbitrator under Subsection (p) of this section. Section |
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41A.07(h) does not apply to the appointment of an arbitrator under |
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this section. |
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(h) The appraisal review board, the chief appraiser, and the |
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property owner are parties to a limited binding arbitration |
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conducted under this section. The appraisal review board may |
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appear by counsel, by the chairman, or by a person designated by the |
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chairman. The chief appraiser may appear by counsel, in person, or |
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by a designated employee. The property owner may appear in the |
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manner provided by Section 41A.08(b)(2), (3), (4), or (5). |
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(i) The arbitrator shall make an arbitration award and |
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deliver an electronic copy of the award to: |
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(1) the property owner; |
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(2) the chairman of the appraisal review board; |
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(3) the chief appraiser; and |
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(4) the comptroller. |
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(j) An award under this section: |
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(1) shall include a determination of whether the |
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appraisal review board or chief appraiser failed to comply with a |
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procedural requirement as alleged in the request for limited |
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binding arbitration; |
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(2) if the arbitrator determines that the appraisal |
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review board or chief appraiser failed to comply with a procedural |
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requirement as alleged in the request, shall direct the appraisal |
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review board or chief appraiser, as applicable, to: |
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(A) comply with the procedural requirement; or |
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(B) if the hearing on the protest has been held |
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and the appraisal review board has issued an order determining the |
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protest, rescind the order and hold a new hearing on the protest |
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that complies with the procedural requirement; |
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(3) shall specify the arbitrator's fee; |
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(4) is final and may not be appealed; and |
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(5) is enforceable as provided by Section 41A.09. |
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(k) If the arbitrator determines that the appraisal review |
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board or chief appraiser failed to comply with the procedural |
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requirement that was the subject of the limited binding |
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arbitration: |
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(1) the comptroller, on receipt of a copy of the award, |
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shall refund the property owner's arbitration deposit, less the |
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amount retained by the comptroller under Section 41A.05(b); and |
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(2) the appraisal district shall pay the arbitrator's |
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fee. |
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(l) If the arbitrator determines that the appraisal review |
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board or chief appraiser complied with the procedural requirement |
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that was the subject of the limited binding arbitration, the |
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comptroller shall: |
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(1) pay the arbitrator's fee out of the owner's |
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arbitration deposit; and |
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(2) refund to the owner the owner's arbitration |
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deposit, less the arbitrator's fee and the amount retained by the |
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comptroller under Section 41A.05(b). |
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(m) As soon as practicable after receiving notice of an |
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award, the appraisal review board or the chief appraiser shall: |
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(1) take any action required to comply with the |
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requirements of the award; and |
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(2) if the award requires the appraisal review board |
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to conduct a new hearing under Chapter 41, schedule and conduct the |
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hearing. |
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(n) An award under this section does not affect the property |
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owner's right to appeal the final determination of a protest by the |
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appraisal review board under Chapter 42. |
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(o) A property owner may request a single limited binding |
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arbitration under this section that covers more than one property, |
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more than one protest hearing, or an allegation of the failure by |
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the appraisal review board or chief appraiser to comply with more |
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than one procedural requirement so long as the requirements of |
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Subsection (b) are met with regard to each alleged failure to |
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comply. The amount of the arbitration deposit and the amount of the |
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arbitrator's fee are computed as if a single property were the |
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subject of the arbitration. If the arbitration involves property |
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described by Subsection (e)(1) and property described by Subsection |
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(e)(2), the amount of the arbitration deposit and the amount of the |
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arbitrator's fee are computed as if only the property described by |
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Subsection (e)(2) were the subject of the arbitration. If the |
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arbitration involves an allegation of the failure by the appraisal |
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review board or chief appraiser to comply with more than one |
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procedural requirement, Subsection (k) applies if the arbitrator |
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determines that the appraisal review board or chief appraiser |
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failed to comply with one or more of the procedural requirements |
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that were the subject of the arbitration and Subsection (l) applies |
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if the arbitrator determines that the appraisal review board or |
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chief appraiser complied with all of the procedural requirements |
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that were the subject of the arbitration. |
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(p) Section 41A.06 applies to the registration and |
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qualification of an arbitrator under this section except that an |
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arbitrator under this section must: |
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(1) be a licensed attorney; and |
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(2) agree to conduct an arbitration for a fee that is |
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not more than: |
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(A) $400 if the property is described by |
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Subsection (e)(1); or |
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(B) $500 if the property is described by |
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Subsection (e)(2). |
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(q) Except as otherwise provided by this section, the |
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provisions of this chapter apply to a limited binding arbitration |
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under this section. In the event of a conflict between this section |
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and another provision of this chapter, this section controls. |
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SECTION 9. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2021. |