By:  Henderson                                         S.B. No. 865
       73R5963 JD-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to duties and functions of appraisal review boards and to
    1-3  certain property tax agreements.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 1.111(e), Tax Code, is amended to read as
    1-6  follows:
    1-7        (e)  An agreement between <an agent for> a property owner or
    1-8  the owner's agent and the chief appraiser <relating to a matter
    1-9  that may be protested to the appraisal review board> is <not> final
   1-10  if the agreement relates to a matter:
   1-11              (1)  that may be protested to the appraisal review
   1-12  board or on which a protest has been filed, but not
   1-13  determined <unless approved> by the <appraisal review> board; or
   1-14              (2)  that may be corrected under Section 25.25 or on
   1-15  which a motion for correction under that section has been filed,
   1-16  but not determined by the board.
   1-17        SECTION 2.  The heading to Section 25.22, Tax Code, is
   1-18  amended to read as follows:
   1-19        Sec. 25.22.  SUBMISSION OF APPRAISAL RECORDS <FOR REVIEW AND
   1-20  PROTEST>.
   1-21        SECTION 3.  Section 25.22(a), Tax Code, is amended to read as
   1-22  follows:
   1-23        (a)  By May 15 or as soon thereafter as practicable, the
   1-24  chief appraiser shall submit the completed appraisal records to the
    2-1  appraisal review board <for review and determination of protests>.
    2-2  However, the chief appraiser may not submit the records until the
    2-3  chief appraiser has delivered the notices required by Subsection
    2-4  (d) of Section 11.45, Subsection (d) of Section 23.44, Subsection
    2-5  (d) of Section 23.57, Subsection (d) of Section 23.79, Subsection
    2-6  (d) of Section 23.85, Subsection (d) of Section 23.95, and Section
    2-7  25.19.
    2-8        SECTION 4.  Section 25.23(d), Tax Code, is amended to read as
    2-9  follows:
   2-10        (d)  Supplemental appraisal records are subject to <review,>
   2-11  protest<,> and appeal as provided by Chapters 41 and 42 <of this
   2-12  code>.  However, a property owner must file a notice of protest
   2-13  within 30 days after the date notice is delivered as required by
   2-14  Section 25.19.  If a property owner files a notice of protest, the
   2-15  appraisal review board shall hear and determine the protest within
   2-16  30 days after the filing of the protest or as soon thereafter as
   2-17  practicable.  If a property owner does not file a protest within
   2-18  the protest deadline, the appraisal review board shall complete its
   2-19  review of the supplemental appraisal records within 30 days after
   2-20  the protest deadline or as soon thereafter as practicable.
   2-21        SECTION 5.  Section 41.01, Tax Code, is amended to read as
   2-22  follows:
   2-23        Sec. 41.01.  DUTIES <SCOPE> OF APPRAISAL REVIEW BOARD.  The
   2-24  appraisal review board shall <examine the appraisal records for the
   2-25  appraisal district to determine whether>:
   2-26              (1)  determine protests initiated by property owners
   2-27  <appraisals are substantially uniform in terms of their
    3-1  relationship to the appraised value required by law>;
    3-2              (2)  determine challenges initiated by taxing units <an
    3-3  exemption or a partial exemption is improperly granted>;
    3-4              (3)  correct clerical errors in the appraisal records
    3-5  and the appraisal rolls <land is improperly granted appraisal as
    3-6  provided by Subchapter C, D, or E, Chapter 23 of this code>; <or>
    3-7              (4)  approve or disapprove corrections to the appraisal
    3-8  records and the appraisal roll that are recommended by the chief
    3-9  appraiser;
   3-10              (5)  act on motions to correct appraisal rolls under
   3-11  Section 25.25;  and
   3-12              (6)  take any other action or make any other
   3-13  determination that this title specifically authorizes or
   3-14  requires <the records do not conform to the requirements of law in
   3-15  any other respect>.
   3-16        SECTION 6.  Section 41.02, Tax Code, is amended to read as
   3-17  follows:
   3-18        Sec. 41.02.  ACTION BY BOARD.  After making a determination
   3-19  or decision under Section 41.01, <If after reviewing the appraisal
   3-20  records> the appraisal review board <finds that appraisals are not
   3-21  substantially uniform or that the records do not conform to the
   3-22  requirements of law in some other respect, the board> shall <refer
   3-23  the matter to the appraisal office and> by written order <shall>
   3-24  direct the chief appraiser to correct or change the appraisal <make
   3-25  the reappraisals or corrections in the> records or the appraisal
   3-26  roll <that are necessary> to conform the appraisal records or the
   3-27  appraisal roll to the board's determination or
    4-1  decision <requirements of law>.
    4-2        SECTION 7.  The heading to Section 41.12, Tax Code, is
    4-3  amended to read as follows:
    4-4        Sec. 41.12.  APPROVAL <COMPLETION> OF APPRAISAL RECORDS
    4-5  <REVIEW> BY BOARD.
    4-6        SECTION 8.  Section 41.12(a), Tax Code, is amended to read as
    4-7  follows:
    4-8        (a)  By July 20, the <The> appraisal review board shall:
    4-9              (1)  hear and determine all or substantially all timely
   4-10  filed protests;
   4-11              (2)  determine all timely filed challenges;
   4-12              (3)  <complete its review of the appraisal records,
   4-13  approve the records, and> submit a list of its approved changes in
   4-14  the records to the chief appraiser; and
   4-15              (4)  approve the records  <by July 20>.
   4-16        SECTION 9.  Sections 41.47(a) and (b), Tax Code, are amended
   4-17  to read as follows:
   4-18        (a)  Except as provided by Subsection (b), the  <The>
   4-19  appraisal review board hearing a protest shall determine the
   4-20  protest and make its decision by written order.
   4-21        (b)  If the property owner or the owner's agent and the chief
   4-22  appraiser enter into an agreement that resolves a protest that has
   4-23  been filed but not determined by the board, the board shall dismiss
   4-24  the protest by written order.
   4-25        (c) <(b)>  If on determining a protest the board finds that
   4-26  the appraisal records are incorrect in some respect raised by the
   4-27  protest, the board by its order shall correct the appraisal records
    5-1  by changing the appraised value placed on the protesting property
    5-2  owner's property or by making the other changes in the appraisal
    5-3  records that are necessary to conform the records to the
    5-4  requirements of law.  If the appraised value of a taxable property
    5-5  interest, other than an interest owned by a public utility or by a
    5-6  cooperative corporation organized to provide utility service, is
    5-7  changed as the result of a protest or challenge, the board shall
    5-8  change the appraised value of all other interests, other than an
    5-9  interest owned by a public utility or by a cooperative corporation
   5-10  organized to provide utility service, in the same property,
   5-11  including a mineral in place, in proportion to the ownership
   5-12  interests.
   5-13        SECTION 10.  Section 41.66(g), Tax Code, is amended to read
   5-14  as follows:
   5-15        (g)  At the beginning of a hearing on a protest, each member
   5-16  of the appraisal review board hearing the protest must sign an
   5-17  affidavit stating that in determining the protest, the member will
   5-18  not consider any information or evidence that is not presented to
   5-19  the board by the parties during the protest hearing, and that the
   5-20  board member has not communicated with another person in violation
   5-21  of Subsection (f).  If a board member has communicated with another
   5-22  person in violation of Subsection (f), the member must be recused
   5-23  from the proceeding and may not hear, deliberate on, or vote on the
   5-24  determination of the protest.  The board of directors of the
   5-25  appraisal district shall adopt and implement a policy concerning
   5-26  the temporary replacement of an appraisal review board member who
   5-27  has communicated with another person in violation of Subsection
    6-1  (f).
    6-2        SECTION 11.  Sections 42.21(b) and (d), Tax Code, are amended
    6-3  to read as follows:
    6-4        (b)  A petition for review brought under Section 42.02 must
    6-5  be brought against the owner of the property involved in the
    6-6  appeal.  A petition for review brought under Section 42.031 must be
    6-7  brought against the appraisal district and against the owner of the
    6-8  property involved in the appeal.  A petition for review brought
    6-9  under Subdivision (2) or (3) of Section 42.01 or under Section
   6-10  42.03 must be brought against the comptroller.  Any other petition
   6-11  for review under this chapter must be brought against the appraisal
   6-12  district.  <A petition for review is not required to be brought
   6-13  against the appraisal review board, but may be brought against the
   6-14  appraisal review board in addition to any other required party, if
   6-15  appropriate.>
   6-16        (d)  An appraisal district is served by service on the chief
   6-17  appraiser at any time or by service on any other officer or
   6-18  employee of the appraisal district present at the appraisal office
   6-19  at a time when the appraisal office is open for business with the
   6-20  public.  <An appraisal review board is served by service on the
   6-21  chairman of the appraisal review board.>  Citation of a party is
   6-22  issued and served in the manner provided by law for civil suits
   6-23  generally.
   6-24        SECTION 12.  This Act takes effect January 1, 1994.
   6-25        SECTION 13.  The importance of this legislation and the
   6-26  crowded condition of the calendars in both houses create an
   6-27  emergency and an imperative public necessity that the
    7-1  constitutional rule requiring bills to be read on three several
    7-2  days in each house be suspended, and this rule is hereby suspended.