1-1 By: Henderson S.B. No. 865
1-2 (In the Senate - Filed March 11, 1993; March 15, 1993, read
1-3 first time and referred to Committee on Finance; May 3, 1993,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 12, Nays 0; May 3, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Montford x
1-9 Turner x
1-10 Armbrister x
1-11 Barrientos x
1-12 Bivins x
1-13 Ellis x
1-14 Haley x
1-15 Moncrief x
1-16 Parker x
1-17 Ratliff x
1-18 Sims x
1-19 Truan x
1-20 Zaffirini x
1-21 COMMITTEE SUBSTITUTE FOR S.B. No. 865 By: Truan
1-22 A BILL TO BE ENTITLED
1-23 AN ACT
1-24 relating to appraisal review boards and to certain property tax
1-25 agreements.
1-26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-27 SECTION 1. Subsection (e), Section 1.111, Tax Code, is
1-28 amended to read as follows:
1-29 (e) An agreement between <an agent for> a property owner or
1-30 the owner's agent and the chief appraiser <relating to a matter
1-31 that may be protested to the appraisal review board> is <not> final
1-32 if the agreement relates to a matter:
1-33 (1) which may be protested to the appraisal review
1-34 board or on which a protest has been filed but not
1-35 determined <unless approved> by the <appraisal review> board; or
1-36 (2) which may be corrected under Section 25.25 or on
1-37 which a motion for correction under that section has been filed but
1-38 not determined by the board.
1-39 SECTION 2. Subsection (c), Section 6.41, Tax Code, is
1-40 amended to read as follows:
1-41 (c) To be eligible to serve on the board, an individual must
1-42 be a resident of the district and must have resided in the district
1-43 for at least two years. An individual who is, or at any time in
1-44 the five preceding years was, a <A> member of the appraisal
1-45 district board of directors or an officer or employee of the
1-46 comptroller, the appraisal office, or a taxing unit is ineligible
1-47 to serve on the board. In an appraisal district established for a
1-48 county having a population of more than 50,000, an individual who
1-49 has served for all or part of three previous terms on the appraisal
1-50 review board is ineligible to serve on the appraisal review board.
1-51 In an appraisal district established for any other county, an
1-52 individual who has served for all or part of two consecutive terms
1-53 on the appraisal review board is ineligible to serve on the
1-54 appraisal review board during a term that begins on the next
1-55 January 1 following the second of those consecutive terms.
1-56 SECTION 3. The heading to Section 25.22, Tax Code, is
1-57 amended to read as follows:
1-58 Sec. 25.22. SUBMISSION OF APPRAISAL RECORDS <FOR REVIEW AND
1-59 PROTEST>.
1-60 SECTION 4. Subsection (a), Section 25.22, Tax Code, is
1-61 amended to read as follows:
1-62 (a) By May 15 or as soon thereafter as practicable, the
1-63 chief appraiser shall submit the completed appraisal records to the
1-64 appraisal review board <for review and determination of protests>.
1-65 However, the chief appraiser may not submit the records until the
1-66 chief appraiser has delivered the notices required by Subsection
1-67 (d) of Section 11.45, Subsection (d) of Section 23.44, Subsection
1-68 (d) of Section 23.57, Subsection (d) of Section 23.79, Subsection
2-1 (d) of Section 23.85, Subsection (d) of Section 23.95, and Section
2-2 25.19.
2-3 SECTION 5. Subsection (d), Section 25.23, Tax Code, is
2-4 amended to read as follows:
2-5 (d) Supplemental appraisal records are subject to <review,>
2-6 protest<,> and appeal as provided by Chapters 41 and 42 <of this
2-7 code>. However, a property owner must file a notice of protest
2-8 within 30 days after the date notice is delivered as required by
2-9 Section 25.19. If a property owner files a notice of protest, the
2-10 appraisal review board shall hear and determine the protest within
2-11 30 days after the filing of the protest or as soon thereafter as
2-12 practicable. If a property owner does not file a protest within
2-13 the protest deadline, the appraisal review board shall complete its
2-14 review of the supplemental appraisal records within 30 days after
2-15 the protest deadline or as soon thereafter as practicable.
2-16 SECTION 6. Section 41.01, Tax Code, is amended to read as
2-17 follows:
2-18 Sec. 41.01. DUTIES <SCOPE> OF APPRAISAL REVIEW BOARD. The
2-19 appraisal review board shall <examine the appraisal records for the
2-20 appraisal district to determine whether>:
2-21 (1) determine protests initiated by property owners
2-22 <appraisals are substantially uniform in terms of their
2-23 relationship to the appraised value required by law>;
2-24 (2) determine challenges initiated by taxing units <an
2-25 exemption or a partial exemption is improperly granted>;
2-26 (3) correct clerical errors in the appraisal records
2-27 and the appraisal rolls <land is improperly granted appraisal as
2-28 provided by Subchapter C, D, or E, Chapter 23 of this code>; <or>
2-29 (4) act on motions to correct appraisal rolls under
2-30 Section 25.25;
2-31 (5) determine whether an exemption or a partial
2-32 exemption is improperly granted and whether land is improperly
2-33 granted appraisal as provided by Subchapter C, D, or E, Chapter 23
2-34 of this code; and
2-35 (6) take any other action or make any other
2-36 determination that this title specifically authorizes or
2-37 requires <the records do not conform to the requirements of law in
2-38 any other respect>.
2-39 SECTION 7. Section 41.02, Tax Code, is amended to read as
2-40 follows:
2-41 Sec. 41.02. ACTION BY BOARD. After making a determination
2-42 or decision under Section 41.01, <If after reviewing the appraisal
2-43 records> the appraisal review board <finds that appraisals are not
2-44 substantially uniform or that the records do not conform to the
2-45 requirements of law in some other respect, the board> shall <refer
2-46 the matter to the appraisal office and> by written order <shall>
2-47 direct the chief appraiser to correct or change the appraisal <make
2-48 the reappraisals or corrections in the> records or the appraisal
2-49 roll <that are necessary> to conform the appraisal records or the
2-50 appraisal roll to the board's determination or decision
2-51 <requirements of law>.
2-52 SECTION 8. The heading to Section 41.12, Tax Code, is
2-53 amended to read as follows:
2-54 Sec. 41.12. APPROVAL <COMPLETION> OF APPRAISAL RECORDS
2-55 <REVIEW> BY BOARD.
2-56 SECTION 9. Subsection (a), Section 41.12, Tax Code, is
2-57 amended to read as follows:
2-58 (a) By July 20, the <The> appraisal review board shall:
2-59 (1) hear and determine all or substantially all timely
2-60 filed protests;
2-61 (2) determine all timely filed challenges;
2-62 (3) <complete its review of the appraisal records,
2-63 approve the records, and> submit a list of its approved changes in
2-64 the records to the chief appraiser; and
2-65 (4) approve the records <by July 20>.
2-66 SECTION 10. Subsections (a) and (b), Section 41.47, Tax
2-67 Code, are amended to read as follows:
2-68 (a) Except as provided by Subsection (b), the <The>
2-69 appraisal review board hearing a protest shall determine the
2-70 protest and make its decision by written order.
3-1 (b) If the property owner or the owner's agent and the chief
3-2 appraiser enter into an agreement that resolves a protest that has
3-3 been filed but not determined by the board, the board shall dismiss
3-4 the protest by written order.
3-5 (c) If on determining a protest the board finds that the
3-6 appraisal records are incorrect in some respect raised by the
3-7 protest, the board by its order shall correct the appraisal records
3-8 by changing the appraised value placed on the protesting property
3-9 owner's property or by making the other changes in the appraisal
3-10 records that are necessary to conform the records to the
3-11 requirements of law. If the appraised value of a taxable property
3-12 interest, other than an interest owned by a public utility or by a
3-13 cooperative corporation organized to provide utility service, is
3-14 changed as the result of a protest or challenge, the board shall
3-15 change the appraised value of all other interests, other than an
3-16 interest owned by a public utility or by a cooperative corporation
3-17 organized to provide utility service, in the same property,
3-18 including a mineral in place, in proportion to the ownership
3-19 interests.
3-20 SECTION 11. Subsection (g), Section 41.66, Tax Code, is
3-21 amended to read as follows:
3-22 (g) At the beginning of a hearing on a protest, each member
3-23 of the appraisal review board hearing the protest must sign an
3-24 affidavit stating that in determining the protest, the member will
3-25 not consider any information or evidence which is not presented to
3-26 the board by the parties during the protest hearing and that the
3-27 board member has not communicated with another person in violation
3-28 of Subsection (f). If a board member has communicated with another
3-29 person in violation of Subsection (f), the member must be recused
3-30 from the proceeding and may not hear, deliberate on, or vote on the
3-31 determination of the protest. The board of directors of the
3-32 appraisal district shall adopt and implement a policy concerning
3-33 the temporary replacement of an appraisal review board member who
3-34 has communicated with another person in violation of Subsection
3-35 (f).
3-36 SECTION 12. Subsections (b) and (d), Section 42.21, Tax
3-37 Code, are amended to read as follows:
3-38 (b) A petition for review brought under Section 42.02 must
3-39 be brought against the owner of the property involved in the
3-40 appeal. A petition for review brought under Section 42.031 must be
3-41 brought against the appraisal district and against the owner of the
3-42 property involved in the appeal. A petition for review brought
3-43 under Subdivision (2) or (3) of Section 42.01 or under Section
3-44 42.03 must be brought against the comptroller. Any other petition
3-45 for review under this chapter must be brought against the appraisal
3-46 district. <A petition for review is not required to be brought
3-47 against the appraisal review board, but may be brought against the
3-48 appraisal review board in addition to any other required party, if
3-49 appropriate.>
3-50 (d) An appraisal district is served by service on the chief
3-51 appraiser at any time or by service on any other officer or
3-52 employee of the appraisal district present at the appraisal office
3-53 at a time when the appraisal office is open for business with the
3-54 public. <An appraisal review board is served by service on the
3-55 chairman of the appraisal review board.> Citation of a party is
3-56 issued and served in the manner provided by law for civil suits
3-57 generally.
3-58 SECTION 13. The change in law made by Section 2 of this Act
3-59 relating to the qualifications of persons appointed to appraisal
3-60 review boards applies only to an appointment to an appraisal review
3-61 board on or after the effective date of this Act.
3-62 SECTION 14. The importance of this legislation and the
3-63 crowded condition of the calendars in both houses create an
3-64 emergency and an imperative public necessity that the
3-65 constitutional rule requiring bills to be read on three several
3-66 days in each house be suspended, and this rule is hereby suspended,
3-67 and that this Act take effect and be in force from and after its
3-68 passage, and it is so enacted.
3-69 * * * * *
3-70 Austin,
4-1 Texas
4-2 May 3, 1993
4-3 Hon. Bob Bullock
4-4 President of the Senate
4-5 Sir:
4-6 We, your Committee on Finance to which was referred S.B. No. 865,
4-7 have had the same under consideration, and I am instructed to
4-8 report it back to the Senate with the recommendation that it do not
4-9 pass, but that the Committee Substitute adopted in lieu thereof do
4-10 pass and be printed.
4-11 Montford,
4-12 Chairman
4-13 * * * * *
4-14 WITNESSES
4-15 No witnesses appeared on S.B. No. 865.