BILL ANALYSIS C.S.H.B. 2610 By: Craddick March 30, 1995 Committee Report (Substituted) BACKGROUND Chapter 33, Tax Code, addresses delinquent taxes for property tax purposes and establishes that a tax receipt is used as evidence of payment in a delinquent tax lawsuit. This chapter does not recognize the use of electronic replicas which are possible through data imaging techniques that have been developed to efficiently store large amounts of data electronically. Chapter 41, Tax Code, provides for local review of property taxes. Hearing protests are often heard by panels consisting of three or more ARB members. Currently, Section 41.45(d) provides that an ARB panel may not make a final determination of a protest. The ARB panel presents its recommendation to the full ARB for a final decision. When the recommendation is presented by the panel to the full ARB, taxpayers may be unable to present their argument or evidence before the members actually issuing the determination. Section 41.61 requires the ARB hold a hearing to decide if good cause exists to issue a subpoena. PURPOSE This bill proposes the following: (1) to include electronic replica as evidence of payment; (2) to allow a rehearing of a protest if the ARB does not accept the recommendation of a panel; (3) to provide for written notice of those involved with a subpoena for a good cause hearing. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 33.47 (Tax Records as Evidence), Tax Code, by amending Subsection (c) to include electronic replica as evidence of payment. SECTION 2. Amends Section 41.45 (Hearing on Protest), Tax Code, by amending Subsection (d) to allow the ARB to refer a protest to a panel for a rehearing if the board does not accept the recommendation made by the panel. The new panel shall be composed of members who did not hear the original protest. If there are not three members who did not sit on the original panel, then the board may determine the protest. Before a rehearing by a panel or board, notice shall be delivered in accordance with this Subchapter. SECTION 3. Amends Section 41.61 (Issuance of Subpoena), Tax Code, by amending Subsection (c) to require that the ARB send written notice at least 5 days before a good cause hearing to a person named in a subpoena and to each party in the protest. The person cited in the subpoena is entitled to be heard at the hearing. SECTION 4. Effective date: September 1, 1995 SECTION 5. Emergency clause COMPARISON OF ORIGINAL TO SUBSTITUTE The original bill allowed a panel to determine a protest by written order. The committee substitute would require the panel to make a recommendation to the full ARB, but if the board does not accept the recommendation then the board may refer the protest to a new panel for a rehearing or conduct a rehearing by the full board. The original bill requires the ARB to provide written notice to those involved with a subpoena for a good cause hearing 15 days before the hearing. The substitute changes the period to 5 days before the hearing. SUMMARY OF COMMITTEE ACTION Public notice was posted in accordance with the rules, and a public hearing was held on March 28, 1995. Representative Craddick explained the bill. Without objection, H.B. 2610 was left pending before the committee. Pursuant to an announcement on the House Floor, the committee met in a formal meeting on March 29, 1995 to consider H.B. 2610. The committee considered a complete substitute by Representative Craddick. Without objection, the committee adopted C.S.H.B. 2610. By a record vote of 8 ayes, 0 nays, 0 present not voting and 3 absent, the committee voted to report H.B. 2610 to the House as substituted with the recommendation that it be sent to the Local and Consent Calendar and that it do pass. Testimony received in favor of the bill (3-28-95): Dale Cummings, representing himself and the Texas Assn. of Taxpayers Foy Mitchell, representing the Dallas Central Appraisal District Breck Bostwick, representing himself and the Texas Assn. of Property Tax Professionals