By Haggerty                                           H.B. No. 2496
         77R8148 JD-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain suits instituted under the Property Tax Code
 1-3     and to the award of court costs and attorneys fees in certain suits
 1-4     and appeals instituted under that code.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 42.29, Tax Code, is amended to read as
 1-7     follows:
 1-8           Sec. 42.29.  ATTORNEY'S FEES. (a)  A property owner who
 1-9     prevails in an appeal to the court under Section 42.25 or 42.26
1-10     shall [may] be awarded reasonable attorney's fees.  The amount of
1-11     the award may not exceed the greater of:
1-12                 (1)  $15,000; or
1-13                 (2)  20 percent of the total amount by which the
1-14     property owner's tax liability is reduced as a result of the
1-15     appeal.
1-16           (b)  Notwithstanding Subsection (a), the amount of an award
1-17     of attorney's fees under Subsection (a) may not exceed [the lesser
1-18     of:]
1-19                 [(1)]  $100,000[; or]
1-20                 [(2)  the total amount by which the property owner's
1-21     tax liability is reduced as a result of the appeal].
1-22           SECTION 2. Section 43.01, Tax Code, is amended to read as
1-23     follows:
1-24           Sec. 43.01.  AUTHORITY TO BRING SUIT. (a)  The following
 2-1     persons [A taxing unit] may sue the appropriate appraisal district
 2-2     or the appraisal review board established for that appraisal
 2-3     district [that appraises property for the unit] to compel the
 2-4     appraisal district or appraisal review board to comply with the
 2-5     provisions of this title, rules of the comptroller, or other
 2-6     applicable law:
 2-7                 (1)  a taxing unit;
 2-8                 (2)  a property owner;
 2-9                 (3)  a lessee of property who is contractually
2-10     obligated to pay taxes imposed on the property;
2-11                 (4)  an agent of a property owner designated under
2-12     Section 1.111; or
2-13                 (5)  any other person authorized to bring an action on
2-14     behalf of a person listed in Subdivisions (1)-(4).
2-15           (b)  The court shall award court costs and reasonable
2-16     attorney's fees to a plaintiff who prevails in a suit brought under
2-17     this section.
2-18           SECTION 3. (a)  This Act takes effect September 1, 2001.
2-19           (b)  The changes in law to Section 42.29, Tax Code, made by
2-20     this Act apply  only to an appeal under Chapter 42, Tax Code, that
2-21     is filed on or after the effective date of this Act.  An appeal
2-22     filed under Chapter 42, Tax Code, before the effective date of this
2-23     Act is governed by the law in effect on the date the appeal was
2-24     filed, and the former law is continued in effect for that purpose.
2-25           (c)  The changes in law to Section 43.01, Tax Code, made by
2-26     this Act apply only to a suit that is filed under that section on
2-27     or after the effective date of this Act.  A suit filed under
 3-1     Section 43.01, Tax Code, before the effective date of this Act is
 3-2     governed by the law in effect on the date the suit was filed, and
 3-3     the former law is continued in effect for that purpose.
 3-4                          COMMITTEE AMENDMENT NO. 1
 3-5           Amend H.B. No. 2496 as follows:
 3-6           (1)  On page 1, line 10, strike "shall [may]" and substitute
 3-7     "may".
 3-8           (2)  On page 2, at the end of line 7, add "or".
 3-9           (3)  On page 2, line 8, strike the semicolon and substitute
3-10     ".".
3-11           (4)  On page 2, strike lines 9-14.
3-12           (5)  On page 2, line 15, strike "shall" and substitute "may".
3-13                                                                Hartnett