79S30734 UM-D
By: Wong H.B. No. 151
A BILL TO BE ENTITLED
AN ACT
relating to binding arbitration of certain appraisal review board
orders.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 41A.01, Tax Code, is amended to read as
follows:
Sec. 41A.01. RIGHT OF APPEAL BY PROPERTY OWNER. (a) As an
alternative to filing an appeal under Section 42.01, a property
owner is entitled to appeal through binding arbitration under this
chapter an appraisal review board order that the property owner is
entitled to appeal under that section [determining a protest
concerning the appraised or market value of real property] if:
(1) the order relates to real property; and
(2) the appraised [or market] value[, as applicable,]
of the property as determined by the chief appraiser or the
appraisal review board [the order] is $1 million or less[; and
[(2) the appeal does not involve any matter in dispute
other than the determination of the appraised or market value of the
property].
(b) A property owner may not appeal under this chapter an
appraisal review board order or part of such an order relating to
personal property. If an appraisal review board order relates to
both real and personal property, only the part of the order relating
to real property may be appealed under this chapter.
SECTION 2. Section 41A.03(b), Tax Code, is amended to read
as follows:
(b) A property owner who fails to strictly comply with this
section waives the property owner's right to request arbitration
under this chapter. A property owner who appeals an appraisal
review board order [determining a protest concerning the appraised
or market value, as applicable, of the owner's property] under
Chapter 42 waives the owner's right to request binding arbitration
under this chapter regarding the matters determined by the order
[value of that property]. An arbitrator shall dismiss any pending
arbitration proceeding if the property owner's rights are waived
under this subsection.
SECTION 3. Section 41A.04, Tax Code, is amended to read as
follows:
Sec. 41A.04. CONTENTS OF REQUEST FORM. The comptroller by
rule shall prescribe the form of a request for binding arbitration
under this chapter. The form must require the property owner to
provide only:
(1) a brief statement that explains the basis for the
property owner's appeal of the appraisal review board order;
(2) a statement of the property owner's opinion of the
appraised or market value, as applicable, of the property that is
the subject of the appeal, if the matter in dispute involves the
determination of the appraised or market value of the property; and
(3) any other information reasonably necessary for the
appraisal district to request appointment of an arbitrator.
SECTION 4. Section 41A.09, Tax Code, is amended by amending
Subsections (b), (c), and (d) and adding Subsection (d-1) to read as
follows:
(b) An award under this section:
(1) must include a determination of the appraised or
market value, as applicable, of the property that is the subject of
the appeal, if the matter in dispute involves the determination of
the appraised or market value of the property;
(2) may include any remedy or relief a court may order
under Chapter 42 [in an appeal relating to the appraised or market
value of property];
(3) shall specify the arbitrator's fee, which may not
exceed the amount provided by Section 41A.06(b)(3);
(4) is final and may not be appealed except as
permitted under Section 171.088, Civil Practice and Remedies Code,
for an award subject to that section; and
(5) may be enforced in the manner provided by
Subchapter D, Chapter 171, Civil Practice and Remedies Code.
(c) If the appeal involves the determination of the
appraised or market value of the property that is the subject of the
appeal and the arbitrator determines that the appraised or market
value, as applicable, of the property [that is the subject of the
appeal] is nearer to the property owner's opinion of the appraised
or market value, as applicable, of the property as stated in the
request for binding arbitration submitted under Section 41A.03 than
the value determined by the appraisal review board, the property
owner is the prevailing party. In all other appeals, the arbitrator
shall determine whether the property owner is the prevailing party,
based on the arbitrator's determination of the matters that are the
subject of the appeal. If the property owner is the prevailing
party:
(1) the comptroller, on receipt of a copy of the award,
shall refund the property owner's arbitration deposit, less the
amount retained by the comptroller under Section 41A.05(b); and
(2) the appraisal district, on receipt of a copy of the
award, shall pay the arbitrator's fee[; and
[(3) the chief appraiser shall correct the appraised
or market value, as applicable, of the property as shown in the
appraisal roll to reflect the arbitrator's determination].
(d) If the property owner is not the prevailing party under
Subsection (c), [arbitrator determines that the appraised or market
value, as applicable, of the property that is the subject of the
appeal is not nearer to the property owner's opinion of the
appraised or market value, as applicable, of the property as stated
in the request for binding arbitration submitted under Section
41A.03 than the value determined by the appraisal review board:
[(1)] the comptroller, on receipt of a copy of the
award, shall:
(1) [(A)] pay the arbitrator's fee out of the owner's
arbitration deposit; and
(2) [(B)] refund to the owner the owner's arbitration
deposit, less the arbitrator's fee and the amount retained by the
comptroller under Section 41A.05(b).[; and]
(d-1) On receipt of a copy of the arbitrator's award, [(2)]
the chief appraiser shall correct the [appraised or market value,
as applicable, of the property as shown in the] appraisal roll to
reflect the arbitrator's determination of any matter other than the
appraised or market value of the property, and shall correct the
appraised or market value if the value as determined by the
arbitrator is less than the value as determined by the appraisal
review board.
SECTION 5. Chapter 41A, Tax Code, is amended by adding
Section 41A.091 to read as follows:
Sec. 41A.091. CITATION OF APPRAISAL REVIEW BOARD MEMBER.
(a) If during the course of an arbitration proceeding under this
chapter the arbitrator finds that a member of the appraisal review
board failed to follow the procedures governing protests under
Subchapter C, Chapter 41, the arbitrator shall cite the member for
the failure to follow the correct procedures.
(b) The arbitrator shall send a copy of a citation under
Subsection (a) to the chairman of the appraisal review board.
(c) A member of an appraisal review board who receives three
citations under this section is ineligible to continue serving as
an appraisal review board member and is considered to have vacated
the office of appraisal review board member on the date the chairman
of the appraisal review board receives the copy of the third
citation.
SECTION 6. Sections 25.25(a) and (o), Tax Code, are amended
to read as follows:
(a) Except as provided by Chapters 41, 41A, and 42 of this
code and by this section, the appraisal roll may not be changed.
(o) The failure or refusal of a chief appraiser to change an
appraisal roll under Subsection (b) is not:
(1) an action that the appraisal review board is
authorized to determine under this section;
(2) an action that may be the subject of a suit to
compel filed under Subsection (g);
(3) an action that a property owner is entitled to
protest under Section 41.41; or
(4) an action that may be appealed under Chapter 41A or
42.
SECTION 7. Chapter 41A, Tax Code, as amended by this Act,
applies only to a request for binding arbitration filed by a
property owner under that chapter on or after the effective date of
this Act.
SECTION 8. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2006.