80R10311 JD/YDB-D
 
  By: Otto, Hill, Kolkhorst, Ritter, Thompson, H.B. No. 3494
      et al.
 
A BILL TO BE ENTITLED
AN ACT
relating to the appeal through binding arbitration of a protest of
an appraisal review board order, and to related complaints filed by
a property owner and disciplinary action by the Board of Tax
Professional Examiners; providing penalties.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 41A.08(b), Tax Code, as added by Chapter
372, Acts of the 79th Legislature, Regular Session, 2005, is
amended to read as follows:
       (b)  The parties to an arbitration proceeding under this
chapter may represent themselves or be represented in the
proceeding by an attorney, certified public accountant, [or by a]
property tax consultant, real estate appraiser, or real estate
broker [acting under power of attorney]. An employee of the
appraisal district may represent the appraisal district in the
arbitration proceeding. The property owner who is a party to the
arbitration proceeding may present evidence or make arguments in
the proceeding.  A person other than the property owner may not
serve as a party representative, present evidence, or make
arguments in an arbitration proceeding under this chapter unless
the person:
             (1)  is an employee of the appraisal district;
             (2)  is a licensed attorney in this state;
             (3)  is licensed as a real estate broker or salesperson
under Chapter 1101, Occupations Code, or [is] licensed or certified
as a real estate appraiser under Chapter 1103, Occupations Code;
[or]
             (4)  is a property tax consultant registered under
Chapter 1152, Occupations Code; or
             (5)  is certified as a certified public accountant
under Chapter 901, Occupations Code.
       SECTION 2.  Section 41A.08, Tax Code, is amended by adding
Subsections (c) and (d) to read as follows:
       (c)  In an arbitration hearing under this chapter:
             (1)  any party is entitled to present evidence relating
to the data or appraisal method used by the appraisal district in
determining the market or appraised value of the property that is
the subject of the appeal, regardless of whether that evidence was
presented to the appraisal review board that determined the
protest; and
             (2)  the property owner is entitled to allege and
present evidence to show that the appraisal review board that
determined the protest failed to comply with:
                   (A)  a provision of Subchapter C, Chapter 6, or
another law of this state applicable to the board;
                   (B)  a rule adopted by the comptroller applicable
to the board or the hearing conducted by the board; or
                   (C)  any other substantive or procedural
requirement applicable to the hearing conducted by the board.
       (d)  If the property owner presents evidence under
Subsection (c)(2), the arbitrator shall:
             (1)  make a determination whether the appraisal review
board failed to comply with the statute, rule, or procedural
requirement as alleged by the property owner; and
             (2)  include that determination in the record of the
hearing.
       SECTION 3.  Section 41A.11, Tax Code, is amended to read as
follows:
       Sec. 41A.11. POST APPEAL ADMINISTRATIVE AND COMPLAINT
PROCEDURES; DISCIPLINARY ACTION.  (a) An arbitration award under
this chapter is considered to be a final determination of an appeal
for purposes of Subchapter C, Chapter 42.
       (b)  A property owner may not appeal an arbitration award
under this chapter to the Board of Tax Professional Examiners.
       (c)  A property owner who alleges that a chief appraiser
violated a procedural or ethical provision or rule enacted or
adopted under this title may file a complaint with the Board of Tax
Professional Examiners under Chapter 1151, Occupations Code.
       (d)  The board shall investigate a complaint filed against a
chief appraiser under Subsection (c) and may impose any
disciplinary action authorized under Section 1151.202, Occupations
Code, for a violation of this title.
       SECTION 4.  Section 1151.202, Occupations Code, is amended
by adding Subsections (a-1) and (a-2) to read as follows:
       (a-1)  For a violation of Title 1, Tax Code, the board may:
             (1)  deny, suspend, or revoke a registration of a
person;
             (2)  place on probation a person whose registration has
been suspended;
             (3)  administer a public reprimand of a person for a
violation by the person;
             (4)  stipulate periodic board review of the person;
             (5)  require the person to successfully complete
additional continuing education; or
             (6)  assess an administrative penalty under Subchapter
G.
       (a-2)  In addition to any disciplinary action authorized by
Subsection (a-1) for a violation of Title 1, Tax Code, the board may
issue a written reprimand to the registration holder or require the
holder to participate in continuing education programs in which the
board specifies the courses to be completed and the number of hours
required.
       SECTION 5.  Subchapter E, Chapter 1151, Occupations Code, is
amended by adding Section 1151.2021 to read as follows:
       Sec. 1151.2021.  SCHEDULE OF SANCTIONS. (a) The board by
rule shall adopt a schedule of the disciplinary sanctions that the
board may impose under this chapter. In adopting the schedule of
sanctions, the board shall ensure that the severity of the sanction
imposed is appropriate to the type of violation or conduct that is
the basis for disciplinary action.
       (b)  In determining the appropriate disciplinary action,
including the amount of any administrative penalty to assess, the
board shall consider:
             (1)  whether the person is being disciplined for
multiple violations of either this chapter or Title 1, Tax Code, or
a rule or order adopted under this chapter;
             (2)  whether the person has previously been the subject
of disciplinary action by the board and has previously complied
with board rules and this chapter;
             (3)  the seriousness of the violation;
             (4)  the threat to public safety; and
             (5)  any mitigating factors.
       SECTION 6.  Chapter 1151, Occupations Code, is amended by
adding Subchapter G to read as follows:
SUBCHAPTER G.  ADMINISTRATIVE PENALTY
       Sec. 1151.301.  IMPOSITION OF PENALTY. The board may impose
an administrative penalty against a person who violates this
chapter, a rule adopted under this chapter, or Title 1, Tax Code.
       Sec. 1151.302.  AMOUNT OF PENALTY. (a)  The amount of the
administrative penalty may not exceed $1,000 for each violation.
Each day of a continuing violation is a separate violation.
       (b)  The amount of the penalty shall be based on:
             (1)  the seriousness of the violation;
             (2)  the history of previous violations;
             (3)  the amount necessary to deter a future violation;
             (4)  efforts made to correct the violation; and
             (5)  any other matter that justice may require.
       Sec. 1151.303.  NOTICE OF VIOLATION AND PENALTY. (a)  If,
after investigating a possible violation and the facts surrounding
that possible violation, the board determines that a violation
occurred, the board shall give written notice of the violation to
the person alleged to have committed the violation.
       (b)  The notice must:
             (1)  include a brief summary of the alleged violation;
             (2)  state the amount of the proposed administrative
penalty; and
             (3)  inform the person of the person's right to a
hearing on the occurrence of the violation, the amount of the
penalty, or both.
       Sec. 1151.304.  PENALTY TO BE PAID OR HEARING REQUESTED. (a)  
Not later than the 20th day after the date the person receives the
notice, the person may:
             (1)  accept the board's determination, including the
proposed administrative penalty; or
             (2)  make a written request for a hearing on that
determination.
       (b)  If the person accepts the board's determination, the
executive director or that executive director's designee by order
shall approve the determination and impose the proposed penalty.
       Sec. 1151.305.  HEARING. (a)  If the person timely requests
a hearing, the board shall:
             (1)  set a hearing;
             (2)  give written notice of the hearing to the person;
and
             (3)  designate a hearings examiner to conduct the
hearing.
       (b)  The hearings examiner shall make findings of fact and
conclusions of law and promptly issue to the executive director or
that executive director's designee a proposal for decision as to
the occurrence of the violation and the amount of any proposed
administrative penalty.
       Sec. 1151.306.  DECISION BY EXECUTIVE DIRECTOR. (a)  Based
on the findings of fact and conclusions of law and the
recommendations of the hearings examiner, the executive director or
the executive director's designee by order may determine that:
             (1)  a violation has occurred and may impose an
administrative penalty; or
             (2)  a violation did not occur.
       (b)  The board shall give notice of the order to the person.
The notice must include:
             (1)  separate statements of the findings of fact and
conclusions of law;
             (2)  the amount of any penalty imposed; and
             (3)  a statement of the right of the person to judicial
review of the order.
       Sec. 1151.307.  OPTIONS FOLLOWING DECISION: PAY OR APPEAL.
(a)  Not later than the 30th day after the date on which the order
becomes final, the person shall:
             (1)  pay the administrative penalty;
             (2)  pay the penalty and file a petition for judicial
review contesting the occurrence of the violation, the amount of
the penalty, or both; or
             (3)  without paying the penalty, file a petition for
judicial review contesting the occurrence of the violation, the
amount of the penalty, or both.
       (b)  Within the 30-day period, a person who acts under
Subsection (a)(3) may:
             (1)  stay enforcement of the penalty by:
                   (A)  paying the penalty to the court for placement
in an escrow account; or
                   (B)  giving to the court a supersedeas bond that
is approved by the court for the amount of the penalty and that is
effective until all judicial review of the order is final; or
             (2)  request the court to stay enforcement of the
penalty by:
                   (A)  filing with the court a sworn affidavit of
the person stating that the person is financially unable to pay the
penalty and is financially unable to give the supersedeas bond; and
                   (B)  giving a copy of the affidavit to the board by
certified mail.
       (c)  If the board receives a copy of an affidavit as provided
by Subsection (b)(2), the board may file with the court a contest to
the affidavit not later than the fifth day after the date the copy
is received.
       (d)  The court shall hold a hearing on the facts alleged in
the affidavit as soon as practicable and shall stay the enforcement
of the penalty on finding that the alleged facts are true. The
person who files an affidavit has the burden of proving that the
person is financially unable to pay the penalty and to give a
supersedeas bond.
       Sec. 1151.308.  COLLECTION OF PENALTY. If the person does
not pay the administrative penalty and the enforcement of the
penalty is not stayed, the board may refer the matter to the
attorney general for collection.
       Sec. 1151.309.  DETERMINATION BY COURT. (a)  If the court
sustains the determination that a violation occurred, the court may
uphold or reduce the amount of the administrative penalty and order
the person to pay the full or reduced amount.
       (b)  If the court does not sustain the determination that a
violation occurred, the court shall order that a penalty is not
owed.
       Sec. 1151.310.  REMITTANCE OF PENALTY AND INTEREST. (a)  If,
after judicial review, the administrative penalty is reduced or not
imposed by the court, the court shall, after the judgment becomes
final:
             (1)  order the appropriate amount, plus accrued
interest, be remitted to the person by the board if the person paid
the penalty under Section 1151.307(a)(2); or
             (2)  if the person paid the penalty under Section
1151.307(b)(1)(A) or posted a supersedeas bond, order the board to:
                   (A)  execute a complete release of the escrow
account or bond, as appropriate, if the penalty is not imposed; or
                   (B)  release the escrow account or bond, as
appropriate, after the reduced penalty has been paid from the
account or by the person.
       (b)  The interest paid under Subsection (a)(1) is accrued at
the rate charged on loans to depository institutions by the New York
Federal Reserve Bank. The interest shall be paid for the period
beginning on the date the penalty is paid and ending on the date the
penalty is remitted.
       Sec. 1151.311.  EXPENSES AND COSTS. (a)  In this section,
"reasonable expenses and costs" includes expenses incurred by the
board and the attorney general in the investigation, initiation, or
prosecution of an action, including reasonable investigative
costs, court costs, attorney's fees, witness fees, and deposition
expenses.
       (b)  The board may assess reasonable expenses and costs
against a person in an administrative hearing if, as a result of the
hearing, an administrative penalty is assessed against the person.
The person shall pay expenses and costs assessed under this
subsection not later than the 30th day after the date the order of
the executive director or that executive director's designee
requiring the payment of expenses and costs is final. The board may
refer the matter to the attorney general for collection of the
expenses and costs.
       (c)  If the attorney general brings an action against a
person to enforce an administrative penalty assessed under this
subchapter and the person is found liable for an administrative
penalty, the attorney general may recover, on behalf of the
attorney general and the board, reasonable expenses and costs.
       Sec. 1151.312.  ADMINISTRATIVE PROCEDURE. A proceeding
under this subchapter is subject to Chapter 2001, Government Code.
       SECTION 7.  Section 41A.08(b), Tax Code, as added by Chapter
912, Acts of the 79th Legislature, Regular Session, 2005, is
repealed.
       SECTION 8.  The change in law made by this Act applies only
to a penalty assessed on or after the effective date of this Act. A
penalty assessed before that date is governed by the law in effect
immediately before that date, and that law is continued in effect
for that purpose.
       SECTION 9.  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, 2007.