81R8774 JD-F

By: Villarreal H.B. No. 1401

A BILL TO BE ENTITLED

AN ACT

relating to an appeal from an order of an appraisal review board determining a protest.

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. 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 determining a protest brought under Section 41.41(a)(1) or (2) concerning the appraised or market value of [real] property if[:

[(1)] the appraised or market value, as applicable, of the property as determined by 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].

SECTION 2. Section 41A.03(a), Tax Code, is amended to read as follows:

(a) To appeal an appraisal review board order under this chapter, a property owner must file with the appraisal district not later than the 45th day after the date the property owner receives notice of the order:

(1) a completed request for binding arbitration under this chapter in the form prescribed by Section 41A.04; and

(2) an arbitration deposit [in the amount of $500,] made payable to the comptroller in the amount of:

(A) $500; or

(B) $250, if the property owner requests expedited arbitration under Section 41A.031.

SECTION 3. Chapter 41A, Tax Code, is amended by adding Section 41A.031 to read as follows:

Sec. 41A.031. EXPEDITED ARBITRATION. (a) A property owner is entitled to an expedited arbitration if the property owner includes a request for expedited arbitration in the request filed under Section 41A.03 and pays the required deposit.

(b) An expedited arbitration must provide for not more than one hour of argument and testimony on behalf of the property owner and not more than one hour of argument and testimony on behalf of the appraisal district.

(c) The comptroller shall adopt rules and processes to assist in the conduct of an expedited arbitration, including rules relating to the evidence required to be produced by each party.

SECTION 4. Sections 41A.09(c) and (d), Tax Code, are amended to read as follows:

(c) If the arbitrator determines that the appraised or market value, as applicable, of the property that is the subject of the appeal is less [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 refund the property owner's arbitration deposit, less the amount retained by the comptroller under Section 41A.05(b);

(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 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

[(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 if the value as determined by the arbitrator is less than the value as determined by the appraisal review board].

SECTION 5. Section 42.21, Tax Code, is amended by amending Subsection (a) and adding Subsection (a-1) to read as follows:

(a) A party who appeals as provided by this chapter must file a petition for review with the district court within 60 [45] days after the party received notice that a final order has been entered from which an appeal may be had or at any time after the hearing but before the 60-day deadline. Failure to timely file a petition bars any appeal under this chapter.

(a-1) A petition for review may include more than one party if the parties have a common legal connection or the same client representative and may include more than one property owned by the parties.

SECTION 6. Subchapter B, Chapter 42, Tax Code, is amended by adding Section 42.231 to read as follows:

Sec. 42.231. MASTERS FOR TAX APPEALS. (a) The court shall give preference to the use of a master in chancery to resolve an appeal brought under this chapter. In connection with an appeal that seeks a remedy under Section 42.25 or 42.26, the court may, and on request of a party to the appeal shall, appoint a master in chancery.

(b) To be eligible to serve as a master in chancery, a person must be a resident of this state and an attorney who is licensed in this state. The person may not be an attorney for or related to a party to the action. In appointing a master, the court shall give preference to a qualified person who has judicial experience.

(c) A master in chancery shall perform all of the duties required by the court, is subject to the orders of the court, and has the power that a master in chancery in a court of equity has.

(d) Subject to any limitations or specifications stated in the order of reference, a master in chancery may:

(1) regulate the proceedings in a hearing before the master and do all acts and take all measures necessary or proper for the efficient performance of the master's duties under the order;

(2) require the production of evidence regarding any matter covered by the order and may require the production of books, papers, vouchers, documents, and other writings applicable to the case;

(3) require that parties produce all documentary evidence in advance of the hearing;

(4) rule on the admissibility of evidence, unless otherwise directed by the order;

(5) administer oaths to and examine witnesses;

(6) call and examine under oath the parties to the action; and

(7) set a reasonable time limit on the proceedings based on the complexity of the case, which may not be less than four hours for a case involving property that is a residence homestead or less than eight hours for a case involving any other type of property, unless otherwise agreed to by the parties.

(e) A decision of a master in chancery is not binding on the parties to the appeal but may be admitted into evidence in a trial of the matter.

SECTION 7. Section 42.23, Tax Code, is amended by adding Subsection (f) to read as follows:

(f) The court has jurisdiction over any issue listed in Section 41.41 on which evidence or argument was offered at the hearing held by the appraisal review board unless at the hearing the parties agreed to waive this subsection.

SECTION 8. Section 42.24, Tax Code, is amended to read as follows:

Sec. 42.24. ACTION BY COURT. (a) In determining an appeal, the district court may:

(1) fix the appraised value of property in accordance with the requirements of law if the appraised value is at issue;

(2) enter the orders necessary to ensure equal treatment under the law for the appealing property owner if inequality in the appraisal of the owner's [his] property is at issue; or

(3) enter other orders necessary to preserve rights protected by and impose duties required by the law.

(b) The district court shall enter an order that requires the parties to participate in mediation.

SECTION 9. Section 42.26, Tax Code, is amended by adding Subsections (e) and (f) to read as follows:

(e) Except as provided by Subsection (d), for purposes of this section, the value of the property subject to the suit and the value of a comparable property or sample property that is used for comparison is the appraised value determined by the appraisal review board.

(f) A comparable property that requires an overall adjustment of more than 25 percent is presumed to be not comparable to the subject property. The presumption may be rebutted by evidence relating to the number of comparable properties or the strength of the comparability.

SECTION 10. Subchapter D, Chapter 1152, Occupations Code, is amended by adding Section 1152.163 to read as follows:

Sec. 1152.163. PROHIBITED ACTS. A person required to register under this chapter may not:

(1) appear at a settlement conference for or attempt to settle an appeal filed under Chapter 42, Tax Code, unless the property owner or the property owner's attorney of record is present;

(2) represent in a public solicitation for business that the fee for services rendered includes the hiring of legal services;

(3) engage the services of an attorney for purposes of filing a suit under Chapter 42, Tax Code, unless the client has previously given written consent; or

(4) solicit a client for an attorney for the purpose of filing an appeal under Chapter 42, Tax Code, if the solicitation results in compensation to the person.

SECTION 11. The change in law made by this Act applies only to an appeal under Chapter 41A or 42, Tax Code, that is filed on or after the effective date of this Act. An appeal under Chapter 41A or 42, Tax Code, that is filed before the effective date of this Act is governed by the law in effect on the date the appeal was filed, and the former law is continued in effect for that purpose.

SECTION 12. This Act takes effect September 1, 2009.