83R13075 T
 
  By: Elkins H.B. No. 2419
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  Relating to a pilot program authorizing an administrative district
  judge to appoint special magistrates to assist in hearing ad
  valorem tax protests.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter C, Chapter 41, Tax Code, is amended by
  adding Section 41.463 to read as follows:
         41.463.  PILOT PROGRAM; APPOINTMENT OF SPECIAL MAGISTRATES
  TO ASSIST IN CONDUCTING PROTEST HEARINGS IN HARRIS COUNTY. (a) The
  local administrative district judge of Harris County shall appoint
  as many special magistrates as the judge, with the advice of the
  appraisal district board of directors, determines appropriate to
  conduct hearings on protests and recommend determinations in a
  timely manner under this title.
         (b)  A special magistrate may conduct hearings and recommend
  determinations of any matter that the appraisal review board or a
  panel of the board may make under this Chapter.
         (c)  The chairman of the Appraisal Review Board shall assign
  hearings to special magistrates in a manner that does not consider
  the magistrate's record of determinations of prior protests.
  However, cases may be assigned according to the magistrate's
  particular knowledge or expertise.
         (d)  Special magistrates may not be elected or appointed
  officials or employees of a taxing unit, the appraisal district, or
  the comptroller's office, nor persons licensed as tax consultants
  by the Department of Licensing and Regulation. The chief appraiser
  shall annually notify such individuals or their professional
  associations to make known to them that opportunities to serve as
  special magistrates exist. The administrative district judge shall
  establish a reasonable range of per diem compensation for special
  magistrates. The appraisal district budget shall provide an
  appropriate amount for that purpose.
         (e)  If practicable, the administrative district judge shall
  appoint special magistrates according to the following
  qualifications:
               (1)  a special magistrate appointed to hear issues of
  exemptions and classifications shall be a member of The Texas Bar
  with experience in the area of ad valorem taxation;
               (2)  a special magistrate appointed to hear issues
  regarding the valuation of real estate shall be a licensed real
  estate appraiser with not less than 5 years' experience in real
  property valuation;
               (3)  a special magistrate appointed to hear issues
  regarding the valuation of tangible personal property shall be a
  certified public accountant or a designated member of a nationally
  recognized appraiser's organization with experience in tangible
  personal property valuation.
               (4)  Notwithstanding the foregoing, the administrative
  district judge, with the advice of the chairman of the appraisal
  review board, may consider the needs of the appraisal review board
  and the experience of special magistrate candidates in lieu of the
  requirements of subsection (e)(1) through (e)(3), in order to make
  appointments as special magistrates.
         (f)  A special magistrate need not be a resident of the
  county in which he or she serves. A special magistrate may not
  represent a person before the board in any tax year during which he
  or she has served that board as a special magistrate. Before
  appointing a special magistrate, The administrative district judge
  shall verify the special magistrate's qualifications. The judge
  shall ensure that the selection of special magistrates is based
  solely upon the experience and qualifications of the special
  magistrate and is not influenced by the chief appraiser.
         (g)  Hearings by a special magistrate are scheduled and
  conducted in the manner provided by this chapter for hearings of the
  appraisal review board.
         (h)  A special magistrate shall serve as an independent
  contractor to the appraisal review board, subject to appropriation.
  Notwithstanding any agreement between the board of directors of the
  appraisal district or the appraisal review board and the special
  magistrate to the contrary, a special magistrate's services to the
  appraisal review board may be cancelled at any time upon the vote of
  a majority of four of the serving members of the appraisal review
  board.
         (h-1)  A special magistrate may be removed by the local
  administrative district judge for a violation of Section 6.412,
  6.413, 41.66(f), or 41.69, Tax Code.
         (i)  A special magistrate must complete training as
  specified by comptroller rule before commencing hearings for a tax
  year. The comptroller may require that magistrates attend the
  training provided for members of the appraisal review board.
         SECTION 2.  Subchapter C, Chapter 41, Tax Code, is amended by
  adding Section 41.4631 to read as follows:
  41.4631.  PILOT PROGRAM; APPOINTMENT OF SPECIAL MAGISTRATES
  EXPIRATION OF CURRENT APPRAISAL REVIEW BOARD TERMS. (a) Special
  magistrates shall hold office for terms of two years beginning
  January 1. The appraisal district board of directors by resolution
  shall provide for staggered terms, so that the terms of as close to
  one-half of the special magistrates as possible expire each year.
  In making the initial or subsequent appointments, the local
  administrative district judge shall designate those special
  magistrates who serve terms of one year as needed to comply with
  this subsection.
         (a-1)  Upon the effective date of the pilot program under
  section 41.463, Tax Code, the administrative law judge may begin
  appointing special magistrates for the initial term beginning
  January 1, 2014.
         (b)  Upon the effective date of the pilot program under
  section 41.463, Tax Code, the terms of all then current appraisal
  review board members shall be set to expire on December 31, 2013.
         (c)  Appraisal review board members serving as of the
  effective date of the pilot program under section 41.463, Tax Code,
  are eligible to serve as appraisal review board members under the
  pilot program, unless otherwise prohibited by this title.
         SECTION 3.  Section 6.41, Tax Code, is amended by adding
  Subsection (b-1) to read as follows:
         Sec. 6.41.  APPRAISAL REVIEW BOARD. (b-1) Notwithstanding
  subsection (b), in a county with a population of 3.3 million or
  more, the board shall consist of five members.
         SECTION 4.  Section 6.411, Tax Code, is amended to read as
  follows:
         Sec. 6.411.  EX PARTE COMMUNICATIONS; PENALTY. (a)  A member
  of an appraisal review board, or a special magistrate appointed
  under Section 41.463, Tax Code, commits an offense if the member
  communicates with the chief appraiser or another employee or a
  member of the board of directors of the appraisal district for which
  the appraisal review board is established in violation of Section
  41.66(f).
         (b)  A chief appraiser or another employee of an appraisal
  district, a member of a board of directors of an appraisal district,
  or a property tax consultant or attorney representing a party to a
  proceeding before the appraisal review board commits an offense if
  the person communicates with a special magistrate appointed under
  Section 41.463, Tax Code, or a member of the appraisal review board
  established for the appraisal district with the intent to influence
  a decision by the special magistrate or member in the member's
  capacity as a member of the appraisal review board.
         SECTION 5.  Section 41.45, Tax Code, is amended by adding
  Subsection (d-1) to read as follows:
         Sec. 41.45.  HEARING ON PROTEST. (d-1) Notwithstanding
  subsection (d), in a county with a population of 3.3 million or
  more, a special magistrate appointed under section 41.463 shall
  conduct protest hearings. However, the determination of a protest
  heard by a special magistrate must be made by the board. If the
  recommendation of a special magistrate is not accepted by the
  board, the board may refer the matter for rehearing to a separate
  special magistrate, or the board, by majority vote, may determine
  the protest. Before determining a protest or conducting a rehearing
  before a new special magistrate, the board shall deliver notice of
  the hearing or meeting to determine the protest in accordance with
  the provisions of this subchapter.
         SECTION 6.  Subchapter C, Chapter 41, Tax Code, is amended by
  adding Section 41.4632 to read as follows: (a) The pilot program
  under section 41.463 shall be implemented in a county with a
  population of 3.3 million or more.
         (b)  Unless continued, the pilot program shall expire on
  December 31, 2017.
         SECTION 7.  This Act takes effect September 1, 2013.