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A BILL TO BE ENTITLED
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AN ACT
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relating to the administration of the ad valorem tax system; |
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authorizing a fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 403.302(c), Government Code, is amended |
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to read as follows: |
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(c) If after conducting the study the comptroller |
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determines that the local value for a school district is valid, the |
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local value is presumed to represent taxable value for the school |
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district. In the absence of that presumption, taxable value for a |
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school district is the state value for the school district |
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determined by the comptroller under Subsections (a) and (b) unless |
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the local value exceeds the state value, in which case the taxable |
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value for the school district is the district's local value. In |
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determining whether the local value for a school district is valid, |
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the comptroller shall use a margin of error that does not exceed 10 |
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[five] percent unless the comptroller determines that the size of |
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the sample of properties necessary to make the determination makes |
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the use of such a margin of error not feasible, in which case the |
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comptroller may use a larger margin of error. |
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SECTION 2. Sections 5.041(b) and (e-1), Tax Code, are |
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amended to read as follows: |
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(b) A member of the appraisal review board established for |
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an appraisal district must complete the course established under |
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Subsection (a). The course must provide at least eight hours of |
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classroom training and education. A member of the appraisal review |
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board may not participate in a hearing conducted by the board unless |
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the person has completed the course established under Subsection |
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(a) and received a certificate of course completion. |
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(e-1) In addition to the course established under |
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Subsection (a), the comptroller shall approve curricula and provide |
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materials for use in a continuing education course for members of an |
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appraisal review board. The course must provide at least four hours |
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of classroom training and education. The curricula and materials |
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must include information regarding: |
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(1) the cost, income, and market data comparison |
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methods of appraising property; |
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(2) the appraisal of business personal property; |
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(3) the determination of capitalization rates for |
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property appraisal purposes; |
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(4) the duties of an appraisal review board; |
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(5) the requirements regarding the independence of an |
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appraisal review board from the board of directors and the chief |
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appraiser and other employees of the appraisal district; |
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(6) the prohibitions against ex parte communications |
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applicable to appraisal review board members; |
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(7) the Uniform Standards of Professional Appraisal |
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Practice; |
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(8) the duty of the appraisal district to substantiate |
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the district's determination of the value of property; |
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(9) the requirements regarding the equal and uniform |
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appraisal of property; |
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(10) the right of a property owner to protest the |
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appraisal of the property as provided by Chapter 41; and |
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(11) a detailed explanation of each of the actions |
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described by Sections 25.25, 41.41(a), 41.411, 41.412, 41.413, |
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41.42, and 41.43 so that members are fully aware of each of the |
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grounds on which a property appraisal can be appealed. |
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SECTION 3. Section 5.103(b), Tax Code, is amended to read as |
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follows: |
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(b) The model hearing procedures shall address: |
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(1) the statutory duties of an appraisal review board; |
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(2) the process for conducting a hearing; |
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(3) the scheduling of hearings; |
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(4) the postponement of hearings; |
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(5) the notices required under this title; |
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(6) the determination of good cause under Section |
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41.44(b); |
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(7) the determination of good cause under Sections |
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41.45(e) and (e-1); |
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(8) a party's right to offer evidence and argument; |
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(9) a party's right to examine or cross-examine |
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witnesses or other parties; |
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(10) a party's right to appear by an agent; |
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(11) the prohibition of an appraisal review board's |
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consideration of information not provided at a hearing; |
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(12) ex parte and other prohibited communications; |
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(13) the exclusion of evidence at a hearing as |
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required by Section 41.67(d); |
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(14) the postponement of a hearing as required by |
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Section 41.66(h); |
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(15) conflicts of interest; and |
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(16) [the process for the administration of
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applications for membership on an appraisal review board; and
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[(17)] any other matter related to fair and efficient |
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appraisal review board hearings. |
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SECTION 4. Sections 6.41(a), (b), (c), (d), (f), (j), and |
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(k), Tax Code, are amended to read as follows: |
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(a) An [The] appraisal review board is established for each |
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appraisal district. |
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(b) The board consists of five [three] members elected by |
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the voters of the county in which the district is established at the |
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general election for state and county officers. The members serve |
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two-year terms beginning on January 1 of odd-numbered years. |
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[However, the district board of directors by resolution of a
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majority of its members may increase the size of the appraisal
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review board to the number of members the board of directors
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considers appropriate.] |
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(c) To be eligible to serve on the board, an individual must |
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be a resident of the county in which the appraisal district is |
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established and must have resided in the county [district] for at |
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least two years before the date of the individual's election or |
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appointment. |
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(d) [Except as provided by Subsection (d-1), members of the
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board are appointed by resolution of a majority of the appraisal
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district board of directors.] A vacancy on the board is filled by |
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appointment by the commissioners court of the county in which the |
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appraisal district is established [in the same manner] for the |
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unexpired portion of the term. |
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(f) For purposes of Chapter 87, Local Government Code, |
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grounds [A member of the board may be removed from the board by a
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majority vote of the appraisal district board of directors, or by
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the local administrative district judge or the judge's designee, as
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applicable, that appointed the member.
Grounds] for removal of a |
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member of an appraisal review board include [are]: |
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(1) a violation of Section 6.412, 6.413, 41.66(f), or |
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41.69; |
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(2) good cause relating to the attendance of members |
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at called meetings of the board as established by written policy |
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adopted by a majority of the appraisal district board of directors; |
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[or] |
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(3) clear and convincing evidence of repeated bias or |
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misconduct; or |
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(4) failure to complete a course required by Section |
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5.041. |
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(j) A chief appraiser or another employee or agent of an |
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appraisal district commits an offense if the person communicates |
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with a member of the appraisal review board for the appraisal |
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district or[,] a member of the board of directors of the appraisal |
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district[, or, if the appraisal district is an appraisal district
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described by Subsection (d-1), the local administrative district
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judge] regarding a ranking, scoring, or reporting of the percentage |
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by which the appraisal review board or a panel of the board reduces |
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the appraised value of property. |
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(k) An offense under Subsection [(i) or] (j) is a Class A |
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misdemeanor. |
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SECTION 5. Subchapter C, Chapter 6, Tax Code, is amended by |
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adding Section 6.4101 to read as follows: |
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Sec. 6.4101. BALLOT PROCEDURES FOR APPRAISAL REVIEW BOARD |
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MEMBER; FILING FEE. (a) Except as provided by this section, |
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Chapter 144, Election Code, applies to a candidate for the office of |
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member of the appraisal review board of an appraisal district. |
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(b) An application for a place on the ballot must be filed |
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with the county judge of the county in which the appraisal district |
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is established and be accompanied by a filing fee of $250. |
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(c) A candidate's name may appear on the ballot only as an |
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independent candidate. |
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(d) A filing fee received under this section shall be |
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deposited in the county treasury to the credit of the county general |
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fund. |
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SECTION 6. Section 6.411(c-1), Tax Code, is amended to read |
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as follows: |
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(c-1) This section does not apply to communications with a |
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member of an appraisal review board by the chief appraiser or |
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another employee or a member of the board of directors of an |
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appraisal district or a property tax consultant or attorney |
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representing a party to a proceeding before the appraisal review |
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board: |
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(1) during a hearing on a protest or other proceeding |
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before the appraisal review board; |
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(2) that constitute social conversation; |
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(3) that are specifically limited to and involve |
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administrative, clerical, or logistical matters related to the |
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scheduling and operation of hearings, the processing of documents, |
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the issuance of orders, notices, and subpoenas, and the operation, |
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appointment, composition, or attendance at training of the |
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appraisal review board; or |
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(4) that are necessary and appropriate to enable the |
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appraisal review board [of directors of the appraisal district] to |
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determine whether to appoint, reappoint, or remove a person as an |
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auxiliary board [a] member or as the chairman or secretary of the |
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appraisal review board. |
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SECTION 7. Section 6.413(a), Tax Code, is amended to read as |
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follows: |
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(a) An individual is not eligible to be elected or appointed |
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to or to serve on the appraisal review board established for an |
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appraisal district if the individual or a business entity in which |
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the individual has a substantial interest is a party to a contract |
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with the appraisal district or with a taxing unit that participates |
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in the appraisal district. |
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SECTION 8. Sections 6.414(a), (b), and (f), Tax Code, are |
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amended to read as follows: |
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(a) An [The board of directors of an] appraisal review board |
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[district] by resolution of a majority of the members may provide |
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for a number of auxiliary appraisal review board members that the |
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board considers appropriate to hear taxpayer protests before the |
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appraisal review board and to assist the board in performing its |
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duties. |
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(b) An auxiliary board member is appointed to a one-year |
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term by resolution of a majority of the [in the same manner and for
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the same term as an] appraisal review board members. An auxiliary |
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board member may not serve more than two consecutive terms. This |
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subsection does not limit a person's eligibility for appointment to |
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serve nonconsecutive terms. An auxiliary board member [under
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Section 6.41 and] is subject to the same eligibility requirements |
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and restrictions as a board member under Sections 6.41, 6.411, |
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6.412, and 6.413. A vacancy among the auxiliary board members is |
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filled in the same manner as the original appointment to the |
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appraisal review board. |
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(f) An auxiliary board member is entitled to compensation |
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and [as provided by the appraisal district budget and is not
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entitled to a per diem or] reimbursement of expenses as provided by |
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[under] Section 6.42(c). |
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SECTION 9. Section 6.42(a), Tax Code, is amended to read as |
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follows: |
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(a) A majority of the appraisal review board constitutes a |
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quorum. The board [of directors of the appraisal district] by |
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resolution shall select a chairman and a secretary from among the |
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board's [the] members [of the appraisal review board]. The board |
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[of directors of the appraisal district] is encouraged to select as |
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chairman [of the appraisal review board] a member of the [appraisal
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review] board, if any, who has a background in law and property |
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appraisal. |
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SECTION 10. Section 41.66(g), Tax Code, is amended to read |
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as follows: |
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(g) At the beginning of a hearing on a protest, each member |
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of the appraisal review board hearing the protest must sign an |
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affidavit stating that the board member has not communicated with |
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another person in violation of Subsection (f). If a board member |
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has communicated with another person in violation of Subsection |
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(f), the member must be recused from the proceeding and may not |
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hear, deliberate on, or vote on the determination of the protest. |
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The appraisal review board [of directors of the appraisal district] |
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shall adopt and implement a policy concerning the temporary |
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replacement of an appraisal review board member who has |
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communicated with another person in violation of Subsection (f). |
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SECTION 11. Section 52.092, Election Code, is amended by |
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adding Subsection (h) to read as follows: |
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(h) The secretary of state shall prescribe procedures for |
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the listing of the office of member of the appraisal review board of |
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an appraisal district on the ballot. |
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SECTION 12. The following provisions of the Tax Code are |
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repealed: |
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(1) Section 6.052(f); |
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(2) Sections 6.41(d-1), (d-2), (d-3), (d-4), (d-5), |
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(d-6), (d-7), (d-8), (d-9), (e), and (i); and |
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(3) Section 6.412(e). |
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SECTION 13. Section 403.302(c), Government Code, as amended |
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by this Act, applies only to the annual study conducted under |
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Section 403.302, Government Code, for a tax year that begins on or |
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after January 1, 2018. The annual study for a tax year that begins |
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before January 1, 2018, is covered by the law in effect immediately |
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before that date, and the prior law is continued in effect for that |
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purpose. |
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SECTION 14. Section 5.041, Tax Code, as amended by this Act, |
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applies only to an appraisal review board member appointed or |
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elected to serve a term of office that begins on or after the |
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effective date of this Act. |
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SECTION 15. (a) Appraisal review board members shall be |
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elected under Section 6.41, Tax Code, as amended by this Act, |
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beginning with the general election conducted in 2018. Members |
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then elected take office January 1, 2019. |
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(b) The change in the manner of selection of appraisal |
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review board members made by Section 6.41, Tax Code, as amended by |
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this Act, does not affect the selection of members who serve on the |
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board before January 1, 2019. |
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(c) The term of an appraisal review board member serving on |
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December 31, 2018, expires on January 1, 2019. |
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(d) Auxiliary members may be appointed under Section 6.414, |
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Tax Code, as amended by this Act, by the elected appraisal review |
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board members on or after January 1, 2019. |
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(e) The change in the manner of selection of auxiliary |
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members made by Section 6.414, Tax Code, as amended by this Act, |
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does not affect the selection of auxiliary members who serve before |
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January 1, 2019. |
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(f) The term of an auxiliary member serving on December 31, |
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2018, expires on January 1, 2019. |
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SECTION 16. The repeal by this Act of Section 6.41(i), Tax |
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Code, and the change in law made by this Act to Section 6.41(j), Tax |
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Code, do not apply to an offense committed under either of those |
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subsections before January 1, 2019. An offense committed before |
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January 1, 2019, is governed by the applicable subsection as it |
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existed on the date the offense was committed, and the former law is |
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continued in effect for that purpose. For purposes of this section, |
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an offense was committed before January 1, 2019, if any element of |
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the offense occurred before that date. |
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SECTION 17. (a) Except as otherwise provided by this |
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section, this Act takes effect January 1, 2018. |
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(b) Sections 3, 4, 6, 7, 8, 9, 10, 12, and 16 of this Act take |
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effect January 1, 2019. |