85R8991 TJB-F
 
  By: Nelson S.B. No. 669
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the system for protesting or appealing certain ad
  valorem tax determinations; authorizing a fee.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 5.041(b) and (e-1), Tax Code, are
  amended to read as follows:
         (b)  A member of the appraisal review board established for
  an appraisal district must complete the course established under
  Subsection (a). The course must provide at least eight hours of
  classroom training and education. A member of the appraisal review
  board may not participate in a hearing conducted by the board unless
  the person has completed the course established under Subsection
  (a) and received a certificate of course completion.
         (e-1)  In addition to the course established under
  Subsection (a), the comptroller shall approve curricula and provide
  materials for use in a continuing education course for members of an
  appraisal review board.  The course must provide at least four
  hours of classroom training and education. The curricula and
  materials must include information regarding:
               (1)  the cost, income, and market data comparison
  methods of appraising property;
               (2)  the appraisal of business personal property;
               (3)  the determination of capitalization rates for
  property appraisal purposes;
               (4)  the duties of an appraisal review board;
               (5)  the requirements regarding the independence of an
  appraisal review board from the board of directors and the chief
  appraiser and other employees of the appraisal district;
               (6)  the prohibitions against ex parte communications
  applicable to appraisal review board members;
               (7)  the Uniform Standards of Professional Appraisal
  Practice;
               (8)  the duty of the appraisal district to substantiate
  the district's determination of the value of property;
               (9)  the requirements regarding the equal and uniform
  appraisal of property;
               (10)  the right of a property owner to protest the
  appraisal of the property as provided by Chapter 41; and
               (11)  a detailed explanation of each of the actions
  described by Sections 25.25, 41.41(a), 41.411, 41.412, 41.413,
  41.42, and 41.43 so that members are fully aware of each of the
  grounds on which a property appraisal can be appealed.
         SECTION 2.  Chapter 5, Tax Code, is amended by adding Section
  5.043 to read as follows:
         Sec. 5.043.  TRAINING OF ARBITRATORS. (a)  This section
  applies only to persons who have agreed to serve as arbitrators
  under Chapter 41A.
         (b)  The comptroller shall:
               (1)  approve curricula and provide an arbitration
  manual and other materials for use in training and educating
  arbitrators;
               (2)  make all materials for use in training and
  educating arbitrators freely available online; and
               (3)  establish and supervise a training program on
  property tax law for the training and education of arbitrators.
         (c)  The training program must:
               (1)  emphasize the requirements regarding the equal and
  uniform appraisal of property; and
               (2)  be at least four hours in length.
         (d)  The comptroller may contract with service providers to
  assist with the duties imposed under Subsection (b), but the
  training program may not be provided by an appraisal district, the
  chief appraiser or another employee of an appraisal district, a
  member of the board of directors of an appraisal district, a member
  of an appraisal review board, or a taxing unit. The comptroller may
  assess a fee to recover a portion of the costs incurred for the
  training program, but the fee may not exceed $50 for each person
  trained.
         (e)  The comptroller shall prepare an arbitration manual for
  use in the training program.  The manual must be approved on the
  unanimous agreement of a committee selected by the comptroller and
  representing, equally, taxpayers and chief appraisers. The manual
  shall be updated regularly and may be revised on request, in
  writing, to the comptroller. The updated or revised language must
  be approved in the manner provided for the initial approval of the
  manual.
         SECTION 3.  Chapter 5, Tax Code, is amended by adding Section
  5.104 to read as follows:
         Sec. 5.104.  APPRAISAL REVIEW BOARD SURVEY; REPORT. (a) The
  comptroller shall prepare:
               (1)  a survey form that allows a property owner or the
  designated agent of the owner who files with an appraisal review
  board a motion under Section 25.25 to correct the appraisal roll or
  a protest under Chapter 41 to submit comments and suggestions to the
  comptroller regarding the board; and
               (2)  instructions for completing and submitting the
  form.
         (b)  The survey form must allow a property owner or the
  designated agent of the owner to submit comments and suggestions
  regarding:
               (1)  the matters listed in Section 5.103(b); and
               (2)  any other matter related to the fairness and
  efficiency of the appraisal review board.
         (c)  An appraisal district must provide the survey form and
  the instructions for completing and submitting the form to each
  property owner or designated agent of the owner:
               (1)  at or before each hearing conducted under Section
  25.25 or Chapter 41 by the appraisal review board established for
  the appraisal district; and
               (2)  with each order under Section 25.25 or 41.47
  determining a motion or protest, as applicable, delivered by the
  board.
         (d)  A property owner or the designated agent of the owner
  who elects to submit the survey form must submit the form to the
  comptroller as provided by this section. An appraisal district may
  not accept a survey form submitted by a property owner or the
  designated agent of the owner.
         (e)  The comptroller shall allow a property owner or the
  designated agent of the owner to submit a survey form to the
  comptroller in the following manner:
               (1)  in person;
               (2)  by mail;
               (3)  by electronic mail; or
               (4)  through a web page on the comptroller's Internet
  website that allows the property owner or agent to complete and
  submit the form.
         (f)  An appraisal district may not require a property owner
  or the designated agent of the owner to complete a survey form at
  the appraisal office in order to be permitted to submit the form to
  the comptroller.
         (g)  A property owner or the designated agent of the owner
  who elects to submit a survey form provided to the owner or agent
  under Subsection (c)(1) or (2) must submit the form not later than
  the 45th day after the date the form is sent to the owner or agent
  under Subsection (c)(2).
         (h)  The comptroller shall issue an annual report that
  summarizes the information included in the survey forms submitted
  during the preceding year. The report may not disclose the identity
  of a property owner or the designated agent of the owner who
  submitted a survey form.
         (i)  The comptroller shall adopt rules necessary to
  implement this section.
         SECTION 4.  Sections 6.412(a) and (d), Tax Code, are amended
  to read as follows:
         (a)  An individual is ineligible to serve on an appraisal
  review board if the individual:
               (1)  is related within the second degree by
  consanguinity or affinity, as determined under Chapter 573,
  Government Code, to an individual who is engaged in the business of
  appraising property for compensation for use in proceedings under
  this title or of representing property owners for compensation in
  proceedings under this title in the appraisal district for which
  the appraisal review board is established;
               (2)  owns property on which delinquent taxes have been
  owed to a taxing unit for more than 60 days after the date the
  individual knew or should have known of the delinquency unless:
                     (A)  the delinquent taxes and any penalties and
  interest are being paid under an installment payment agreement
  under Section 33.02; or
                     (B)  a suit to collect the delinquent taxes is
  deferred or abated under Section 33.06 or 33.065; or
               (3)  is related within the third degree by
  consanguinity or within the second degree by affinity, as
  determined under Chapter 573, Government Code, to a member of:
                     (A)  the appraisal district's board of directors;
  or
                     (B)  the appraisal review board.
         (d)  A person is ineligible to serve on the appraisal review
  board of an appraisal district established for a county described
  by Section 6.41(d-1) [having a population of more than 100,000] if
  the person:
               (1)  is a former member of the board of directors,
  former officer, or former employee of the appraisal district;
               (2)  served as a member of the governing body or officer
  of a taxing unit for which the appraisal district appraises
  property, until the fourth anniversary of the date the person
  ceased to be a member or officer; [or]
               (3)  appeared before the appraisal review board for
  compensation during the two-year period preceding the date the
  person is appointed; or
               (4)  served for all or part of three previous terms as a
  board member or auxiliary board member on the appraisal review
  board.
         SECTION 5.  Section 6.42(a), Tax Code, is amended to read as
  follows:
         (a)  A majority of the appraisal review board constitutes a
  quorum.  The appraisal review board [of directors of the appraisal
  district] by resolution shall select a chairman and a secretary
  from among its [the] members [of the appraisal review board]. The
  appraisal review board [of directors of the appraisal district] is
  encouraged to select as chairman [of the appraisal review board] a
  member of the appraisal review board, if any, who has a background
  in law and property appraisal.
         SECTION 6.  Section 25.25, Tax Code, is amended by adding
  Subsection (e-1) to read as follows:
         (e-1)  At the end of a hearing on a motion under Subsection
  (c) or (d) conducted by a panel of the appraisal review board
  regarding the value of property, the panel shall provide the
  property owner or the designated agent of the owner a document
  stating the panel's recommendation regarding the value of the
  property.
         SECTION 7.  Section 41.45(h), Tax Code, is amended to read as
  follows:
         (h)  Before the hearing on a protest [or immediately after
  the hearing begins], the chief appraiser and the property owner or
  the owner's agent shall each provide the other with a copy of any
  written material or material preserved on any portable device
  designed to maintain an electronic, magnetic, or digital
  reproduction of a document or image that the person intends to offer
  or submit to the appraisal review board at the hearing.
         SECTION 8.  Section 41.46(a), Tax Code, is amended to read as
  follows:
         (a)  The appraisal review board before which a protest
  hearing is scheduled shall deliver written notice to the property
  owner initiating a protest of the date, time, [and] place, and
  subject matter of [fixed for] the hearing on the protest and of the
  property owner's entitlement to a postponement of the hearing as
  provided by Section 41.45 unless the property owner waives in
  writing notice of the hearing. The board shall deliver the notice
  not later than the 15th day before the date of the hearing.
         SECTION 9.  Section 41.461(a), Tax Code, is amended to read
  as follows:
         (a)  At least 14 days before the first scheduled [a] hearing
  on a protest, the chief appraiser shall:
               (1)  deliver a copy of the pamphlet prepared by the
  comptroller under Section 5.06 [5.06(a)] to the property owner
  initiating the protest if the owner is representing himself, or to
  an agent representing the owner if requested by the agent;
               (2)  inform the property owner that the owner or the
  agent of the owner is entitled on request to [may inspect and may
  obtain] a copy of the data, schedules, formulas, and all other
  information the chief appraiser will [plans to] introduce at the
  hearing to establish any matter at issue; and
               (3)  deliver a copy of the hearing procedures
  established by the appraisal review board under Section 41.66 to
  the property owner.
         SECTION 10.  Section 41.47, Tax Code, is amended by adding
  Subsection (a-1) and amending Subsection (d) to read as follows:
         (a-1)  The board may not determine the appraised value of the
  property that is the subject of a protest to be an amount greater
  than the appraised value of the property as shown in the appraisal
  records submitted to the board by the chief appraiser under Section
  25.22 or 25.23.
         (d)  Not later than the 15th day after the date the protest is
  determined, the [The] board shall deliver by certified mail:
               (1)  a notice of issuance of the order and a copy of the
  order to the property owner or the designated agent of the owner and
  the chief appraiser; and
               (2)  a copy of the appraisal review board survey form
  prepared under Section 5.104 and instructions for completing and
  submitting the form to the property owner or the designated agent of
  the owner.
         SECTION 11.  Section 41.66, Tax Code, is amended by amending
  Subsections (h), (i), and (j) and adding Subsections (j-1) and (p)
  to read as follows:
         (h)  The appraisal review board shall postpone a hearing on a
  protest if the property owner or the designated agent of the owner
  requests additional time to prepare for the hearing and establishes
  to the board that the chief appraiser failed to comply with Section
  41.461. The board is not required to postpone a hearing more than
  one time under this subsection.
         (i)  A hearing on a protest filed by a property owner or the
  designated agent of the owner [who is not represented by an agent
  designated under Section 1.111] shall be set for a time and date
  certain.  If the hearing is not commenced within two hours of the
  time set for the hearing, the appraisal review board shall postpone
  the hearing on the request of the property owner or the designated
  agent of the owner.
         (j)  On the request of a property owner or the [a] designated
  agent of the owner, an appraisal review board shall schedule
  hearings on protests concerning up to 20 designated properties to
  be held consecutively on the same day.  The designated properties
  must be identified in the same notice of protest, and the notice
  must contain in boldfaced type the statement "request for same-day
  protest hearings."  A property owner or the designated agent of the
  owner may [not] file more than one request under this subsection
  with the appraisal review board in the same tax year. The appraisal
  review board may schedule hearings on protests concerning more than
  20 properties filed by the same property owner or the designated
  agent of the owner and may use different panels to conduct the
  hearings based on the board's customary scheduling. The appraisal
  review board may follow the practices customarily used by the board
  in the scheduling of hearings under this subsection.
         (j-1)  An appraisal review board may schedule the hearings on
  all protests filed by a property owner or the designated agent of
  the owner to be held consecutively. The notice of the hearings must
  state the date and time that the first hearing will begin, state the
  date the last hearing will end, and list the order in which the
  hearings will be held. The order of the hearings listed in the
  notice may not be changed without the agreement of the property
  owner or the designated agent of the owner, the chief appraiser, and
  the appraisal review board. The board may not reschedule a hearing
  for which notice is given under this subsection to a date earlier
  than the seventh day after the date the last hearing was scheduled
  to end unless agreed to by the property owner or the designated
  agent of the owner, the chief appraiser, and the appraisal review
  board. Unless agreed to by the parties, the board must provide
  written notice of the date and time of the rescheduled hearing to
  the property owner or the designated agent of the owner not later
  than the seventh day before the date of the hearing.
         (p)  At the end of a hearing on a protest, the appraisal
  review board shall provide the property owner or the designated
  agent of the owner:
               (1)  one or more documents indicating that the members
  of the board hearing the protest signed the affidavit required by
  Subsection (g); and
               (2)  if the hearing is on a protest authorized by
  Section 41.41(a)(1) or (2) and is conducted by a panel of the board,
  a document stating the panel's recommendation regarding the value
  of the property subject to the protest.
         SECTION 12.  Section 41.67(d), Tax Code, is amended to read
  as follows:
         (d)  Information that was previously requested under Section
  41.461 by the protesting party that was not delivered [made
  available] to the protesting party at least 14 days before the first
  scheduled [or postponed] hearing may not be used or offered in any
  form as evidence in the hearing, including as a document or through
  argument or testimony.
         SECTION 13.  Section 41A.06(b), Tax Code, is amended to read
  as follows:
         (b)  To initially qualify to serve as an arbitrator under
  this chapter, a person must:
               (1)  meet the following requirements, as applicable:
                     (A)  be licensed as an attorney in this state; or
                     (B)  have:
                           (i)  completed at least 30 hours of training
  in arbitration and alternative dispute resolution procedures from a
  university, college, or legal or real estate trade association; and
                           (ii)  been licensed or certified
  continuously during the five years preceding the date the person
  agrees to serve as an arbitrator as:
                                 (a)  a real estate broker or sales
  agent [salesperson] under Chapter 1101, Occupations Code;
                                 (b)  a real estate appraiser under
  Chapter 1103, Occupations Code; or
                                 (c)  a certified public accountant
  under Chapter 901, Occupations Code; [and]
               (2)  complete the course for training and education of
  appraisal review board members established under Section 5.041 and
  be issued a certificate indicating course completion;
               (3)  complete the training program on property tax law
  for the training and education of arbitrators established under
  Section 5.043; and
               (4)  agree to conduct an arbitration for a fee that is
  not more than:
                     (A)  $400, if the property qualifies as the
  owner's residence homestead under Section 11.13 and the appraised
  or market value, as applicable, of the property is $500,000 or less,
  as determined by the order;
                     (B)  $450, if the property qualifies as the
  owner's residence homestead under Section 11.13 and the appraised
  or market value, as applicable, of the property is more than
  $500,000, as determined by the order;
                     (C)  $450, if the property does not qualify as the
  owner's residence homestead under Section 11.13 and the appraised
  or market value, as applicable, of the property is $1 million or
  less, as determined by the order;
                     (D)  $750, if the property does not qualify as the
  owner's residence homestead under Section 11.13 and the appraised
  or market value, as applicable, of the property is more than $1
  million but not more than $2 million, as determined by the order; or
                     (E)  $1,000, if the property does not qualify as
  the owner's residence homestead under Section 11.13 and the
  appraised or market value, as applicable, of the property is more
  than $2 million but not more than $3 million, as determined by the
  order.
         SECTION 14.  Section 41A.061(b), Tax Code, is amended to
  read as follows:
         (b)  To renew the person's agreement to serve as an
  arbitrator, the person must:
               (1)  file a renewal application with the comptroller at
  the time and in the manner prescribed by the comptroller;
               (2)  continue to meet the requirements provided by
  Sections 41A.06(b)(1) and (4) [Section 41A.06(b)]; and
               (3)  during the preceding two years have completed at
  least eight hours of continuing education in arbitration and
  alternative dispute resolution procedures offered by a university,
  college, real estate trade association, or legal association.
         SECTION 15.  Section 41A.09(b), Tax Code, is amended 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;
               (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)(4) [41A.06(b)(2)];
               (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.
         SECTION 16.  Sections 5.103(e) and (f), 6.412(e), and
  41A.06(c), Tax Code, are repealed.
         SECTION 17.  The changes in law made by this Act to Section
  5.041, Tax Code, apply only to an appraisal review board member
  appointed to serve a term of office that begins on or after the
  effective date of this Act.
         SECTION 18.  The comptroller shall implement Section 5.043,
  Tax Code, as added by this Act, as soon as practicable after the
  effective date of this Act.
         SECTION 19.  The comptroller shall adopt rules necessary to
  implement Section 5.104, Tax Code, as added by this Act, and shall
  prepare and make available the survey form and instructions for
  completing and submitting the form required by that section as soon
  as practicable after the effective date of this Act. An appraisal
  district is not required to provide the survey form or instructions
  under a requirement of that section until the form and instructions
  are prepared and made available by the comptroller.
         SECTION 20.  The changes in law made by this Act to Section
  6.412, Tax Code, do not affect the eligibility of a person serving
  on an appraisal review board immediately before the effective date
  of this Act to continue to serve on the board for the term to which
  the member was appointed.
         SECTION 21.  The change in law made by this Act to Section
  25.25, Tax Code, applies only to a motion to correct an appraisal
  roll filed on or after the effective date of this Act.
         SECTION 22.  The changes in law made by this Act to Sections
  41.45, 41.46, 41.461, 41.47, 41.66, and 41.67, Tax Code, apply only
  to a protest for which the notice of protest was filed by a property
  owner or the designated agent of the owner with the appraisal review
  board established for an appraisal district on or after the
  effective date of this Act.
         SECTION 23.  The changes in law made by this Act in the
  qualifications of persons serving as arbitrators in binding
  arbitrations of appeals of appraisal review board orders do not
  affect the entitlement of a person serving as an arbitrator
  immediately before the effective date of this Act to continue to
  serve as an arbitrator and to conduct hearings on arbitrations
  until the person is required to renew the person's agreement with
  the comptroller to serve as an arbitrator. The changes in law apply
  only to a person who initially qualifies to serve as an arbitrator
  or who renews the person's agreement with the comptroller to serve
  as an arbitrator on or after the effective date of this Act. This
  Act does not prohibit a person who is serving as an arbitrator on
  the effective date of this Act from renewing the person's agreement
  with the comptroller to serve as an arbitrator if the person has the
  qualifications required for an arbitrator under the Tax Code as
  amended by this Act.
         SECTION 24.  This Act takes effect January 1, 2018.