BILL ANALYSIS

Senate Research Center	H.B. 4101
88R20372 DRS-D	By: Shine (Springer)
	Local Government
	5/5/2023
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The 87th Texas Legislature enacted legislation allowing property owners to access limited binding arbitration to compel compliance with specific procedural requirements related to protests of property's appraised value. The process has been implemented successfully for the narrow list of reasons a property owner may access limited binding arbitration. Many property owners have already availed themselves of this new process.

Expanding this authorization to include compelling an appraisal review board or a chief appraiser to adhere to the hearing procedures would be a more affordable and less burdensome process than other remedies currently available to property owners. Therefore, H.B. 4101 authorizes a property owner that files a protest related to the appraisal of their property to request limited binding arbitration to compel the appraisal review board or the chief appraiser to comply with the hearing procedures adopted by the appraisal review board.

Author's Summary Analysis

H.B. 4101 amends the Tax Code to expand the scope of the authorization for a property owner who files a notice of a property tax protest to request limited binding arbitration to compel compliance by a chief appraiser or appraisal review board (ARB), as appropriate, to rescind procedural rules adopted by the ARB that are not in compliance with the model hearing procedures prepared by the comptroller of public accounts to authorize the property owner also to compel compliance with the hearing procedures adopted by the ARB. This change applies only to a request for limited binding arbitration related to a protest for which a property owner files a notice of protest on or after the bill's effective date.

Effective Date

January 1, 2024

H.B. 4101 amends current law relating to the matters that may be the subject of limited binding arbitration to compel compliance with procedural requirements related to protests before appraisal review boards.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends the heading to Section 41A.015, Tax Code, to read as follows:

Sec. 41A.015. LIMITED BINDING ARBITRATION TO COMPEL COMPLIANCE WITH PROCEDURAL REQUIREMENTS RELATED TO PROTESTS.

SECTION 2. Amends Section 41A.015(a), Tax Code, as follows:

(a) Authorizes a property owner who has filed a notice of protest under Chapter 41 (Local Review) to file a request for limited binding arbitration under Section 41A.015 (Limited Binding Arbitration to Compel Compliance with Certain Procedural Requirements Related to Protests) to compel the appraisal review board or chief appraiser, as appropriate, to comply with the hearing procedures adopted by the appraisal review board under Section 41.01(c) (relating to requiring the appraisal review board by rule to adopt procedures for hearings the board conducts) and rescind procedural rules adopted by the appraisal review board that are not in compliance with the model hearing procedures prepared by the comptroller under Section 5.103 (Appraisal Review Board Oversight).

SECTION 3. Makes application of the change in law made by this Act under Section 41A.015, Tax Code, prospective.

SECTION 4. Effective date: January 1, 2024.