89R11979 PRL-D

By: Buckley H.B. No. 5527

A BILL TO BE ENTITLED

AN ACT

relating to the selection, terms, and removal of members of the board of directors and appraisal review board of certain appraisal districts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The heading to Section 6.03, Tax Code, is amended to read as follows:

Sec. 6.03. BOARD OF DIRECTORS [IN LESS POPULOUS COUNTIES].

SECTION 2. The heading to Section 6.033, Tax Code, is amended to read as follows:

Sec. 6.033. RECALL OF [APPOINTED] DIRECTOR.

SECTION 3. Section 6.033(a), Tax Code, is amended to read as follows:

(a) The governing body of a taxing unit may call for the recall of a [an appointed] member of the board of directors of an appraisal district appointed under Section 6.03 for whom the taxing unit cast any of its votes in the appointment of the board. The call must be in the form of a resolution, be filed with the chief appraiser of the appraisal district, and state that the taxing unit is calling for the recall of the member. If a resolution calling for the recall of a board member is filed under this subsection, the chief appraiser, not later than the 10th day after the date of filing, shall deliver a written notice of the filing of the resolution and the date of its filing to the presiding officer of the governing body of each taxing unit entitled to vote in the appointment of board members.

SECTION 4. Section 6.036(a), Tax Code, is amended to read as follows:

(a) An individual is not eligible to be [a candidate for, to be] appointed to [,] or to serve on the board of directors of an appraisal district if the individual or a business entity in which the individual has a substantial interest is a party to a contract with:

(1) the appraisal district; or

(2) a taxing unit that participates in the appraisal district, if the contract relates to the performance of an activity governed by this title.

SECTION 5. Section 6.052(f), Tax Code, is amended to read as follows:

(f) The taxpayer liaison officer is responsible for providing clerical assistance to the local administrative district judge [applicable appointing authority prescribed by Section 6.41(d)] in the selection of appraisal review board members and for publicizing the availability of positions on the appraisal review board. The officer shall deliver to the local administrative district judge [applicable appointing authority] any applications to serve on the board that are submitted to the officer and shall perform other duties as requested by the local administrative district judge [applicable appointing authority]. The officer may not influence the process for selecting appraisal review board members.

SECTION 6. Sections 6.41(d), (d-1), (d-2), (d-3), (d-5), (d-9), (d-10), (e), (f), (g), (i), and (j), Tax Code, are amended to read as follows:

(d) Members of the board are appointed by the [applicable appointing authority. For an appraisal district to which Section 6.03 applies, the appointing authority is the] local administrative district judge under Subchapter D, Chapter 74, Government Code, in the county in which the appraisal district is established. [For an appraisal district to which Section 6.0301 applies, the appointing authority is the board of directors of the district.] A vacancy on the board is filled in the same manner for the unexpired portion of the term.

(d-1) All applications submitted to the appraisal district or to the appraisal review board from persons seeking appointment as a member of the appraisal review board shall be delivered to the local administrative district judge [applicable appointing authority]. The appraisal district may provide the local administrative district judge [appointing authority] with information regarding whether an applicant for appointment to or a member of the board owes any delinquent ad valorem taxes to a taxing unit participating in the appraisal district.

(d-2) A local administrative district judge [acting as an appointing authority] may make appointments to the board directly or may, by written order, appoint from three to five persons to perform the duties of appraisal review board commissioner. If the local administrative district judge chooses to appoint appraisal review board commissioners, each commissioner shall possess the same qualifications as those required of an appraisal review board member.

(d-3) The local administrative district judge [applicable appointing authority] shall cause the proper officer to notify appointees to the board of their appointment, and when and where they are to appear.

(d-5) The appraisal district of the county shall provide to the local administrative district judge [applicable appointing authority], or to the appraisal review board commissioners, as the case may be, the number of appraisal review board positions that require appointment and shall provide whatever reasonable assistance is requested by the local administrative district judge [applicable appointing authority] or the commissioners.

(d-9) In selecting individuals who are to serve as members of the appraisal review board for an appraisal district described by Subsection (b-2), the local administrative district judge [board of directors of the district] shall select an adequate number of qualified individuals to permit the chairman of the appraisal review board to fill the positions on each special panel established under Section 6.425.

(d-10) Upon selection of the individuals who are to serve as members of the appraisal review board, the local administrative district judge [applicable appointing authority] shall enter an appropriate order designating such members and setting each member's respective term of office, as provided elsewhere in this section.

(e) Members of the board 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 members as possible expire each year. In making the initial or subsequent appointments, the [applicable appointing authority, or the] local administrative district judge or the judge's designee [if the appointing authority is the judge,] shall designate those members who serve terms of one year as needed to comply with this subsection.

(f) A member of the appraisal review board may be removed from the board by the [applicable appointing authority, or the] local administrative district judge or the judge's designee [if the appointing authority is the judge]. Not later than the 90th day after the date the board of directors, local administrative district judge, or judge's designee that appointed a member of the appraisal review board learns of a potential ground for removal of the member, the board of directors, local administrative district judge, or judge's designee, as applicable, shall remove the member or find by official action that the member's removal is not warranted. Grounds for removal are:

(1) a violation of Section 6.412, 6.413, 41.66(f), or 41.69;

(2) good cause relating to the attendance of members at called meetings of the board as established by written policy adopted by a majority of the appraisal district board of directors; or

(3) evidence of repeated bias or misconduct.

(g) Subsection (a) does not preclude the boards of directors of two or more adjoining appraisal districts from providing for the operation of a consolidated appraisal review board by interlocal contract. Members of a consolidated appraisal review board are appointed jointly by the local administrative district judges [applicable appointing authorities] in the counties in which the appraisal districts that are parties to the contract are established.

(i) A chief appraiser or another employee or agent of the appraisal district, a member of the appraisal review board for the appraisal district, a member of the board of directors of the appraisal district [if the board is established for a district to which Section 6.03 applies], a property tax consultant, or an agent of a property owner commits an offense if the person communicates with the local administrative district judge [applicable appointing authority] regarding the appointment of appraisal review board members. This subsection does not apply to:

(1) a communication between a member of the appraisal review board and the local administrative district judge [applicable appointing authority] regarding the member's reappointment to the board;

(2) a communication between the taxpayer liaison officer for the appraisal district and the local administrative district judge [applicable appointing authority] in the course of the performance of the officer's clerical duties so long as the officer does not offer an opinion or comment regarding the appointment of appraisal review board members;

(3) a communication between a chief appraiser or another employee or agent of the appraisal district, a member of the appraisal review board for the appraisal district, or a member of the board of directors of the appraisal district [if the board is established for a district to which Section 6.03 applies] and the local administrative district judge [applicable appointing authority] regarding information relating to or described by Subsection (d-1), (d-5), or (f) of this section or Section 411.1296, Government Code;

(4) a communication between a property tax consultant or a property owner or an agent of the property owner and the taxpayer liaison officer for the appraisal district regarding information relating to or described by Subsection (f). The taxpayer liaison officer for the appraisal district shall report the contents of the communication relating to or described by Subsection (f) to the local administrative district judge [applicable appointing authority]; or

(5) a communication between a property tax consultant or a property owner or an agent of the property owner and the local administrative district judge [applicable appointing authority] regarding information relating to or described by Subsection (f).

(j) A chief appraiser or another employee or agent of an appraisal district commits an offense if the person communicates with a member of the appraisal review board for the appraisal district, a member of the board of directors of the appraisal district, or the local administrative district judge [, if the judge is the appointing authority for the district,] regarding a ranking, scoring, or reporting of the percentage by which the appraisal review board or a panel of the board reduces the appraised value of property.

SECTION 7. Section 6.42(a), Tax Code, is amended to read as follows:

(a) A majority of the appraisal review board constitutes a quorum. The local administrative district judge under Subchapter D, Chapter 74, Government Code, [applicable appointing authority prescribed by Section 6.41(d)] in the county in which the appraisal district is established shall select a chairman and a secretary from among the members of the appraisal review board. The judge [applicable appointing authority] is encouraged to select as chairman a member of the appraisal review board, if any, who has a background in law and property appraisal.

SECTION 8. Section 6.425(e), Tax Code, is amended to read as follows:

(e) Notwithstanding Subsection (d), the chairman of the appraisal review board may appoint to a special panel described by this section a member of the appraisal review board who does not meet the qualifications prescribed by that subsection if:

(1) the number of persons appointed to the board by the local administrative district judge who meet those qualifications is not sufficient to fill the positions on each special panel; and

(2) the board member being appointed to the panel holds a bachelor's degree in any field.

SECTION 9. The following provisions of the Tax Code are repealed:

(1) Section 6.03(a);

(2) Sections 6.0301 and 6.032; and

(3) Section 6.41(d-2-1).

SECTION 10. Section 5.13, Chapter 1 (S.B. 2), Acts of the 88th Legislature, 2nd Called Session, 2023, is repealed.

SECTION 11. The term of an elected or appointed member of an appraisal district board of directors serving on December 31, 2025, expires January 1, 2026. Not later than December 31, 2025, the taxing units participating in an appraisal district entitled to appoint directors to the board shall appoint five directors, or the number of directors established for the appraisal district under Section 6.031, Tax Code, to serve terms that begin January 1, 2026.

SECTION 12. This Act takes effect September 1, 2025.