By: Villarreal	H.B. No. 585

	A BILL TO BE ENTITLED
	AN ACT
	relating to procedural requirements under the Property Tax Code.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 5.041, Tax Code, is amended to read as
	follows:
	(b)  A member of the appraisal review board established for
	an appraisal district must complete the course established under
	Subsections (a) and (e-1).  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 Subsections (a)
	and (e-1) and has received a certificate of course completion.
	(b-1)  At the conclusion of a course established under
	Subsections (a) and (e-1), each member of the appraisal review
	board in attendance shall complete a statement, on a form
	prescribed by the comptroller, indicating that the member will
	abide by the requirements of this title in conducting hearings.
	(e-2)  During [As soon as practicable after the beginning of]
	the second year and each year thereafter of an appraisal review
	board member's term of office, the member must successfully
	complete the course established under Subsection (e-1).  A person
	who fails to [timely] complete the course established under
	Subsection (e-1) may not participate in a hearing conducted by the
	board and may not vote on any determination of protest. Further, a
	person who fails to complete the courses established under
	Subsections (a) and (e-1) may not be reappointed to an additional
	term on the appraisal review board.  Appraisal review board members
	[If the person is reappointed to an additional term on the appraisal
	review board, the person] must successfully complete the course
	established under Subsection (e-1) in each year the member
	continues to serve after the first year of service.
	(f)  The comptroller may not advise a property owner, a
	property owner's agent, the chief appraiser, or an employee of an
	appraisal district [or an appraisal review board] on a matter that
	the comptroller knows is the subject of a protest to the appraisal
	review board.  The comptroller may provide advice to the appraisal
	review board as authorized by subsection (a)(4) of this section and
	may communicate with the chairmen of appraisal review boards and
	taxpayer liaison officers concerning complaints filed under
	Section 6.052 of this code.
	SECTION 2.  Section 5.103, Tax Code, is added to read as
	follows:
	Section 5.103.  Appraisal Review Board Oversight.  (a)  The
	comptroller shall adopt uniform practice and procedure rules for an
	appraisal review board.
	(b)  The rules shall address:
	(1)  duties of an appraisal review board;
	(2)  scheduling of hearings;
	(3)  notices required under this code;
	(4)  determination of what constitutes substantially
	all timely filed protests under Section 41.12;
	(5)  determination of good cause under Section
	41.44(b);
	(6)  determination of good cause under Section 41.45(e)
	and (g);
	(7)  hearing procedures for the hearings the appraisal
	review conducts under Subchapters A and C of this chapter;
	(8)  a party's right to offer evidence and argument;
	(9)  a party's right to examine or cross examine
	witnesses or other parties;
	(10)  a party's right to appear by agent;
	(11)  the prohibition of an appraisal review board on
	consideration of information not provided at the hearing;
	(12)  ex parte communication;
	(13)  exclusion of evidence under Section 41.461;
	(14)  postponement for failure to comply with Section
	41.461;
	(15)  conflict of interest; and
	(16)  other matters related to fair and efficient
	appraisal review board hearings.
	(b)  An appraisal review board shall follow the rules of
	practice and procedure adopted by the comptroller.
	(c)  The comptroller shall develop and implement policies
	that provide the public with a reasonable opportunity to register
	complaints or suggestions for improvement concerning an appraisal
	review board with the comptroller.
	(d)  The comptroller shall prior to January 1 of the tax year
	issue a report summarizing the complaints and suggestions
	concerning each appraisal review board.  The report shall not
	identify the person making the complaint.
	(e)  The chairman of an appraisal review board in a county in
	excess of 200,000 shall review the report and issue a written
	response to the issues raised in the report prior to April 1 of the
	succeeding year.  The comptroller shall by rule set forth the
	requirements of this report.
	SECTION 3.  Section 6.052, Tax Code, is amended to read as
	follows:
	(a)  The board of directors for an appraisal district created
	for a county with a population of more than 125,000 shall [appoint]
	employ a taxpayer liaison officer who shall serve at the pleasure of
	the board.  The taxpayer liaison officer shall administer the
	public access functions required by Sections 6.04(d), (e), and (f),
	and is responsible for resolving disputes not involving matters
	that may be protested under Section 41.41.  The taxpayer liaison
	officer also is responsible for receiving and compiling a list of
	complaints filed by the chief appraiser, a property owner, or a
	property owner's agent concerning, but not limited to, the
	following matters related to the appraisal review board:
	(1)  application of hearing procedures;
	(2)  provision of notices;
	(3)  scheduling of hearings;
	(4)  postponement of hearings;
	(5)  admission of evidence presented at hearings;
	(6)  issuance of subpoenas;
	(7)  conflicts of interest;
	(8)  restrictions on membership eligibility;
	(9)  assignment of protests to panels;
	(10)  ex parte communications; and
	(11)  any other procedural matter.
	(b)  The taxpayer liaison officer [may] shall provide to the
	public information and materials designed to assist property owners
	in understanding the appraisal process, protest procedures, how to
	file complaints under subsection (a) and Section 6.04(g), and other
	matters.
	(c)  The taxpayer liaison officer shall report to the board
	at each meeting on the status of all complaints filed with the board
	under section 6.04(g) and with the officer under subsection (a).
	(d)  The taxpayer liaison officer is entitled to
	compensation as provided by the budget adopted by the board of
	directors.
	(e)  The chief appraiser or any other person who performs
	appraisal or legal services for the appraisal district or is
	employed by the appraisal district in another capacity is not
	eligible to be the taxpayer liaison officer [for the appraisal
	district].
	(f)  The taxpayer liaison officer shall provide to the
	comptroller the list of complaints filed under subsection (a) in
	the form and manner and according to the schedule prescribed by the
	comptroller.
	SECTION 4.  SECTION 6.41, Tax Code is amended to read as
	follows:
	(d-1)  In a county with a population of 200,000 [3.3 million
	or more or a county with a population of 550,000 or more that is
	adjacent to a county with a population of 3.3 million] or more the
	members of the board are appointed by the local administrative
	district judge in the county in which the appraisal district is
	established.
	(d-10)  In a county with a population greater than 200,000,
	an appraisal review board member may be removed for good cause as
	follows:
	(1)  The Board of Directors of the appraisal district,
	the Chairman of the appraisal review board or a property owner in
	the district may file a motion with the local administrative
	district judge for purposes of the removal of a member of the
	appraisal review board for good cause.
	(2)  Good cause includes but is not limited to:
	(i)  failure to follow the Tax Code,
	(ii)  failure to follow the Rules of the
	Comptroller of Public Accounts,
	(iii)  demonstration of bias or prejudice,
	(iv)  participation in ex parte
	communication prohibited by this code,
	(v)  maintenance of statistics of changes in
	values of properties,
	(vi)  failure to regularly attend meetings,
	(vii)  failure to provide a report under
	Section 5.103(e); and
	(viii)  inattention to hearings or the
	hearing process.
	(3)  The district judge shall have complete discretion
	in selection of the appropriate procedure for implementation of
	this process.  The district judge may or may not hold a hearing.  The
	decision of the district judge is final and may not be appealed.
	(4)  If good cause for removal is found, the member
	shall be removed from the appraisal review board immediately.  The
	removal shall have no effect upon prior decisions in which the
	member participated.
	(5)  The district judge may appoint a special master to
	determine the motion for removal.  The special master shall be
	compensated by the appraisal district at the same rate as an
	appraisal review board member.
	(6)  The local administrative district judge shall
	appoint the replacement if a member is removed.
	(7)  The comptroller of public accounts shall adopt
	rules for the implementation of this section.
	(e)  Members of the board hold office for terms of four [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
	board of directors or the local administrative district judge or
	the judge's designee shall designate those members who serve terms
	of one year as needed to comply with this subsection.
	(i)  The decisions of a member of an appraisal review shall
	be made in compliance with this Code and the rules of the
	Comptroller of Public Accounts.  A member shall at the conclusion of
	the training required under Section 5.041 or prior to the first
	appraisal review board hearing of the tax year sign an affidavit
	agreeing to compliance with these provisions.
	(j)  Service on a board does not constitute employment for
	the purposes of Chapter 201, Labor Code and does not authorize a
	person to receive unemployment benefits by virtue of such service.
	SECTION 5. SECTION 21.09, Tax Code, is added to read as
	follows:
	Sec. 21.09  ALLOCATION APPLICATION (a) To receive an
	allocation authorized by Section 21.021, 21.03, 21.031, 21.05 or
	21.055, a person claiming the allocation must apply for the
	allocation.  To apply for an allocation, a person must file an
	allocation application form with the chief appraiser in the
	appraisal district in which the property subject to the claimed
	allocation has situs.
	(b)  A person claiming allocation must apply for the
	allocation each year the person claims allocation.  A person
	claiming allocation must file a completed allocation application
	form before May 1 and must furnish the information required by the
	form.  For good cause shown, the chief appraiser shall extend the
	deadline for filing an allocation application by written order for
	a period not to exceed 60 days.
	(c)  The comptroller shall prescribe the contents of the
	allocation application form and shall ensure that the form requires
	an applicant to furnish the information necessary to determine the
	validity of the allocation application.
	(d)  If the chief appraiser learns of any reason indicating
	that an allocation previously allowed should be cancelled, he shall
	investigate.  If he determines that the property is not entitled to
	an allocation, he shall cancel the allocation and deliver written
	notice of the cancellation within five days after the date he makes
	the cancellation.  A person may protest the cancellation of an
	allocation.
	(e)  The filing of a rendition under Chapter 22 is not a
	condition of qualification for allocation.
	(f)  If the property was not on the appraisal roll in the
	preceding year, the deadline for filing an application for
	allocation is extended to 45 days after receipt of the notice of
	appraised value required by Section 25.19(a)(1) of this code.
	SECTION 6.  SECTION 22.10, Tax Code, is added to read as
	follows:
	Sec. 21.10.  LATE APPLICATION FOR ALLOCATION.  (a)  The chief
	appraiser shall accept and approve or deny an application for
	allocation under Section 21.09 after the deadline for filing it has
	passed if it is filed before the date the appraisal review board
	approves the appraisal records.
	(b)  If the application is approved, the property owner is
	liable to each taxing unit for a penalty in an amount equal to 10
	percent of the difference between the amount of tax imposed by the
	taxing unit on the property without the allocation and the amount of
	tax imposed on the property with the allocation.
	(c)  The chief appraiser shall make an entry on the appraisal
	records for the property indicating the property owner's liability
	for the penalty and shall deliver a written notice of imposition of
	the penalty, explaining the reason for its imposition, to the
	property owner.
	(d)  The tax assessor for a taxing unit that taxes the
	property shall add the amount of the penalty to the property owner's
	tax bill, and the tax collector for the unit shall collect the
	penalty at the time and in the manner the collector collects the
	tax.  The amount of the penalty constitutes a lien against the
	property against which the penalty is imposed, as if it were a tax,
	and accrues penalty and interest in the same manner as a delinquent
	tax.
	SECTION 7.  SECTION 41.45(n), Tax Code, is added to read as
	follows:
	(n)  A property owner does not waive the right to appear in
	person by the filing of an affidavit and the affidavit shall be used
	by the appraisal review board only in the event the property owner
	does not appear in person.  For purposes of the scheduling of a
	hearing, a property owner shall designate on the affidavit that the
	property owner does not intend to appear at the hearing or shall
	designate that the affidavit shall be used only in the event that
	the property owner does not appear at the hearing.  If the property
	owner states that the property owner does not intend to appear at
	the hearing, the appraisal review board is not required to consider
	the affidavit at the scheduled hearing and may consider the
	affidavit at a hearing designated for the specific purpose of
	processing affidavits.
	SECTION 8.  SECTION 41.66, Tax Code, is amended by adding
	subsections (i), (j), (k), (1), (m), (n) and (o) to read as follows:
	(i)  A protest hearing shall be set for a time and date
	certain.  If the protest hearing for a property owner not
	represented by an agent designated under Section 1.111 is not
	commenced within two hours of the time certain, the hearing upon
	request shall be postponed.  If a protest hearing is not commenced
	on the date noticed, a designated agent may request a postponement
	of the protest hearing and the request is automatically granted.
	The postponed hearing may be set no sooner than 14 days from the
	original hearing date unless by other agreement and the appraisal
	review board shall provide written notice of the new hearing.
	(j)  At the written request of a property owner filed with
	the protest, the appraisal review board shall schedule requested
	protest hearings for that property owner for consecutive hearings.
	At the written request of an attorney or an agent designated under
	Section 1.111 filed with the protest, the appraisal review board
	shall schedule the requested protest hearings for that attorney,
	agent, or agent's company for consecutive hearings.  The district
	is not required to schedule more than twenty hearings
	consecutively.  A district may use more than one panel for
	scheduling the hearings for an agent's company.  In a county in
	which an attorney or an agent designated under Section 1.111
	protests fewer than twenty properties, the hearings upon request
	shall be on the same day.
	(k)  At the request of a property owner or an agent
	designated under Section 1.111, the appraisal review board shall
	schedule all parcels for a property or economic unit of real
	property for the same protest hearing.  The parcels comprising a
	single property or economic unit shall be identified in the
	protest.
	(l)  Property owners or their designated agents shall be
	randomly assigned to panels.  However, the assignment may consider
	the property type subject to protest for utilization of panel
	expertise for a particular property type.  If a property owner or
	designated agent is assigned to a panel for a day, the property
	owner or designated agent may not be reassigned to another panel
	without the property owner or designated agent's consent.
	Reassignment without consent is good cause for postponement of a
	hearing.
	(m)  Evidence and argument provided by a property owner,
	attorney or agent in support of a protest brought under Section
	41.41(a) (1) or (2) is not subject to Chapter 1103, Occupation Code,
	unless the person offering such evidence or argument states that
	they are offering evidence or argument as a person holding a license
	or certification under Chapter 1103, Occupation Code.  A person
	licensed under Chapter 1103, Occupation Code shall state the
	capacity in which they are appearing before the appraisal review
	board.
	(n)  Appraisal districts and appraisal review boards may not
	make decisions with regard to membership on a panel or chairmanship
	of a panel based upon consideration of a member's voting record in
	previous cases.
	(o)  An appraisal review board shall respond in writing to a
	request for postponement of a hearing within seven days of receipt
	of the request.
	(p)  The chairman of an appraisal review board or member
	designated by the chairman may make decisions with regard to the
	scheduling or postponement of a protest hearing.  The chief
	appraiser or person designated by the chief appraiser may agree to a
	postponement of an appraisal review board hearing.
	SECTION 9.  Section 41A.01, Tax Code, is amended to read as
	follows:
	(a)  To appeal an appraisal review board order under this
	chapter, a property owner must file with the appraisal district not
	later than the 45th day after the date the property owner receives
	notice of the order:
	(1)  a completed request for binding arbitration under
	this chapter in the form prescribed by Section 41A.04; and
	(2)  an arbitration deposit made payable to the
	comptroller in the amount of[÷]
	[(A)]  $500 [; or
	[(B)     $250, if the property owner requests
	expedited arbitration under Section 41A.031].
	SECTION 10.  SECTION 42.21, Tax Code, is amended by adding
	subsections (f) and (g) to read as follows:
	(f)  A petition may include multiple properties owned or
	leased by the same plaintiff.
	(g)  A petition may include multiple plaintiffs if the
	plaintiffs are or related entities. Related entities include
	parents and subsidiaries, affiliates, joint ventures, partnerships
	with overlapping partners or companies with overlapping members.
	The court upon motion may sever the action of related entities upon
	a showing that the entities are not related.  Evidence of a related
	entity includes identical management of the entities, identical
	principal place of business of the entities, same representative
	for purposes of an entity representative for an entity deposition
	and same person retaining the attorney for purposes of filing the
	lawsuit.
	(h)  A petition may be amended within the time period set
	forth in subsection (a) for the same year to include additional
	properties owned by the same owner or related entities that are the
	subject of an appraisal review board order.
	(i)  The court has jurisdiction over an appeal under this
	chapter regardless of the plaintiff identified in the petition if
	the property was the subject of an appraisal review board hearing
	for the current year and the petition was filed within the time
	period set forth in subsection (a).  A petition may be amended at
	any time to insure proper parties in interest to the lawsuit or to
	correct an error in the identification of the property. Upon
	motion, the court shall determine proper parties in interest to the
	suit.  An incorrect party or property shall be the subject of a
	special exception and correction through amendment.
	SECTION 11.  SECTION 42.26 is amended by adding subsection
	(e) to read as follows:
	(e)  For purposes of this section, the appraised value of the
	property the subject of the suit and the appraised value of the
	comparable properties is the appraised value determined by the
	appraisal review board.  This subsection does not apply to chemical
	processing property, utility property, or other properties in which
	a reasonable number of comparable properties constitutes all the
	comparable properties.
	SECTION 12.  Section 42.23, Tax Code, is amending by adding
	subsection (h) to read as follows:
	(h)  Evidence, argument and other testimony offered at an
	appraisal review board hearing by a property owner or agent is not
	admissible under this chapter except to establish the court's
	jurisdiction or for purposes of evidence in a no evidence motion for
	summary judgment.
	SECTION 13.  Section 41A.031 is repealed.
	SECTION 14.  The changes in law made by this Act are
	procedural changes to existing law and are applicable to any
	proceedings pending or not finalized as of the effective date of
	this bill.
	SECTION 15.  Sections 1, 2, 3, 4, 5, 8, and 9 take effect
	January 1, 2014.
	SECTION 16.  This Act takes effect immediately if it
	receives a vote of two-thirds of all members elected to each house,
	as provided by Section 39, Article III, Texas Constitution.  If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2013.