89S20068 DRS-D     By: Bell of Montgomery H.B. No. 59       A BILL TO BE ENTITLED   AN ACT   relating to the selection of the chief appraiser of an appraisal   district; authorizing a fee.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 1.15, Tax Code, is amended to read as   follows:          Sec. 1.15.  APPRAISERS FOR TAXING UNITS PROHIBITED. A   taxing unit may not employ any person for the purpose of appraising   property for taxation purposes [except to the extent necessary to   perform a contract under Section 6.05(b) of this code].          SECTION 2.  Sections 5.041(c), (e-1), (e-3), (f), and (g),   Tax Code, are amended to read as follows:          (c)  The comptroller may contract with service providers to   assist with the duties imposed under Subsection (a), but the course   required may not be provided by an appraisal district, the chief   appraiser of an appraisal district, an [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 course, but the fee may not   exceed $50 for each person trained.  If the training is provided to   an individual other than a member of an appraisal review board, the   comptroller may assess a fee not to exceed $50 for each person   trained.          (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 or distance 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.          (e-3)  The comptroller may contract with service providers   to assist with the duties imposed under Subsection (e-1), but the   course required by that subsection may not be provided by an   appraisal district, the chief appraiser of an appraisal district,   an [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   continuing education course, but the fee may not exceed $50 for each   person trained.  If the training is provided to an individual other   than a member of an appraisal review board, the comptroller may   assess a fee not to exceed $50 for each person trained.          (f)  The comptroller may not advise a property owner, a   property owner's agent, [or] the chief appraiser of an appraisal   district, or an [another] employee of an appraisal district on a   matter that the comptroller knows is the subject of a protest to the   appraisal review board.  The comptroller may provide advice to an   appraisal review board member as authorized by Subsection (a)(4) of   this section or Section 5.103 and may communicate with the chairman   of an appraisal review board or a taxpayer liaison officer   concerning a complaint filed under Section 6.052.          (g)  Except during a hearing or other appraisal review board   proceeding and as provided by Subsection (h) of this section and   Section 6.411(c-1), the following persons may not communicate with   a member of an appraisal review board about a course provided under   this section or any matter presented or discussed during the   course:                (1)  the chief appraiser of the appraisal district for   which the appraisal review board is established;                (2)  an [another] employee of the appraisal district   for which the appraisal review board is established;                (3)  a member of the board of directors of the appraisal   district for which the appraisal review board is established;                (4)  an officer or employee of a taxing unit that   participates in the appraisal district for which the appraisal   review board is established; and                (5)  an attorney who represents or whose law firm   represents the appraisal district or a taxing unit that   participates in the appraisal district for which the appraisal   review board is established.          SECTION 3.  Section 5.042, Tax Code, is amended by adding   Subsection (b-1) to read as follows:          (b-1)  For purposes of removal under Chapter 87, Local   Government Code, "incompetency" in the case of a chief appraiser   includes the failure of the chief appraiser to complete, within the   period provided by Subsection (b) after the date the chief   appraiser is first elected or appointed, the course of training   required by Subsection (a).          SECTION 4.  Section 5.043(e), Tax Code, is amended to read as   follows:          (e)  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 of an appraisal district, an [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.  If the training is provided to   a person other than a person who has agreed to serve as an   arbitrator under Chapter 41A, the comptroller may assess a fee not   to exceed $50 for each person trained.          SECTION 5.  Sections 6.035(a), (b), and (d), Tax Code, are   amended to read as follows:          (a)  An individual is ineligible to serve on an appraisal   district board of directors or [and is disqualified from   employment] as chief appraiser 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; or                (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.          (b)  A member of an appraisal district board of directors or   a chief appraiser commits an offense if the board member or chief   appraiser continues to hold office [or the chief appraiser remains   employed] knowing that an individual related within the second   degree by consanguinity or affinity, as determined under Chapter   573, Government Code, to the board member or chief appraiser 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 in which the member or chief appraiser serves   [or the chief appraiser is employed]. An offense under this   subsection is a Class B misdemeanor.          (d)  An appraisal performed by a chief appraiser in a private   capacity or by an individual related within the second degree by   consanguinity or affinity, as determined under Chapter 573,   Government Code, to the chief appraiser may not be used as evidence   in a protest or challenge under Chapter 41 or an appeal under   Chapter 42 concerning property that is taxable in the appraisal   district in which the chief appraiser serves [is employed].          SECTION 6.  The heading to Section 6.05, Tax Code, is amended   to read as follows:          Sec. 6.05.  APPRAISAL OFFICE; CHIEF APPRAISER.          SECTION 7.  Sections 6.05(b), (c), and (d), Tax Code, are   amended to read as follows:          (b)  The board of directors of an appraisal district may   contract with an appraisal office in another district [or with a   taxing unit in the district] to perform the duties of the appraisal   office for the district.          (c)  The chief appraiser is the chief administrator of the   appraisal office. The [Except as provided by Section 6.0501, the]   chief appraiser is elected at the general election for state and   county officers by the voters of the county in which the appraisal   district is established. The chief appraiser serves a two-year   term beginning January 1 of each odd-numbered year. To be eligible   to serve as chief appraiser, an individual must be a resident of the   county in which the appraisal district is established and must have   resided in the county for at least four years preceding the date the   individual takes office [appointed by and serves at the pleasure of   the appraisal district board of directors. If a taxing unit   performs the duties of the appraisal office pursuant to a contract,   the assessor for the unit is the chief appraiser. To be eligible to   be appointed or serve as a chief appraiser, a person must be   certified as a registered professional appraiser under Section   1151.160, Occupations Code, possess an MAI professional   designation from the Appraisal Institute, or possess an Assessment   Administration Specialist (AAS), Certified Assessment Evaluator   (CAE), or Residential Evaluation Specialist (RES) professional   designation from the International Association of Assessing   Officers. A person who is eligible to be appointed or serve as a   chief appraiser by having a professional designation described by   this subsection must become certified as a registered professional   appraiser under Section 1151.160, Occupations Code, not later than   the fifth anniversary of the date the person is appointed or begins   to serve as chief appraiser.  A chief appraiser who is not eligible   to be appointed or serve as chief appraiser may not perform an   action authorized or required by law to be performed by a chief   appraiser, including the preparation, certification, or submission   of any part of the appraisal roll.  Not later than January 1 of each   year, a chief appraiser shall notify the comptroller in writing   that the chief appraiser is either eligible to be appointed or serve   as the chief appraiser or not eligible to be appointed or serve as   the chief appraiser].          (d)  The [Except as provided by Section 6.0501, the] chief   appraiser is entitled to compensation as provided by the budget   adopted by the board of directors.  The chief appraiser's   compensation may not be directly or indirectly linked to an   increase in the total market, appraised, or taxable value of   property in the appraisal district.  The [Except as provided by   Section 6.0501, the] chief appraiser may employ and compensate   professional, clerical, and other personnel as provided by the   budget, with the exception of a general counsel to the appraisal   district.          SECTION 8.  Section 6.052(g), Tax Code, is amended to read as   follows:          (g)  Notwithstanding any other provision of this chapter, a   taxpayer liaison officer or deputy taxpayer liaison officer acting   under the taxpayer liaison officer's supervision does not commit an   offense under this chapter if the officer or deputy communicates   with the chief appraiser of the appraisal district, an [or another]   employee or agent of the appraisal district, a member of the   appraisal review board established for the appraisal district, a   member of the board of directors of the appraisal district, the   local administrative district judge, a property tax consultant, a   property owner, an agent of a property owner, or another person if   the communication is made in the good faith exercise of the   officer's statutory duties.          SECTION 9.  Section 6.155(a), Tax Code, is amended to read as   follows:          (a)  A member of the governing body, officer, or employee of   a taxing unit commits an offense if the person directly or   indirectly communicates with the chief appraiser or an [another]   employee of the appraisal district in which the taxing unit   participates for the purpose of influencing the value at which   property in the district is appraised unless the person owns or   leases the property that is the subject of the communication.          SECTION 10.  Section 6.41, Tax Code, is amended by amending   Subsections (i) and (j) and adding Subsection (l) to read as   follows:          (i)  The [A] chief appraiser of the appraisal district, an   [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 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 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 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 the [a] chief appraiser of   the appraisal district, an [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 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 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   applicable appointing authority regarding information relating to   or described by Subsection (f).          (j)  The [A] chief appraiser of an appraisal district or an   [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.          (l)  The taxpayer liaison officer for an appraisal district   shall report the contents of a communication described by   Subsection (i)(4) to the applicable appointing authority.          SECTION 11.  Sections 6.411(a), (b), and (c-1), Tax Code,   are amended to read as follows:          (a)  A member of an appraisal review board commits an offense   if the member communicates with the chief appraiser of, an [or   another] employee of, or a member of the board of directors of the   appraisal district for which the appraisal review board is   established in violation of Section 41.66(f).          (b)  The [A] chief appraiser of an appraisal district, an [or   another] employee of an appraisal district, a member of a board of   directors of an appraisal district, or a property tax consultant or   attorney representing a party to a proceeding before the appraisal   review board commits an offense if the person communicates with a   member of the appraisal review board established for the appraisal   district with the intent to influence a decision by the member in   the member's capacity as a member of the appraisal review board.          (c-1)  This section does not apply to communications with a   member of an appraisal review board by the chief appraiser of an   appraisal district, an [or another] employee of an appraisal   district, [or] a member of the board of directors of an appraisal   district, or a property tax consultant or attorney representing a   party to a proceeding before the appraisal review board:                (1)  during a hearing on a protest or other proceeding   before the appraisal review board;                (2)  that constitute social conversation;                (3)  that are specifically limited to and involve   administrative, clerical, or logistical matters related to the   scheduling and operation of hearings, the processing of documents,   the issuance of orders, notices, and subpoenas, and the operation,   appointment, composition, or attendance at training of the   appraisal review board; or                (4)  that are necessary and appropriate to enable the   board of directors of the appraisal district to determine whether   to appoint, reappoint, or remove a person as a member or the   chairman or secretary of the appraisal review board.          SECTION 12.  Section 31.071(d), Tax Code, as added by S.B.   850, Acts of the 89th Legislature, Regular Session, 2025, and   effective September 1, 2025, is amended to read as follows:          (d)  If the property is still subject to an appeal on the last   working day before the delinquency date, or at an earlier date if so   requested by the property owner, the collector shall apply the   amount paid under this section to the payment required by Section   42.08(b) and shall retain the remainder, if any, until the appeal is   completed. When the appeal is completed, the collector shall apply   any amount retained under this subsection to the tax ultimately   imposed on the property that is not covered by the payment under   Section 42.08(b) and shall refund the remainder, if any, to the   property owner. The collector shall make the refund not later than   the 60th day after the date the chief appraiser notifies the   collector of the final determination of the appeal. If the   collector does not make the refund within the period required by   this subsection, the collector shall include with the refund   interest on the amount refunded at an annual rate of 12 percent,   calculated from the delinquency date for the taxes being refunded   until the date the refund is made. If the refund is not made within   the period required by this subsection due to an act or omission of   the chief appraiser, the appraisal district in which [that employs]   the chief appraiser serves shall reimburse the collector for any   interest required to be included with the amount refunded.          SECTION 13.  Section 42.21(d), Tax Code, is amended to read   as follows:          (d)  An appraisal district is served by service on the chief   appraiser at any time or by service on any other officer or an    employee of the appraisal district present at the appraisal office   at a time when the appraisal office is open for business with the   public. An appraisal review board is served by service on the   chairman of the appraisal review board. Citation of a party is   issued and served in the manner provided by law for civil suits   generally.          SECTION 14.  Section 144.001, Election Code, is amended to   read as follows:          Sec. 144.001.  APPLICABILITY OF CHAPTER.  (a)  Except as   provided by Subsection (b), this [This] chapter applies to a   candidate for an office of a political subdivision other than a city   or county.          (b)  This chapter does not apply to a candidate for chief   appraiser of an appraisal district.          SECTION 15.  Section 172.001, Election Code, is amended to   read as follows:          Sec. 172.001.  NOMINATING BY PRIMARY ELECTION   REQUIRED.  Except as otherwise provided by this code, a political   party's nominees in the general election for the chief appraiser of   an appraisal district, offices of state and county government, and   offices of the United States Congress must be nominated by primary   election, held as provided by this code, if the party's nominee for   governor in the most recent gubernatorial general election received   20 percent or more of the total number of votes received by all   candidates for governor in the election.          SECTION 16.  Section 172.002(a), Election Code, is amended   to read as follows:          (a)  Except as otherwise provided by this code, a political   party's nominees in the general election for the chief appraiser of   an appraisal district, offices of state and county government, and   offices of the United States Congress may be nominated by primary   election, held as provided by this code, if the party's nominee for   governor in the most recent gubernatorial general election received   at least two percent but less than 20 percent of the total number of   votes received by all candidates for governor in the election.          SECTION 17.  Section 172.024(a), Election Code, is amended   to read as follows:          (a)  The filing fee for a candidate for nomination in the   general primary election is as follows:                (1)  United States senator $5,000                (2)  office elected statewide, except United States   senator 3,750                (3)  United States representative 3,125                (4)  state senator 1,250                (5)  state representative 750                (6)  member, State Board of Education 300                (7)  chief justice or justice, court of appeals, other   than a justice specified by Subdivision (8) 1,875                (8)  chief justice or justice of a court of appeals that   serves a court of appeals district in which a county with a   population of more than 1.2 million is wholly or partly   situated 2,500                (9)  district judge or judge specified by Section   52.092(d) for which this schedule does not otherwise prescribe a   fee 1,500                (10)  district or criminal district judge of a court in   a judicial district wholly contained in a county with a population   of more than 1.5 million 2,500                (11)  judge, statutory county court, other than a judge   specified by Subdivision (12) 1,500                (12)  judge of a statutory county court in a county with   a population of more than 1.5 million 2,500                (13)  district attorney, criminal district attorney,   or county attorney performing the duties of a district   attorney 1,250                (14)  county commissioner, district clerk, county   clerk, sheriff, county tax assessor-collector, county treasurer,   or judge, constitutional county court:                      (A)  county with a population of 200,000 or   more 1,250                      (B)  county with a population of under   200,000 750                (15)  justice of the peace or constable:                      (A)  county with a population of 200,000 or   more 1,000                      (B)  county with a population of under   200,000 375                (16)  county surveyor75                (17)  office of the county government for which this   schedule does not otherwise prescribe a fee 750                (18)  chief appraiser of an appraisal district:                      (A)  county with a population of 200,000 or   more 1,250                      (B)  county with a population of under   200,000 750          SECTION 18.  Section 172.025, Election Code, is amended to   read as follows:          Sec. 172.025.  NUMBER OF PETITION SIGNATURES REQUIRED.  The   minimum number of signatures that must appear on the petition   authorized by Section 172.021(b) is:                (1)  5,000, for a statewide office; or                (2)  for a district, county, appraisal district, or   precinct office, the lesser of:                      (A)  500; or                      (B)  two percent of the total vote received in the   district, county, appraisal district, or precinct, as applicable,   by all the candidates for governor in the most recent gubernatorial   general election, unless that number is under 50, in which case the   required number of signatures is the lesser of:                            (i)  50; or                            (ii)  20 percent of that total vote.          SECTION 19.  Section 181.002, Election Code, is amended to   read as follows:          Sec. 181.002.  NOMINATING BY CONVENTION AUTHORIZED.  A   political party may make nominations for the general election for   state and county officers and the chief appraiser of an appraisal   district by convention, as provided by this chapter, if the party is   authorized by Section 172.002 to make nominations by primary   election.          SECTION 20.  Section 181.003, Election Code, is amended to   read as follows:          Sec. 181.003.  NOMINATING BY CONVENTION REQUIRED.  A   political party must make nominations for the general election for   state and county officers and the chief appraiser of an appraisal   district by convention, as provided by this chapter, if the party is   not required or authorized to nominate by primary election.          SECTION 21.  Section 181.0311(a), Election Code, is amended   to read as follows:          (a)  In addition to any other requirements, to be considered   for nomination by convention, a candidate must:                (1)  pay a filing fee to the secretary of state for a   statewide, [or] district, or appraisal district office or the   county judge for a county or precinct office; or                (2)  submit to the secretary of state for a statewide,   [or] district, or appraisal district office or the county judge for   a county or precinct office a petition in lieu of a filing fee that   satisfies the requirements prescribed by Subsection (e) and Section   141.062.          SECTION 22.  Section 181.032(a), Election Code, is amended   to read as follows:          (a)  An application for nomination by a convention must be   filed with:                (1)  the state chair, for a statewide, [or] district,   or appraisal district office; or                (2)  the county chair, for a county or precinct office.          SECTION 23.  Section 181.061(c), Election Code, is amended   to read as follows:          (c)  A party nominating by convention must make its   nominations for county and precinct offices, [and] for offices of   districts not situated in more than one county, and for offices of   appraisal districts at county conventions held on the first   Saturday after the second Tuesday in March.  A county convention   consists of delegates selected at precinct conventions held on the   second Tuesday in March in the regular county election precincts.          SECTION 24.  Section 87.041(a), Local Government Code, is   amended to read as follows:          (a)  The commissioners court of a county may fill a vacancy   in the office of:                (1)  county judge;                (2)  county clerk;                (3)  district and county clerk;                (4)  sheriff;                (5)  county attorney;                (6)  county treasurer;                (7)  county surveyor;                (8)  county tax assessor-collector;                (9)  justice of the peace; [or]                (10)  constable; or                (11)  chief appraiser.          SECTION 25.  Section 1151.164, Occupations Code, is amended   to read as follows:          Sec. 1151.164.  CHIEF APPRAISER TRAINING PROGRAM. (a) The   department shall implement a training program for newly elected or    appointed chief appraisers and shall prescribe the curriculum for   the training program as provided by this section.          (b)  The training program must provide the chief appraiser   [appointee] with information regarding:                (1)  this chapter;                (2)  the programs operated by the department;                (3)  the role and functions of the department;                (4)  the rules of the commission, with an emphasis on   the rules that relate to ethical behavior;                (5)  the role and functions of the chief appraiser, the   appraisal district board of directors, and the appraisal review   board;                (6)  the importance of maintaining the independence of   an appraisal office from political pressure;                (7)  the importance of prompt and courteous treatment   of the public;                (8)  the finance and budgeting requirements for an   appraisal district, including appropriate controls to ensure that   expenditures are proper; and                (9)  the requirements of:                      (A)  the open meetings law, Chapter 551,   Government Code;                      (B)  the public information law, Chapter 552,   Government Code;                      (C)  the administrative procedure law, Chapter   2001, Government Code;                      (D)  other laws relating to public officials,   including conflict-of-interest laws; and                      (E)  the standards of ethics imposed by the   Uniform Standards of Professional Appraisal Practice.          SECTION 26.  Sections 5.042(c) and 6.0501, Tax Code, are   repealed.          SECTION 27.  (a) Chief appraisers shall be elected as   provided by Section 6.05, Tax Code, as amended by this Act,   beginning with the primary and general elections conducted in 2026.   Chief appraisers then elected take office January 1, 2027.          (b)  The change in the manner of selection of chief   appraisers made by this Act does not affect the selection of a chief   appraiser who is appointed by the appraisal district board of   directors before January 1, 2026, and that person continues to   serve at the pleasure of the board of directors as provided by the   former law until removed by the board of directors or until the   person elected as chief appraiser for the term that begins January   1, 2027, has qualified for office.          SECTION 28.  (a) Except as otherwise provided by this   section, this Act takes effect January 1, 2027.          (b)  This section and Sections 14, 15, 16, 17, 18, 19, 20, 21,   22, and 23 of this Act take effect on the 91st day after the last day   of the legislative session.