85R1756 CJC-D     By: Burton S.B. No. 447       A BILL TO BE ENTITLED   AN ACT   relating to the selection of certain appraisal district officials.          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 per 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 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.          (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) 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 5.103(b), Tax Code, is amended to read as   follows:          (b)  The model hearing procedures shall address:                (1)  the statutory duties of an appraisal review board;                (2)  the process for conducting a hearing;                (3)  the scheduling of hearings;                (4)  the postponement of hearings;                (5)  the notices required under this title;                (6)  the determination of good cause under Section   41.44(b);                (7)  the determination of good cause under Sections   41.45(e) and (e-1);                (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 an agent;                (11)  the prohibition of an appraisal review board's   consideration of information not provided at a hearing;                (12)  ex parte and other prohibited communications;                (13)  the exclusion of evidence at a hearing as   required by Section 41.67(d);                (14)  the postponement of a hearing as required by   Section 41.66(h);                (15)  conflicts of interest; and                (16)  [the process for the administration of   applications for membership on an appraisal review board; and                [(17)]  any other matter related to fair and efficient   appraisal review board hearings.          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 two 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.  Sections 6.41(a), (c), (d), (e), (f), (j), and   (k), Tax Code, are amended to read as follows:          (a)  An [The] appraisal review board is established for each   appraisal district.          (c)  To be eligible to serve on the board, an individual must   be a resident of the county in which the appraisal district is   established and must have resided in the county [district] for at   least two years.          (d)  Members [Except as provided by Subsection (d-1),   members] of the board are appointed by the chief appraiser of the   appraisal district [resolution of a majority of the appraisal   district board of directors].  A vacancy on the board is filled in   the same manner for the unexpired portion of the term.          (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 chief   appraiser [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.          (f)  A member of the board may be removed from the board by   the chief appraiser [a majority vote of the appraisal district   board of directors, or by the local administrative district judge   or the judge's designee, as applicable, that appointed the   member].  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)  clear and convincing evidence of repeated bias or   misconduct; or                (4)  failure to complete a course required by Section   5.041.          (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 or [,] a member of the board   of directors of the appraisal district[, or, if the appraisal   district is an appraisal district described by Subsection (d-1),   the local administrative district judge] 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.          (k)  An offense under Subsection [(i) or] (j) is a Class A   misdemeanor.          SECTION 9.  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   chief appraiser [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 10.  Section 6.412(a), Tax Code, is 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 the   appraisal district's board of directors or to the chief appraiser   of the appraisal district.          SECTION 11.  Section 6.42(a), Tax Code, is amended to read as   follows:          (a)  A majority of the appraisal review board constitutes a   quorum.  The chief appraiser [board of directors] of the appraisal   district [by resolution] shall select a chairman and a secretary   from among the members of the [appraisal review] board.  The chief   appraiser [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 12.  Section 22.28(d), Tax Code, is amended to read   as follows:          (d)  To help defray the costs of administering this chapter,   a collector who collects a penalty imposed under Subsection (a)   shall remit to the appraisal district of [that employs] the chief   appraiser who imposed the penalty an amount equal to five percent of   the penalty amount collected.          SECTION 13.  Section 41.66(g), Tax Code, is amended to read   as follows:          (g)  At the beginning of a hearing on a protest, each member   of the appraisal review board hearing the protest must sign an   affidavit stating that the board member has not communicated with   another person in violation of Subsection (f). If a board member has   communicated with another person in violation of Subsection (f),   the member must be recused from the proceeding and may not hear,   deliberate on, or vote on the determination of the protest. The   chief appraiser [board of directors] of the appraisal district   shall adopt and implement a policy concerning the temporary   replacement of an appraisal review board member who has   communicated with another person in violation of Subsection (f).          SECTION 14.  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 15.  Section 52.092(e), Election Code, is amended to   read as follows:          (e)  County offices shall be listed in the following order:                (1)  county judge;                (2)  judge, county court at law;                (3)  judge, county criminal court;                (4)  judge, county probate court;                (5)  county attorney;                (6)  district clerk;                (7)  district and county clerk;                (8)  county clerk;                (9)  sheriff;                (10)  sheriff and tax assessor-collector;                (11)  county tax assessor-collector;                (12)  county treasurer;                (13)  county school trustee (county with population of   3.3 million or more);                (14)  county surveyor;                (15)  chief appraiser.          SECTION 16.  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 17.  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 18.  The following provisions of the Tax Code are   repealed:                (1)  Section 5.042(c);                (2)  Section 6.0501;                (3)  Section 6.052(f); and                (4)  Sections 6.41(d-1), (d-2), (d-3), (d-4), (d-5),   (d-6), (d-7), (d-8), (d-9), and (i).          SECTION 19.  The first election required by Section 6.05(c),   Tax Code, as amended by this Act, shall be held to fill the term of   office of the chief appraiser that begins January 1, 2019.  The   change in law made by this Act to Section 6.05, Tax Code, does not   affect the appointment by an appraisal district board of directors   of a person to serve as chief appraiser before the effective date of   this Act, and that person continues to serve at the pleasure of the   appraisal district board of directors as provided by the former law   until removed by the board of directors or until the person elected   to that position for the term that begins January 1, 2019, has   qualified for office.  A vacancy in the office of chief appraiser   that occurs on or after the effective date of this Act is filled by   appointment by the commissioners court, as provided by Section   87.041(a), Local Government Code, as amended by this Act.          SECTION 20.  Appraisal review board members and auxiliary   appraisal review board members shall be appointed as provided by   this Act beginning January 1, 2019. The change in the manner of   selection of appraisal review board members and auxiliary appraisal   review board members made by this Act does not affect the selection   of those members serving on the appraisal review board before   January 1, 2019. The term of an appraisal review board member or   auxiliary appraisal review board member serving on December 31,   2018, expires on January 1, 2019.          SECTION 21.  The repeal by this Act of Section 6.41(i), Tax   Code, and the change in law made by this Act to Section 6.41(j), Tax   Code, do not apply to an offense committed under either of those   subsections before the effective date of this Act. An offense   committed before the effective date of this Act is governed by the   applicable subsection as it existed on the date the offense was   committed, and the former law is continued in effect for that   purpose. For purposes of this section, an offense was committed   before the effective date of this Act if any element of the offense   occurred before that date.          SECTION 22.  This Act takes effect September 1, 2017.