85R1504 CJC-D     By: Keough H.B. No. 566       A BILL TO BE ENTITLED   AN ACT   relating to the selection and administration of an appraisal review   board; authorizing a fee.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  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 2.  Sections 6.41(a), (b), (c), (d), (f), (j), and   (k), Tax Code, are amended to read as follows:          (a)  An [The] appraisal review board is established for each   appraisal district.          (b)  The board consists of five [three] members elected by   the voters of the county in which the district is established at the   general election for state and county officers. The members serve   two-year terms beginning on January 1 of odd-numbered years.     [However, the district board of directors by resolution of a   majority of its members may increase the size of the appraisal   review board to the number of members the board of directors   considers appropriate.]          (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 before the date of the individual's election or   appointment.          (d)  [Except as provided by Subsection (d-1), members of the   board are appointed by resolution of a majority of the appraisal   district board of directors.]  A vacancy on the board is filled by   appointment by the commissioners court of the county in which the   appraisal district is established [in the same manner] for the   unexpired portion of the term.          (f)  For purposes of Chapter 87, Local Government Code,   grounds [A member of the board may be removed from the board by 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 of a   member of an appraisal review board include [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)  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 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 3.  Subchapter C, Chapter 6, Tax Code, is amended by   adding Section 6.4101 to read as follows:          Sec. 6.4101.  BALLOT PROCEDURES FOR APPRAISAL REVIEW BOARD   MEMBER; FILING FEE.  (a)  Except as provided by this section,   Chapter 144, Election Code, applies to a candidate for the office of   member of the appraisal review board of an appraisal district.          (b)  An application for a place on the ballot must be filed   with the county judge of the county in which the appraisal district   is established and be accompanied by a filing fee of $250.          (c)  A candidate's name may appear on the ballot only as an   independent candidate.          (d)  A filing fee received under this section shall be   deposited in the county treasury to the credit of the county general   fund.          SECTION 4.  Section 6.411(c-1), Tax Code, is amended to read   as follows:          (c-1)  This section does not apply to communications with a   member of an appraisal review board by the chief appraiser or   another employee 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   appraisal review board [of directors of the appraisal district] to   determine whether to appoint, reappoint, or remove a person as an   auxiliary board [a] member or as the chairman or secretary of the   appraisal review board.          SECTION 5.  Section 6.413(a), Tax Code, is amended to read as   follows:          (a)  An individual is not eligible to be elected or appointed   to or to serve on the appraisal review board established for 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 the appraisal district or with a taxing unit that participates   in the appraisal district.          SECTION 6.  Sections 6.414(a), (b), and (f), Tax Code, are   amended to read as follows:          (a)  An [The board of directors of an] appraisal review board   [district] by resolution of a majority of the members may provide   for a number of auxiliary appraisal review board members that the   board considers appropriate to hear taxpayer protests before the   appraisal review board and to assist the board in performing its   duties.          (b)  An auxiliary board member is appointed to a one-year   term by resolution of a majority of the [in the same manner and for   the same term as an] appraisal review board members. An auxiliary   board member may not serve more than two consecutive terms. This   subsection does not limit a person's eligibility for appointment to   serve nonconsecutive terms. An auxiliary board member [under   Section 6.41 and] is subject to the same eligibility requirements   and restrictions as a board member under Sections 6.41, 6.411,   6.412, and 6.413. A vacancy among the auxiliary board members is   filled in the same manner as the original appointment to the   appraisal review board.          (f)  An auxiliary board member is entitled to compensation   and [as provided by the appraisal district budget and is not   entitled to a per diem or] reimbursement of expenses as provided by   [under] Section 6.42(c).          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 board [of directors of the appraisal district] by   resolution shall select a chairman and a secretary from among the   board's [the] members [of the appraisal review board].  The 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 8.  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 appraisal review 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 9.  Section 52.092, Election Code, is amended by   adding Subsection (h) to read as follows:          (h)  The secretary of state shall prescribe procedures for   the listing of the office of member of the appraisal review board of   an appraisal district on the ballot.          SECTION 10.  The following provisions of the Tax Code are   repealed:                (1)  Section 6.052(f);                (2)  Sections 6.41(d-1), (d-2), (d-3), (d-4), (d-5),   (d-6), (d-7), (d-8), (d-9), (e), and (i); and                (3)  Section 6.412(e).          SECTION 11.  (a)  Appraisal review board members shall be   elected under Section 6.41, Tax Code, as amended by this Act,   beginning with the general election conducted in 2018. Members   then elected take office January 1, 2019.          (b)  The change in the manner of selection of appraisal   review board members made by Section 6.41, Tax Code, as amended by   this Act, does not affect the selection of members who serve on the   board before January 1, 2019.          (c)  The term of an appraisal review board member serving on   December 31, 2018, expires on January 1, 2019.          (d)  Auxiliary members may be appointed under Section 6.414,   Tax Code, as amended by this Act, by the elected appraisal review   board members on or after January 1, 2019.          (e)  The change in the manner of selection of auxiliary   members made by Section 6.414, Tax Code, as amended by this Act,   does not affect the selection of auxiliary members who serve before   January 1, 2019.          (f)  The term of an auxiliary member serving on December 31,   2018, expires on January 1, 2019.          SECTION 12.  (a)  Except as otherwise provided by this   section, this Act takes effect January 1, 2019.          (b)  This section and Sections 3, 9, and 11 of this Act take   effect September 1, 2018.