HBA-NMO H.B. 2109 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2109 By: Bonnen Natural Resources 7/20/99 Enrolled BACKGROUND AND PURPOSE Prior to the 76th Legislature, the law may not have been clear as to whether a taxing unit was liable for underground storage tanks acquired through the foreclosure of an ad valorem tax lien on real property. However, the Texas Natural Resource Conservation Commission believed that a taxing unit was liable for such an acquisition. H.B. 2109 provides limits on liability of a taxing unit that has foreclosed an ad valorem tax lien on real property on which an underground or aboveground storage tank is located. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter I, Chapter 26, Water Code, by adding Section 26.3516, as follows: Sec. 26.3516. LIMITS ON LIABILITY OF TAXING UNIT. (a) Provides that this section applies to a taxing unit that has foreclosed an ad valorem tax lien on real property on which an underground or aboveground storage tank (tank) is located, or on any other personal property attached to or located on property on which a tank is located, as security for payment of ad valorem taxes. (b) Provides that a taxing unit is not liable as an owner or operator under this subchapter solely because the taxing unit holds indicia (evidencing document) of ownership because of a tax foreclosure sale under the Tax Code. (c) Requires the taxing unit, if it removes a tank from service or takes corrective action at any time after foreclosure, to perform corrective action in accordance with requirements adopted by the Texas Natural Resource Conservation Commission under this subchapter (Underground and Aboveground Storage Tanks). (d) Provides that a taxing unit is not liable as an owner or operator under this subchapter solely because the taxing unit sells, releases, liquidates, or winds up operations and takes measures to preserve, protect, or prepare the secured tank before sale or other disposition of the storage tank or the property if the taxing unit: (1) did not participate in the management of a tank or real or personal property described by Subsection (a) before foreclosure or an equivalent action on the storage tank or property; and (2) establishes, as provided by Subsection (e), that the ownership indicia maintained after foreclosure continue to be held primarily to protect payment of ad valorem taxes. (e) Authorizes a taxing unit to establish that the ownership indicia maintained after foreclosure continue to be held primarily to protect payment of ad valorem taxes if the unit lists the tank, or the facility or property on which the tank is located, with a broker, dealer, or agent who deals in that type of property; or advertises the tank for sale or other disposition in certain publications. SECTION 2. Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 3. Emergency clause.