HBA-JRA H.B. 2380 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2380
By: Burnam
Ways & Means
4/7/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, an overpayment of property taxes is held by the county in the
county depository until the taxpayer requests a refund of the overpayment.
If the refund is not paid within 60 days of the request, the county is
required to pay interest to the claimant.  Up until the 60th day, or until
the refund is made, interest earned on the funds belongs to the county.
The authority to deposit these funds in a depository that yields a higher
interest rate than the county depository could benefit the county, as well
as the entities for which the county collects taxes.  H.B. 2380 authorizes
the county tax assessor-collector of a county with a population of one
million or more to deposit collected taxes with the Texas Treasury
Safekeeping Trust Company. 

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 Chapter 31, Tax Code, by adding Section 31.105, as
follows: 

Sec. 31.105.  DEPOSIT OF TAXES COLLECTED IN CERTAIN COUNTIES WITH TEXAS
TREASURY SAFEKEEPING TRUST COMPANY.  (a)  Provides that this section
applies only to a county with a population of one million or more.   

(b)  Authorizes the county assessor-collector to deposit, on behalf of the
county, all or a designated part of the taxes collected for the county with
the Texas Treasury Safekeeping Trust Company, with the consent of the
commissioners court of the county, and notwithstanding Sections 113.021(a)
and (b) (relating to money being deposited into a special fund with the
county treasury), and 116.113(b) (relating to the immediate deposit of
funds in the county depository), Local Government Code, Section 31.10(c)
(requiring the monthly deposit of collected taxes) of this code, and any
other law to the contrary. Establishes that county tax revenues deposited
with the Texas Treasury Safekeeping Trust Company under this section are
county funds subject to the control of the commissioners court. 

(c)  Provides that Section 113.006 (Liability of County Tax
Assessor-Collector), Local Government Code, applies to the deposit of tax
revenue under this section in the same manner as that section applies to
the deposit of tax revenue in the county depository. 

SECTION 2.Emergency clause.
  Effective date: upon passage.