HBA-RBT H.B. 3308 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3308
By: Thompson
Ways & Means
4/30/1999
Committee Report (Amended)



BACKGROUND AND PURPOSE 

Currently, taxing entities pay no court or service fees on suits to collect
delinquent taxes.  These fees are paid by the defendant upon payment of the
judgement.  Frequently taxing entities collect their judgments but not
court costs or fees.  This is primarily due to the fact that when the
taxing entity collects the taxes owed the neglect to collect these fees and
costs.  This leaves the court uncompensated for its time and expense.  H.B.
3308 requires that the first proceeds collected from a defendant in a suit
to collect delinquent taxes be applied toward court costs and fees.  This
bill would also make taxing entities liable for court costs in suits to
collect taxes. 

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 Section 33.48, Tax Code, by adding Subsection (d), to
specify the order of distribution of proceeds received or collected from a
defendant in a suit to collect delinquent taxes. Requires a person who
received proceeds from a defendant to promptly remit the proceeds to the
court for distribution. 

SECTION 2.  Amends Section 33.49, Tax Code, to require a taxing unit to pay
all costs of court for which the unit is liable, including fees for service
of process in suits filed in error, as soon as practicable.  Makes
conforming and nonsubstantive changes. 

SECTION 3.  Effective date: September 1, 1999.
                       Makes application of this Act prospective.

SECTION 4.  Emergency clause.

EXPLANATION OF AMENDMENTS

Committee Amendment No.  1.

Strikes SECTION 2 of the bill and redesignates SECTIONS 3 and 4 to SECTIONS
2 and 3.