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.