HBA-DMD C.S.H.B. 351 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 351 By: Denny Civil Practices 4/29/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Current state law requires county tax assessor-collectors to affirmatively seek a declaratory judgment exculpating them from any liability for their handling of county financial affairs, thus imposing the possibility of unknown outstanding liabilities on tax assessor-collectors for many years. C.S.H.B. 351 prohibits a civil cause of action from being commenced against a county tax assessor-collector (collector) more than four years after the collector's term ends, unless an audit of financial records of the collector's office that relates to the collector's administration of public funds during a term of office is conducted by the comptroller of public accounts (comptroller). If the audit takes place, a civil action is prohibited from commencing more than four years after the date the audit is complete. 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 A, Chapter 113, Local Government Code, by adding Section 113.009, as follows: Sec. 113.009. CIVIL LIABILITY OF COUNTY TAX ASSESSOR-COLLECTOR; AUDIT BY COMPTROLLER. Prohibits a civil cause of action from being commenced against a county tax assessor-collector (collector) more than four years after the collector's term ends, unless an audit of financial records of the collector's office that relates to the collector's administration of public funds during a term of office is conducted by the comptroller of public accounts (comptroller). Requires the comptroller to provide the assessor-collector notice of an audit not later than the first anniversary of the date the term of office has concluded, and to complete the audit not later than the second anniversary. Prohibits a civil action from commencing more than four years after the date the audit is complete. Provides that the term of office of an assessor-collector ends on the date the term expires under law, even if the assessor-collector serves a succeeding term, or the date a successor takes office. SECTION 2. Makes application of this Act prospective. SECTION 3. Effective date: September 1, 1999. SECTION 4. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 351 differs from the original bill in SECTION 1, as follows: Proposed Section 113.009(a) of the substitute prohibits a civil cause of action from being commenced against a county tax assessor-collector (collector) more than four years after the collector's term ends, unless an audit of financial records of the collector's office that relates to the collector's administration of public funds during a term of office is conducted by the comptroller of public accounts (comptroller). The original version of proposed Section 113.009(a) establishes that a collector is not liable in any civil action that begins after the term of office ends for conduct in administering public funds while in office, unless an audit of financial records of the collector's office that relates to the collector's administration of public funds during a term of office is conducted, during the collector's term of office, by the comptroller. In proposed Section 113.009(c), the substitute differs from the original by prohibiting a civil action from commencing more than four years after the date the audit is complete, rather than commencing later than the earlier of the 90th day after the audit is complete or the date imposed by an applicable statute of limitations.