HBA-JLV C.S.H.B. 3049 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3049
By: Ramsay
Ways & Means
4/22/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Current law does not specifically prohibit the interest earned on motor
vehicle tax escrow accounts from being used for various purposes.  While it
is unclear if many collectors misuse the interest earned on such escrow
accounts, there are concerns that the language of current law is vague and
may allow for the misuse of the interest earned on the above mentioned
escrow accounts.  C.S.H.B. 3049 prohibits interest generated by an escrow
account to be used to supplement the salary or  cover any personal expenses
of the county tax assessor-collector. 

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. 

ANALYSIS

C.S.H.B. 3049 amends the Tax Code to prohibit interest generated by an
escrow account for prepayment of property taxes associated with an owner's
motor vehicle inventory from being used to supplement the salary or cover
any personal expenses of the county tax assessor-collector (collector).
The bill requires the collector, at least 60 days before the first day of
the county's fiscal year, to prepare a budget for the expenditure of
interest generated by the escrow accounts during that fiscal year and file
a copy of that budget with the county budget officer.  The bill requires
the county budget officer to make a copy of the collector's budget filed
with the county budget officer available to the public at all reasonable
times.  The bill provides that the collector's budget filed with the county
budget officer is not subject to approval by the county commissioners
court, but any member of the public is entitled to speak for or against the
collector's budget during the county's budget process.  Interest generated
by the escrow accounts may be spent only in compliance with the collector's
budget filed with the county budget officer and the county purchasing act. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 3049 modifies the original to require the county tax
assessor-collector (collector) to prepare a budget for the expenditure of
interest generated by the escrow accounts.  The substitute provides that
the collector's budget is not subject to approval by the county
commissioners court, but any member of the public is entitled to speak for
or against the collector's budget during the county's budget process.  The
substitute provides that interest generated by the escrow accounts may be
spent only in compliance with the collector's budget and the county
purchasing act.