HBA-KDB C.S.H.B. 3347 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3347 By: Gray Ways & Means 4/30/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Under current law, a taxing unit engaged in the collection of delinquent taxes is not allowed access to rendition statements made by the owners of property on which there are delinquent taxes due. This access may give both taxpayers and tax collectors an opportunity to resolve collection issues without the added expense of litigation. In addition, current law may not allow every defendant who has an interest in the property to be served with citation. Out-of-state lienholders may lose their interests in property subject to tax foreclosure. C.S.H.B. 3347 authorizes a taxing unit or its representative in delinquent property tax cases to access the rendition statement made by the owners of the property and extends jurisdiction to a defendant who owns, has, or claims any interest in the property which is the subject of the suit. 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. 3347 amends the Tax Code to authorize rendition statements made by property owners that are confidential to be disclosed to a taxing unit or its legal representative that is engaged in the collection of delinquent taxes on the property that is the subject of the information. The bill requires a court of competent jurisdiction, in a suit to collect a delinquent tax, to grant a taxing unit injunctive relief on a showing that the personal property on which the taxing unit seeks to foreclose a tax lien is about to be removed from the county in which the tax was imposed or transferred to another person and the other person is not a buyer in the ordinary course of business. Such injunctive relief must prohibit alienation or dissipation of the property, order that proceeds from the sale of the property in an amount equal to the taxes claimed to be due be paid into the court registry, or order any other relief to ensure the payment of the taxes owed. The taxing unit that petitions for injunctive relief is authorized to seek to secure the payment of taxes for a current tax year that are not delinquent and is required to estimate the amount due if those taxes are not yet assessed. The bill provides that the tax lien attaches to any amounts paid into the court's registry with the same priority as for the property on which taxes are owed. The bill prohibits a bond from being required of a taxing unit seeking injunctive relief. The bill extends jurisdiction under the long-arm statute to a defendant who owns, has, or claims any interest in the property which is the subject of the suit. EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 3347 modifies the original to restore current law regarding the correction of an appraisal roll, tax warrants, and tax records as evidence and removes the proposed definition of "personal property." The substitute prohibits a bond from being required of a taxing unit seeking injunctive relief.