BILL ANALYSIS



S.B. 935
By: Madla (King)
May 11, 1995
Committee Report (Unamended)


BACKGROUND
Current law levies penalties and a 10 percent interest rate per
year on delinquent assessments on real property.  The penalties and
interest rate are based on the acreage of the real property.  This
is lower than the 15 percent interest rate authorized as a penalty
for collection of delinquent ad valorem taxes.

PURPOSE
As proposed, S.B. 935 requires all unpaid assessments by water
control and improvement districts to bear interest; provides a
collection fee for unpaid assessments collected by a legal
proceeding.

RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.

SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 51.313, Water Code, as follows:

     Sec.  51.313.  INTEREST AND COLLECTION FEES.  (a) Requires all
     assessments by water control and improvement districts to bear
     interest from the date payment is due at the rate of 15
     percent, rather than 10 percent, a year.
     
     (b) Requires an additional amount of 15 percent, rather than
       10 percent, on unpaid principal and interest to be added as
       collection or attorney's fees if suit is filed to foreclose
       a lien on crops or if a delinquent assessment is collected
       by any legal proceeding.
       
       SECTION 2.   Makes application of this Act prospective.

SECTION 3. Effective date: January 1, 1996.

SECTION 4. Emergency clause.

SUMMARY OF COMMITTEE ACTION
S.B. 935 was considered by the committee in a formal meeting on May
11, 1995.
No testimony was received.
The bill was reported favorably without amendment, with the
recommendation that it do pass and be printed and be sent to the
Committee on Local and Consent Calendars, by a record vote of 6
ayes, 0 nays, 0 pnv, 3 absent.