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.