BILL ANALYSIS


                                                         S.B. 935
                                                        By: Madla
                                                Natural Resources
                                                         04-28-95
                                     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 grant any
additional rulemaking authority to a state officer, institution, or
agency.

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.