Amend CSSB 841 as follows:
      (1)  On page 21, between lines 1 and 2, insert the following
appropriately numbered section:
      SECTION _____.  (a)  Section 22.01(a), Tax Code, is amended
to read as follows:
      (a)  Except as provided by Chapter 24 of this code, a person
shall render for taxation:
            (1)  all tangible personal property used for the
production of income that the person <he> owns or that the person
<he> manages and controls as a fiduciary on January 1; and
            (2)  all residential real property, and all real
property used for the production of income other than property
appraised under Subchapter C, D, E, F, or G, Chapter 23, that the
person owns or that the person manages and controls as a fiduciary
on January 1 if the person did not own the property or manage and
control the property as a fiduciary on the preceding January 1.
      (b)  Subchapter B, Chapter 22, Tax Code, is amended by adding
Section 22.28 to read as follows:
      Sec. 22.28.  PENALTY FOR FAILURE TO DELIVER RENDITION
STATEMENT OR PROPERTY REPORT.  (a)  A person required by this
chapter to deliver a rendition statement or property report to the
chief appraiser is liable for a penalty if the person fails to
deliver the statement or report in the time required by this
chapter.
      (b)  The amount of a penalty under Subsection (a)  is an
amount equal to 40 percent of the taxes imposed for the tax year on
the property required to be included on the statement or report.
      (c)  If a rendition statement or property report required by
this chapter is delivered to the chief appraiser after May 15 but
before June 1, the chief appraiser shall:
            (1)  enter in the appraisal records the appraised and
taxable value of the property;
            (2)  make an entry in the appraisal records for the
property indicating liability for the penalty imposed under
Subsection (b); and
            (3)  send a written notice of imposition of the penalty
to the person who delivered the report or statement that includes
an explanation for its imposition.
      (d)  If on or after June 1 the chief appraiser discovers that
a person required by this chapter to deliver a rendition statement
or property report has failed to deliver the statement or report
before June 1, the chief appraiser shall:
            (1)  appraise the property as of January 1 of the year
in which the person was required to deliver the statement or
report;
            (2)  enter in the appraisal records the appraised and
taxable value of the property;
            (3)  make an entry in the appraisal records for the
property indicating liability for the penalty imposed under
Subsection (b); and
            (4)  send a written notice of imposition of the penalty
to the person required to deliver the report or statement that
includes an explanation for its imposition.
      (e)  The amount of a penalty under this section:
            (1)  is the personal obligation of the person required
to deliver the rendition statement or property report; and
            (2)  constitutes a lien on the property to which the
rendition statement or property report applies and accrues penalty
and interest in the same manner as a delinquent tax on that
property.
      (f)  This section does not apply to a rendition statement or
property report required or permitted by Section 22.02 or 22.03.
      (c)  The change in law made by Section 22.28, Tax Code, as
added by this section, applies only to the rendition of property
for ad valorem tax purposes on or after January 1, 1998.
      (2)  Renumber the sections of the bill appropriately.