ZEM C.S.H.B. 2864 75(R)BILL ANALYSIS


CIVIL PRACTICES
C.S.H.B. 2864
By: Denny
5-5-97
Committee Report (Substituted)



BACKGROUND 

There is currently no requirement for periodic auditing of county tax
assessor-collectors.  Due to the large volume of financial transactions
that they handle, discrepancies may occur and go undetected for a
significant period of time.  Current law requires tax assessor-collectors
to affirmatively seek declaratory judgments exculpating themselves from
any liability for their handling of financial affairs of counties.  The
practical result is that tax assessor-collectors may have unknown,
outstanding liabilities for many years. 

PURPOSE

The bill is designed to give tax assessor-collectors some protection from
civil and criminal prosecution by limiting such actions to those
commencing during the term of their office, or within two years thereafter
if an audit is conducted.  

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 Subchapter A, Chapter 113, Local Government Code, by
adding Sec. 113.008 as follows: 

Sec. 113.008 CIVIL LIABILITY OF COUNTY TAX ASSESSOR-COLLECTOR: AUDIT BY
COMPTROLLER  

(a) Provides that a county tax assessor-collector is not liable in any
civil action commenced after the term of office concerning the tax
assessor-collector's administration of public funds unless the comptroller
conducts an audit during the term of office; 

(b) Provides that if the comptroller conducts such an audit, the tax
assessor-collector must be given notice of the audit within one year after
completion of the term of office and that audit must be completed within
two years after completion of the term of office;  

(c) Provides that any civil case must be instituted within the earlier of
90 days after the completion of the audit or the date imposed by any
applicable statute of limitations; 

(d) Defines the term of office of an assessor-collector.

SECTION 2 Applies only to tax assessor-collectors serving on or after the
effective date of the Act. 

SECTION 3 Effective date:  September 1, 1997.

SECTION 4 Emergency clause.

 
COMPARISON OF ORIGINAL TO SUBSTITUTE

The committee substitute deletes from SECTION 1 the immunity from criminal
liability for a county tax assessor-collector that was found in the
original bill and redefines the term of office for a county tax
assessor-collector who does not continue serving until the time the term
expires under law as the date on which the term expires under law as
opposed to the date a successor takes office as it was defined in the
original bill.