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.