SRC-PNG H.B. 1769 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1769
76R6854 CLG-FBy: Jones, Charles
Economic Development
5/14/1999
Engrossed


DIGEST 

The Business & Commerce Code prohibits a person from conducting a going out
of business sale unless the person files an original inventory with the
county clerk of the county in which the person's principal place of
business in the state is located. After receiving an original inventory,
the county clerk is required to issue to the applicant a permit for a going
out of business sale. The permit is valid for 120 days after it is issued
and is not renewable. Before the end of each 30-day period during the going
out of business sale the permit holder is required to file with the county
clerk a sale inventory containing a complete and detailed list of the
goods, wares, and merchandise listed in the original inventory that have
not been sold before the date that the sale inventory is filed. The permit
holder is then required to file with the county clerk a final inventory
within 30 days after the going out of business sale ends. During this
entire process, the chief appraiser of the appraisal district is never
notified of the sale. A chief appraiser is likely to learn that a business
no longer exists only after it has been liquidated. By then, the tax rolls
for the next year may have been created, which could result in erroneous
tax assessments. Without prior knowledge of a going out of business sale, a
chief appraiser cannot make appropriate adjustment to the tax rolls. H.B.
1769 specifies that a person who wishes to conduct a going out of business
sale must file an original inventory with the chief appraiser of the
appraisal district, rather than with the county clerk of the county, in
which the person's principal place of business in the state is located.
Under this bill, the chief appraiser is required, within five business days
after a person files an original inventory, to send notice of the filing to
the comptroller of public accounts and the taxing units that tax the
property described in the original inventory.   

PURPOSE

As proposed, H.B. 1769 establishes provisions regarding a going out of
business sale. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 17.83(a), Business & Commerce Code, to specify
that a person who wishes to conduct a going out of business sale must file
an original inventory with the chief appraiser of the appraisal district,
rather than with the county clerk of the county, in which the person's
principal place of business in the state is located.  

SECTION 2. Amends Chapter 17F, Business & Commerce Code, by adding Section
17.835, as follows:  

Sec. 17.835. NOTICE OF FILING OF ORIGINAL INVENTORY. Requires the chief
appraiser, within five business days after a person files an original
inventory under Section 17.83 (Original Inventory), to send notice of the
filing to the comptroller of public accounts and the taxing units that tax
the property described in the original inventory. 

 SECTION 3. Amends Section 17.84(a), Business & Commerce Code, to make a
conforming change.  

 SECTION 4. Amends Section 17.86, Business & Commerce Code, to make a
conforming change.  

SECTION 5. Amends Section 17.87, Business & Commerce Code, to make a
conforming change.  

SECTION 6. Effective date: September 1, 1999. 
  Makes application of this Act prospective.

SECTION 7. Emergency clause