SRC-JJJ H.B. 2109 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2109
76R5123 MXM-FBy: Bonnen (Brown)
Economic Development
5/4/1999
Engrossed


DIGEST 

Currently, it may not be clear whether a taxing unit is liable for
underground storage tanks acquired through the foreclosure of an ad valorem
tax lien on real property.  The Texas Natural Resource Conservation
Commission believes that a taxing unit is liable for such an acquisition.
H.B. 2109 would provide limits on liability of a taxing unit that has
foreclosed an ad valorem tax lien on real property on which an underground
or aboveground storage tank is located. 

PURPOSE

As proposed, H.B. 2109 establishes limits on liability of a taxing unit for
storage tanks. 

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 Chapter 26I, Water Code, by adding Section 26.3516, as
follows: 

Sec. 26.3516.  LIMITS IN LIABILITY OF TAXING UNIT.  Sets forth applications
of this section regarding a taxing unit that has foreclosed on an ad
valorem tax lien on certain real property.  Establishes that a taxing unit
is not liable as an owner or operator solely because the taxing unit holds
indicia of ownership because of a tax foreclosure sale.  Requires the
taxing unit to perform corrective action, if the taxing unit removes a tank
from service or takes corrective action.  Provides that a taxing unit is
not liable as an owner or operator solely because the taxing unit fulfills
certain conditions regarding a secured aboveground or underground storage
tank before sale or other disposition of the storage tank or property if
the taxing unit establishes certain conditions.  Authorizes a taxing unit
to establish that the ownership indicia maintained after foreclosure
continue to be held primarily to protect payment of ad valorem taxes if the
taxing unit fulfills certain conditions.   
SECTION 2. Effective date: September 1, 1999.
  Makes application of this Act prospective.

SECTION 3.  Emergency clause.