1-1 AN ACT
1-2 relating to limits on liability of a taxing unit for storage tanks.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter I, Chapter 26, Water Code, is amended
1-5 by adding Section 26.3516 to read as follows:
1-6 Sec. 26.3516. LIMITS ON LIABILITY OF TAXING UNIT. (a) This
1-7 section applies to a taxing unit that has foreclosed an ad valorem
1-8 tax lien on real property on which an underground or aboveground
1-9 storage tank is located, or on any other personal property attached
1-10 to or located on property on which an underground or aboveground
1-11 storage tank is located, as security for payment of ad valorem
1-12 taxes.
1-13 (b) A taxing unit is not liable as an owner or operator
1-14 under this subchapter solely because the taxing unit holds indicia
1-15 of ownership because of a tax foreclosure sale under the Tax Code.
1-16 (c) If a taxing unit removes a tank from service or takes
1-17 corrective action at any time after foreclosure, the taxing unit
1-18 shall perform corrective action in accordance with requirements
1-19 adopted by the commission under this subchapter.
1-20 (d) A taxing unit is not liable as an owner or operator
1-21 under this subchapter solely because the taxing unit sells,
1-22 releases, liquidates, or winds up operations and takes measures to
1-23 preserve, protect, or prepare the secured aboveground or
1-24 underground storage tank before sale or other disposition of the
2-1 storage tank or the property if the taxing unit:
2-2 (1) did not participate in the management of an
2-3 aboveground or underground storage tank or real or personal
2-4 property described by Subsection (a) before foreclosure or an
2-5 equivalent action on the storage tank or the property; and
2-6 (2) establishes, as provided by Subsection (e), that
2-7 the ownership indicia maintained after foreclosure continue to be
2-8 held primarily to protect a payment of ad valorem taxes.
2-9 (e) A taxing unit may establish that the ownership indicia
2-10 maintained after foreclosure continue to be held primarily to
2-11 protect payment of ad valorem taxes if the taxing unit:
2-12 (1) lists the aboveground or underground storage tank,
2-13 or the facility or property on which the tank is located, with a
2-14 broker, dealer, or agent who deals in that type of property; or
2-15 (2) advertises the aboveground or underground storage
2-16 tank for sale or other disposition in:
2-17 (A) a real estate publication;
2-18 (B) a trade or other publication appropriate for
2-19 the aboveground or underground storage tank being advertised; or
2-20 (C) a newspaper of general circulation in the
2-21 area in which the aboveground or underground storage tank is
2-22 located.
2-23 SECTION 2. (a) This Act takes effect September 1, 1999.
2-24 (b) The changes in law made to Chapter 26, Water Code, by
2-25 Section 26.3516, Water Code, as added by this Act, apply only to a
2-26 taxing unit that has foreclosed an ad valorem tax lien on real
2-27 property on which an aboveground or underground storage tank is
3-1 located, or on any other personal property attached to or located
3-2 on property on which an underground or aboveground storage tank is
3-3 located and holds indicia of ownership by virtue of a tax
3-4 foreclosure on or after September 1, 1999.
3-5 SECTION 3. The importance of this legislation and the
3-6 crowded condition of the calendars in both houses create an
3-7 emergency and an imperative public necessity that the
3-8 constitutional rule requiring bills to be read on three several
3-9 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2109 was passed by the House on April
16, 1999, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2109 was passed by the Senate on May
26, 1999, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor