By Bonnen H.B. No. 2109 76R5123 MXM-F A BILL TO BE ENTITLED 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.