1-1 By: Bonnen (Senate Sponsor - Brown) H.B. No. 2109 1-2 (In the Senate - Received from the House April 19, 1999; 1-3 April 20, 1999, read first time and referred to Committee on 1-4 Economic Development; May 13, 1999, reported favorably by the 1-5 following vote: Yeas 6, Nays 0; May 13, 1999, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to limits on liability of a taxing unit for storage tanks. 1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-10 SECTION 1. Subchapter I, Chapter 26, Water Code, is amended 1-11 by adding Section 26.3516 to read as follows: 1-12 Sec. 26.3516. LIMITS ON LIABILITY OF TAXING UNIT. (a) This 1-13 section applies to a taxing unit that has foreclosed an ad valorem 1-14 tax lien on real property on which an underground or aboveground 1-15 storage tank is located, or on any other personal property attached 1-16 to or located on property on which an underground or aboveground 1-17 storage tank is located, as security for payment of ad valorem 1-18 taxes. 1-19 (b) A taxing unit is not liable as an owner or operator 1-20 under this subchapter solely because the taxing unit holds indicia 1-21 of ownership because of a tax foreclosure sale under the Tax Code. 1-22 (c) If a taxing unit removes a tank from service or takes 1-23 corrective action at any time after foreclosure, the taxing unit 1-24 shall perform corrective action in accordance with requirements 1-25 adopted by the commission under this subchapter. 1-26 (d) A taxing unit is not liable as an owner or operator 1-27 under this subchapter solely because the taxing unit sells, 1-28 releases, liquidates, or winds up operations and takes measures to 1-29 preserve, protect, or prepare the secured aboveground or 1-30 underground storage tank before sale or other disposition of the 1-31 storage tank or the property if the taxing unit: 1-32 (1) did not participate in the management of an 1-33 aboveground or underground storage tank or real or personal 1-34 property described by Subsection (a) before foreclosure or an 1-35 equivalent action on the storage tank or the property; and 1-36 (2) establishes, as provided by Subsection (e), that 1-37 the ownership indicia maintained after foreclosure continue to be 1-38 held primarily to protect a payment of ad valorem taxes. 1-39 (e) A taxing unit may establish that the ownership indicia 1-40 maintained after foreclosure continue to be held primarily to 1-41 protect payment of ad valorem taxes if the taxing unit: 1-42 (1) lists the aboveground or underground storage tank, 1-43 or the facility or property on which the tank is located, with a 1-44 broker, dealer, or agent who deals in that type of property; or 1-45 (2) advertises the aboveground or underground storage 1-46 tank for sale or other disposition in: 1-47 (A) a real estate publication; 1-48 (B) a trade or other publication appropriate for 1-49 the aboveground or underground storage tank being advertised; or 1-50 (C) a newspaper of general circulation in the 1-51 area in which the aboveground or underground storage tank is 1-52 located. 1-53 SECTION 2. (a) This Act takes effect September 1, 1999. 1-54 (b) The changes in law made to Chapter 26, Water Code, by 1-55 Section 26.3516, Water Code, as added by this Act, apply only to a 1-56 taxing unit that has foreclosed an ad valorem tax lien on real 1-57 property on which an aboveground or underground storage tank is 1-58 located, or on any other personal property attached to or located 1-59 on property on which an underground or aboveground storage tank is 1-60 located and holds indicia of ownership by virtue of a tax 1-61 foreclosure on or after September 1, 1999. 1-62 SECTION 3. The importance of this legislation and the 1-63 crowded condition of the calendars in both houses create an 1-64 emergency and an imperative public necessity that the 2-1 constitutional rule requiring bills to be read on three several 2-2 days in each house be suspended, and this rule is hereby suspended. 2-3 * * * * *