By Thompson                                           H.B. No. 3308
         76R8155 JD-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the payment of certain costs incurred in connection
 1-3     with a suit to collect delinquent ad valorem taxes.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 33.48, Tax Code, is amended by adding
 1-6     Subsection (d) to read as follows:
 1-7           (d)  Proceeds received or collected from a defendant in a
 1-8     suit to collect delinquent taxes shall first be applied to the
 1-9     items described by Subsections  (a)(1)-(3).  A person who receives
1-10     proceeds from a defendant shall promptly remit the proceeds to the
1-11     court for distribution.
1-12           SECTION 2.  Section 33.49, Tax Code, is amended to read as
1-13     follows:
1-14           Sec. 33.49.  LIABILITY OF TAXING UNIT FOR COSTS.  (a)  Except
1-15     as provided by Subsection (b) of this section, a taxing unit is not
1-16     liable in a suit to collect taxes for court costs, including any
1-17     fees for service of process, arbitration, or mediation, and may not
1-18     be required to post security for costs.  This subsection does not
1-19     apply to a cost described by Section 33.48(a).
1-20           (b)  A taxing unit shall pay the cost of publishing
1-21     citations, notices of sale, or other notices from the unit's
1-22     general fund as soon as practicable [after receipt of the
1-23     publisher's claim for payment].  In addition, the taxing unit shall
1-24     pay all costs of court for which the unit is liable, including fees
 2-1     for service of process in suits filed in error, as soon as
 2-2     practicable.  The taxing unit is entitled to reimbursement from
 2-3     other taxing units that are parties to the suit for  their
 2-4     proportionate share of the publication costs on satisfaction of any
 2-5     portion of the tax indebtedness before further distribution of the
 2-6     proceeds.  A taxing unit may not pay a word or line rate for
 2-7     publication of citation or other required notice that exceeds the
 2-8     rate the newspaper publishing the notice charges private entities
 2-9     for similar classes of advertising.
2-10           SECTION 3.  This Act takes effect September 1, 1999.  The
2-11     changes in law made by this Act apply only to a suit to collect
2-12     delinquent ad valorem taxes that is filed on or after September 1,
2-13     1999.
2-14           SECTION 4.  The importance of this legislation and the
2-15     crowded condition of the calendars in both houses create an
2-16     emergency and an imperative public necessity that the
2-17     constitutional rule requiring bills to be read on three several
2-18     days in each house be suspended, and this rule is hereby suspended.
2-19                          COMMITTEE AMENDMENT NO. 1
2-20           Amend H.B. 3308 by striking section 2 of the bill and
2-21     renumbering the subsequent sections appropriately.
2-22                                                                Oliveira