SRC-JEC H.B. 394 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 394
77R3775 CLG-DBy: Keffer (Staples)
Intergovernmental Relations
4/25/2001
Engrossed


DIGEST AND PURPOSE 

Currently, a business must report an inventory to the county clerk to hold
a going out of business sale. The county clerk is not required to report
that information to the chief tax appraiser.  This can result in erroneous
tax assessments.  H.B. 394 requires a person to file an inventory with the
chief appraiser rather than the county clerk to receive a permit to hold a
going out of business sale. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency.  

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 17.83(a), Business & Commerce Code, to require a
person, in order to conduct a going out of business sale, to file an
original inventory with the chief appraiser, rather than county clerk, of
the appraisal district, rather than county, in which the person's principal
place of business in the state is located. 

SECTION 2.  Amends Chapter 17F, Business & Commerce Code, by adding Section
17.835, as follows: 

Sec. 17.835.  NOTICE OF FILING OF ORIGINAL INVENTORY.  Requires the chief
appraiser, not later than the fifth business day after the date on which a
person files an original inventory under Section 17.83, to send notice of
the filing to the comptroller, the county clerk of the county in which the
person's principal place of business in the state is located, and the tax
collector for each of the taxing units that tax the property described in
the original inventory. 

SECTION 3.  Amends Section 17.84(a), Business & Commerce Code, to make a
conforming change. 

SECTION 4.  Amends Section 17.86, Business & Commerce Code, to make a
conforming change. 

SECTION 5.  Amends Section 17.87, Business & Commerce Code, to make a
conforming change. 

SECTION 6.   Effective date: September 1, 2001.
  Makes application of this Act prospective.