SRC-TBR H.B. 3049 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 3049
77R13108 JD-FBy: Ramsay (To Be Filled)
Intergovernmental Relations
5/11/2001
Engrossed


DIGEST AND PURPOSE 

Current law does not specifically prohibit the interest earned on motor
vehicle tax escrow accounts from being used for various purposes.  While it
is unclear if many collectors misuse the interest earned on such escrow
accounts, there are concerns that the language of current law is vague and
may allow for the misuse of the interest earned on the above mentioned
escrow accounts.  H.B. 3049 prohibits interest generated by an escrow
account to be used to supplement the salary or cover any personal expenses
of the county tax assessor-collector. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

H.B. 3049 amends the Tax Code to prohibit interest generated by an escrow
account for prepayment of property taxes associated with an owner's motor
vehicle inventory from being used to supplement the salary or cover any
personal expenses of the county tax assessor-collector (collector).  The
bill requires the collector, at least 60 days before the first day of the
county's fiscal year, to prepare a budget for the expenditure of interest
generated by the escrow accounts during that fiscal year and file a copy of
that budget with the county budget officer.  The bill requires the county
budget officer to make a copy of the collector's budget filed with the
county budget officer available to the public at all reasonable times.  The
bill provides that the collector's budget filed with the county budget
officer is not subject to approval by the county commissioners court, but
any member of the public is entitled to speak for or against the
collector's budget during the county's budget process. Interest generated
by the escrow accounts may be spent only in compliance with the collector's
budget filed with the county budget officer and the county purchasing act. 

EFFECTIVE DATE:  On passage, or if the Act does not receive the necessary
vote, the Act takes effect September 1, 2001.