HBA-JLV H.B. 3049 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3049 By: Ramsay Ways & Means 3/30/2001 Introduced BACKGROUND 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. House Bill 3049 prohibits interest generated by an escrow account to be used to supplement the salary, expenses, or allowances of the county tax assessor-collector. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 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, expenses, or allowances of the county tax assessor-collector. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.