SRC-JEC H.B. 3347 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 3347
77R14557 EBy: Gray (Madla)
Intergovernmental Relations
5/11/2001
Engrossed


DIGEST AND PURPOSE 

Under current law, a taxing unit engaged in the collection of delinquent
taxes is not allowed access to rendition statements made by the owners of
the property on which the taxes are delinquent. This access may give both
taxpayers and tax collectors an opportunity to resolve collection issues
without the added expense of litigation. In addition, current law may not
allow every defendant who has an interest in the property to be served with
citation. Out-of-state lienholders may lose their interests in property
subject to tax foreclosure.  H.B. 3347 authorizes a taxing unit or its
representative in delinquent property tax cases to access the rendition
statement made by the owners of the property and extends jurisdiction to a
defendant who owns, has, or claims any interest in the property which is
the subject of the suit.  

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 22.27(b), Tax Code, to authorize information
made confidential by this section to be disclosed to a taxing unit or its
legal representative that is engaged in the collection of delinquent taxes
on the property that is the subject of the information.  Makes
nonsubstantive changes. 

SECTION 2.  Amends Section 33.41, Tax Code, by adding Subsections (d), (e),
(f), (g), and (h), as follows: 

(d)  Requires a court, in a suit brought under this section, to grant a
taxing unit injunctive relief on a showing that the personal property on
which the taxing unit seeks to foreclose a tax lien is about to be: removed
from the county in which the tax was imposed; or transferred to another
person and the other person is not a buyer in the ordinary course of
business, as defined by Section 1.201, Business & Commerce Code. 

(e)  Requires injunctive relief granted under Subsection (d) to:  prohibit
alienation or dissipation of the property; order that  proceeds from the
sale of the property in an amount equal to the taxes claimed to be due be
paid into the court registry; or order any other relief to ensure the
payment of the taxes owed. 

(f)  Authorizes the taxing unit, in a petition for relief under Subsection
(d), to also seek to secure the payment of taxes for a current tax year
that are not delinquent and requires the taxing unit to estimate the amount
due if those taxes are not yet assessed. 

(g)  Provides that the tax lien attaches to any amounts paid into the
court's registry with the same priority as for the property on which taxes
are owed. 

(h)  Prohibits a bond from being required of a taxing unit seeking
injunctive relief under this  section. 

SECTION 3. Amends Section 17.091(a), Civil Practice and Remedies Code, to
delete 
a reference to the first day of a tax year for which taxes have not been
paid, and make nonsubstantive changes.  

SECTION 4.  Provides that Section 33.41, Tax Code, and Section 17.091(a),
Civil Practice and Remedies Code, as amended by this Act, apply only to a
suit that is filed on or after the effective date of this Act.  Provides
that a suit filed before the effective date of this Act is governed by the
law in effect immediately before the effective date of this Act, and the
former law is continued in effect for that purpose. 

SECTION 5.  Effective date: September 1, 2001.