77R13108 JD-F                           
         By Ramsay                                             H.B. No. 3049
         Substitute the following for H.B. No. 3049:
         By Bonnen                                         C.S.H.B. No. 3049
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the use of interest earned on motor vehicle inventory
 1-3     tax escrow accounts.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 23.122, Tax Code, is amended by amending
 1-6     Subsection (c) and adding Subsection (q) to read as follows:
 1-7           (c)  The collector shall maintain the escrow account for each
 1-8     owner in the county depository.  The collector is not required to
 1-9     maintain a separate account in the depository for each escrow
1-10     account created as provided by this section but shall maintain
1-11     separate records for each owner.  The collector shall retain any
1-12     interest generated by the escrow account to defray the cost of
1-13     administration of the prepayment procedure established by this
1-14     section.  Interest generated by an escrow account created as
1-15     provided by this section is the sole property of the collector, and
1-16     that interest may be used by no entity other than the collector.
1-17     Interest generated by an escrow account may not be used to:
1-18                 (1)  reduce or otherwise affect the annual
1-19     appropriation to the collector that would otherwise be made; or
1-20                 (2)  supplement the salary or cover any personal
1-21     expenses of the collector.
1-22           (q)  At least 60 days before the first day of the county's
1-23     fiscal year, the collector shall prepare a budget for the
1-24     expenditure of interest generated by the escrow accounts during
 2-1     that fiscal year and file a copy of that budget with the county
 2-2     budget officer.  The county budget officer shall make a copy of the
 2-3     collector's budget filed with the budget officer available to the
 2-4     public at all reasonable times.  The collector's budget filed with
 2-5     the county budget officer is not subject to approval by the
 2-6     commissioners court of the county, but any member of the public is
 2-7     entitled to speak for or against the collector's budget during the
 2-8     county's budget process.  Interest generated by the escrow accounts
 2-9     under this section may be spent only in compliance with:
2-10                 (1)  the collector's budget filed with the county
2-11     budget officer under this subsection; and
2-12                 (2)  Subchapter C, Chapter 262, Local Government Code.
2-13           SECTION 2.  This Act takes effect immediately if it receives
2-14     a vote of two-thirds of all the members elected to each house, as
2-15     provided by Section 39, Article III, Texas Constitution.  If this
2-16     Act does not receive the vote necessary for immediate effect, this
2-17     Act takes effect September 1, 2001.