1-1     By:  Ramsay (Senate Sponsor - Madla)                  H.B. No. 3049
 1-2           (In the Senate - Received from the House May 11, 2001;
 1-3     May 11, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 11, 2001, reported favorably by
 1-5     the following vote:  Yeas 4, Nays 0; May 11, 2001, sent to
 1-6     printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the use of interest earned on motor vehicle inventory
1-10     tax escrow accounts.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1. Section 23.122, Tax Code, is amended by amending
1-13     Subsection (c) and adding Subsection (q) to read as follows:
1-14           (c)  The collector shall maintain the escrow account for each
1-15     owner in the county depository.  The collector is not required to
1-16     maintain a separate account in the depository for each escrow
1-17     account created as provided by this section but shall maintain
1-18     separate records for each owner.  The collector shall retain any
1-19     interest generated by the escrow account to defray the cost of
1-20     administration of the prepayment procedure established by this
1-21     section.  Interest generated by an escrow account created as
1-22     provided by this section is the sole property of the collector, and
1-23     that interest may be used by no entity other than the collector.
1-24     Interest generated by an escrow account may not be used to:
1-25                 (1)  reduce or otherwise affect the annual
1-26     appropriation to the collector that would otherwise be made; or
1-27                 (2)  supplement the salary or cover any personal
1-28     expenses of the collector.
1-29           (q)  At least 60 days before the first day of the county's
1-30     fiscal year, the collector shall prepare a budget for the
1-31     expenditure of interest generated by the escrow accounts during
1-32     that fiscal year and file a copy of that budget with the county
1-33     budget officer.  The county budget officer shall make a copy of the
1-34     collector's budget filed with the budget officer available to the
1-35     public at all reasonable times.  The collector's budget filed with
1-36     the county budget officer is not subject to approval by the
1-37     commissioners court of the county, but any member of the public is
1-38     entitled to speak for or against the collector's budget during the
1-39     county's budget process.  Interest generated by the escrow accounts
1-40     under this section may be spent only in compliance with:
1-41                 (1)  the collector's budget filed with the county
1-42     budget officer under this subsection; and
1-43                 (2)  Subchapter C, Chapter 262, Local Government Code.
1-44           SECTION 2.  This Act takes effect immediately if it receives
1-45     a vote of two-thirds of all the members elected to each house, as
1-46     provided by Section 39, Article III, Texas Constitution.  If this
1-47     Act does not receive the vote necessary for immediate effect, this
1-48     Act takes effect September 1, 2001.
1-49                                  * * * * *