78(R) SB 1267 - Introduced version


                                                                                

78R8318 SMH-F

By:  Ratliff                                                      S.B. No. 1267



A BILL TO BE ENTITLED

AN ACT

relating to the collection of and the penalties incurred on 
delinquent ad valorem taxes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 6.24(d), Tax Code, is amended to read as 
follows:        
	(d)  A contract under this section may provide for the entity 
that collects taxes to contract with an attorney or other person, as 
provided by Section 6.30 [of this code], for collection of 
delinquent taxes.
	SECTION 2.  Section 6.30, Tax Code, is amended to read as 
follows:           
	Sec. 6.30.  PERSON RESPONSIBLE FOR DELINQUENT TAX 
COLLECTION [ATTORNEYS REPRESENTING TAXING UNITS].  (a)  The county 
attorney or, if there is no county attorney, the district attorney 
shall represent the county to enforce the collection of delinquent 
taxes if the commissioners court does not contract with another 
person [a private attorney] as provided by Subsection (c) [of this 
section].
	(b)  The governing body of a taxing unit other than a county 
may determine who represents the unit to enforce the collection of 
delinquent taxes.  If a taxing unit collects taxes for another 
taxing unit, the person [attorney] representing the unit to enforce 
the collection of delinquent taxes may represent the other unit 
with consent of its governing body.
	(c)  The governing body of a taxing unit may contract with 
any competent person, including an attorney, to represent the unit 
to enforce the collection of delinquent taxes.  The person's
[attorney's] compensation shall be [is] set in the contract, but 
the total amount of compensation provided may not exceed 20 percent 
of the amount of delinquent tax, penalty, and interest collected.
	(d)  A person other than an attorney that enters into a 
contract with the governing body of a taxing unit under Subsection 
(c) may engage an attorney to enforce the collection of delinquent 
taxes on behalf of the taxing unit if the contract authorizes the 
person to do so.
	(e)  A contract with a person to enforce the collection of 
delinquent taxes on behalf of a taxing unit [an attorney] that does 
not conform to the requirements of this section is void.
	(f)  This section does not authorize a person who is not a 
member of the State Bar of Texas to engage in the practice of law, as 
defined by Section 81.101, Government Code.
	SECTION 3.  Section 33.07(a), Tax Code, is amended to read as 
follows:       
	(a)  A taxing unit or appraisal district may provide, in the 
manner required by law for official action by the body, that taxes 
that become delinquent on or after February 1 of a year but not 
later than May 1 of that year and that remain delinquent on July 1 of 
the year in which they become delinquent incur an additional 
penalty to defray costs of collection, if the unit or district or 
another unit that collects taxes for the unit has contracted with a 
person to enforce the collection of delinquent taxes [an attorney] 
pursuant to Section 6.30.  The amount of the penalty may not exceed 
20 percent of the amount of the delinquent taxes, penalty, and 
interest.  Any amount by which the amount of the penalty exceeds the 
amount of the compensation specified in the contract with the 
person [attorney] to be paid in connection with the collection of 
the delinquent taxes shall be retained by the taxing unit or 
appraisal district.
	SECTION 4.  Sections 33.08(a) and (b), Tax Code, are amended 
to read as follows:
	(a)  This section applies to a taxing unit or appraisal 
district only if:    
		(1)  the governing body of the taxing unit or appraisal 
district has imposed the additional penalty for collection costs 
under Section 33.07;  and
		(2)  the taxing unit or appraisal district, or another 
taxing unit that collects taxes for the unit, has entered into a 
contract with a person [an attorney] under Section 6.30 for the 
collection of the unit's delinquent taxes.
	(b)  The governing body of the taxing unit or appraisal 
district, in the manner required by law for official action, may 
provide that taxes that become delinquent on or after June 1 under 
Section 26.07(f), 26.15(e), 31.03, 31.031, 31.032, or 31.04 incur 
an additional penalty to defray costs of collection.  The amount of 
the penalty may not exceed 20 percent of the delinquent taxes, 
penalty, and interest.  Any amount by which the amount of the 
penalty exceeds the amount of the compensation specified in the 
applicable contract with the person [an attorney] under Section 
6.30 to be paid in connection with the collection of the delinquent 
taxes shall be retained by the taxing unit or appraisal district.
	SECTION 5.  (a)  This Act takes effect September 1, 2003.                      
	(b)  Sections 6.24 and 6.30, Tax Code, as amended by this 
Act, apply only to a contract for the collection of delinquent taxes 
that is entered into on or after the effective date of this Act.  A 
contract for the collection of delinquent taxes entered into before 
the effective date of this Act is governed by the law in effect on 
the date the contract was entered into, and the former law is 
continued in effect for that purpose.
	(c)  Sections 33.07 and 33.08, Tax Code, as amended by this 
Act, apply only to the additional penalty on taxes that become 
delinquent on or after the effective date of this Act.  The 
additional penalty on taxes that become delinquent before the 
effective date of this Act is governed by the law in effect when the 
taxes become delinquent, and the former law is continued in effect 
for that purpose.