HBA-ATS H.B. 1769 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1769
By: Jones, Charles
Business & Industry
4/5/1999
Introduced



BACKGROUND AND PURPOSE 

The Business & Commerce Code prohibits a person from conducting a going out
of business sale unless the person files an original inventory with the
county clerk of the county in which the person's principal place of
business in the state is located.  After receiving an original inventory,
the county clerk is required to issue to the applicant a permit for a going
out of business sale.  The permit is valid for 120 days after it is issued
and is not renewable.  Before the end of each 30-day period during the
going out of business sale the permit holder is required to file with the
county clerk a sale inventory containing a complete and detailed list of
the goods, wares, and merchandise listed in the original inventory that
have not been sold before the date that the sale inventory is filed.  The
permit holder is then required to file with the county clerk a final
inventory within 30 days after the going out of business sale ends.    

During this entire process, the chief appraiser of the appraisal district
is never notified of the sale. A chief appraiser is likely to learn that a
business no longer exists only after it has been liquidated. By then, the
tax rolls for the next year may have been created, which could result in
erroneous tax assessments.  Without prior knowledge of a going out of
business sale, a chief appraiser cannot make appropriate adjustment to the
tax rolls. 

H.B. 1769 specifies that a person who wishes to conduct a going out of
business sale must file an original inventory with the chief appraiser of
the appraisal district, rather than with the county clerk of the county, in
which the person's principal place of business in the state is located.
Under this bill, the chief appraiser is required, within five business days
after a person files an original inventory, to send notice of the filing to
the comptroller of public accounts and the taxing units that tax the
property described in the original inventory. 

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. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 17.83(a), Business & Commerce Code, to specify
that a person who wishes to conduct a going out of business sale must file
an original inventory with the chief appraiser of the appraisal district,
rather than with the county clerk of the county, in which the person's
principal place of business in the state is located. 

SECTION 2.  Amends Subchapter F, Chapter 17, Business & Commerce Code, by
adding Section 17.835, as follows: 

Sec. 17.835.  NOTICE OF FILING OF ORIGINAL INVENTORY.  Requires the chief
appraiser, within five business days after a person files an original
inventory under Section 17.83 (Original Inventory),  to send notice of the
filing to the comptroller of public accounts and the taxing units that tax
the property described in the original inventory. 

SECTION 3.  Amends Section 17.84(a), Business & Commerce Code, to make a
conforming change. 
 
SECTION 4.  Amends Section 17.86, Business & Commerce Code, to make a
conforming change. 

SECTION 5.  Amends Section 17.87, Business & Commerce Code, to make a
conforming change. 

SECTION 6.Effective date: September 1, 1999.
  Makes application of this Act prospective.

SECTION 7.Emergency clause.