HBA-NMO H.B. 2109 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2109
By: Bonnen
Natural Resources
3/22/99
Introduced



BACKGROUND AND PURPOSE 

Under current law, it may not be clear whether a taxing unit is liable for
underground storage tanks acquired through the foreclosure of an ad valorem
tax lien on real property.  The Texas Natural Resource Conservation
Commission believes that a taxing unit is liable for such an acquisition.
H.B. 2109 provides limits on liability of a taxing unit that has foreclosed
an ad valorem tax lien on real property on which an underground or
aboveground storage tank is located.   

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 Subchapter I, Chapter 26, Water Code, by adding Section
26.3516, as follows: 

Sec. 26.3516.  LIMITS ON LIABILITY OF TAXING UNIT.  (a) Provides that this
section applies to a taxing unit that has foreclosed an ad valorem tax lien
on real property on which an underground or aboveground storage tank (tank)
is located, or on any other personal property attached to or located on
property on which a tank is located, as security for payment of ad valorem
taxes. 

(b) Provides that a taxing unit is not liable as an owner or operator under
this subchapter solely because the taxing unit holds indicia (evidencing
document) of ownership because of a tax foreclosure sale under the Tax
Code. 

(c) Requires the taxing unit, if it removes a tank from service or takes
corrective action at any time after foreclosure, to perform corrective
action in accordance with requirements adopted by the Texas Natural
Resource Conservation Commission under this subchapter (Underground and
Aboveground Storage Tanks). 

(d) Provides that a taxing unit is not liable as an owner or operator under
this subchapter solely because the taxing unit sells, releases, liquidates,
or winds up operations and takes measures to preserve, protect, or prepare
the secured tank before sale or other disposition of the storage tank or
the property if the taxing unit: 

(1) did not participate in the management of a tank or real or personal
property described by Subsection (a) before foreclosure or an equivalent
action on the storage tank or property; and  

(2) establishes, as provided by Subsection (e), that the ownership indicia
maintained after foreclosure continue to be held primarily to protect
payment of ad valorem taxes. 

(e) Authorizes a taxing unit to establish that the ownership indicia
maintained after foreclosure continue to be held primarily to protect
payment of ad valorem taxes if the unit lists the tank, or the facility or
property on which the tank is located, with a broker,  dealer, or agent who
deals in that type of property; or advertises the tank for sale or other
disposition in certain publications. 

SECTION 2.  Effective date: September 1, 1999.
            Makes application of this Act prospective.

SECTION 3.  Emergency clause.