HBA-TBM, EDN C.S.H.B. 394 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 394
By: Keffer
Business & Industry
3/11/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Under current law, a person must file an original inventory with the county
clerk of the county in which the person's principal place of business in
the state is located to receive a permit to conduct a going out of business
sale.  The county clerk is not required to notify the chief appraiser of
the appraisal district of the going out of business sale.  Consequently, a
chief appraiser may not learn that a business no longer exists until after
it has been liquidated.  By that time, the tax rolls for the new year may
have been created, which could result in erroneous tax assessments.
C.S.H.B. 394 requires a person to file an original inventory with the chief
appraiser, rather than the county clerk, to receive a permit for a going
out of business sale.   

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. 

ANALYSIS

C.S.H.B. 394 amends the Business & Commerce Code to transfer the duties of
the county clerk of a county to the chief appraiser of the appraisal
district as they relate to going out of business sales.  The bill requires
the chief appraiser to send notice of the filing to the comptroller, the
county clerk of the county in which the filer's principal place of business
is located, and the tax collector for each of the taxing units that tax the
property described in the original inventory not later than the fifth
business day after the date on which a person files an original inventory
of merchandise to be sold. 

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 394 differs from the original by requiring the chief appraiser to
send notice of a filing of original inventory to the county clerk of the
county in which the filer's principal place of business is located.