BILL ANALYSIS C.S.H.B. 741 By: Farrar 04-12-95 Committee Report (Substituted) BACKGROUND As of December, 1994, the City of Houston was in possession of 237 properties that it foreclosed upon because of delinquent taxes. Many of these properties are unmarketable as residential properties, and the City of Houston has had difficulty conveying these properties for the amount of taxes owed or the fair market value. Charitable organizations that develop properties for low-income housing would like for the City of Houston to foreclose on additional properties that may be more suitable for residential development. Due to the large number of properties that the City of Houston has been unable to sell, the city is hesitant to foreclose upon additional properties because of requirements regarding the purchase and sale of such properties, and the liability that the city incurs once it forecloses on a property. PURPOSE As proposed, C.S.H.B. 741 makes the Tort Claims Act inapplicable to a municipality with a population of 1.5 million or more holding land that was obtained pursuant to foreclosure on a tax lien. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Creates an exception to liability imposed on municipalities in Chapter 101 of the Civil Practice and Remedies Code for land that a municipality with a population of 1.5 million or more acquires pursuant to foreclosure of a tax lien. Chapter does not apply to a claim that arises from the condition of the land, a premises defect on the land, or an action committed by any person other than an agent or employee of the city on the land; includes any building or improvement located on property; removes language limiting application of law to a one-year period after the city acquires the property. SECTION 2. Provides for prospective application SECTION 3. Emergency clause. Effective upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute provides that chapter does not apply to a claim that arises from the condition of the land, a premises defect on the land, or an action committed by any person other than an agent or employee of the city on the land; includes any building or improvement located on property; removes language limiting application of law to a one-year period after the city acquires the property; provides for prospective application. SUMMARY OF COMMITTEE ACTION HB 741 was considered by the committee in a public hearing on April 10, 1995. The committee considered a complete substitute to the bill. The substitute was adopted without objection. The following people testified in favor of the bill: Rep. Farrar; and Dan Doherty, representing City of Houston. The bill was reported favorably as substituted, with the recommendation that it do pass and be printed, by a record vote of 8 ayes, 0 nays, 0 pnv, and 1 absent.