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.