BILL ANALYSIS



C.S.H.B. 742
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. 
There are several bidding, notice, and time procedures in the Tax
Code, the Local Government Code, and the Rules of Civil Procedure
that the City must comply with in the acquisition and transfer of
these properties.


PURPOSE

The bill's purpose is to exempt political subdivisions from the
notice and bidding requirements of Section 272.001(a) and Section
263.001, Local Government Code. 

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.

Adds subsection (g) to Section 34.05 of the Tax Code providing that
Sections 263.001 and 272.001(a), Local Government Code, do not
apply to property sold under Section 34.05, Tax Code. 

SECTION 2.

     Emergency clause.  Effective upon passage.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute adds subsection (g) to Section 34.05 of the Tax Code
providing that Sections 263.001 and 272.001(a), Local Government
Code, do not apply to property sold under Section 34.05, Tax Code. 
The language in the original bill regarding sale to charitable
organizations is deleted.


SUMMARY OF COMMITTEE ACTION

HB 742 was considered by the committee in a public hearing on April
10, 1995.  The committee considered a complete substitute for the
bill.  The substitute was adopted without objection. The following
people testified in favor of the bill: Rep. Farrar.  The bill was
reported favorably as substituted, with the recommendation that it
do pass and be printed and be sent to the Committee on Local and
Consent Calendars, by a record vote of 8 ayes, 0 nays, 0 pnv, and
1 absent.