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.