BILL ANALYSIS


                                                         H.B. 742
                                               By: Farrar (Ellis)
                                      Intergovernmental Relations
                                                         05-17-95
                                Senate Committee Report (Amended)
BACKGROUND

As of December 1994, the City of Houston (city) 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 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 the city to foreclose on additional properties
that may be more suitable for residential development.  Due to the
large number of properties that the city 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, Local Government Code, and the
Rules of Civil Procedure that the city must comply with in the
acquisition and transfer of these properties.

PURPOSE

As proposed, H.B. 742 exempts property sold by a taxing unit from
requirements under Sections 263.001 and 272.001(a), Local
Government Code, relating to the sale of certain land.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 34.05, Tax Code, by adding Subsection
(g), as follows:

     (g)  Provides that Sections 263.001 and 272.001(a), Local
     Government Code, relating to the notice of sale or exchange of
     land by political subdivisions and the sale or lease of real
     property, do not apply to property sold by a taxing unit in a
     municipality with a population of 1.5 million or more under
     this section.
     
     SECTION 2.     Emergency clause.
           Effective date:  90 days after adjournment.