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.