BILL ANALYSIS



H.B. 2319
By: Dutton
May 2, 1995
Committee Report (Amended)


BACKGROUND

Currently, Texas municipalities are encountering increasing demands
for the abatement of health and safety hazards connected with
blighted or abandoned properties.  Subchapter B, Chapter 33, Tax
Code, provides an administrative process for taxing units to seize
and sell personal property by warrant.  If this same procedure
could be used for real property with health or safety liens, the
property could be returned to productivity faster.

PURPOSE

This bill would allow municipalities to seize and sell real
property by warrant that is abandoned, unused, and vacant.  Also it
would allow the municipality to transfer the property to a
charitable organization improving property for low-income housing
for less than the tax warrant or market value of the property if a
sufficient bid is not received at the sale.

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. Amends Chapter 33 (Delinquency), Tax Code, by adding
           Subchapter E SEIZURE OF REAL PROPERTY.

           Section 33.91 PROPERTY SUBJECT TO SEIZURE.
           Provides a method for municipalities to seize and sell
           real property for the payment of taxes, penalties,
           interest, and the amount secured by municipal health and
           safety liens.  Applies to property that:

               (1) the property: (A) is in a municipality; (B) is
               less than one acre; and (C) has been abandoned,
               unused, and vacant for at least one year;

               (2) the taxes on the property are delinquent for:
               (A) each of the preceding five years; or (B) each
               of the preceding three years if a lien on the
               property has been created on the property in favor
               of the municipality for the cost of remedying a
               health or safety hazard on the property; and 

               (3) the tax collector of the municipality
               determines that seizure of the property would be in
               the best interest of the municipality.

           Section 33.92 INSTITUTION OF SEIZURE.
           (a) Once a property has become subject to seizure, a
           municipality may apply to a district court in the county
           for a tax warrant.

           (b) The court shall issue the warrant if by affidavit,
           the collector shows that the property is subject to
           seizure under Section 33.91.



           Section 33.93 TAX WARRANT.
           (a) The warrant shall direct the sheriff or a constable
           in the county, and the collector for the municipality
           to seize the property, subject to the right of
           redemption.  The warrant shall also direct the person
           whose property is seized to disclose the name and
           address of any other person having an interest in the
           property.

           (b) A bond may not be required of a municipality for
           issuance or delivery of a tax warrant, and a fee or
           court cost may not be charged for the issuance or
           delivery of the warrant.

           (c) On issuance of a warrant, the collector shall take
           possession of the property pending its sale.

           Section 33.95 NOTICE OF TAX SALE.
           (a) After seizure of property, the collector for the
           municipality shall make a reasonable inquiry to
           determine the identity and address of any person having
           an interest in the property.  The collector shall
           deliver a notice stating the time and place of the sale,
           including a brief description of the property.

           (b) Failure to send or receive a notice required by this
           section does not affect the validity of the sale, or
           title to the property.

SECTION 2. Amends Section 34.01 (Sale of Property), Tax Code, by
           adding Subsection (e) to permit the officer conducting
           the sale of the property to accept a bid for less than
           market value from an organization defined in Section
           11.181 (Charitable Organization Improving Property for
           Low-Income Housing), Tax Code.  Consent to the sale by
           the taxing units is not required.

SECTION 3. Amends Section 16.002 (One-Year Limitations Period),
           Civil Practices and Remedies Code, by adding Subsection
           (b) to provide a one-year limitations period, from the
           date the property is sold, to challenge a seizure and
           sale under the provisions of Subchapter E, Chapter 33,
           Tax Code.

SECTION 4. Amends Section 342.007 (Assessment of Expenses; Lien),
           Health and Safety Code, by adding Subsection (h) to
           allow a municipality to foreclose a sanitation lien
           under the provisions of Subchapter E, Chapter 33, Tax
           Code.

SECTION 5. Amends Subchapter A (Dangerous Structures), Chapter 214,
           Local Government Code, by adding Section 214.004 SEIZURE
           AND SALE OF PROPERTY TO RECOVER EXPENSES.
           Provides for the foreclosure of a repair, removal or
           demolition lien under the provisions of Subchapter E,
           Chapter 33, Tax Code.

SECTION 6. Amends Subchapter B (Plumbing and Sewers), Chapter 214,
           Local Government Code, by adding Section 214.015 SEIZURE
           AND SALE OF PROPERTY TO RECOVER EXPENSES.
           Provides for the foreclosure of a plumbing and sewer
           lien under the provisions of Subchapter E, Chapter 33,
           Tax Code.

SECTION 7. Amends Subchapter C (Swimming Pool Enclosures), Chapter
           214, Local Government Code, by adding Section 214.102
           SEIZURE AND SALE OF PROPERTY TO RECOVER EXPENSES.
           Provides for the foreclosure of a swimming pool
           enclosure lien under the provisions of Subchapter E,
           Chapter 33, Tax Code.

SECTION 8. Emergency Clause.



EXPLANATION OF AMENDMENTS

COMMITTEE AMENDMENT #1 amends SECTION 1 of the bill to create
Section 33.95 PURCHASER, Tax Code, which allows the purchaser to
conclusively presume the validity of a tax sale, subject to the
provisions of Section 16.002(b), Civil Practices and Remedies Code,
subject to the right of redemption.

SUMMARY OF COMMITTEE ACTION

Public notice was posted in accordance with the rules, and a public
hearing was held on April 25, 1995.  Representative Dutton
explained the bill.  The Committee considered amendment #1 to the
bill by Representative Heflin.  Without objection, the committee
adopted committee amendment #1.  By a record vote of 7 ayes, 0
nays, 1 present not voting and 3 absent, the committee voted to
report H.B. 2319 to the House with amendment with the
recommendation that it do pass.

     Testimony received in favor of the bill:
           Robert Litke, representing the City of Houston
           James B. Cameron-Stuart, representing himself and the
           City of Houston