BILL ANALYSIS



C.S.H.B. 2596
By: Harris, Jack
May 2, 1995
Committee Report (Substituted)


BACKGROUND

Section 15, Article VIII, Texas Constitution establishes that
property of a delinquent taxpayer is liable to seizure and sale for
the payment of all the taxes and penalties due, under such
regulations as the Legislature may provide.  Chapter 34, Tax Code,
provides the procedures for tax sales.

PURPOSE

This bill would extinguish a taxpayer's liability for delinquent
taxes, penalties, and interest upon sale of the property at a tax
lien sale, regardless of whether the proceeds are sufficient to
satisfy the judgement.  The accompanying HJR 106, proposes a
constitutional amendment that would have to be approved by the
voters in order for this bill to go into effect.

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 Section 34.01 (Sale of Property), Tax Code, by
           adding Subsection (e) which allows if a property is sold
           under Subsection (a), the delinquent taxpayer's
           liability for taxes, penalties, interest and costs is
           extinguished regardless of whether the proceeds are
           sufficient to satisfy the judgment.

SECTION 2. Amends Section 34.05 (Resale by Taxing Unit), Tax Code,
           by adding Subsection (g) which allows if a property is
           resold by a taxing unit, the delinquent taxpayer's
           liability for taxes, penalties, interests and costs is
           extinguished regardless of whether the proceeds are
           sufficient to satisfy the judgment.

SECTION 3. This Act applies only to a tax sale held on or after the
           effective date of this Act.  A tax sale held prior to
           the effective date of this Act is governed by the former
           law.

SECTION 4. Effective Date:  subject to the approval of the
           constitutional amendment proposed by HJR 106.

SECTION 5. Emergency Clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

H.B. 2596 would force taxing units to choose whether to file suit
for personal liability or lien foreclosure, but not both.  C.S.H.B.
2596 does not contain this provision.






SUMMARY OF COMMITTEE ACTION

Public notice was posted in accordance with the rules, and a public
hearing was held on April 11, 1995.  Representative Harris
explained the bill.  Without objection, H.B. 2596 was left pending
before the committee.

On April 24, 1995, the committee met in a formal meeting, and H.B.
2596 was laid out on pending business.  The committee considered a
complete substitute by Representative Craddick.  Without objection,
the committee adopted C.S.H.B. 2596.  By a record vote of 7 ayes,
0 nays, 0 present not voting and 4 absent, the committee voted to
report H.B. 2596 to the House as substituted with the
recommendation that it do pass.

     Testimony received in favor of the bill (4/11/95):
           Ray M. Cornett, representing the Tax Assessor/Collector
           Assn. of Texas
           Roy C. Powers, representing himself

     Testimony received against the bill (4/11/95):
           Jeanine Cadena, representing the Texas Municipal League