BILL ANALYSIS



C.S.H.J.R. 106
By: Harris
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 property at an ad
valorem tax lien sale, regardless of whether the proceeds are
sufficient to satisfy the judgement.  The enabling legislation is
HB 2596.

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 15 (Lien of Assessment; Seizure and Sale
           of Property), Article VIII, Texas Constitution, by
           providing that once the property is sold pursuant to an
           ad valorem tax lien foreclosure, the delinquent
           taxpayer's liability is extinguished, regardless of
           whether the proceeds satisfy the judgement or not.

           Also allows the legislature to establish limitations on
           avoidance of a tax sale and may provide that a purchaser
           may conclusively rely upon the validity of the tax sale
           to foreclose all interests in the property, subject to
           the right of redemption as provided by applicable law.

SECTION 2. Election Date:  November 7, 1995;
           Establishes ballot language.

COMPARISON OF ORIGINAL TO SUBSTITUTE

H.J.R. 106 would force taxing units to choose whether to file suit
for personal liability or lien foreclosure, but not both. 
C.S.H.J.R. 106 does not contain this provision.

C.S.H.J.R. 106 also contains language allowing the legislature to
establish limitations on avoidance of a tax sale, and may provide
that a purchaser may conclusively rely upon the validity of the tax
sale to foreclose all interests in the property, 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 11, 1995.  Representative Harris
explained the bill.  Without objection, H.J.R. 106 was left pending
before the committee.

On April 24, 1995, the committee met in a public hearing, and
H.J.R. 106 was laid out on pending business.  The committee
considered a complete substitute by Representative Craddick.  The
Committee considered amendment #1 to the substitute by
Representative Craddick.  Without objection, the committee adopted
committee amendment #1.  The Chair directed the committee staff to
incorporate committee amendment #1 into the substitute.  Without
objection, the committee adopted C.S.H.J.R. 106.  By a record vote
of 7 ayes, 0 nays, 0 present not voting and 4 absent, the committee
voted to report H.J.R. 106 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):
           Jeaniene Cadena, representing the Texas Municipal League