BILL ANALYSIS
S.B. 1545
By: Henderson (Dutton)
May 10, 1995
Committee Report (Unamended)
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 33.94 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 33.95 PURCHASER.
Provides that a purchaser at a tax sale may conclusively
presume the validity of the sale and takes the property
free of any claim of interest in the property, subject
to the rights of redemption.
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.
SUMMARY OF COMMITTEE ACTION
Pursuant to a notice posted in accordance with the rules, the
committee met in a public hearing on May 9, 1995. The chair laid
out S.B. 1545. By a record vote of 8 ayes, 0 nays, 0 present not
voting and 3 absent, the committee voted to report S.B. 1545 to the
House without amendment with the recommendation that it do pass.