BILL ANALYSIS
S.B. 1545
By: Henderson
Jurisprudence
4-27-95
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 within their jurisdictions.
Escalating costs make it difficult to respond to citizens' requests
to abate health and safety nuisances that are related to abandoned
or vacant properties lying within community neighborhoods.
Municipalities are attempting to improve the quality of life within
their community through improved programs which provide a safer and
healthier neighborhood environment with limited revenue sources.
A significant impediment to progress in this area is the existence
of many abandoned and vacant properties. A rapid return of these
properties to productivity may encourage revitalization of
deteriorating neighborhoods, reduce the governmental expenditures
on these properties and provide an increased tax base which would
thus enhance future tax revenues.
PURPOSE
As proposed, S.B. 1545 subjects a person's real property to seizure
and sale by a municipality for the payment of delinquent ad valorem
taxes of abandoned real property.
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 Chapter 33, Tax Code, by adding Subchapter E, as
follows:
SUBCHAPTER E. SEIZURE OF REAL PROPERTY
Sec. 33.91. PROPERTY SUBJECT TO SEIZURE. Subjects a person's
real property to seizure by a municipality for the payment of
delinquent ad valorem taxes, penalties, and interest the
person owes on the property and the amount secured by a
municipal health or safety lien on the property under certain
circumstances.
Sec. 33.92. INSTITUTION OF SEIZURE. (a) Authorizes the
collector for a municipality to apply for a tax warrant to a
district court in the county in which the property is located
after property becomes subject to seizure.
(b) Requires the court to issue the tax warrant if by
affidavit the collector shows that the property is subject
to seizure.
Sec. 33.93. TAX WARRANT. (a) Requires a tax warrant to
direct the sheriff or a constable in the county and the
collector for the municipality to seize the property described
in the warrant, subject to the right of redemption, for the
payment of ad valorem taxes, penalties, and interest owing on
the property included in the application, the amount secured
by a municipal health or safety lien on the property, and the
costs of seizure and sale. Requires the warrant to direct the
person whose property is seized to disclose to a person
executing the warrant the name and address if known of any
other person having an interest in the property.
(b) Authorizes the bond to be required of a municipality for
issuance or delivery of a tax warrant, and prohibits a fee
from being charged for the issuance or delivery.
(c) Requires the collector to take possession of the
property pending its sale on issuance of a tax warrant.
Sec. 33.94. NOTICE OF TAX SALE. (a) Requires the
municipality to make an inquiry to determine the identity and
address of any person, other than the person against whom the
warrant is issued, having an interest in the property.
Requires the collector to deliver a notice stating certain
information about the sale to the person against whom the
warrant is issued and others with an interest in the property.
(b) Provides that failure to send or receive a notice does
not affect the validity of the sale of the seized property
or title to the property.
Sec. 33.95. PURCHASER. Authorizes a purchaser for value at
or subsequent to the tax sale to conclusively presume the
validity of the sale and takes free of any claim of a party
with a prior interest in the property subject to the
provisions of Section 16.002(b), Civil Practice and Remedies
Code, and subject to applicable rights of redemption.
SECTION 2. Amends Section 34.01, Tax Code, by adding Subsection
(e), to authorize the officer making the sale to bid seized
property off to a person described by Section 11.181 for less than
the tax warrant amount or the market value of the property if a
sufficient bid is not received. Provides that consent to the sale
by the taxing units entitled to receive proceeds is not required.
SECTION 3. Amends Section 16.002, Civil Practice and Remedies Code,
to require a person to bring suit to set aside a sale of seized
property within one year after the property is sold.
SECTION 4. Amends Section 342.007, Health and Safety Code, by
adding Subsection (h) to authorize the governing body of a
municipality to foreclose a lien on property in a proceeding
relating to the property brought under Chapter 33E, Tax Code.
SECTION 5. Amends Chapter 214A, Local Government Code, by adding
Section 214.004, as follows:
Sec. 214.004. SEIZURE AND SALE OF PROPERTY TO RECOVER
EXPENSES. Authorizes a Type A general-law municipality or
home-rule municipality to foreclose a lien on property in a
proceeding brought under Chapter 33E, Tax Code.
SECTION 6. Amends Chapter 214B, Local Government Code, by adding
Section 214.015, as follows:
Sec. 215.015. SEIZURE AND SALE OF PROPERTY TO RECOVER
EXPENSES. Makes conforming changes.
SECTION 7. Amends Chapter 214C, Local Government Code, by adding
Section 214.102, as follows:
Sec. 214.102. SEIZURE AND SALE OF PROPERTY TO RECOVER
EXPENSES. Authorizes a municipality to foreclose a lien on
property in a proceeding brought under Chapter 33E, Tax Code.
SECTION 8. Emergency clause.
Effective date: upon passage.