BILL ANALYSIS


                                                        S.B. 1567
                                                        By: Ellis
                                                    Jurisprudence
                                                           5-3-95
                                     Committee Report (Unamended)
BACKGROUND

In the event of foreclosure of real property by a taxing district
resulting from nonpayment of ad valorem property taxes, the
Property Tax Code provides a three-year period following the tax
sale in which the procedural methodology of the foreclosure can be
contested.  For example, an unknown heir may claim that he or she
has a legal interest in the property, and was not properly notified
of the pending foreclosure action.  This claim creates a cloud on
the redevelopment of the property until the three-year limitations
period relapses.  This restricts redevelopment on these properties,
particularly in older inner-city neighborhoods where abandoned
properties abound.

PURPOSE

As proposed, S.B. 1567 sets forth the statute of limitations
applicable to real property sold for taxes and prohibits a person
challenging the validity of a tax sale from commencing unless the
person deposits all taxes and costs on the property with the court.

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 Section 33.54, Property Tax Code, as follows:

     Sec. 33.54.  LIMITATION ON ACTIONS RELATING TO PROPERTY SOLD
     FOR TAXES.  (a)-(c) Prohibit a cause of action relating to the
     title to property from being maintained against the purchaser
     of the property at a tax sale unless that action commences
     within two years if the property sold was the residence
     homestead of the owner on was land designated for agricultural
     use when the suit to collect the tax was filed or within one
     year for any other property.  Make conforming changes.
     
     (d) Prohibits a person challenging the validity of a tax
       sale from commencing an action unless such person deposits
       into the registry of the court an amount equal to all taxes,
       penalties, interest, and costs on the property.  
SECTION 2. Emergency clause.
           Effective date: upon passage.