By Dutton H.B. No. 2319
74R3285 SMH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the seizure and sale for delinquent ad valorem taxes of
1-3 abandoned real property in a municipality.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 33, Tax Code, is amended by adding
1-6 Subchapter E to read as follows:
1-7 SUBCHAPTER E. SEIZURE OF REAL PROPERTY
1-8 Sec. 33.91. PROPERTY SUBJECT TO SEIZURE. A person's real
1-9 property is subject to seizure by a municipality for the payment of
1-10 delinquent ad valorem taxes, penalties, and interest the person
1-11 owes on the property and the amount secured by a municipal health
1-12 or safety lien on the property if:
1-13 (1) the property:
1-14 (A) is in a municipality;
1-15 (B) is less than one acre; and
1-16 (C) has been abandoned, unused, and vacant for
1-17 at least one year;
1-18 (2) the taxes on the property are delinquent for:
1-19 (A) each of the preceding five years; or
1-20 (B) each of the preceding three years if a lien
1-21 on the property has been created on the property in favor of the
1-22 municipality for the cost of remedying a health or safety hazard on
1-23 the property; and
1-24 (3) the tax collector of the municipality determines
2-1 that seizure of the property under this subchapter for the payment
2-2 of the delinquent taxes, penalties, and interest, and of a
2-3 municipal health and safety lien on the property, would be in the
2-4 best interest of the municipality and the other taxing units.
2-5 Sec. 33.92. INSTITUTION OF SEIZURE. (a) After property
2-6 becomes subject to seizure under Section 33.91, the collector for a
2-7 municipality may apply for a tax warrant to a district court in the
2-8 county in which the property is located.
2-9 (b) The court shall issue the tax warrant if by affidavit
2-10 the collector shows that the property is subject to seizure under
2-11 Section 33.91.
2-12 Sec. 33.93. TAX WARRANT. (a) A tax warrant shall direct
2-13 the sheriff or a constable in the county and the collector for the
2-14 municipality to seize the property described in the warrant,
2-15 subject to the right of redemption, for the payment of the ad
2-16 valorem taxes, penalties, and interest owing on the property
2-17 included in the application, the amount secured by a municipal
2-18 health or safety lien on the property included in the application,
2-19 and the costs of seizure and sale. The warrant shall direct the
2-20 person whose property is seized to disclose to a person executing
2-21 the warrant the name and address if known of any other person
2-22 having an interest in the property.
2-23 (b) A bond may not be required of a municipality for
2-24 issuance or delivery of a tax warrant, and a fee or court cost may
2-25 not be charged for issuance or delivery of the warrant.
2-26 (c) On issuance of a tax warrant, the collector shall take
2-27 possession of the property pending its sale.
3-1 Sec. 33.94. NOTICE OF TAX SALE. (a) After a seizure of
3-2 property, the collector for the municipality shall make a
3-3 reasonable inquiry to determine the identity and address of any
3-4 person, other than the person against whom the tax warrant is
3-5 issued, having an interest in the property. The collector shall
3-6 deliver as soon as possible a notice stating the time and place of
3-7 the sale and briefly describing the property seized to the person
3-8 against whom the warrant is issued and to any other person the
3-9 collector determines has an interest in the property if the
3-10 collector can ascertain the address of the other person.
3-11 (b) Failure to send or receive a notice required by this
3-12 section does not affect the validity of the sale of the seized
3-13 property or title to the property.
3-14 SECTION 2. Section 34.01, Tax Code, is amended by adding
3-15 Subsection (e) to read as follows:
3-16 (e) Notwithstanding Subsection (c), if a sufficient bid is
3-17 not received, the officer making the sale may bid property seized
3-18 under Subchapter E, Chapter 33, off to a person described by
3-19 Section 11.181 for less than the tax warrant amount or the market
3-20 value of the property. Consent to the sale by the taxing units
3-21 entitled to receive proceeds of the sale is not required.
3-22 SECTION 3. Section 16.002, Civil Practice and Remedies Code,
3-23 is amended to read as follows:
3-24 Sec. 16.002. One-Year Limitations Period. (a) A person
3-25 must bring suit for malicious prosecution, libel, slander, or
3-26 breach of promise of marriage not later than one year after the day
3-27 the cause of action accrues.
4-1 (b) A person must bring suit to set aside a sale of property
4-2 seized under Subchapter E, Chapter 33, Tax Code, not later than one
4-3 year after the date the property is sold.
4-4 SECTION 4. Section 342.007, Health and Safety Code, is
4-5 amended by adding Subsection (h) to read as follows:
4-6 (h) The governing body of a municipality may foreclose a
4-7 lien on property under this subchapter in a proceeding relating to
4-8 the property brought under Subchapter E, Chapter 33, Tax Code.
4-9 SECTION 5. Subchapter A, Chapter 214, Local Government Code,
4-10 is amended by adding Section 214.004 to read as follows:
4-11 Sec. 214.004. SEIZURE AND SALE OF PROPERTY TO RECOVER
4-12 EXPENSES. A Type A general-law municipality or home-rule
4-13 municipality may foreclose a lien on property under this subchapter
4-14 in a proceeding relating to the property brought under Subchapter
4-15 E, Chapter 33, Tax Code.
4-16 SECTION 6. Subchapter B, Chapter 214, Local Government
4-17 Code, is amended by adding Section 214.015 to read as follows:
4-18 Sec. 214.015. SEIZURE AND SALE OF PROPERTY TO RECOVER
4-19 EXPENSES. A home-rule municipality or Type A general-law
4-20 municipality may foreclose a lien on property under this subchapter
4-21 in a proceeding relating to the property brought under Subchapter
4-22 E, Chapter 33, Tax Code.
4-23 SECTION 7. Subchapter C, Chapter 214, Local Government Code,
4-24 is amended by adding Section 214.102 to read as follows:
4-25 Sec. 214.102. SEIZURE AND SALE OF PROPERTY TO RECOVER
4-26 EXPENSES. A municipality may foreclose a lien on property under
4-27 this subchapter in a proceeding relating to the property brought
5-1 under Subchapter E, Chapter 33, Tax Code.
5-2 SECTION 8. The importance of this legislation and the
5-3 crowded condition of the calendars in both houses create an
5-4 emergency and an imperative public necessity that the
5-5 constitutional rule requiring bills to be read on three several
5-6 days in each house be suspended, and this rule is hereby suspended,
5-7 and that this Act take effect and be in force from and after its
5-8 passage, and it is so enacted.
5-9 COMMITTEE AMENDMENT NO. 1
5-10 Amend H.B. 2319 as follows:
5-11 On page 3 after line 13 add a new Section 33.95. to read as
5-12 follows:
5-13 "Sec. 33.95. PURCHASER. A purchaser for value at or
5-14 subsequent to the tax sale may conclusively presume the validity of
5-15 the sale and takes free of any claim of a party with a prior
5-16 interest in the property subject to the provisions of Section
5-17 16.002(b) Civil Practices and Remedies Code, and subject to
5-18 applicable rights of redemption."
5-19 Heflin