74R8568 SMH-F
          By Harris                                             H.B. No. 2596
          Substitute the following for H.B. No. 2596:
          By Craddick                                       C.S.H.B. No. 2596
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the extinguishment of a taxpayer's liability for
    1-3  delinquent ad valorem taxes following a tax sale.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 34.01, Tax Code, is amended by adding
    1-6  Subsection (e) to read as follows:
    1-7        (e)  If property is sold under Subsection (a), the taxpayer's
    1-8  liability for the taxes, penalties, interest, and costs due the
    1-9  taxing units that are parties to the judgment is extinguished
   1-10  regardless of whether the sale proceeds are sufficient to satisfy
   1-11  the judgment.
   1-12        SECTION 2.  Section 34.05, Tax Code, is amended by adding
   1-13  Subsection (g) to read as follows:
   1-14        (g)  If property is sold under this section, the taxpayer's
   1-15  liability for the taxes, penalties, interest, and costs due the
   1-16  taxing units that are parties to the judgment is extinguished
   1-17  regardless of whether the sale proceeds are sufficient to satisfy
   1-18  the judgment.
   1-19        SECTION 3.  The changes in law made by this Act apply only to
   1-20  a tax sale held on or after the effective date of this Act.  A tax
   1-21  sale held before the effective date of this Act is covered by the
   1-22  law in effect when the suit was filed, and the former law is
   1-23  continued in effect for that purpose.
   1-24        SECTION 4.  This Act takes effect on the date on which the
    2-1  constitutional amendment proposed by H.J.R. 106, 74th Legislature,
    2-2  Regular Session, 1995, is approved by the voters.  If that
    2-3  amendment is not approved by the voters, this Act has no effect.
    2-4        SECTION 5.  The importance of this legislation and the
    2-5  crowded condition of the calendars in both houses create an
    2-6  emergency and an imperative public necessity that the
    2-7  constitutional rule requiring bills to be read on three several
    2-8  days in each house be suspended, and this rule is hereby suspended.