By Harris                                             H.B. No. 2596
       74R7498 SMH-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to a requirement that a taxing unit that seeks to collect
    1-3  delinquent ad valorem taxes elect between filing suit to foreclose
    1-4  the lien securing payment of the taxes and filing suit to enforce
    1-5  personal liability for the taxes.
    1-6        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-7        SECTION 1.  Section 33.41(a), Tax Code, is amended to read as
    1-8  follows:
    1-9        (a)  At any time after its tax on property becomes
   1-10  delinquent, a taxing unit may file suit to foreclose the lien
   1-11  securing payment of the tax or<,> to enforce personal liability for
   1-12  the tax but may not seek both remedies<, or both>.  The suit must
   1-13  be in a court of competent jurisdiction for the county in which the
   1-14  tax was imposed.
   1-15        SECTION 2.  Section 33.43(b), Tax Code, is amended to read as
   1-16  follows:
   1-17        (b)  If the petition alleges that the person sued owns the
   1-18  property on which the taxing unit asserts a lien, the prayer in the
   1-19  petition shall be for foreclosure of the lien and payment of all
   1-20  taxes, penalties, interest, and costs that are due or will become
   1-21  due and that are secured by the lien.  If the petition alleges that
   1-22  the person sued owned the property on January 1 of the year for
   1-23  which the taxes were imposed, the prayer shall be for personal
   1-24  judgment for all taxes, penalties, interest, and costs that are due
    2-1  or will become due on the property.  <If the petition contains the
    2-2  appropriate allegations, the prayer may be for both foreclosure of
    2-3  a lien on the property and personal judgment.>
    2-4        SECTION 3.  Section 34.01, Tax Code, is amended by adding
    2-5  Subsection (e) to read as follows:
    2-6        (e)  If property is sold under Subsection (a), the taxpayer's
    2-7  liability for the taxes, penalties, interest, and costs due the
    2-8  taxing units that are parties to the judgment is extinguished
    2-9  regardless of whether the sale proceeds are sufficient to satisfy
   2-10  the judgment.
   2-11        SECTION 4.  Section 34.05, Tax Code, is amended by adding
   2-12  Subsection (g) to read as follows:
   2-13        (g)  If property is sold under this section, the taxpayer's
   2-14  liability for the taxes, penalties, interest, and costs due the
   2-15  taxing units that are parties to the judgment is extinguished
   2-16  regardless of whether the sale proceeds are sufficient to satisfy
   2-17  the judgment.
   2-18        SECTION 5.  The changes in law made by this Act apply only to
   2-19  a delinquent tax suit filed on or after the effective date of this
   2-20  Act.  A delinquent tax suit filed before the effective date of this
   2-21  Act is covered by the law in effect when the suit was filed, and
   2-22  the former law is continued in effect for that purpose.
   2-23        SECTION 6.  This Act takes effect on the date on which the
   2-24  constitutional amendment proposed by the 74th Legislature, Regular
   2-25  Session, 1995, to require a taxing unit that seeks to collect
   2-26  delinquent ad valorem taxes to elect between enforcing the lien
   2-27  securing payment of the taxes and enforcing personal liability for
    3-1  the taxes is approved by the voters.  If that amendment is not
    3-2  approved by the voters, this Act has no effect.
    3-3        SECTION 7.  The importance of this legislation and the
    3-4  crowded condition of the calendars in both houses create an
    3-5  emergency and an imperative public necessity that the
    3-6  constitutional rule requiring bills to be read on three several
    3-7  days in each house be suspended, and this rule is hereby suspended.