S.B. No. 1545 AN ACT 1-1 relating to the seizure and sale for delinquent ad valorem taxes of 1-2 abandoned real property in a municipality. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Chapter 33, Tax Code, is amended by adding 1-5 Subchapter E to read as follows: 1-6 SUBCHAPTER E. SEIZURE OF REAL PROPERTY 1-7 Sec. 33.91. PROPERTY SUBJECT TO SEIZURE. A person's real 1-8 property is subject to seizure by a municipality for the payment of 1-9 delinquent ad valorem taxes, penalties, and interest the person 1-10 owes on the property and the amount secured by a municipal health 1-11 or safety lien on the property if: 1-12 (1) the property: 1-13 (A) is in a municipality; 1-14 (B) is less than one acre; and 1-15 (C) has been abandoned, unused, and vacant for 1-16 at least one year; 1-17 (2) the taxes on the property are delinquent for: 1-18 (A) each of the preceding five years; or 1-19 (B) each of the preceding three years if a lien 1-20 on the property has been created on the property in favor of the 1-21 municipality for the cost of remedying a health or safety hazard on 1-22 the property; and 1-23 (3) the tax collector of the municipality determines 1-24 that seizure of the property under this subchapter for the payment 2-1 of the delinquent taxes, penalties, and interest, and of a 2-2 municipal health and safety lien on the property, would be in the 2-3 best interest of the municipality and the other taxing units after 2-4 determining that the sum of all outstanding tax and municipal 2-5 claims against the property plus the estimated costs of a standard 2-6 judicial foreclosure exceed the anticipated proceeds from a tax 2-7 sale. 2-8 Sec. 33.92. INSTITUTION OF SEIZURE. (a) After property 2-9 becomes subject to seizure under Section 33.91, the collector for a 2-10 municipality may apply for a tax warrant to a district court in the 2-11 county in which the property is located. 2-12 (b) The court shall issue the tax warrant if by affidavit 2-13 the collector shows that the property is subject to seizure under 2-14 Section 33.91. 2-15 Sec. 33.93. TAX WARRANT. (a) A tax warrant shall direct 2-16 the sheriff or a constable in the county and the collector for the 2-17 municipality to seize the property described in the warrant, 2-18 subject to the right of redemption, for the payment of the ad 2-19 valorem taxes, penalties, and interest owing on the property 2-20 included in the application, the amount secured by a municipal 2-21 health or safety lien on the property included in the application, 2-22 and the costs of seizure and sale. The warrant shall direct the 2-23 person whose property is seized to disclose to a person executing 2-24 the warrant the name and address if known of any other person 2-25 having an interest in the property. 2-26 (b) A bond may not be required of a municipality for 2-27 issuance or delivery of a tax warrant, and a fee or court cost may 3-1 not be charged for issuance or delivery of the warrant. 3-2 (c) On issuance of a tax warrant, the collector shall take 3-3 possession of the property pending its sale. 3-4 Sec. 33.94. NOTICE OF TAX SALE. (a) After a seizure of 3-5 property, the collector for the municipality shall make a 3-6 reasonable inquiry to determine the identity and address of any 3-7 person, other than the person against whom the tax warrant is 3-8 issued, having an interest in the property. The collector shall 3-9 deliver as soon as possible a notice stating the time and place of 3-10 the sale and briefly describing the property seized to the person 3-11 against whom the warrant is issued and to any other person the 3-12 collector determines has an interest in the property if the 3-13 collector can ascertain the address of the other person. 3-14 (b) Failure to send or receive a notice required by this 3-15 section does not affect the validity of the sale of the seized 3-16 property or title to the property. 3-17 Sec. 33.95. PURCHASER. A purchaser for value at or 3-18 subsequent to the tax sale may conclusively presume the validity of 3-19 the sale and takes free of any claim of a party with a prior 3-20 interest in the property subject to the provisions of Section 3-21 16.002(b), Civil Practice and Remedies Code, and subject to 3-22 applicable rights of redemption. 3-23 SECTION 2. Section 34.01, Tax Code, is amended by adding 3-24 Subsection (e) to read as follows: 3-25 (e) Notwithstanding Subsection (c), if a sufficient bid is 3-26 not received, the officer making the sale may bid property seized 3-27 under Subchapter E, Chapter 33, off to a person described by 4-1 Section 11.181 for less than the tax warrant amount or the market 4-2 value of the property. Consent to the sale by the taxing units 4-3 entitled to receive proceeds of the sale is not required. 4-4 SECTION 3. Section 16.002, Civil Practice and Remedies Code, 4-5 is amended to read as follows: 4-6 Sec. 16.002. One-Year Limitations Period. (a) A person 4-7 must bring suit for malicious prosecution, libel, slander, or 4-8 breach of promise of marriage not later than one year after the day 4-9 the cause of action accrues. 4-10 (b) A person must bring suit to set aside a sale of property 4-11 seized under Subchapter E, Chapter 33, Tax Code, not later than one 4-12 year after the date the property is sold. 4-13 SECTION 4. Section 342.007, Health and Safety Code, is 4-14 amended by adding Subsection (h) to read as follows: 4-15 (h) The governing body of a municipality may foreclose a 4-16 lien on property under this subchapter in a proceeding relating to 4-17 the property brought under Subchapter E, Chapter 33, Tax Code. 4-18 SECTION 5. Subchapter A, Chapter 214, Local Government Code, 4-19 is amended by adding Section 214.004 to read as follows: 4-20 Sec. 214.004. SEIZURE AND SALE OF PROPERTY TO RECOVER 4-21 EXPENSES. A Type A general-law municipality or home-rule 4-22 municipality may foreclose a lien on property under this subchapter 4-23 in a proceeding relating to the property brought under Subchapter 4-24 E, Chapter 33, Tax Code. 4-25 SECTION 6. Subchapter B, Chapter 214, Local Government Code, 4-26 is amended by adding Section 214.015 to read as follows: 4-27 Sec. 214.015. SEIZURE AND SALE OF PROPERTY TO RECOVER 5-1 EXPENSES. A home-rule municipality or Type A general-law 5-2 municipality may foreclose a lien on property under this subchapter 5-3 in a proceeding relating to the property brought under Subchapter 5-4 E, Chapter 33, Tax Code. 5-5 SECTION 7. Subchapter C, Chapter 214, Local Government Code, 5-6 is amended by adding Section 214.102 to read as follows: 5-7 Sec. 214.102. SEIZURE AND SALE OF PROPERTY TO RECOVER 5-8 EXPENSES. A municipality may foreclose a lien on property under 5-9 this subchapter in a proceeding relating to the property brought 5-10 under Subchapter E, Chapter 33, Tax Code. 5-11 SECTION 8. The importance of this legislation and the 5-12 crowded condition of the calendars in both houses create an 5-13 emergency and an imperative public necessity that the 5-14 constitutional rule requiring bills to be read on three several 5-15 days in each house be suspended, and this rule is hereby suspended, 5-16 and that this Act take effect and be in force from and after its 5-17 passage, and it is so enacted.