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