JH H.B. 110 75(R)BILL ANALYSIS URBAN AFFAIRS H.B. 110 By: Giddings 3-13-97 Committee Report (Substituted) BACKGROUND Chapter 34 of the Tax Code is entitled Tax Sales and Redemption. It contains the provisions regarding the sale of property pursuant to the foreclosure of a tax lien and the distribution of the proceeds. It also contains the provision authorizing the resale by property sold to a taxing unit. Chapter 101 of the Civil Practice and Remedies Code contains the Texas Tort Claims Act authorizing suits against local governments. PURPOSE This bill would allow an alternative sale of foreclosed property by all cities to nonprofit housing organizations. It would relieve cities of certain liabilities for property acquired by a lien foreclosure, would permit the resale of property by a taxing unit without auction or bid, would permit recovery by a taxing unit of maintenance expenses, including environmental concerns. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS Section 1. Deletes population requirement of 1.5 million population from existing law, Tax Code Section 34.015 to permit resale of a tax lien and property to nonprofit housing entities, replacing existing provision permitting resale to charitable organizations. Requires redemption by delinquent taxpayer within four months rather than two years. Section 2. Amends Section 101.064 of the Civil Practice and Remedies Code to delete population requirement of 1.5 million and makes Tort Claims Act inapplicable to claims arising out of the condition of land prior to sixty days after acquired by a city through foreclosure. Section 3. Deletes population requirement of 1.5 million from Tax Code Section 34.05(g), which makes inapplicable Local Government Code chapters 263 & 272, which generally require the sale of property by local governments through auction or bids. Section 4. Amends Tax Code Section 34.05 to add a provision entitling a taxing unit to recover maintenance and environmental expenses. Section 5. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute adds the provision regarding the sale to nonprofit housing entities, the reduction of the redemption period, the inapplicability of the Tort Claims Act, the inapplicability of Local Government Code chapters 263 & 272, and the recovery of maintenance/environmental expenses.