SLC C.S.H.B. 833 75(R)BILL ANALYSIS


LAND & RESOURCE MANAGEMENT
C.S.H.B. 833
By: Junell
3-5-97
Committee Report (Substituted)



BACKGROUND 

In recent years, the filing of "nuisance" liens against state-owned real
property has become a popular tactic for individuals or groups, such as
The Republic of Texas, who seek redress from the state for alleged
grievances.  While these liens are invalid because of principle in common
law, they can create a potentially serious problem for Veterans Land Board
loan applicants whose transactions would be delayed until the Board is
able to satisfy title insurers that the abstracts have no merit. 

PURPOSE

As proposed, this bill would explicitly provide that no liens may attach
to state-owned property. This clarification in the Property Code would
eliminate any confusion over the validity of such liens in the future and
would prevent any delays in state real estate transactions. 

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. Amends Chapter 43, Property Code, by adding Section 43.002.
This section exempts real property owned by this state from attachment,
execution, or forced sale. In addition, this section states that a
judgment lien or abstract of judgment may not be filed against the state
and that any such judgment or abstract is void and unenforceable. 

SECTION 2. Emergency Clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

CSHB 833 adds language in section 1 of the act to make judgment liens and
abstract of judgments void and unenforceable.  The original act only made
these types of judgments voidable, as opposed to void. 

CSHB 833 strikes the language in section 2 of the original act and
replaces it with language that establishes the emergency clause.