SRC-HRD S.B. 974 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 974
By: Carona
Intergovernmental Relations
3-13-97
As Filed


DIGEST 

Currently, Texas law requires a taxing unit which intends to resell the
property it has foreclosed on for taxes to resell it only for the total
amount of taxes due or the market value of the property, whichever is
less.  The taxing unit is not allowed to make a profit.  As a result, many
properties which have underground storage tanks are not foreclosed on by
jurisdictions because no buyer is willing to purchase the property with
potentially hazardous environmental problems.  Moreover, the taxing
jurisdictions lack incentive to incur the costs of cleanup because they
are unable to recoup those costs when reselling the property.  This bill
would add a provision to current law to allow a taxing jurisdiction that
incurs environmental cleanup costs to add those costs into the resale
price, thereby enabling taxing jurisdictions to foreclose on the property,
clean up the property, and resell it. 

PURPOSE

As proposed, S.B. 974 allows a taxing jurisdiction to recover from the
proceeds of a resale of a property it has foreclosed on any cost incurred
in inspecting the property to determine whether there is a release or
threatened release of solid waste, and in taking action to clean up any
such waste. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 34.06, Tax Code, by adding Subsection (c), to
provide that notwithstanding Subsection (b), the purchasing taxing unit is
entitled to recover from the proceeds of a resale of the property any cost
incurred in inspecting the property to determine whether there is a
release or threatened release of solid waste from the property and in
taking certain actions. 

SECTION 2. Emergency clause.
  Effective date: upon passage.