SRC-AAA S.B. 1559 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1559
By: Wentworth
Jurisprudence
3-26-97
As Filed


DIGEST 

Currently, liability of a tax foreclosure does not end when the property
reverts to state ownership. Purchasers of tax foreclosure property receive
sizable tax bills immediately after transactions are closed. S.B. 1559
would make it clear that the purchaser of a tax foreclosure property has
clear title to the property, free of any previous tax debt. 

PURPOSE

As proposed, S.B. 1559 provides that the purchaser of a tax foreclosure
property has clear title to the property, free of any previous tax debt. 

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 32.112, Natural Resources Code, as follows:

Sec. 32.112. SALE OF TAX FORECLOSURE PROPERTY.  Provides that real
property or any interest in real property placed in the name of the state
as a result of a tax lien, whether the property was sold, bid off, or
otherwise transferred to the state,  may be sold or leased free of any
lien of certain taxing units.  Sets forth the effects of a sale of
property of the School Land Board (board).   Provides that the board is
not required to pay any portion of the proceeds to certain taxing units. 

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