By Giddings, Serna, Naishtat, et al.                   H.B. No. 110

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to land acquired by a taxing unit through foreclosure of a

 1-3     lien.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 34.015, Tax Code, is amended to read as

 1-6     follows:

 1-7           Sec. 34.015.  Alternate Manner of Sale.  (a)  Notwithstanding

 1-8     any other provision of this subchapter, the governing body of a

 1-9     municipality [with a population of 1.5 million or more] may provide

1-10     for the manner in which land acquired by the municipality following

1-11     the [ordered sold pursuant to] foreclosure of a tax lien in favor

1-12     of the municipality may be sold if the land is sold to:

1-13                 (1)  a nonprofit organization that develops housing for

1-14     low income individuals and families as a primary activity to

1-15     promote community-based revitalization of the municipality; or

1-16                 (2)  a nonprofit corporation described by 26 U.S.C.

1-17     Section 501(c)(3) that:

1-18                       (A)  has been incorporated in this state for at

1-19     least one year;

1-20                       (B)  has a corporate purpose to develop

1-21     affordable housing that is stated in its articles of incorporation,

1-22     bylaws, or charter;

1-23                       (C)  has at least one-fourth of its board of

1-24     directors residing in the municipality; and

 2-1                       (D)  engages primarily in the building, repair,

 2-2     rental, or sale of housing for low income individuals and families

 2-3     [charitable organization entitled to an exemption under Section

 2-4     11.181 from ad valorem taxation on real property owned by the

 2-5     organization].

 2-6           (b)  A municipality operating under this section may by

 2-7     ordinance determine the individuals and families who qualify as low

 2-8     income individuals and families.  In adopting an ordinance under

 2-9     this section, the municipality shall consider median income of

2-10     individuals and median family income in the area.

2-11           SECTION 2.  Section 101.064, Civil Practice and Remedies

2-12     Code, is amended to read as follows:

2-13           Sec. 101.064.  LAND ACQUIRED UNDER FORECLOSURE OF LIEN.

2-14     (a)  This section applies only to a municipality [with a population

2-15     of 1.5 million or more] that acquires land at a sale following the

2-16     foreclosure of a lien held by the municipality.

2-17           (b)  This chapter does not apply to a claim that:

2-18                 (1)  arises after the date the land was acquired and

2-19     before the date the land is sold, conveyed, or exchanged by the

2-20     municipality; and

2-21                 (2)  arises from:

2-22                       (A)  the condition of the land;

2-23                       (B)  a premises defect on the land; or

2-24                       (C)  an action committed by any person, other

2-25     than an agent or employee of the municipality, on the land.

2-26           (c)  In this section, the term "land" includes any building

2-27     or improvement located on land acquired by a municipality.

 3-1           SECTION 3.  Section 34.05(g), Tax Code, is amended to read as

 3-2     follows:

 3-3           (g)  Sections 263.001 and 272.001(a), Local Government Code,

 3-4     do not apply to property sold by a taxing unit in a municipality

 3-5     [with a population of 1.5 million or more] under this section.

 3-6           SECTION 4.  Section 34.05, Tax Code, is amended by adding

 3-7     Subsection (h) to read as follows:

 3-8           (h)  A taxing unit to which property is bid in may recover

 3-9     its costs of upkeep, maintenance, and environmental cleanup from

3-10     the resale proceeds without further court order.

3-11           SECTION 5.  The importance of this legislation and the

3-12     crowded condition of the calendars in both houses create an

3-13     emergency and an imperative public necessity that the

3-14     constitutional rule requiring bills to be read on three several

3-15     days in each house be suspended, and this rule is hereby suspended,

3-16     and that this Act take effect and be in force from and after its

3-17     passage, and it is so enacted.