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

         Substitute the following for H.B. No. 110:

         By Ehrhardt                                        C.S.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           SECTION 1.  Section 34.015, Tax Code, is amended to read as

 1-5     follows:

 1-6           Sec. 34.015.  Alternate Manner of Sale.  (a)  Notwithstanding

 1-7     any other provision of this subchapter, the governing body of a

 1-8     municipality [with a population of 1.5 million or more] may provide

 1-9     for the manner in which land [ordered sold pursuant to] acquired by

1-10     the municipality following the foreclosure of a tax lien in favor

1-11     of the municipality may be sold if the land is sold to:

1-12                 (1)  a nonprofit organization that develops housing for

1-13     low income individuals and families as a primary activity to

1-14     promote community-based revitalization of the municipality; or

1-15                 (2)  a nonprofit corporation described by U.S.C.

1-16     Section 501(c)(3) that:

1-17                       (A)  has been incorporated in this state for at

1-18     least one year;

1-19                       (B)  has a corporate purpose to develop

1-20     affordable housing that is stated in its articles of incorporation,

1-21     bylaws, or charter;

1-22                       (C)  has at least one-fourth of its board of

1-23     directors residing in the municipality; and

1-24                       (D)  engages primarily in the building, repair,

 2-1     rental, or sale of housing for low income individuals and families

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

 2-3     11.181 from ad valorem taxation on real property owned by the

 2-4     organization.]

 2-5           (b)  A municipality operating under this section may by

 2-6     ordinance determine the individuals and families who qualify as low

 2-7     income individuals and families.  In adopting an ordinance under

 2-8     this section, the municipality shall consider median income of

 2-9     individuals and median family income in the area.

2-10           (c)  The owner of property sold by a municipality under this

2-11     section must exercise any right of redemption described in Tax Code

2-12     Section 34.21 within four months after the date on which the

2-13     purchasers deed is filed for record.

2-14           SECTION 2.  Section 101.064, Civil Practice and Remedies

2-15     Code, is amended to read as follows:

2-16           (a)  This section applies only to a municipality [with a

2-17     population of 1.5 million or more] that acquires land at a sale

2-18     following the foreclosure of a lien held by the municipality.

2-19           (b)  This chapter does not apply to a claim that:

2-20                 (1)  arises [after the date the land was acquired and

2-21     before the date the land is sold, conveyed, or exchanged by the

2-22     municipality; and] out of a condition which existed or an action

2-23     which occurred at any time prior to sixty days after the land is

2-24     acquired by the municipality following the foreclosure of a lien

2-25     held by the municipality; and

2-26                 (2)  arises from:

2-27                       (A)  the condition of the land;

 3-1                       (B)  a premises defect on the land; or

 3-2                       (C)  an action committed by any person, other

 3-3     than an agent of employee of the municipality, on the land.

 3-4           (c)  In this section, the term "land" includes any building

 3-5     or improvement located on land acquired by a municipality.

 3-6           SECTION 3.  Section 34.05(g), Tax Code, is amended to read as

 3-7     follows:

 3-8           (g)  Sections 263.001 and 272.001(a), Local Government Code,

 3-9     do not apply to property sold by a taxing unit in a municipality

3-10     [with a population of 1.5 million or more] under this section.

3-11           SECTION 4.  Section 34.05, Tax Code, is amended by adding

3-12     Subsection (h) to read as follows:

3-13           (h)  A taxing unit to which property is bid in may recover

3-14     its costs of upkeep, maintenance and environmental cleanup from the

3-15     resale proceeds without further court order.

3-16           SECTION 5.  The importance of this legislation and the

3-17     crowded condition of the calendars in both houses create an

3-18     emergency and an imperative public necessity that the

3-19     constitutional rule requiring bills to be read on three several

3-20     days in each house be suspended, and this rule is hereby suspended,

3-21     and that this Act take effect and be in force from and after its

3-22     passage, and it is so enacted.