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.