1-1     By:  Giddings, et al. (Senate Sponsor - West)          H.B. No. 110

 1-2           (In the Senate - Received from the House April 10, 1997;

 1-3     April 11, 1997, read first time and referred to Committee on

 1-4     Intergovernmental Relations; May 13, 1997, reported favorably by

 1-5     the following vote:  Yeas 9, Nays 0; May 13, 1997, sent to

 1-6     printer.)

 1-7                            A BILL TO BE ENTITLED

 1-8                                   AN ACT

 1-9     relating to land acquired by a taxing unit through foreclosure of a

1-10     lien.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Section 34.015, Tax Code, is amended to read as

1-13     follows:

1-14           Sec. 34.015.  Alternate Manner of Sale.  (a)  Notwithstanding

1-15     any other provision of this subchapter, the governing body of a

1-16     municipality [with a population of 1.5 million or more] may provide

1-17     for the manner in which land acquired by the municipality following

1-18     the [ordered sold pursuant to] foreclosure of a tax lien in favor

1-19     of the municipality may be sold if the land is sold to:

1-20                 (1)  a nonprofit organization that develops housing for

1-21     low income individuals and families as a primary activity to

1-22     promote community-based revitalization of the municipality; or

1-23                 (2)  a nonprofit corporation described by 26 U.S.C.

1-24     Section 501(c)(3) that:

1-25                       (A)  has been incorporated in this state for at

1-26     least one year;

1-27                       (B)  has a corporate purpose to develop

1-28     affordable housing that is stated in its articles of incorporation,

1-29     bylaws, or charter;

1-30                       (C)  has at least one-fourth of its board of

1-31     directors residing in the municipality; and

1-32                       (D)  engages primarily in the building, repair,

1-33     rental, or sale of housing for low income individuals and families

1-34     [charitable organization entitled to an exemption under Section

1-35     11.181 from ad valorem taxation on real property owned by the

1-36     organization].

1-37           (b)  A municipality operating under this section may by

1-38     ordinance determine the individuals and families who qualify as low

1-39     income individuals and families.  In adopting an ordinance under

1-40     this section, the municipality shall consider median income of

1-41     individuals and median family income in the area.

1-42           SECTION 2.  Section 101.064, Civil Practice and Remedies

1-43     Code, is amended to read as follows:

1-44           Sec. 101.064.  LAND ACQUIRED UNDER FORECLOSURE OF LIEN.

1-45     (a)  This section applies only to a municipality [with a population

1-46     of 1.5 million or more] that acquires land at a sale following the

1-47     foreclosure of a lien held by the municipality.

1-48           (b)  This chapter does not apply to a claim that:

1-49                 (1)  arises after the date the land was acquired and

1-50     before the date the land is sold, conveyed, or exchanged by the

1-51     municipality; and

1-52                 (2)  arises from:

1-53                       (A)  the condition of the land;

1-54                       (B)  a premises defect on the land; or

1-55                       (C)  an action committed by any person, other

1-56     than an agent or employee of the municipality, on the land.

1-57           (c)  In this section, the term "land" includes any building

1-58     or improvement located on land acquired by a municipality.

1-59           SECTION 3.  Section 34.05(g), Tax Code, is amended to read as

1-60     follows:

1-61           (g)  Sections 263.001 and 272.001(a), Local Government Code,

1-62     do not apply to property sold by a taxing unit in a municipality

1-63     [with a population of 1.5 million or more] under this section.

1-64           SECTION 4.  Section 34.05, Tax Code, is amended by adding

 2-1     Subsection (h) to read as follows:

 2-2           (h)  A taxing unit to which property is bid in may recover

 2-3     its costs of upkeep, maintenance, and environmental cleanup from

 2-4     the resale proceeds without further court order.

 2-5           SECTION 5.  The importance of this legislation and the

 2-6     crowded condition of the calendars in both houses create an

 2-7     emergency and an imperative public necessity that the

 2-8     constitutional rule requiring bills to be read on three several

 2-9     days in each house be suspended, and this rule is hereby suspended,

2-10     and that this Act take effect and be in force from and after its

2-11     passage, and it is so enacted.

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