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.
2-12 * * * * *