By Bosse                                        H.B. No. 1463

      75R4832 SMH-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the sale of real property placed in the name of the

 1-3     state as a result of a tax foreclosure sale.

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

 1-5           SECTION 1.  Section 32.112, Natural Resources Code, is

 1-6     amended to read as follows:

 1-7           Sec. 32.112.  SALE OF TAX FORECLOSURE PROPERTY.  (a)  All

 1-8     real property or any interest in real  property placed in the name

 1-9     of the state as a result of [a tax] foreclosure of a tax lien,

1-10     whether the property was sold, bid off, or otherwise transferred to

1-11     the state, [sale] may be sold or leased by the board in the same

1-12     manner as provided for the sale or lease of land under Chapter 51,

1-13     free of any lien of a taxing unit that was a party to the judgment

1-14     in the delinquent tax suit involving the property for taxes imposed

1-15     on the property, penalties, or interest that are due the taxing

1-16     unit [of this code].

1-17           (b)  A sale of property by the board under this section vests

1-18     in the purchaser of the property good and perfect title to the

1-19     interest in the property owned by the person liable for the

1-20     delinquent taxes.  The purchaser has the right to the use and

1-21     possession of the property, subject only to the person's right of

1-22     redemption, a recorded restrictive covenant running with the land,

1-23     and a valid easement of record as of the date the property was

1-24     placed in the name of the state, if the covenant or easement was

 2-1     recorded before January 1 of the year in which the tax lien

 2-2     attached to the property.

 2-3           (c)  The board may retain from the proceeds of a sale or

 2-4     lease conducted under this section the cost of conducting the

 2-5     transaction, including advertising, appraisal, and administrative

 2-6     costs.  The balance of the proceeds shall be deposited in the State

 2-7     Treasury to the credit of the Texas capital trust fund.  The board

 2-8     is not required to pay any portion of the proceeds to a taxing unit

 2-9     that was a party to the judgment in the delinquent tax suit

2-10     involving the property in satisfaction of any taxes imposed on the

2-11     property, penalties, or interest that are due the taxing unit.

2-12           SECTION 2.  The importance of this legislation and the

2-13     crowded condition of the calendars in both houses create an

2-14     emergency and an imperative public necessity that the

2-15     constitutional rule requiring bills to be read on three several

2-16     days in each house be suspended, and this rule is hereby suspended,

2-17     and that this Act take effect and be in force from and after its

2-18     passage, and it is so enacted.