1-1           By:  Cain                                        S.B. No. 141

 1-2           (In the Senate - Filed December 16, 1996; January 14, 1997,

 1-3     read first time and referred to Committee on Intergovernmental

 1-4     Relations; February 17, 1997, reported favorably, as amended, by

 1-5     the following vote:  Yeas 11, Nays 0; February 17, 1997, sent to

 1-6     printer.)

 1-7     COMMITTEE AMENDMENT NO. 1                                 By:  Cain

 1-8     Amend S.B. No. 141 by Cain as follows:

 1-9           On page 1, end of line 47, add a new sentence:  "The seizure

1-10     and sale may not be set aside or voided because of any error in

1-11     determination."

1-12           On page 2, end of line 2, add a new sentence:  "The seizure

1-13     and sale may not be set aside or voided because of any error in

1-14     determination."

1-15                            A BILL TO BE ENTITLED

1-16                                   AN ACT

1-17     relating to the power of a county to seize and sell abandoned real

1-18     property for delinquent ad valorem taxes.

1-19           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-20           SECTION 1.  Subchapter E, Chapter 33, Tax Code, is amended to

1-21     read as follows:

1-22                   SUBCHAPTER E.  SEIZURE OF REAL PROPERTY

1-23           Sec. 33.91.  PROPERTY SUBJECT TO SEIZURE BY MUNICIPALITY.  A

1-24     person's real property is subject to seizure by a municipality for

1-25     the payment of delinquent ad valorem taxes, penalties, and interest

1-26     the person owes on the property and the amount secured by a

1-27     municipal health or safety lien on the property if:

1-28                 (1)  the property:

1-29                       (A)  is in a municipality;

1-30                       (B)  is less than one acre; and

1-31                       (C)  has been abandoned, unused, and vacant for

1-32     at least one year;

1-33                 (2)  the taxes on the property are delinquent for:

1-34                       (A)  each of the preceding five years; or

1-35                       (B)  each of the preceding three years if a lien

1-36     on the property has been created on the property in favor of the

1-37     municipality for the cost of remedying a health or safety hazard on

1-38     the property; and

1-39                 (3)  the tax collector of the municipality determines

1-40     that seizure of the property under this subchapter for the payment

1-41     of the delinquent taxes, penalties, and interest, and of a

1-42     municipal health and safety lien on the property, would be in the

1-43     best interest of the municipality and the other taxing units after

1-44     determining that the sum of all outstanding tax and municipal

1-45     claims against the property plus the estimated costs of a standard

1-46     judicial foreclosure exceed the anticipated proceeds from a tax

1-47     sale.

1-48           Sec. 33.911.  PROPERTY SUBJECT TO SEIZURE BY COUNTY.  A

1-49     person's real property is subject to seizure by a county for the

1-50     payment of delinquent ad valorem taxes, penalties, and interest the

1-51     person owes on the property if:

1-52                 (1)  the property:

1-53                       (A)  is in the county;

1-54                       (B)  is not in a municipality; and

1-55                       (C)  has been abandoned, unused, and vacant for

1-56     at least one year;

1-57                 (2)  the taxes on the property are delinquent for each

1-58     of the preceding five years; and

1-59                 (3)  the county tax assessor-collector determines that

1-60     seizure of the property under this subchapter for the payment of

1-61     the delinquent taxes, penalties, and interest would be in the best

1-62     interest of the county and the other taxing units after determining

1-63     that the sum of all outstanding tax and county claims against the

 2-1     property plus the estimated costs of a standard judicial

 2-2     foreclosure exceed the anticipated proceeds from a tax sale.

 2-3           Sec. 33.92.  INSTITUTION OF SEIZURE.  (a)  After property

 2-4     becomes subject to seizure under Section 33.91 or 33.911, the

 2-5     collector for a municipality or a county, as appropriate, may apply

 2-6     for a tax warrant to a district court in the county in which the

 2-7     property is located.

 2-8           (b)  The court shall issue the tax warrant if by affidavit

 2-9     the collector shows that the property is subject to seizure under

2-10     Section 33.91 or 33.911.

2-11           Sec. 33.93.  TAX WARRANT.  (a)  A tax warrant shall direct

2-12     the sheriff or a constable in the county and the collector for the

2-13     municipality or the county to seize the property described in the

2-14     warrant, subject to the right of redemption, for the payment of the

2-15     ad valorem taxes, penalties, and interest owing on the property

2-16     included in the application, the amount secured by a municipal

2-17     health or safety lien on the property included in the application,

2-18     and the costs of seizure and sale.  The warrant shall direct the

2-19     person whose property is seized to disclose to a person executing

2-20     the warrant the name and address if known of any other person

2-21     having an interest in the property.

2-22           (b)  A bond may not be required of a municipality or county

2-23     for issuance or delivery of a tax warrant, and a fee or court cost

2-24     may not be charged for issuance or delivery of the warrant.

2-25           (c)  On issuance of a tax warrant, the collector shall take

2-26     possession of the property pending its sale.

2-27           Sec. 33.94.  NOTICE OF TAX SALE.  (a)  After a seizure of

2-28     property, the collector for the municipality or county shall make a

2-29     reasonable inquiry to determine the identity and address of any

2-30     person, other than the person against whom the tax warrant is

2-31     issued, having an interest in the property.  The collector shall

2-32     deliver as soon as possible a notice stating the time and place of

2-33     the sale and briefly describing the property seized to the person

2-34     against whom the warrant is issued and to any other person the

2-35     collector determines has an interest in the property if the

2-36     collector can ascertain the address of the other person.

2-37           (b)  Failure to send or receive a notice required by this

2-38     section does not affect the validity of the sale of the seized

2-39     property or title to the property.

2-40           Sec. 33.95.  PURCHASER.  A purchaser for value at or

2-41     subsequent to the tax sale may conclusively presume the validity of

2-42     the sale and takes free of any claim of a party with a prior

2-43     interest in the property subject to the provisions of Section

2-44     16.002(b), Civil Practice and Remedies Code, and subject to

2-45     applicable rights of redemption.

2-46           SECTION 2.  This Act takes effect September 1, 1997.

2-47           SECTION 3.  The importance of this legislation and the

2-48     crowded condition of the calendars in both houses create an

2-49     emergency and an imperative public necessity that the

2-50     constitutional rule requiring bills to be read on three several

2-51     days in each house be suspended, and this rule is hereby suspended.

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