By Patterson                                     S.B. No. 948

      75R6426 SMH-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the extinguishment of a taxpayer's liability for

 1-3     delinquent ad valorem taxes following a tax sale.

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

 1-5           SECTION 1.  Section 34.01, Tax Code, is amended by adding

 1-6     Subsection (f) to read as follows:

 1-7           (f)  If property is sold under Subsection (a), the taxpayer's

 1-8     liability for the taxes, penalties, interest, and costs due the

 1-9     taxing units that are parties to the judgment is extinguished

1-10     regardless of whether the sale proceeds are sufficient to satisfy

1-11     the judgment.

1-12           SECTION 2.  Section 34.05, Tax Code, is amended by adding

1-13     Subsection (h) to read as follows:

1-14           (h)  If property is sold under this section, the taxpayer's

1-15     liability for the taxes, penalties, interest, and costs due the

1-16     taxing units that are parties to the judgment is extinguished

1-17     regardless of whether the sale proceeds are sufficient to satisfy

1-18     the judgment.

1-19           SECTION 3.  The changes in law made by this Act apply only to

1-20     a tax sale held on or after the effective date of this Act.  A tax

1-21     sale held before the effective date of this Act is covered by the

1-22     law in effect when the suit was filed, and the former law is

1-23     continued in effect for that purpose.

1-24           SECTION 4.  This Act takes effect on the date on which the

 2-1     constitutional amendment proposed by the 75th Legislature, Regular

 2-2     Session, 1997, to require a taxing unit that seeks to collect

 2-3     delinquent ad valorem taxes to elect between enforcing the lien

 2-4     securing payment of the taxes and enforcing personal liability for

 2-5     the taxes, takes effect.  If that amendment is not approved by the

 2-6     voters, this Act has no effect.

 2-7           SECTION 5.  The importance of this legislation and the

 2-8     crowded condition of the calendars in both houses create an

 2-9     emergency and an imperative public necessity that the

2-10     constitutional rule requiring bills to be read on three several

2-11     days in each house be suspended, and this rule is hereby suspended.