By Dutton                                              H.B. No. 858
         77R1888 SMH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the effect of a deed of conveyance of tax foreclosed
 1-3     property resold by a municipality for urban redevelopment purposes.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 34.051, Tax Code, is amended by amending
 1-6     Subsection (c) and adding Subsection (d) to read as follows:
 1-7           (c)  The deed of conveyance of property sold under this
 1-8     section conveys to the purchaser the right, title, and interest
 1-9     acquired or held by each taxing unit that was a party to the
1-10     judgment of foreclosure, subject to any remaining right of
1-11     redemption at the time of the sale.
1-12           (d)  An action attacking the validity of a sale of property
1-13     pursuant to this section may not be instituted after the expiration
1-14     of one year after the date of the sale and then only after the
1-15     unconditional tender into the registry of the court of an amount
1-16     equal to all taxes, penalties, interest, costs, and post-judgment
1-17     interest of all judgments on which the original foreclosure sale
1-18     was based.
1-19           SECTION 2.  This Act takes effect immediately if it receives
1-20     a vote of two-thirds of all the members elected to each house, as
1-21     provided by Section 39, Article III, Texas Constitution.  If this
1-22     Act does not receive the vote necessary for immediate effect, this
1-23     Act takes effect September 1, 2001.