1-1     By:  Ehrhardt (Senate Sponsor - Madla)                H.B. No. 3349
 1-2           (In the Senate - Received from the House May 11, 2001;
 1-3     May 11, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 11, 2001, reported favorably by
 1-5     the following vote:  Yeas 4, Nays 0; May 11, 2001, sent to
 1-6     printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to providing a means by which abandoned property can be
1-10     conveyed with clear title to be used for housing for low-income
1-11     individuals or families.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1. Sections 29.001, 29.002, and 29.003, Property
1-14     Code, are amended to read as follows:
1-15           Sec. 29.001.  APPLICATION OF CHAPTER. This chapter applies
1-16     only to real property that is not exempt from forced sale under the
1-17     constitution or laws of this state and is:
1-18                 (1)  received by a person as a result of the death of
1-19     another person:
1-20                       (A)  by inheritance;
1-21                       (B)  under a will;
1-22                       (C)  by a joint tenancy with a right of
1-23     survivorship; or
1-24                       (D)  by any other survivorship agreement in which
1-25     the interest of the decedent passes to a surviving beneficiary
1-26     other than an agreement between spouses for community property with
1-27     a right of survivorship;  or [and]
1-28                 (2)  owned in part by a nonprofit organization that is
1-29     exempt from federal income tax under Section 501(a), Internal
1-30     Revenue Code of 1986, and its subsequent amendments, by being
1-31     listed as an exempt organization under Section 501(c)(3), Internal
1-32     Revenue Code of 1986, and its subsequent amendments, that:
1-33                       (A)  has been incorporated in this state for at
1-34     least one year;
1-35                       (B)  has a corporate purpose to develop
1-36     affordable housing that is stated in the articles of incorporation
1-37     or charter;
1-38                       (C)  has at least one-fourth of its board of
1-39     directors residing in the county in which the property is located;
1-40     and
1-41                       (D)  engages primarily in the building, repair,
1-42     rental, or sale of housing for low-income individuals or families
1-43     [not exempt from forced sale under the constitution or law of this
1-44     state].
1-45           Sec. 29.002.  PETITION FOR FORCED SALE. (a)  A person,
1-46     including a nonprofit organization, that [who] owns an undivided
1-47     interest in real property to which this chapter applies may file in
1-48     the district court in a county in which the property is located a
1-49     petition for a court order to require another owner of an undivided
1-50     interest in that property to sell the other owner's interest in the
1-51     property to the person if:
1-52                 (1)  the person has paid the other owner's share of ad
1-53     valorem taxes imposed on the property for any three years in a
1-54     five-year period or, in the case of a nonprofit organization, has
1-55     paid the other owner's share of ad valorem taxes imposed on the
1-56     property for any two years in a three-year period; and
1-57                 (2)  the other owner has not reimbursed the person for
1-58     more than half of the total amount paid by the person for the taxes
1-59     on the owner's behalf.
1-60           (b)  The petition must contain:
1-61                 (1)  a description of the property;
1-62                 (2)  the name of each known owner of the property;
1-63                 (3)  the interest held by each known owner of the
1-64     property;
 2-1                 (4)  the total amount paid by the petitioner for the
 2-2     defendant's share of ad valorem taxes imposed on the property; and
 2-3                 (5)  if applicable, the amount paid by the defendant to
 2-4     the petitioner to reimburse the petitioner for paying the
 2-5     defendant's share of ad valorem taxes imposed on the property.
 2-6           Sec. 29.003.  HEARING ON PETITION FOR FORCED SALE. At a
 2-7     hearing on a petition filed under Section 29.002, the petitioner
 2-8     must prove by clear and convincing evidence that:
 2-9                 (1)  the petitioner has paid the defendant's share of
2-10     ad valorem taxes imposed on the property that is the subject of the
2-11     petition for any three years in a five-year period or, in the case
2-12     of a nonprofit organization, the petitioner has paid the
2-13     defendant's share of ad valorem taxes imposed on the property that
2-14     is the subject of the petition for any two years in a three-year
2-15     period;
2-16                 (2)  before the date on which the petition was filed
2-17     the petitioner made a demand that the defendant reimburse the
2-18     petitioner for the amount of the defendant's share of ad valorem
2-19     taxes imposed on the property paid by the petitioner; and
2-20                 (3)  the defendant has not reimbursed the petitioner
2-21     more than half of the amount of money the petitioner paid on the
2-22     defendant's behalf for the defendant's share of ad valorem taxes
2-23     imposed on the property.
2-24           SECTION 2. Chapter 29, Property Code, is amended by adding
2-25     Section 29.0035 to read as follows:
2-26           Sec. 29.0035.  DEMAND TO UNKNOWN DEFENDANT. If the address or
2-27     identity of the defendant is unknown, the demand of the petitioner
2-28     for reimbursement from the defendant required by Section 29.003(2)
2-29     may be met by publication in a newspaper in the county in which the
2-30     property is located once each week for four consecutive weeks, with
2-31     the final publication occurring not later than the 30th day before
2-32     the date on which the petition is filed.  The publication must
2-33     contain the demand for reimbursement and:
2-34                 (1)  a general description of the property involved;
2-35                 (2)  the legal description of the property according to
2-36     the survey of the property, including the number of the lot and
2-37     block or any other plat description that may be of record if the
2-38     property is located in a municipality;
2-39                 (3)  the county in which the property is located;
2-40                 (4)  the interest of the defendant; and
2-41                 (5)  the name and address of the petitioner.
2-42           SECTION 3.  This Act takes effect immediately if it receives
2-43     a vote of two-thirds of all the members elected to each house, as
2-44     provided by Section 39, Article III, Texas Constitution.  If this
2-45     Act does not receive the vote necessary for immediate effect, this
2-46     Act takes effect September 1, 2001.
2-47                                  * * * * *