1-1                                   AN ACT
 1-2     relating to the recovery by a taxing unit of certain costs on the
 1-3     resale of property bid off to the unit at a tax foreclosure sale.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subdivision (2), Subsection (g), Section 34.21,
 1-6     Tax Code, is amended to read as follows:
 1-7                 (2)  "Costs" includes:
 1-8                       (A)  the amount reasonably spent by the purchaser
 1-9     for maintaining, preserving, and safekeeping the property,
1-10     including the cost of:
1-11                             (i) [(A)]  property insurance;
1-12                             (ii) [(B)]  repairs or improvements
1-13     required by a local ordinance or building code or by a lease of the
1-14     property in effect on the date of the sale;     
1-15                             (iii) [(C)]  discharging a lien imposed by
1-16     a municipality to secure expenses incurred by the municipality in
1-17     remedying a health or safety hazard on the property;
1-18                             (iv) [(D)]  dues or assessments for
1-19     maintenance paid to a property owners' association under a recorded
1-20     restrictive covenant to which the property is subject; and
1-21                             (v) [(E)]  impact or standby fees imposed
1-22     under the Local Government Code or Water Code and paid to a
1-23     political subdivision; and
1-24                       (B)  if the purchaser is a taxing unit to which
1-25     the property is bid off under Section 34.01, personnel and overhead
 2-1     costs reasonably incurred by the purchaser in connection with
 2-2     maintaining, preserving, safekeeping, managing, and reselling the
 2-3     property.
 2-4           SECTION 2.  This Act takes effect immediately if it receives
 2-5     a vote of two-thirds of all the members elected to each house, as
 2-6     provided by Section 39, Article III, Texas Constitution.  If this
 2-7     Act does not receive the vote necessary for immediate effect, this
 2-8     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 256 passed the Senate on
         February 20, 2001, by the following vote:  Yeas 29, Nays 0, two
         present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 256 passed the House on
         May 8, 2001, by the following vote:  Yeas 147, Nays 0, two present,
         not voting.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor