1-1     By:  Carona                                            S.B. No. 256
 1-2           (In the Senate - Filed January 16, 2001; January 17, 2001,
 1-3     read first time and referred to Committee on Intergovernmental
 1-4     Relations; February 15, 2001, reported favorably by the following
 1-5     vote:  Yeas 4, Nays 2, 1 present not voting; February 15, 2001,
 1-6     sent to printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the recovery by a taxing unit of certain costs on the
1-10     resale of property bid off to the unit at a tax foreclosure sale.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Subdivision (2), Subsection (g), Section 34.21,
1-13     Tax Code, is amended to read as follows:
1-14                 (2)  "Costs" includes:
1-15                       (A)  the amount reasonably spent by the purchaser
1-16     for maintaining, preserving, and safekeeping the property,
1-17     including the cost of:
1-18                             (i) [(A)]  property insurance;
1-19                             (ii) [(B)]  repairs or improvements
1-20     required by a local ordinance or building code or by a lease of the
1-21     property in effect on the date of the sale;     
1-22                             (iii) [(C)]  discharging a lien imposed by
1-23     a municipality to secure expenses incurred by the municipality in
1-24     remedying a health or safety hazard on the property;
1-25                             (iv) [(D)]  dues or assessments for
1-26     maintenance paid to a property owners' association under a recorded
1-27     restrictive covenant to which the property is subject; and
1-28                             (v) [(E)]  impact or standby fees imposed
1-29     under the Local Government Code or Water Code and paid to a
1-30     political subdivision; and
1-31                       (B)  if the purchaser is a taxing unit to which
1-32     the property is bid off under Section 34.01, personnel and overhead
1-33     costs reasonably incurred by the purchaser in connection with
1-34     maintaining, preserving, safekeeping, managing, and reselling the
1-35     property.
1-36           SECTION 2.  This Act takes effect immediately if it receives
1-37     a vote of two-thirds of all the members elected to each house, as
1-38     provided by Section 39, Article III, Texas Constitution.  If this
1-39     Act does not receive the vote necessary for immediate effect, this
1-40     Act takes effect September 1, 2001.
1-41                                  * * * * *