C.S.H.B. 335 78(R)    BILL ANALYSIS


C.S.H.B. 335
By: Hamric
Civil Practices
Committee Report (Substituted)


BACKGROUND AND PURPOSE 

Under current law, property owners that are delinquent in their taxes may
still purchase property at judicial execution and/or tax foreclosure
sales. 

CSHB 335 prohibits a purchaser at a judicial execution or tax foreclosure
sale that owes delinquent county or school district or municipality ad
valorem taxes from receiving the property. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

CSHB 335 amends Subchapter C, Chapter 34, Civil Practice and Remedies
Code, by adding Section 34.0445 which  requires a person to exhibit an
unexpired written statement issued under Section 34.015, Tax Code,
demonstrating that the county assessor-collector has determined that
person owes no delinquent taxes to the county or to a school district or
to a municipality having territory in the county.  Further, it prohibits
an individual from bidding or purchasing in the name of another
individual.  A deed executed or delivered in violation of this section is
voidable for one year. A violation under this Section is a Class B
misdemeanor.  Makes this section  the controlling section in conflicts of
law. 

CSHB 335 amends Subchapter A, Chapter 34, Tax Code, by adding Section
34.015 to exclude from the definition of "person", in this section, a
taxing unit or individual bidding on behalf of a taxing unit and prohibits
an officer conducting a tax foreclosure sale from executing or delivering
a deed to a person who fails to exhibit an unexpired written statement
issued under this section demonstrating that the county assessor-collector
of the county has determined that person owes no delinquent taxes to the
county or to a school district or to a municipality having territory in
the county; and, prohibits an officer conducting a judicial execution sale
from executing or delivering a deed in the name of any person other than
the person who was the successful bidder.  Further, it requires a county
assessor-collector, upon request, to issue a written statement stating
whether the requestor owes delinquent taxes and sets up requirements for
that statement and the process whereby school districts and municipalities
report their delinquents to the assessor-collector.  Allows the county
assessor-collector to charge a fee not to exceed $10 for issuance of
statements and establishes a 90 day expiration date for the statements.  A
deed executed or delivered in violation of this section is voidable for
one year.  Additionally, CSHB 335 creates a Class B misdemeanor where a
person knowingly violates this section and   establishes this section as
the controlling section in conflicts of law. 

EFFECTIVE DATE

This Act takes effect September 1, 2003.  The change in law made by this
Act applies only to a public sale of real property conducted on or after
October 1, 2003. 
  
COMPARISON OF ORIGINAL TO SUBSTITUTE

The committee substitute includes school districts and municipalities and
changes the point of presentment to after the purchase, but prior to
execution or delivery of deed.