H.J.R. 51 78(R)    BILL ANALYSIS


H.J.R. 51
By: Flores
Local Government Ways and Means
Committee Report (Unamended)


BACKGROUND AND PURPOSE 

Under current law, the redemption period concerning mineral tax rolls
gives the foreclosed owner only six months to reclaim their lost property.
Mineral tax rolls, as opposed to real property rolls, are not prepared by
the appraisal districts from the official records of the county where the
property is located.  The records used for preparation of the rolls come
from private industry and may be incomplete and contain inaccurate data.
In many cases the foreclosed owner is never informed of the taxes owned or
the repossession of their mineral royalties.  If a foreclosed owner does
not receive notification of the sale, he is entirely dependent upon the
actions of others.  The current time allotment of six months may not
provide the royalty owner enough time to settle his claims in court,
resulting in the owner not having any right of redemption after he
receives notice of the foreclosure. 

H.J.R. 51 proposes a constitutional amendment to establish a two-year
period for the redemption of a mineral interest for unpaid ad valorem
taxes at a tax sale.  The constitutional amendment increases the
redemption period of a mineral interest from a six month period to a
two-year period.  The foreclosed owner can then redeem their ownership by
paying the amounts listed in Sections 13 (c) and (d), Article VIII, Texas
Constitution.   

RULEMAKING AUTHORITY

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

ANALYSIS

SECTION 1
Amends Sections 13 (c) and (d), Article VIII, Texas Constitution, as
follows: 

(c)  Provides that an owner of a mineral interest whose property has been
sold for unpaid taxes shall have the right to redeem their property by
meeting certain conditions within two years from date of the filing for
record of the Purchaser's Deed. 
     
(d)  Deletes property and modifies it to specifically refer to a residence
homestead or land designated for agricultural use. 

SECTION 2
Adds a temporary provision to the Texas Constitution as follows:

TEMPORARY PROVISION.  (a) Makes the temporary provision applicable to the
constitutional amendment proposed under this Act that would establishes a
two-year period for the redemption of a mineral interest sold for unpaid
ad valorem taxes at a tax sale and expires January 1, 2005. 

(b)  Provides that the amendments to Sections 13 (a) and (d), apply only
to the redemption of mineral interest sold at a tax sale for which the
purchaser's deed is filed for record on or after January 1, 2004; all
other sales of mineral interest filed before this date are subject to the
law in effect when the deed is filed.   

FOR ELECTION

November 4, 2003.