2005S0522-1  03/09/05


By:  Carona                                                       S.B. No. 1587


A BILL TO BE ENTITLED

AN ACT

relating to certain foreclosure notice requirements.                          
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subsection (g), Section 32.06, Tax Code, is 
amended to read as follows:
	(g)  A suit to foreclose a tax lien transferred as provided 
by this section may not be instituted within one year from the date 
on which the lien is recorded in all counties in which the property 
is located, unless the contract between the owner of the property 
and the transferee provides otherwise.  The transferee of a tax lien 
or any successor in interest must notify the holders of all recorded 
liens on the property before foreclosure in the same manner and 
within the same time frame as the transferee must notify the owner 
of the property under Section 51.002, Property Code.
	SECTION 2.  Section 32.065, Tax Code, is amended by adding 
Subsection (g) to read as follows:
	(g)  A contract under this section must require that the 
lienholder notify the holders of all recorded liens on the property 
before foreclosure in the same manner and within the same time frame 
as the lienholder must notify the owner of the property under 
Section 51.002, Property Code.
	SECTION 3.  Subsection (g), Section 32.065, Tax Code, as 
added by this Act, applies only to a contract entered into under 
Section 32.065, Tax Code, on or after the effective date of this 
Act.  A contract entered into before the effective date of this Act 
is governed by the law in effect on the date the contract was 
entered into, and the former law is continued in effect for that 
purpose.
	SECTION 4.  This Act takes effect September 1, 2005.