85R10757 SMT-F

By: Huberty H.B. No. 3311

A BILL TO BE ENTITLED

AN ACT

relating to the date and time for the public sale of real property.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The heading to Section 34.041, Civil Practice and Remedies Code, is amended to read as follows:

Sec. 34.041. SALE AT PLACE OTHER THAN COURTHOUSE DOOR; DATE AND TIME OF SALE.

SECTION 2. Section 34.041, Civil Practice and Remedies Code, is amended by adding Subsection (c) to read as follows:

(c) A sale of real property under this subchapter must take place between 10 a.m. and 4 p.m. on the first Tuesday of a month or, if the first Tuesday of a month is a federal, state, or local holiday, between 10 a.m. and 4 p.m. on the following business day. Notwithstanding Section 22.004, Government Code, the supreme court may not amend or adopt rules in conflict with this subsection.

SECTION 3. Section 51.002, Property Code, is amended by amending Subsection (a) and adding Subsection (j) to read as follows:

(a) Except as provided by Subsection (j), a [A] sale of real property under a power of sale conferred by a deed of trust or other contract lien must be a public sale at auction held between 10 a.m. and 4 p.m. of the first Tuesday of a month. Except as provided by Subsection (h), the sale must take place at the county courthouse in the county in which the land is located, or if the property is located in more than one county, the sale may be made at the courthouse in any county in which the property is located. The commissioners court shall designate the area at the courthouse where the sales are to take place and shall record the designation in the real property records of the county. The sale must occur in the designated area. If no area is designated by the commissioners court, the notice of sale must designate the area where the sale covered by that notice is to take place, and the sale must occur in that area.

(j) If the first Tuesday of a month is a federal, state, or local holiday, a sale of real property under this section must be held between 10 a.m. and 4 p.m. on the following business day.

SECTION 4. Section 34.01, Tax Code, is amended by adding Subsection (r-1) to read as follows:

(r-1) A sale of real property under this section, including a sale conducted by means of a public auction using online bidding and sale under Subsection (a-1), must take place between 10 a.m. and 4 p.m. on the first Tuesday of a month or, if the first Tuesday of a month is a federal, state, or local holiday, between 10 a.m. and 4 p.m. on the following business day.

SECTION 5. Section 34.07(f), Tax Code, is amended to read as follows:

(f) A suit filed against the taxing units under Subsection (d) may not be maintained unless the action is instituted before the first anniversary of the date of sale or resale. In this subsection:

(1) "Date of sale" means the date [first Tuesday of the month] on which the sheriff or constable conducted the sale of the property under Section 34.01.

(2) "Date of resale" means the date on which the grantor's acknowledgment was taken or, in the case of multiple grantors, the latest date of acknowledgment by the grantors as shown in the deed.

SECTION 6. The changes in law made by this Act apply only to the sale of real property under Subchapter C, Chapter 34, Civil Practice and Remedies Code, Section 51.002, Property Code, or Section 34.01, Tax Code, for which notice is given on or after the effective date of this Act.

SECTION 7. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2017.