BILL ANALYSIS

S.B. 1642

By: Miles

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

There are concerns about reported instances in which property owners have sold their right of redemption to a person with easy access to capital attempting to acquire the property at a reduced price, contrary to the intention of the right of redemption. S.B. 1642 seeks to clarify that an owner of real property sold at a tax sale may not transfer the owner's right of redemption to another person.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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

S.B. 1642 amends the Tax Code to prohibit an owner of real property who is entitled to redeem the property after it is sold at a tax sale from transferring the owner's right of redemption to another person. The bill makes void any instrument purporting to transfer the owner's right of redemption.   

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2019.