88R2652 DRS-F
 
  By: West S.B. No. 2091
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of a taxing unit to sell certain seized or
  foreclosed property to an owner of an abutting property without
  conducting a public sale.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 33.43(a), Tax Code, is amended to read as
  follows:
         (a)  A petition initiating a suit to collect a delinquent
  property tax is sufficient if it alleges that:
               (1)  the taxing unit is legally constituted and
  authorized to impose and collect ad valorem taxes on property;
               (2)  tax in a stated amount was legally imposed on each
  separately described property for each year specified and on each
  person named if known who owned the property on January 1 of the
  year for which the tax was imposed;
               (3)  the tax was imposed in the county in which the suit
  is filed;
               (4)  the tax is delinquent;
               (5)  penalties, interest, and costs authorized by law
  in a stated amount for each separately assessed property are due;
               (6)  the taxing unit is entitled to recover each
  penalty that is incurred and all interest that accrues on
  delinquent taxes imposed on the property from the date of the
  judgment to the date of the sale under Section 34.01 or 34.0101, or
  under Section 253.010, Local Government Code, as applicable, if the
  suit seeks to foreclose a tax lien;
               (7)  the person sued owned the property on January 1 of
  the year for which the tax was imposed if the suit seeks to enforce
  personal liability;
               (8)  the person sued owns the property when the suit is
  filed if the suit seeks to foreclose a tax lien;
               (9)  the taxing unit asserts a lien on each separately
  described property to secure the payment of all taxes, penalties,
  interest, and costs due if the suit seeks to foreclose a tax lien;
               (10)  all things required by law to be done have been
  done properly by the appropriate officials; and
               (11)  the attorney signing the petition is legally
  authorized to prosecute the suit on behalf of the taxing unit.
         SECTION 2.  Subchapter A, Chapter 34, Tax Code, is amended by
  adding Section 34.0101 to read as follows:
         Sec. 34.0101.  SALE OF CERTAIN PROPERTY TO OWNER OF ABUTTING
  PROPERTY. (a)  In this section:
               (1)  "Flood insurance rate map" means the most recent
  flood hazard map published by the Federal Emergency Management
  Agency under the National Flood Insurance Act of 1968 (42 U.S.C.
  Section 4001 et seq.).
               (2)  "Floodway" means an area that is identified on the
  flood insurance rate map as a regulatory floodway, including the
  channel of a river or other watercourse and the adjacent land areas
  that must be reserved for the discharge of a base flood, also
  referred to as a 100-year flood, without cumulatively increasing
  the water surface elevation more than a designated height.
         (b)  This section applies to real property:
               (1)  that is:
                     (A)  seized under a tax warrant issued under
  Subchapter E, Chapter 33; or
                     (B)  ordered sold pursuant to foreclosure of a tax
  lien; and
               (2)  that is:
                     (A)  a narrow strip of land or other parcel of land
  that because of its shape or small area cannot be used independently
  under its current zoning classification or under applicable
  subdivision or other development ordinances;
                     (B)  landlocked without direct access to a public
  road; or
                     (C)  located in:
                           (i)  an area designated by the Federal
  Emergency Management Agency under the National Flood Insurance Act
  of 1968 (42 U.S.C. Section 4001 et seq.) as having a .02 percent or
  greater annual chance of flooding; or
                           (ii)  a floodway.
         (c)  Sections 34.01(b), (c), (d), (e), (f), (g), (h), (i),
  (m), (n), (q), and (s) apply to a sale of real property under this
  section.
         (d)  Notwithstanding any other law, including Sections
  263.001 and 272.001, Local Government Code, a taxing unit that
  requested a tax warrant or order of sale for real property subject
  to this section may direct the officer charged with selling the
  property to sell the property to an owner of abutting property at a
  private sale. 
         (e)  A taxing unit is not required to offer real property
  subject to this section for sale to the public.
         (f)  A purchaser of property under this section must meet the
  requirements of Section 34.015.
         (g)  A taxing unit that directs the sale of real property
  under this section may sell the property for an amount less than
  required under Section 34.01(p).  This subsection does not
  authorize a sale of property in violation of Section 52, Article
  III, Texas Constitution.
         (h)  A taxing unit that requested a tax warrant or order of
  sale for real property subject to this section may sell the property
  under this section without the consent of any taxing unit entitled
  to receive proceeds of the sale.
         SECTION 3.  Sections 34.02(a) and (d), Tax Code, are amended
  to read as follows:
         (a)  The proceeds of a tax sale under Section 33.94, [or]
  34.01, or 34.0101 shall be applied in the order prescribed by
  Subsection (b).  The amount included under each subdivision of
  Subsection (b) must be fully paid before any of the proceeds may be
  applied to the amount included under a subsequent subdivision.
         (d)  The officer conducting a sale under Section 33.94, [or]
  34.01, or 34.0101 shall pay any excess proceeds after payment of all
  amounts due all participants in the sale as specified by Subsection
  (b) to the clerk of the court issuing the warrant or order of sale.
         SECTION 4.  Section 33.43(a), Tax Code, as amended by this
  Act, applies only to a petition initiating a suit to collect a
  delinquent property tax filed on or after the effective date of this
  Act.
         SECTION 5.  This Act takes effect September 1, 2023.