HBA-CCH, MPM, KDB H.B. 858 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 858
By: Dutton
Urban Affairs
2/19/2001
Introduced



BACKGROUND AND PURPOSE 

Current state law allows municipalities to resell tax foreclosed property.
It also allows other taxing units party to a foreclosure to enter into an
agreement with a municipality to sell such property for certain purposes.
However, in this situation, municipalities are sometimes unable to present
a clear title to the property to a purchaser.  This may present a barrier
to those who purchase the property, and dissuade potential purchasers from
attempting to buy foreclosed properties, and potentially undermine urban
redevelopment efforts.  House Bill 858 conveys a deed of foreclosed
property to a purchaser at the time it is sold. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 858 amends the Tax Code to provide that the deed of conveyance
of  foreclosed property that is sold by a municipality conveys to the
purchaser the right, title, and interest acquired by each taxing unit that
was a party to the judgment of foreclosure, subject to any remaining right
of redemption at the time of the sale. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.