82R6967 ALL-D By: Oliveira H.B. No. 2205 A BILL TO BE ENTITLED AN ACT relating to the eligibility of persons to participate in the public sale of certain real property and the purchase of that property; providing a penalty. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. The heading to Section 34.0445, Civil Practice and Remedies Code, is amended to read as follows: Sec. 34.0445. PERSONS ELIGIBLE TO BID ON AND PURCHASE REAL PROPERTY. SECTION 2. Section 34.0445, Civil Practice and Remedies Code, is amended by amending Subsections (a) and (c) and adding Subsections (a-1) and (b-1) to read as follows: (a) To be eligible to bid on real property at a sale under this subchapter, a person must, before the sale begins, exhibit to the officer conducting the sale a written statement issued to the person in the manner prescribed by Section 34.015, Tax Code, along with a tax certificate for each property tax account listed in the statement, showing that the county assessor-collector of the county in which the sale is conducted has determined that: (1) there are no delinquent ad valorem taxes owed by the person to that county; and (2) for each school district or municipality having territory in the county there are no known or reported delinquent ad valorem taxes owed by the person to that school district or municipality. (a-1) An officer conducting a sale of real property under this subchapter may not accept a bid from, execute a deed to, or deliver a deed to a person who, before the sale begins, does not exhibit [the purchaser of the property unless the purchaser exhibits] to the officer an unexpired written statement issued to the person in the manner prescribed by Section 34.015, Tax Code, along with a tax certificate for each property tax account listed in the statement, showing that the county assessor-collector of the county in which the sale is conducted has determined that: (1) there are no delinquent ad valorem taxes owed by the person to that county; and (2) for each school district or municipality having territory in the county there are no known or reported delinquent ad valorem taxes owed by the person to that school district or municipality. (b-1) An officer conducting a sale of real property under this subchapter may not execute or deliver a deed to the purchaser of the property unless the purchaser exhibits to the officer a tax certificate showing that no taxes are due on the purchased property as required by Section 34.015(b-1), Tax Code. (c) The deed executed by the officer conducting the sale must name the successful bidder as the grantee and recite that the successful bidder exhibited to that officer a tax certificate showing that no taxes are due on the property purchased and that, before the sale began, the successful bidder exhibited to that officer an unexpired written statement issued to the person in the manner prescribed by Section 34.015, Tax Code, along with a tax certificate for each property tax account listed in the statement, showing that the county assessor-collector of the county in which the sale was conducted determined that: (1) there are no delinquent ad valorem taxes owed by the person to that county; and (2) for each school district or municipality having territory in the county there are no known or reported delinquent ad valorem taxes owed by the person to that school district or municipality. SECTION 3. The heading to Section 34.015, Tax Code, is amended to read as follows: Sec. 34.015. PERSONS ELIGIBLE TO BID ON AND PURCHASE REAL PROPERTY. SECTION 4. Section 34.015, Tax Code, is amended by adding Subsections (a-1) and (b-1) and amending Subsections (b), (k), (k-1), and (l) to read as follows: (a-1) To be eligible to bid on real property at a tax sale, a person must, before the sale begins, exhibit to the officer conducting the sale an unexpired written statement issued under this section to the person by the county assessor-collector of the county in which the sale is conducted, along with a tax certificate for each property tax account listed on the statement, showing that: (1) there are no delinquent taxes owed by the person to that county; and (2) for each school district or municipality having territory in the county there are no known or reported delinquent ad valorem taxes owed by the person to that school district or municipality. (b) An officer conducting a sale of real property under Section 34.01 may not: (1) accept a bid from, execute a deed to, [in the name of] or deliver a deed to a [any] person who, before the sale begins, does not exhibit [other than the person who was the successful bidder. The officer may not execute or deliver a deed to the purchaser of the property unless the purchaser exhibits] to the officer an unexpired written statement issued under this section to the person by the county assessor-collector of the county in which the sale is conducted, along with a tax certificate for each property tax account listed on the statement, showing that: (A) [(1)] there are no delinquent taxes owed by the person to that county; and (B) [(2)] for each school district or municipality having territory in the county there are no known or reported delinquent ad valorem taxes owed by the person to that school district or municipality; or (2) execute a deed in the name of or deliver a deed to a person other than the person who was the successful bidder. (b-1) An officer conducting a sale of real property under Section 34.01 may not execute or deliver a deed to the purchaser of the property unless the purchaser exhibits to the officer a tax certificate, as described by Section 31.08, showing that no taxes are due on the purchased property. (k) A statement under Subsection (c) must be issued in the name of the requestor, bear the requestor's name, include the dates of issuance and expiration, and be eligible for recording under Section 12.001(b), Property Code. A statement expires on March 1 of the year following the year [on the 90th day after the date] of issuance. (k-1) If within six months of the date of a sale of real property under Section 34.01, the successful bidder does not exhibit to the officer who conducted the sale a tax certificate as required by Subsection (b-1) [an unexpired statement that complies with Subsection (k)], the officer who conducted the sale shall provide a copy of the officer's return to the county assessor-collector for each county in which the real property is located. On receipt of the officer's return, the county assessor-collector shall file the copy with the county clerk of the county in which the county assessor-collector serves. The county clerk shall record the return in records kept for that purpose and shall index and cross-index the return in the name of the successful bidder at the auction and each former owner of the property. The chief appraiser of each appraisal district that appraises the real property for taxation may list the successful bidder in the appraisal records of that district as the owner of the property. (l) The deed executed by the officer conducting the sale must name the successful bidder as the grantee and recite that the successful bidder exhibited to that officer a tax certificate showing that no taxes are due on the property purchased and that, before the sale began, the successful bidder exhibited to that officer an unexpired written statement issued to the person in the manner prescribed by this section, showing that the county assessor-collector of the county in which the sale was conducted determined that: (1) there are no delinquent ad valorem taxes owed by the person to that county; and (2) for each school district or municipality having territory in the county there are no known or reported delinquent ad valorem taxes owed by the person to that school district or municipality. SECTION 5. (a) Except as provided by this section, the change in law made by this Act applies only to a public sale of real property conducted on or after the effective date of this Act. A public sale of real property conducted before the effective date of this Act is governed by the law in effect on the date the sale was conducted, and the former law is continued in effect for that purpose. (b) The change in law made by this Act to Section 34.015(k), Tax Code, applies to a statement issued on or after the effective date of this Act or an unexpired statement issued before the effective date of this Act. Notwithstanding the expiration date included in the unexpired statement, an unexpired statement issued before the effective date of this Act expires on March 1, 2012. SECTION 6. This Act takes effect September 1, 2011.