82R7614 TJB-F
By: Estes S.B. No. 1122
A BILL TO BE ENTITLED
AN ACT
relating to the sale of delinquent tax receivables by certain local
governments.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 8, Local Government Code, is
amended by adding Chapter 274 to read as follows:
CHAPTER 274. SALE OF DELINQUENT TAX RECEIVABLES
Sec. 274.001. DEFINITIONS. In this chapter:
(1) "Delinquent tax receivable" means a right to
receive the revenue from:
(A) a delinquent ad valorem tax imposed by a
school district for maintenance and operations purposes for a
specific tax year that remains unpaid, including any penalty and
interest that accrues as a result of the delinquency;
(B) a delinquent ad valorem tax imposed by a
county or municipality for a specific tax year that remains unpaid,
including any penalty and interest that accrues as a result of the
delinquency; or
(C) a delinquent assessment or other charge
imposed by a county or municipality secured by a lien on real
property that remains unpaid, including any penalty and interest
that accrues as a result of the delinquency.
(2) "Local government" means a county, municipality,
or school district.
Sec. 274.002. AUTHORITY TO SELL DELINQUENT TAX RECEIVABLE.
A local government may sell a delinquent tax receivable at any time.
Sec. 274.003. PROCEDURE FOR SALE OF DELINQUENT TAX
RECEIVABLE. (a) A local government may sell a delinquent tax
receivable through a negotiated sale or competitive bidding. The
sale must be on the terms the governing body of the local government
determines to be in the best interest of the local government.
(b) The sale of a delinquent tax receivable must be made
pursuant to a purchase and sale agreement that transfers to the
purchaser the right to receive the delinquent tax revenue and any
penalty and interest that accrues after the date of the sale.
Sec. 274.004. AMOUNT OF DELINQUENT TAX RECEIVABLE. The
amount of a delinquent tax receivable sold under this chapter must
include:
(1) the original amount of the delinquent ad valorem
tax and the amount of any penalty and interest that accrued and
remains unpaid on the date of the sale; or
(2) the original amount of a delinquent assessment or
other charge other than a delinquent ad valorem tax and the amount
of any penalty and interest that accrued and remains unpaid on the
date of the sale.
Sec. 274.005. LIEN NOT TRANSFERRED. The sale of a
delinquent tax receivable does not transfer to the purchaser a lien
or the right to foreclose a lien on property associated with the
delinquent tax receivable.
Sec. 274.006. COLLECTION BY LOCAL GOVERNMENT. The sale of a
delinquent tax receivable does not alter or affect the duty or
authority of a local government to collect a delinquent tax
receivable.
Sec. 274.007. PROHIBITED ACTIVITY. A purchaser of a
delinquent tax receivable may not engage, directly or indirectly,
in the collection of a delinquent tax receivable.
SECTION 2. 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, 2011.