84R3407 TJB-F
By: Huberty H.B. No. 3951
A BILL TO BE ENTITLED
AN ACT
relating to the eligibility of persons to participate in an ad
valorem tax sale of real property; creating a criminal offense;
authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 34, Tax Code, is amended by
adding Section 34.011 to read as follows:
Sec. 34.011. PERSONS ELIGIBLE TO PURCHASE REAL PROPERTY.
(a) This section applies only to a sale of real property under
Section 34.01 conducted in:
(1) a county with a population of 250,000 or more; or
(2) a county with a population of less than 250,000 in
which the commissioners court by order has adopted the provisions
of this section.
(b) In this section:
(1) "Individual" does not include an individual acting
on behalf of a taxing unit.
(2) "Person" does not include a taxing unit or an
individual acting on behalf of a taxing unit.
(c) A county assessor-collector may require that, to be
eligible to bid at a sale of real property under Section 34.01, an
individual register as a bidder with the county assessor-collector
before the sale begins. The county assessor-collector may require
the individual:
(1) to provide valid proof of identification;
(2) to provide proof that the individual is authorized
to bid for another person, if the individual may submit a bid for
the other person at the sale; and
(3) to at least annually execute a statement on a form
provided by the county assessor-collector certifying that there are
no delinquent taxes owed to the county and no delinquent ad valorem
taxes owed to any taxing unit in the county by:
(A) the individual executing the certification;
(B) the person the individual may submit a bid
for at the sale, if applicable; and
(C) each entity at least 10 percent of the
ownership interest in which is owned by the person the individual
may submit a bid for at the sale, if applicable.
(d) The county assessor-collector shall issue a written
registration statement to an individual who registers as a bidder
under this section. An individual is ineligible to submit a bid at a
sale of real property under Section 34.01 unless the county
assessor-collector has issued a written registration statement to
the individual before the sale.
(e) A county assessor-collector may charge an individual
registering as a bidder under this section a fee not to exceed $10
to cover the costs associated with issuing a registration
statement.
(f) An officer conducting a sale of real property under
Section 34.01 is not liable to any person if the officer sells real
property to an individual who has not complied with the
requirements of this section.
(g) An individual who knowingly violates this section
commits an offense. An offense under this section is a Class A
misdemeanor, except that the offense is a state jail felony if it is
shown on the trial of the offense that the individual has been
previously convicted of an offense under this section or under
former Section 34.015 as that provision existed on or before
December 31, 2015. It is a defense to prosecution under this
section that each delinquent tax described by Subsection (c)(3) is
paid not later than the 30th day after the date the county
assessor-collector mails written notification to the individual
that taxes included in a statement executed under that subdivision
are delinquent.
SECTION 2. Sections 34.0445(a), (c), and (e), Civil
Practice and Remedies Code, are amended to read as follows:
(a) 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 or the individual submitting the
successful bid for the purchaser exhibits to the officer an
unexpired written registration statement issued to the person in
the manner prescribed by Section 34.011 [34.015], Tax Code[,
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].
(c) The deed executed by the officer conducting the sale
must name the purchaser [successful bidder] as the grantee and
recite that the purchaser or the individual submitting the
successful bid for the purchaser [successful bidder] exhibited to
that officer an unexpired written registration statement issued to
the person in the manner prescribed by Section 34.011 [34.015], Tax
Code[, 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].
(e) A person who knowingly violates this section commits an
offense. An offense under this section [subsection] is a Class A
[B] misdemeanor, except that the offense is a state jail felony if
it is shown on the trial of the offense that the individual has been
previously convicted of an offense under this section.
SECTION 3. The following provisions are repealed:
(1) Section 34.0445(b), Civil Practice and Remedies
Code; and
(2) Section 34.015, Tax Code.
SECTION 4. The changes in law made by this Act apply only to
the sale of real property under Subchapter C, Chapter 34, Civil
Practice and Remedies Code, or Section 34.01, Tax Code, on or after
the effective date of this Act.
SECTION 5. (a) The change in law made by this Act to Section
34.0445(e), Civil Practice and Remedies Code, applies only to an
offense committed on or after the effective date of this Act. An
offense committed before the effective date of this Act is governed
by the law in effect on the date the offense was committed, and the
former law is continued in effect for that purpose. For purposes of
this section, an offense was committed before the effective date of
this Act if any element of the offense occurred before that date.
(b) The repeal by this Act of Section 34.015, Tax Code, does
not apply to an offense committed under that section before the
effective date of the repeal. An offense committed before the
effective date of the repeal is governed by Section 34.015, Tax
Code, as it existed on the date the offense was committed, and the
former law is continued in effect for that purpose. For purposes of
this section, an offense was committed before the effective date of
the repeal if any element of the offense occurred before that date.
SECTION 6. This Act takes effect January 1, 2016.