H.B. No. 1118
  relating to the resale of property purchased by a taxing unit at a
  tax sale.
         SECTION 1.  Section 33.52(d), Tax Code, is amended to read as
         (d)  Except as provided by Section 34.05(k), a [A] taxing
  unit's claim for taxes that become delinquent after the date of the
  judgment is not affected by the entry of the judgment or a tax sale
  conducted under that judgment. Those taxes may be collected by any
  remedy provided by this title.
         SECTION 2.  Section 34.05, Tax Code, is amended by adding
  Subsections (j), (k), and (l) to read as follows:
         (j)  In lieu of a sale pursuant to Subsections (c) and (d),
  the taxing unit that purchased the property may sell the property at
  a private sale for an amount equal to or greater than its market
  value, as shown by the most recent certified appraisal roll, if:
               (1)  the sum of the amount of the judgment plus
  post-judgment taxes, penalties, and interest owing against the
  property exceeds the market value; and
               (2)  each taxing unit entitled to receive proceeds of
  the sale consents to the sale for that amount.
         (k)  A sale under Subsection (j) discharges and extinguishes
  all liens foreclosed by the judgment and, with the exception of the
  prorated tax for the current year that is assessed under Section
  26.10, the liens for post-judgment taxes that accrued from the date
  of judgment until the date the taxing unit purchased the property.
  The presiding officer of a taxing unit selling real property under
  Subsection (j) shall execute a deed to the property conveying to the
  purchaser the right, title, and interest acquired or held by each
  taxing unit that was a party to the judgment foreclosing tax liens
  on the property. The conveyance is subject to any remaining right of
  redemption at the time of the sale and to the purchaser's obligation
  to pay the prorated taxes for the current year as provided by
  Section 26.10. The deed must recite that the liens foreclosed by the
  judgment and the post-judgment tax liens are discharged and
  extinguished by virtue of the conveyance.
         (l)  A taxing unit that does not consent to a sale under
  Subsection (j) is liable to the taxing unit that purchased the
  property for a pro rata share of the costs incurred by the
  purchasing unit in maintaining the property, including the costs of
  preventing the property from becoming a public nuisance, a danger
  to the public, or a threat to the public health. The nonconsenting
  unit's share of the costs described by this subsection is
  calculated from the date the unit fails to consent to the sale and
  is equal to the percentage of the proceeds from a sale of the
  property to which the nonconsenting unit would be entitled
  multiplied by the costs incurred by the purchasing unit to maintain
  the property.
         SECTION 3.  The change in law made by this Act applies to
  real property sold to a taxing unit that is a party to a judgment to
  foreclose a tax lien regardless of whether the judgment was entered
  before, on, or after the effective date of this Act.
         SECTION 4.  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.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I certify that H.B. No. 1118 was passed by the House on April
  19, 2011, by the following vote:  Yeas 143, Nays 1, 2 present, not
  Chief Clerk of the House   
         I certify that H.B. No. 1118 was passed by the Senate on May
  25, 2011, by the following vote:  Yeas 31, Nays 0.
  Secretary of the Senate    
  APPROVED:  _____________________