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Signed Into Law
Signed June 20, 2025Effective 2025-09-01
SB1579

Regular Session

Relating to the appointment of a receiver for and sale of certain parcels of land that are abandoned, unoccupied, tax delinquent, and undeveloped in certain municipalities.

Government Affairs & Regulatory Compliance Analysis

SB1579: Government Affairs Overview

Effective September 1, 2025, SB1579 authorizes municipalities in El Paso and Hidalgo counties to seize, place in receivership, and sell undeveloped land valued under $1,000 that is tax-delinquent. This legislation creates an immediate risk of total asset forfeiture for passive landowners and lienholders, while simultaneously creating a new acquisition pipeline for developers and court-appointed receivers.

Sen. Cesar Blanco·Senate Bill·Regular Session

Moderate
Medium Cost
Effective:2025-09-01
Enforcing Agencies

Municipalities (specifically those in counties >500k population adjacent to international border) • State District Courts (County level)

Business Impact

Who SB1579 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.

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Real Estate

Affected business types:

  • Property developers
  • Commercial landlords
  • Property managers
  • Real estate investors
View all real estate legislation

Key Operational Considerations

  • 1Receiver Agreements: If your firm acts as a receiver, ensure the court order explicitly authorizes the statutory 15% fee and grants "fee simple" sales authority to satisfy title companies.
  • 2Receiver Qualification: Developers seeking appointment as receivers must prepare a dossier demonstrating a "record of knowledge" regarding undeveloped land to satisfy judicial requirements.

Estimated Cost Impact

mediumModerate costs expected for implementation.

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SB1579
Moderate
Relating to the appointment of a receiver for and sale of certain parcels of land that are abandoned, unoccupied, tax delinquent, and undeveloped in c...
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Medium
Effective
2025-09-01
Enforcing Agencies
MunicipalitiesState District Courts
Primary Author: Sen. Cesar Blanco
89th Texas Legislature
jdkey.com
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Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: Immediate Portfolio Audit Required. While the law takes effect in 2025, the delinquency criteria look back at the preceding 10 tax years. If your property is currently delinquent, it is already at risk.
  • Agency Rulemaking: No state-level agency rulemaking is required. However, the State District Courts in affected counties will establish local procedures for receiver appointments and sales. Expect a "regulatory gray zone" in Q4 2025 as courts standardize these petitions.

Immediate Action Plan

  • Audit Holdings: Identify all parcels in El Paso and Hidalgo counties with an assessed value under $1,000 and tax delinquencies in 5 of the last 10 years.
  • Cure Delinquencies: Pay outstanding taxes immediately to remove assets from the "at-risk" pool before the September 2025 effective date.
  • Update Registered Agents: Verify that all deed and tax roll addresses are current to ensure receipt of legal notices.
  • Monitor Municipal Agendas: Assign compliance staff to track City Council agendas in affected municipalities for "Resolutions of Determination" starting Q4 2025.
  • Prepare Capital (Developers): Establish liquidity to bid on aggregated parcels exiting the 12-month redemption period, likely beginning in 2027.

Operational Changes Required

Contracts

  • Loan Agreements: Lenders holding security interests in border-region land must amend covenants. Define a "Notice of Administrative Determination" (the city's first step in seizure) as an immediate Event of Default.
  • Receiver Agreements: If your firm acts as a receiver, ensure the court order explicitly authorizes the statutory 15% fee and grants "fee simple" sales authority to satisfy title companies.

Hiring/Training

  • Asset Management: Train staff to monitor municipal websites in El Paso and Hidalgo counties. Public notice of abandonment is deemed satisfied by online posting; physical mail is not guaranteed if tax records are outdated.
  • Receiver Qualification: Developers seeking appointment as receivers must prepare a dossier demonstrating a "record of knowledge" regarding undeveloped land to satisfy judicial requirements.

Reporting & Record-Keeping

  • Address Verification: You must update your registered mailing addresses with the County Appraisal District immediately. The law presumes notice is received if sent to the last known address on the tax roll.
  • Receiver Disclosures: Court-appointed receivers must file a detailed accounting of costs, revenues, and land disposition with the District Court prior to termination of the receivership.

Fees & Costs

  • Receivership Fee: A new statutory fee of up to 15% of costs and expenses is authorized for the receiver, deducted directly from sale proceeds.
  • Redemption Costs: To reclaim seized property during the 12-month redemption window, owners must pay all back taxes, court costs, receiver fees, and publication costs.

Strategic Ambiguities & Considerations

  • Definition of "Undeveloped": The statute applies to land "undeveloped and unoccupied" for 25 years. It fails to define "occupation." Litigation will likely determine if fencing, temporary storage, or minor improvements constitute occupation sufficient to block seizure.
  • "Best Efforts" Notice: Receivers are required to use "best efforts" to notify trade associations to maximize sale prices. The law does not define which associations or what constitutes sufficient effort, creating a potential cloud on title if challenged.
  • Valuation Thresholds: The law targets parcels valued at less than $1,000. Owners may strategically protest valuations *upward* to escape the statutory scope, creating friction with Appraisal Districts accustomed to downward protests.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Feb 24, 2025
Passed Senate
Apr 24, 2025
Passed House
May 27, 2025
Signed
Jun 20, 2025
Effective
Sep 1, 2025
TopicsCity GovernmentCity Government--land Use & ZoningCivil Remedies & LiabilitiesProperty InterestsProperty Interests--real PropertyPublic NoticeEl Paso CountySocorro, City of
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Senate Authors

Sen. Cesar BlancoDemocrat · Primary Author

House Sponsor

Rep. Mary GonzalezDemocrat · Primary Sponsor

Bill Text(with markup)

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View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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Quick Reference

Frequently Asked Questions

Common questions about SB1579

Q

What does Texas SB1579 do?

Effective September 1, 2025, SB1579 authorizes municipalities in El Paso and Hidalgo counties to seize, place in receivership, and sell undeveloped land valued under $1,000 that is tax-delinquent. This legislation creates an immediate risk of total asset forfeiture for passive landowners and lienholders, while simultaneously creating a new acquisition pipeline for developers and court-appointed receivers.

Q

Who authored SB1579?

SB1579 was authored by Texas Senator Cesar Blanco during the Regular Session.

Q

When was SB1579 signed into law?

SB1579 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB1579?

SB1579 is enforced by Municipalities (specifically those in counties >500k population adjacent to international border) and State District Courts (County level).

Q

How significant are the changes in SB1579?

The regulatory priority for SB1579 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB1579?

The cost impact of SB1579 is estimated as "medium". This may vary based on industry and implementation requirements.

Q

What topics does SB1579 address?

SB1579 addresses topics including city government, city government--land use & zoning, civil remedies & liabilities, property interests and property interests--real property.

Q

What are the key dates for SB1579?

Key dates for SB1579: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Q

What are the penalties under SB1579?

SB1579 establishes the following penalties: civil penalty of Extinguishment of all rights and legal interests in the property for Final administrative determination that a parcel is abandoned, unoccupied, and tax delinquent (5 of preceding 10 years), followed by court-ordered receivership.. Consult with legal counsel for specific applicability to your situation.

Q

Which Texas businesses are affected by SB1579?

SB1579 primarily affects property owners and real estate professionals. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026