HBA-JRA H.B. 3549 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3549 By: Heflin Ways & Means 4/10/1999 Introduced BACKGROUND AND PURPOSE The Tax Code contains provisions governing redemptions in delinquent tax suits, procedures to be followed in collecting delinquent taxes, tax sales, and proceeds from tax sales. Over the past few years, case law has determined that some of these procedures outlined in the Tax Code are not explicit enough in directing parties in property tax cases. Some current practices in this area are more accurately governed by case law, rather than statutory law. The purpose of H.B. 3549 is to clarify directive actions in the administration of property taxes, codify current practice in case law into statutory law, and make perfecting technical amendments to the Tax Code, and repeal duplicative sections enacted by the 75th Texas Legislature. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 25.06, Tax Code, to require that property subject to an installment contract of sale be listed under the name of the seller if the installment contract is not filed of record in the real property records of the county, unless otherwise directed in writing under Section 1.111(f) (Representation of Property Owner) of this code. SECTION 2. Amends Section 31.03, Tax Code, by adding Subsections (d) and (e), as follows: (d) Authorizes the governing body of a taxing unit or appraisal district which has by official action imposed the additional penalty provided by Section 33.07 (Additional Penalty for Collection Costs) of this code and has also provided for the split payment under this section to further provide that taxes subject to this section (Split Payment of Taxes) that become delinquent on July 1 incur an additional penalty if the taxing unit or appraisal district or another taxing unit that collects taxes for the unit has contracted with an attorney pursuant to Section 6.30 (Attorneys Representing Taxing Units) of this code. Provides that the penalty is to defray costs and prohibits it from exceeding 15 percent of the amount of taxes, penalty, and interest due. (e) Provides that, upon delivery by the tax collector of a notice of delinquency and of the additional penalty to the property owner, the penalty is incurred on the first day of the next month following the delinquency that will provide a period of at least 21 days after the date of delivery of the notice. Provides that a tax lien attaches to a property on which the tax is imposed to secure payment of the additional penalty. Prohibits a taxing unit or an appraisal district from recovering attorney's fees in a suit to collect delinquent taxes subject to the penalty if the taxing unit or appraisal district provides for the additional penalty under this section. SECTION 3. Amends Section 31.031, Tax Code, by adding Subsections (e) and (f), as follows: (e) Authorizes the governing body of a taxing unit or appraisal district which has by official action imposed the additional penalty provided by Section 33.07 (Additional Penalty for Collection Costs) of this code and has also provided for the split payment under this section to further provide that taxes subject to this section (Installment Payments of Certain Homestead Taxes) that become delinquent on July 1 incur an additional penalty if the taxing unit or appraisal district or another taxing unit that collects taxes for the unit has contracted with an attorney pursuant to Section 6.30 (Attorneys Representing Taxing Units) of this code. Provides that the penalty is to defray costs and prohibits it from exceeding 15 percent of the amount of taxes, penalty, and interest due. (f) Provides that, upon delivery by the tax collector of a notice of delinquency and of the additional penalty to the property owner, the penalty is incurred on the first day of the next month following the delinquency that will provide a period of at least 21 days after the date of delivery of the notice. Provides that a tax lien attaches to a property on which the tax is imposed to secure payment of the additional penalty. Prohibits a taxing unit or an appraisal district from recovering attorney's fees in a suit to collect delinquent taxes subject to the penalty if the taxing unit or appraisal district provides for the additional penalty under this section. SECTION 4. Amends Section 31.032, Tax Code, by adding new Subsections (f) and (g) and redesignating existing Subsections (f) and (g) to (h) and (I), as follows: (f) Authorizes the governing body of a taxing unit or appraisal district which has by official action imposed the additional penalty provided by Section 33.07 (Additional Penalty for Collection Costs) of this code and has also provided for the split payment under this section to further provide that taxes subject to this section (Installment Payments of Taxes on Property in Disaster Area) that become delinquent on July 1 incur an additional penalty if the taxing unit or appraisal district or another taxing unit that collects taxes for the unit has contracted with an attorney pursuant to Section 6.30 (Attorneys Representing Taxing Units) of this code. Provides that the penalty is to defray costs and prohibits it from exceeding 15 percent of the amount of taxes, penalty, and interest due. (g) Provides that, upon delivery by the tax collector of a notice of delinquency and of the additional penalty to the property owner, the penalty is incurred on the first day of the next month following the delinquency that will provide a period of at least 21 days after the date of delivery of the notice. Provides that a tax lien attaches to a property on which the tax is imposed to secure payment of the additional penalty. Prohibits a taxing unit or an appraisal district from recovering attorney's fees in a suit to collect delinquent taxes subject to the penalty if the taxing unit or appraisal district provides for the additional penalty under this section. (h) Redesignated from existing Subsection (f). (I) Redesignated from existing Subsection (g). SECTION 5. Amends Section 31.04, Tax Code, by adding Subsections (f) and (g), as follows: (f) Authorizes the governing body of a taxing unit or appraisal district which has by official action imposed the additional penalty provided by Section 33.07 (Additional Penalty for Collection Costs) of this code and has also provided for the split payment under this section to further provide that taxes subject to this section (Postponement of Delinquency Date) that become delinquent on July 1 incur an additional penalty if the taxing unit or appraisal district or another taxing unit that collects taxes for the unit has contracted with an attorney pursuant to Section 6.30 (Attorneys Representing Taxing Units) of this code. Provides that the penalty is to defray costs and prohibits it from exceeding 15 percent of the amount of taxes, penalty, and interest due. (g) Provides that, upon delivery by the tax collector of a notice of delinquency and of the additional penalty to the property owner, the penalty is incurred on the first day of the next month following the delinquency that will provide a period of at least 21 days after the date of delivery of the notice. Provides that a tax lien attaches to a property on which the tax is imposed to secure payment of the additional penalty. Prohibits a taxing unit or an appraisal district from recovering attorney's fees in a suit to collect delinquent taxes subject to the penalty if the taxing unit or appraisal district provides for the additional penalty under this section. SECTION 6. Amends Chapter 31, Tax Code, by adding Section 31.081, as follows: Sec. 31.081. PROPERTY TAX COLLECTION ON TERMINATION OR SALE OF BUSINESS. (a) Requires the successor to a person who is liable under this title (Property Tax Code) for the payment of taxes assessed against personal property used in the operation of a business who sells the business or inventory of the business or quits the business to withhold an amount of the purchase price sufficient to pay all of the personal property taxes, penalties, and interest due until the seller provides a receipt from the tax collector showing that the taxes, penalties, and interest have been paid or provides a tax certificate under Section 31.08 (Tax Certificate) of this code stating that no amount is due. (b) Provides that the purchaser of a business or inventory who fails to withhold an amount of the purchase price as required by this section is liable for the amount required to be withheld to the extent of the value of the purchase price. (c) Authorizes the purchaser of a business or inventory to request that the tax collector issue a tax certificate stating that no tax is due or issue a statement of the amount required to be paid in order to obtain a certificate that no tax is due. Requires the tax collector to issue the certificate or statement within 10 days after receiving the request. (d) Provides that the purchaser is released from the obligation if the tax collector fails to mail the certificate or statement within the prescribed period. (e) Provides that any action to enforce the obligation of a purchaser under this section must be brought within four years of the sale of the business or inventory and is subject to a limitation plea by the purchaser as to any taxes more than four years delinquent as of the date of issuance of the tax collector's statement under Subsection (c). (f) Prohibits this section from operating so as to absolve the seller of personal liability under this title for payment of taxes. (g) Defines "sale of a business." (h) Defines "sale of the inventory." (I) Defines "value of the purchase price." SECTION 7. Amends Section 31.12(a), Tax Code, to extend from 60 days to 90 days the period within which a taxing entity must pay tax refunds before the refund accrues interest. SECTION 8. Amends Section 32.01, Tax Code, to add a new Subsection (c) and redesignate existing Subsection (c) to Subsection (d), as follows: (c) Provides that, with respect to an owner's real property, the liens under this section (Tax Lien) securing the taxes imposed on both the homestead and the remainder of the property owned extend in solido to the owner's entire property as described in the instrument or instruments of conveyance. (d) Redesignated from existing Subsection (c). SECTION 9. Amends Section 32.015(b), Tax Code, to provide that a lien for which a notice is not timely filed is unenforceable against a bona fide purchaser for value who is without notice and actual knowledge and a holder of a lien recorded on the manufactured home document of title, rather than extinguished and unenforceable without exception. SECTION 10. Amends Section 32.05, Tax Code, by adding Subsections (d) and (e), as follows: (d) Defines "holder of a lien" in Subsection (b) of this section. (e) Prohibits "recorded restrictive covenants" from being construed to include a lien perfected under those restrictive covenants and held by a property owners' association or homeowners' association in Subsection (c) of this section. SECTION 11. Amends Sections 32.07(e) and (g), Tax Code, as follows: (e) Makes conforming and nonsubstantive changes. (g) Adds the definition of "the person who owns or acquires the property" to the terms defined in this section. SECTION 12. Amends Section 33.011(a), Tax Code, to authorize the governing body of a taxing unit to delegate to the tax assessor-collector the authority to waive penalties and interest on delinquent tax and subject to any provisions by the governing body for limitations or restrictions on that authority. SECTION 13. Amends Section 33.04, Tax Code, by amending Subsections (b) and (c) and adding Subsections (d), (e), and (f), as follows: (b) Requires the tax collector for each taxing unit to mail a written notice of delinquency in each year divisible by five, to each person whose name and address is listed on the most recent certified appraisal roll if the property so listed on that roll is shown by the tax collector's records as having been delinquent more than one year and to each person who owes a tax that has been delinquent more than one year on personal property or on an interest in a mineral estate which is no longer listed on the current appraisal roll under that person's name, but whose name and mailing address are known to the collector. (c) Makes conforming changes. (d) Provides that a failure by the collector to deliver the required notice constitutes an affirmative defense available to the person entitled to the notice in any suit brought against that person for the enforced collection of penalties and interest on taxes delinquent more than five years or a multiple of five years. (e) Provides that interest and penalty on a tax resumes and requires the tax collector to collect it if, subsequent to any failure to deliver the required notice, the tax collector delivers the notice in any year divisible by five, notwithstanding the provisions of Subsection (d). Provides that the resumption of interest and penalty on the tax is prospective only and begins to accrue at the rates provided by Section 33.01 on the first day of the next month following the delivery of the notice which will provide a period of at least 21 days after the date of delivery. Deletes existing Subsection (c) which provides that penalties and interest on a tax delinquent more than five years or a multiple of five years are canceled and prohibits their collection if the collector has not delivered the notice required by Subsection (b) of this section in each year that is divisible by five following the date on which the tax first became delinquent for one year. (f) Provides that a notice under this section is presumed delivered when it is deposited in regular first class mail, with postage prepaid, and addressed to the person designated under Subsection (b). Prohibits the presumption of delivery under this section from being rebutted with evidence of failure to receive the notice, notwithstanding the provisions of Section 1.07 (Delivery of Notice) of this code. SECTION 14. Amends Section 33.47(a), Tax Code, to provide that, in a suit to collect a delinquent tax, a taxing unit's current tax roll and delinquent tax roll or certified copies of the entries showing the property and the penalties and interest imposes constitute prima facie evidence that each person charged with a duty relating to the imposition of the penalties and interest has complied with all requirements of law and that the amount of penalties and interest alleged to be delinquent against the property listed is the correct amount. SECTION 15. Amends Section 33.50(b), Tax Code, to require an order of sale for the foreclosure of a tax lien on property to prohibit the sale of the property to a person owning an interest in the property or to any party to the suit that is not a taxing unit unless that person or party is the highest bidder at the tax sale and the bid by that person or party equals or exceeds the aggregate amount of the judgments against the property, including all costs of suit and sale. SECTION 16. Repealer: Section 33.51, Tax Code, as amended by Acts 1997, 75th Legislature, Chapter 914, Section 6 (Writ of Possession). SECTION 17. Repealer: Section 33.51, Tax Code, as amended by Acts 1997, 75th Legislature, Chapter 1111, Section 2 (Writ of Possession). SECTION 18. Amends Section 33.52, Tax Code, as follows: Sec. 33.52. New title: TAXES TO BE INCLUDED IN JUDGMENT. Requires taxing units to recover only taxes that are delinquent on the date of a judgment. Provides that a judgment is sufficient if it sets out the base tax due for each year and provides that penalties and interest accrue on the unpaid balance pursuant to Subchapter A (General Provisions) of this chapter (Delinquency). Requires a presumption that the delinquency date is February 1 of the year following the year in which the tax was imposed unless otherwise stated in the judgment for the purposes of calculating penalties and interest due pursuant to the judgment. (b) Prohibits a taxing unit's claim for taxes that become delinquent after the date of the judgment from being affected by the entry of a judgment or any sale conducted pursuant to such a judgment and authorizes the taxing unit to collect them by any of the remedies provided by this code. SECTION 19. Repealer: Section 33.52, Tax Code, as amended by Acts 1997, 75th Legislature, Chapter 906, Section 8 (Judgment for Current Taxes). SECTION 20. Repealer: Section 33.52, Tax Code, as amended by Acts 1997, 75th Legislature, Chapter 981, Section 2 (Judgment for Current Taxes and Postjudgment Taxes, Penalties, and Interest). SECTION 21. Repealer: Section 33.52, Tax Code, as amended by Acts 1997, 75th Legislature, Chapter 1111, Section 3 (Judgment for Current Taxes). SECTION 22. Amends Section 33.53(a), Tax Code, to require the district clerk, upon application by any taxing unit that is a party to the judgment in a suit for foreclosure of a tax lien, to prepare an order to an officer authorized to conduct execution sales, ordering the sale of the property. Authorizes the taxing unit to specify particular parcels of the property to be sold if multiple parcels are included in the judgment. Authorizes a taxing unit to request more than one order of sale. Requires that the order of sale be returnable as unexecuted if not executed within 180 days after issuance. Authorizes the order of sale to be accompanied by an uncertified copy of the judgment and an uncertified bill of costs, and authorizes the terms of either to be incorporated by reference. SECTION 23. Amends Section 34.01, Tax Code, as follows: Sec. 34.01. SALE OF PROPERTY. (a) Requires property seized or ordered sold pursuant to foreclosure of a tax lien to be sold by the officer charged with the sale, unless otherwise directed by the taxing unit that requested the order, its agent or attorney. Requires the sale to be conducted in the manner similar property is sold under execution except as otherwise provided by this subtitle, rather than subchapter. (b) Requires the officer charged with the sale to endorse on the order of sale the exact hour and day of receipt, which constitutes a levy on the property. Requires the officer to calculate the total amount due under the judgment, including the taxes, penalties, and interest due, any other amounts awarded by the judgment, court costs, and the costs of the sale, including the costs of advertising under Subsection (c) of this section. Authorizes the tax assessor-collector of each taxing unit that is a party to the judgement to provide the officer with a certified tax statement showing the amount due as of the date of the proposed sale. Requires the officer to rely on the amounts so certified and exempts the officer from responsibility or liability for the accuracy of that portion of the calculation. (c) Requires the officer charged with the sale to give written notice of the sale to all persons who were defendants to the judgment, or their attorney and sets forth the requirements for such notice. Provides that neither the officer's failure to send nor a defendant's failure to receive the written notice of sale invalidates the sale or the title conveyed by the sale. (d) Sets forth the required contents of the notice. Sets forth the rate to be charged for publication. Sets forth alternative forms of publication if no newspaper is published in the county of the sale. (e) Prohibits an owner, when requesting that property subject to the sale be divided and that only as many portions as necessary be sold, from specifying portions which divide buildings or other contiguous improvements or specifying more than four portions. Provides that such request must be delivered to the officer not less than seven days before the sale. Redesignated from existing Subsection (b). (f) Authorizes the taxing unit that requested the order of sale to terminate the sale if a sufficient bid is not received to pay the amount calculated under Subsection (b) or the adjudged value, whichever is less. Requires the officer making the sale, if the taxing unit does not terminate the sale, to bid the property off to the taxing unit that requested the order of sale, unless otherwise agreed by all of the taxing units that are parties to the judgment, for the aggregate amount of the judgment against the property or for the market value of the property as specified in the judgment, whichever is less. Previously, if a sufficient bid was not received, the officer making the sale was required to bid the property off to a taxing unit that is a party to the judgment for the aggregate amount of the judgment against the property or for the market value of the property as specified in the judgment, whichever is less. Provides that the duty of the officer to bid off the property to a taxing unit under this subsection is self-executing and the actual attendance of a taxing unit representative at the sale is not a prerequisite to that duty. Authorizes a taxing unit that established tax liens in the suit to continue to enforce collection of any amount due from the owner in any other manner or by pursuing any other remedy provided by law, notwithstanding that the property has been bid off to a taxing unit as provided herein. Redesignated from existing Subsection (c). Makes nonsubstantive changes. (g) Authorizes the taxing unit that requested the order of sale to elect to prepare a deed for execution by the officer. Requires the officer to execute the deed and file the deed for recording with the county clerk with instructions to the county clerk to return the deed after recording to the grantee. Requires the county clerk to file and record all such deeds without imposing any recording or other fees. Makes conforming changes. (h) Redesignated from existing Subsection (e). Makes conforming changes. (I) Redesignated from existing Subsection (f). Makes conforming changes. (j) Requires the a sale of real property under this section take place at the county courthouse in the county in which the land is located. Requires the sale to occur in the same area of the courthouse as designated by the commissioners court of the county for the sale of real property pursuant to Section 51.002 (Sale of Real Property Under Contract Lien), Property Code. (k) Provides the provisions of this section prevail and govern the duties of the officer conducting the sale to the extent that the rules governing executions under the Texas Rules of Civil Procedure are in conflict with this section. SECTION 24. Amends Section 34.015(a), Tax Code, to authorize the governing body of a municipality to provide for the manner in which land acquired by seizure. SECTION 25. Amends Sections 34.02(a), (b), and (c), Tax Code, as follows: Sec. 34.02. DISTRIBUTION OF PROCEEDS. (a) Requires the proceeds of a tax sale pursuant to Section 33.94 or Section 34.01 to be applied first, to all costs of advertising the sale and all original court costs due to the clerk of the court; second, to all fees and commissions due to the officer conducting the sale; third, to taxes, penalties, and interest due pursuant to the judgment; and fourth, to amounts awarded to any taxing unit in the judgment for a claim other than taxes, penalties, or interest, rather than first to the payment of costs and the remainder distributed to all the taxing units participating in the sale in satisfaction of the taxes, penalties, and interest due each. Provides that each category must be fully paid before any funds are allocated to the following category. (b) Makes conforming changes. (c) Makes conforming changes. SECTION 26. Amends Sections 34.03(a) and (b), Tax Code, to reduce, from seven to two years, the time the clerk of court is required to keep the excess proceeds paid into court as provided by Section 34.04(c). Makes conforming and nonsubstantive changes. SECTION 27. Amends Section 34.04, Tax Code, to authorizes a person, including a taxing unit, to file a petition setting forth a claim to the excess proceeds under the same cause number as the action ordering seizure or foreclosing the tax lien. Requires a copy of the petition to be served pursuant to Rule 21a, Texas Rules of Civil Procedure, rather than on the county or district attorney. Sets forth the priorities of the court in ordering the payment of proceeds. SECTION 28. Repealer: Section 34.05(a), Tax Code, as amended by Acts 1997, 75th Legislature, Chapter 906, Section 9 (Resale by Taxing Unit). SECTION 29. Amends Sections 34.05(c) and (d), Tax Code, to authorize the taxing unit purchasing the property by resolution of its governing body to request the constable to sell the property at a public sale. Requires the officer making the sale, upon conclusion of the sale, to execute the deed and file it for recording with the county clerk accompanied by instructions to the clerk to return the deed to the purchaser following its recordation. Authorizes the taxing unit that requested the sale to elect to prepare a deed for execution by the officer. Requires the county clerk to file and record all such deeds without imposing any recording or other fees. SECTION 30. Repealer: Section 34.05(g), Tax Code, as amended by Acts 1997, 75th Legislature, Chapter 712, Section 3 and by Chapter 906, Section 9 (Resale by Taxing Unit). SECTION 31. Amends Section 34.05(h), Tax Code, as amended by Acts 1997, 75th Legislature, Chapter 712, Section 4, by redesignating it to Subsection (g). SECTION 32. Amends Section 34.06, Tax Code, by amending Subsections (b) and (c) and adding Subsection (d), as follows: (b) Requires the proceeds of a resale to be distributed first, to the purchasing taxing unit to recover its reasonable costs and expenses; second, to the officer conducting the sale and the clerk of the court to pay all costs in connection with the suit and the sale; and the balance, if any, to the participating taxing units in shares equal to the proportion each taxing unit's taxes, penalties, and interest bear to the total amount of taxes, penalties, and interest adjudged due all participants in the sale. (c) Prohibits the previous owner from receiving any proceeds from the resale of the property. (d) Redesignated from existing Subsection (c). SECTION 33. Repealer: Section 34.06(b), Tax Code, as amended by Acts 1997, 75th Legislature, Chapter 906, Section 10. SECTION 34. Repealer: Section 34.06(b), Tax Code, as amended by Acts 1997, 75th Legislature, Chapter 914, Section 3. SECTION 35. Amends Sections 34.07(a), (b), (c), and (d), Tax Code, as follows: Sec. 34.07. SUBROGATION OF PURCHASER AT VOID SALE. (a) Provides that a purchaser at a tax resale is subrogated to the rights of the taxing unit in whose behalf the property was resold to the same extent a purchase at a void or defective sale conducted in behalf of a judgment creditor is subrogated to the rights of the judgment creditor. (b) Provides that a purchaser at a tax resale is subrogated to the tax lien of the taxing unit in whose behalf the property was resold to the same extent a purchase at a void or defective mortgage or other lien foreclosure sale is subrogated to the lien of the lienholder, and the purchaser is entitled to a reforeclosure of the lien to which the purchaser is subrograted. (c) Provides that, if the purchaser at a tax resale paid less than the total amount of the judgment against the property, the purchaser is subrograted to the tax lien only in the amount actually paid at the resale. (d) Requires the court, if the purchaser prevails in any such suit, to expressly provide in its final judgment that the tax sale is vacated and set aside and that all liens are restored and reinstated on the property effective as of the date on which the liens originally attached. SECTION 36. Amends Sections 34.21(a) and (b), Tax Code, as amended by Acts 1997, 75th Legislature, Chapter 906, Section 11, and by Acts 1997, 75th Legislature, Chapter 914, to replace references to a suit to collect the tax to a suit or application for warrant. SECTION 37. Repealer: Section 34.21(b), Tax Code, as amended by Acts 1997, 75th Legislature, Chapter 914, Section 4. SECTION 38. Amends Sections 34.21(c) and (d), to require a person who redeems property that has been resold by the taxing unit to pay any tax sale deficiency to the taxing unit and to replace references to a suit to collect the tax to a suit or application for warrant. SECTION 39. Amends Section 34.21(f), Tax Code, as amended by Acts 1997, 75th Legislature, Chapter 1111, Section 6, to define "land designated for agricultural use," rather than "use" in this section. Redesignated from existing Subsection (e). SECTION 40. Repealer: Sections 34.21(g), (h), and (I), as amended by Acts 1997, 75th Legislature, Chapter 906. SECTION 41. Amends Section 34.21(g), Tax Code, as follows: (g) Authorizes an owner who wishes to redeem a property under this section to make a written request to the purchaser, or to the taxing unit to which the property was bid off, for a written itemization of all sums spent by that purchaser or taxing unit in costs on the property. Requires the owner to send the request to the purchaser at the address shown for the purchaser in the purchaser's deed for the property in question or, if redeeming from the taxing unit, to the business address of the taxing unit's tax assessor-collector. Requires the purchaser to itemize all sums expended on the property in costs and mail the same to the owner in writing within ten days of receiving the request. Requires only those sums itemized and provided to the owner to be allowed as costs for purposes of redemption. SECTION 42. Amends Section 34.21(f), Tax Code, as amended by Acts 1997, 75th Legislature, Chapter 906, by redesignating it to Subsection (h). SECTION 43. Amends Subsection 42.031(b), Tax Code, to make a nonsubstantive change. SECTION 44. Amends Section 304.301, Finance Code, to provide that this chapter (Judgment Interest) does not apply to a judgment that earns interest at a rate set by Title 1 (Property Tax Code), Tax Code. SECTION 45. Amends Part 4, Chapter VIII, Probate Code, by adding Section 313A, as follows: Sec. 313A. AD VALOREM TAX CLAIMS. Sets forth the court with jurisdiction over an action for collection of the taxes, if a decedent's estate being administered in a pending probate proceeding owns or claims an interest in property against which there are delinquent ad valorem tax claims held by a taxing unit. SECTION 46. Amends Section 317(c), Probate Code, to prohibit the foregoing provisions relative to the presentment of claims from being so construed as to apply to any claim for delinquent ad valorem taxes against a decedent's estate being administered in probate in a county other than the county in which the tax was imposed or any claim for delinquent ad valorem taxes against a decedent's estate being administered in the same county in which the tax was imposed if the probate proceeding has been pending for a period of more than four years. SECTION 47. Amends Section 801, Probate Code, to prohibit the prohibition against a judgment being rendered in favor of a claimant on any claim for money that has not been legally presented to the guardian of the estate of the ward and rejected by the guardian or by the court, from being so construed as to apply to any claim for delinquent ad valorem taxes against a ward's estate being administered in probate in a county other than the county in which the tax was imposed. SECTION 48. Amends Article 1396-2.07, V.T.C.S., by adding Subpart D, as follows: D. Sets forth the procedures for obtaining service of process on a corporation that loses its privileges by forfeiture or by involuntary dissolution. SECTION 49. Amends Article 2.11, Texas Business Corporation Act, by adding Subpart D, as follows: D. Sets forth the procedures for obtaining service of process on a corporation that loses its privileges by forfeiture or by involuntary dissolution. SECTION 50. Amends Article 8.10, Texas Business Corporation Act, by adding Subpart E, as follows: E. Sets forth the procedures for obtaining service of process on a corporation that loses its privileges by forfeiture or by involuntary dissolution. SECTION 51. Amends Section 49.231, Water Code, by amending Subsections (j), (k), and (l) and adding Subsections (o) and (p), as follows: (j) Authorizes the governing body of a district (board) to impose a penalty on a standby fee not paid in a timely manner. Makes conforming changes. (k) Makes conforming changes. (l) Makes conforming changes. (o) Provides that the penalty is six percent of the amount of the fee for the first calendar month it is delinquent plus one percent for each of the following four months or portion of any of such months the fee remains unpaid. Provides that a fee remaining unpaid on the first day of the sixth month following the month in which it was due incurs a total maximum penalty of twelve percent of the amount of the fee. (p) Authorizes the board to impose an additional penalty for a standby fee not remitted in a timely manner. Sets forth the amount and due date of the additional penalty. Prohibits a district from recovering both the additional penalty and the attorney fees provided by Subsection (l) of this section. SECTION 52. Provides that Sections 1-6, 8-9, 11, 13, and 51 of this Act take effect January 1, 1999. SECTION 53. Provides that Sections 7, 10, 12, and 14-50 of this Act take effect September 1, 1999. SECTION 54. Makes application of Section 7 of this Act prospective. SECTION 55. Makes application of Section 9 of this Act prospective. SECTION 56. Provides that the change in law made by Section 13 of this Act applies to the notice required to be given by Section 33.04(b), Tax Code, in the year 2000 and thereafter. Provides that penalties and interest on a delinquent tax are not canceled for failure to deliver a notice required by Section 33.04(b), as it existed before the effective date of this Act, if the notice is not required by Section 33.04(b), as amended by this Act. SECTION 57. Provides that the change in law made by Sections 15 and 18 of this Act apply to all tax suits, regardless of when commenced, in which judgment is signed on or after September 1, 1999. SECTION 58. Makes application of Sections 22, 23, and 25 of this Act prospective. Provides that the date on which a tax sale was conducted is deemed to be the first Tuesday of the month in which the public auction occurred. SECTION 59. Provides that the change in law made by Sections 26 and 27 of this Act applies to the disposition of excess proceeds of a property tax foreclosure or summary sale paid into court regardless of the date on which the sale occurred or the date on which the proceeds were paid into the court. Requires the clerk to distribute any proceeds that have been retained for longer than the period provided by Section 34.03(a), Tax Code, as amended by this Act, on the effective date of this Act, as soon as practicable after the effective date of this Act. SECTION 60. Provides that the change in law made by Sections 29 and 32 of this Act applies to all resales conducted on or after September 1, 1999, and based on judgments signed before, on, or after September 1, 1999. Provides that the date on which a resale was conducted is deemed to be the date on which the grantor's acknowledgment was taken or, if multiple grantors, the latest date of acknowledgment as between the various grantors. SECTION 61. Provides that the change in law made by Section 35 of this Act applies to all tax resales based upon original tax sales conducted before, on, or after September 1, 1999. SECTION 62. Makes application of Sections 36, 38, 39, and 41 of this Act prospective. Provides that the date on which a tax sale was conducted is deemed as the first Tuesday of the month in which the public auction occurred. SECTION 63. Provides that the change in law made by Sections 45, 46, and 47 of this Act apply to the estates of all decedents, regardless of the date of death, and apply to the estates of all wards, regardless of the date the application for appointment of a guardian was filed, and to all causes of action pending on its effective date as well as future actions. SECTION4 6. Provides that the change in law made by Sections 48, 49, and 50 apply to all actions pending on September 1, 1999, and to all actions instituted thereafter. SECTION 65.Emergency clause. Effective date: upon passage.