HBA-SEB S.B. 337 76(R)BILL ANALYSIS


Office of House Bill AnalysisS.B. 337
By: Madla
Urban Affairs
3/30/1999
Engrossed



BACKGROUND AND PURPOSE 

Under current law, excess proceeds of a property tax sale, pursuant to a
foreclosure of a tax lien, are held by the clerk of a court for a period of
seven years, and a person is authorized to file a petition to claim those
proceeds during that time.  S.B. 337 requires the clerk, if the amount of
the proceeds exceeds $25, to notify the former owner of the property about
the excess proceeds and about the person's rights to claim the proceeds.
It also decreases from seven to two the number of years the court clerk is
required to hold the proceeds from a property tax sale.   

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 Sections 34.03(a) and (b), Tax Code, as follows:

(a)  Requires a clerk of a court to send by certified mail, return receipt
requested, a written notice to the former owner of property that states the
amount of excess proceeds from the sale of the property at a property
foreclosure sale.  Establishes that the notice must inform the former owner
of the owner's rights to claim the excess proceeds and must include a copy
or the complete text of this section (Disposition of Excess Proceeds) and
Section 34.04 (Claims for Excess Proceeds).  Provides that the written
notice must be sent if the amount of the excess proceeds is more than $25.
Requires the clerk to send the notice before the 31st day after the clerk
receives the proceeds.  Establishes that regardless of the amount of the
proceeds, the clerk of the court is required to keep the excess proceeds
for a period of two, rather than seven, years after the date of sale unless
otherwise ordered by the court.  Makes a nonsubstantive change. 

(b)  Makes a conforming change.

SECTION 2.  Amends Sections 34.04(a) and (d), Tax Code, to make conforming
changes. 

SECTION 3.  (a)  Effective date: September 1, 1999.

(b)  Provides that the change in law made by this Act applies to the
disposition of excess proceeds of a property tax foreclosure sale paid into
court, regardless of the date on which the foreclosure sale occurred or the
date on which the proceeds were paid into the court. Requires a clerk of a
court to mail a notice required by Section 34.03(a), Tax Code, as amended
by this Act, as soon as practicable after the effective date of this Act if
the clerk is retaining excess proceeds on that date.  Prohibits the clerk
from distributing those proceeds before the second anniversary of the date
the notice is mailed.  Provides that a claim for the proceeds made on or
before that second anniversary is considered to have been made within the
period provided by Section 34.03(b), Tax Code, as amended by this Act. 

SECTION 4.  Emergency clause.