Floor Packet Page No. 137
      Amend CSHB 4, in Article 2 of the bill, immediately before
the effective date provisions, by adding a new section,
appropriately numbered, to read as follows, and renumbering
subsequent sections of the article appropriately:
      SECTION 2.___.  (a)  If an escrow account is required to be
maintained in connection with a loan secured by a mortgage or other
security interest in real property consisting of a residence
homestead from which ad valorem taxes are paid, the person who
controls the account, before the 60th day after the effective date
of this article, shall:
            (1)  recalculate the amount of school district ad
valorem taxes to be paid from the account for the current tax year;
            (2)  provide a written explanation to the person who
pays money into the account of the effect of HB 4, Acts of the 75th
Legislature, Regular Session, 1995, on:
                  (A)  the person's school district ad valorem
taxes; and
                  (B)  the person's escrow account;
            (3)  refund to the person who pays money into the
account the difference between the result of the calculation under
Subdivision (1) and the amount credited to the account for the
payment of ad valorem taxes; and
            (4)  using the result of the calculation under
Subdivision (1), adjust the amount of the payments to be made to
the credit of the account.
      (b)  This section applies only to an escrow account
maintained in connection with a residence homestead that on the
effective date of this article qualifies for a residence homestead
exemption from school district ad valorem taxes under Section
11.13, Tax Code.