Amend the Krusee amendment to CSHB 4 by striking the text on
page 1, line 5, through page 2, line 6, and substituting the
following:
      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 March 31, 1998, shall:
            (1)  analyze the escrow requirements of the loan,
taking into account information provided by the comptroller, the
school district tax assessor-collector, or both relating to the
reduction of school district ad valorem taxes on the homestead;
            (2)  using the result of the calculation under
Subdivision (1), adjust the amount of the payments to be made to
the credit of the account and advise the person who pays the money
in to the account; and
            (3)  refund to the person who pays money into the the
account any excess in the account beyond the maximum permitted by
federal law.
      (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.