SRC-JXG S.B. 337 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 337
76R3210  JD-DBy: Madla
Intergovernmental Relations
2/12/1999
As Filed


DIGEST 

Currently, Texas law requires any excess proceeds of a tax sale, pursuant
to a foreclosure of a tax lien, to be held by the clerk of a court for a
period of seven years. This bill would require the clerk of a court to hold
any excess proceeds for a period of two years.  

PURPOSE

As proposed, S.B. 337 authorizes the clerk of a court to hold any excess
proceeds from a property tax foreclosure sale for two, rather than seven
years. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Sections 34.03(a) and (b), Tax Code, to require the clerk
of a court to keep the excess proceeds paid into court as provided by
Section 34.02(c), rather than Section 34.02 of this code, for a period of
two, rather than seven, years. Requires the clerk to distribute the excess
proceeds to each taxing unit, if no claimant establishes entitlement to the
proceeds within the period provided by Subsection (a), rather than seven
years. 

SECTION 2. Amends Sections 34.04(a) and (d), Tax Code, to authorize a
person to file a petition within two, rather than seven, years. Prohibits a
claim for excess proceeds from being filed after the expiration of the
period provided by Subsection (a) from the date the property is sold. Makes
a conforming change. 

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

(b) Makes application of this Act retroactive. Requires the clerk to
distribute the excess proceeds that have been retained for longer than the
period provided by Section 34.03(a), Tax Code. 

SECTION 4. Emergency clause.