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


Senate Research CenterC.S.S.B. 337
76R6993  JD-DBy: Madla
Intergovernmental Relations
2/25/1999
Committee Report (Substituted)


DIGEST 

Currently, Texas law requires any excess proceeds of a property 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. This bill would also
authorize the clerk of a court to notify the former owner of the excess
proceeds and of the owner's rights.  

PURPOSE

As proposed, C.S.S.B. 337 authorizes the clerk of a court to hold any
excess proceeds from a property tax sale for two, rather than seven years.
Authorizes the clerk to notify the former owner of the excess proceeds and
of the owner's rights. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Requires the court clerk to send by certified mail a written
notice to the former owner of the property, that states the amount of the
excess proceeds; informs the former owner of that owner's rights to claim
the excess proceeds; includes a copy or complete text of this section and
Section 34.04; and regardless of the amount, keep the excess proceeds paid
into court for two years, rather than seven years after the sale. Makes
conforming changes. 

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) Requires the clerk of a court to mail the notice after the effective
date of this Act, if on the effective date of this Act the clerk of a court
is retaining excess proceeds. Prohibits the clerk of a court 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. 

SECTION 4. Emergency clause.

SUMMARY OF COMMITTEE CHANGES

Relating clause.

Amends the relating clause as follows: "relating to the distribution of the
proceeds from a property tax sale," rather than a property tax foreclosure
sale. 
 
SECTION 1. 

Requires the court clerk to send by certified mail a written notice to the
former owner of the property, that states the amount of the excess
proceeds; informs the former owner of that owner's rights to claim the
excess proceeds; includes a copy or complete text of this section and
Section 34.04; and regardless of the amount, keep the excess proceeds paid
into court for two years, rather than seven years after the sale. Makes
conforming changes. 

SECTION 3.

Requires the clerk of a court to mail the notice after the effective date
of this Act, if on the effective date of this Act the clerk of a court is
retaining excess proceeds. Prohibits the clerk of a court 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.