AN ACT
1-1 relating to the distribution of the proceeds from a property tax
1-2 sale.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsections (a) and (b), Section 34.03, Tax Code,
1-5 are amended to read as follows:
1-6 (a) The clerk of the court shall:
1-7 (1) if the amount of excess proceeds is more than $25,
1-8 before the 31st day after the date the excess proceeds are received
1-9 by the clerk, send by certified mail, return receipt requested, a
1-10 written notice to the former owner of the property, at the former
1-11 owner's last known address according to the records of the court or
1-12 any other source reasonably available to the court, that:
1-13 (A) states the amount of the excess proceeds;
1-14 (B) informs the former owner of that owner's
1-15 rights to claim the excess proceeds under Section 34.04; and
1-16 (C) includes a copy or the complete text of this
1-17 section and Section 34.04; and
1-18 (2) regardless of the amount, keep the excess proceeds
1-19 paid into court as provided by [Subsection (c) of] Section 34.02(c)
1-20 [34.02 of this code] for a period of two [seven] years after the
1-21 date of the sale unless otherwise ordered by the court.
1-22 (b) If no claimant establishes entitlement to the proceeds
1-23 within the period provided by Subsection (a) [seven years], the
1-24 clerk shall distribute the excess proceeds to each taxing unit
2-1 participating in the sale in an amount equal to the proportion its
2-2 taxes, penalties, and interests bear to the total amount of taxes,
2-3 penalties, and interest due all participants in the sale.
2-4 SECTION 2. Subsections (a) and (d), Section 34.04, Tax Code,
2-5 are amended to read as follows:
2-6 (a) A person may file a petition in the court that ordered
2-7 the sale setting forth a claim to the excess proceeds within two
2-8 [seven] years from the date of the sale of the property.
2-9 (d) A claim for the excess proceeds may not be filed after
2-10 the expiration of the period provided by Subsection (a) [seven
2-11 years] from the date the property is sold.
2-12 SECTION 3. (a) This Act takes effect September 1, 1999.
2-13 (b) The change in law made by this Act applies to the
2-14 disposition of excess proceeds of a property tax foreclosure sale
2-15 paid into court regardless of the date on which the foreclosure
2-16 sale occurred or the date on which the proceeds were paid into the
2-17 court. If on the effective date of this Act the clerk of a court
2-18 is retaining excess proceeds, the clerk shall mail the notice
2-19 required by Subsection (a), Section 34.03, Tax Code, as amended by
2-20 this Act, as soon as practicable after the effective date of this
2-21 Act. The clerk may not distribute those proceeds as provided by
2-22 Subsection (b), Section 34.03, Tax Code, as amended by this Act,
2-23 before the second anniversary of the date the notice is mailed. A
2-24 claim for the proceeds made on or before that second anniversary is
2-25 considered to have been made within the period provided by
2-26 Subsection (b), Section 34.03, Tax Code, as amended by this Act.
3-1 SECTION 4. The importance of this legislation and the
3-2 crowded condition of the calendars in both houses create an
3-3 emergency and an imperative public necessity that the
3-4 constitutional rule requiring bills to be read on three several
3-5 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 337 passed the Senate on
March 3, 1999, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 337 passed the House on
May 26, 1999, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor