By Madla                                               S.B. No. 337
         76R3210 JD-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the distribution of the proceeds of a property tax
 1-3     foreclosure sale.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Sections 34.03(a) and (b), Tax Code, are amended
 1-6     to read as follows:
 1-7           (a)  The clerk of the court shall keep the excess proceeds
 1-8     paid into court as provided by [Subsection (c) of] Section 34.02(c)
 1-9     [34.02 of this code] for a period of two [seven] years after the
1-10     date of the sale unless otherwise ordered by the court.
1-11           (b)  If no claimant establishes entitlement to the proceeds
1-12     within the period provided by Subsection (a) [seven years], the
1-13     clerk shall distribute the excess proceeds to each taxing unit
1-14     participating in the sale in an amount equal to the proportion its
1-15     taxes, penalties, and interests bear to the total amount of taxes,
1-16     penalties, and interest due all participants in the sale.
1-17           SECTION 2.  Sections 34.04(a) and (d), Tax Code, are amended
1-18     to read as follows:
1-19           (a)  A person may file a petition in the court that ordered
1-20     the sale setting forth a claim to the excess proceeds within two
1-21     [seven] years from the date of the sale of the property.
1-22           (d)  A claim for the excess proceeds may not be filed after
1-23     the expiration of the period provided by Subsection (a) [seven
1-24     years] from the date the property is sold.
 2-1           SECTION 3.  (a)  This Act takes effect September 1, 1999.
 2-2           (b)  The change in law made by this Act applies to the
 2-3     disposition of excess proceeds of a property tax foreclosure sale
 2-4     paid into court regardless of the date on which the foreclosure
 2-5     sale occurred or the date on which the proceeds were paid into the
 2-6     court.  If on the effective date of this Act the clerk of a court
 2-7     is retaining excess proceeds that have been retained for longer
 2-8     than the period provided by Section 34.03(a), Tax Code, as amended
 2-9     by this Act, the clerk shall distribute those proceeds as provided
2-10     by Section 34.03(b), Tax Code, as amended by this Act, as soon as
2-11     practicable after the effective date of this Act.
2-12           SECTION 4.  The importance of this legislation and the
2-13     crowded condition of the calendars in both houses create an
2-14     emergency and an imperative public necessity that the
2-15     constitutional rule requiring bills to be read on three several
2-16     days in each house be suspended, and this rule is hereby suspended.