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.