SRC-SEW S.B. 1572 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1572
2001S0797/1By: Lindsay
Intergovernmental Relations
4/17/2001
As Filed


DIGEST AND PURPOSE 

Under current law, an order to disperse excess proceeds from a tax
foreclosure sale may be appealed, but this right of appeal is not
explicitly stated in the statute.  Also, the statute providing for the
assignment of claims in such appeals does not protect the average owner.
As proposed, S.B. 1572 provides that an order to disperse excess proceeds
from a tax sale may be appealed.  This bill also provides that if a person
takes an assignment of an owner's claim, the person must follow certain
guidelines and produce certain documentation that clearly exhibits an
owner's willingness to make the assignment and limits the amount of
compensation an assignee is authorized to receive for pursuing a claim. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 34.04, Tax Code, by adding Subsections (e) and
(f), as follows: 

  (e) Provides that an order entered under this section is appealable.

(f) Prohibits a person from taking an assignment of an owner's claim to
excess proceeds except under certain conditions.  Requires a claim for
excess proceeds filed by an assignee to include a sworn statement that the
assignee has complied with the requirements of this subsection.  Provides
that it is the assignee's burden to prove at the hearing that the assignee
has complied with this subsection.  Provides that any person who obtains
excess proceeds without compliance with this subsection is liable to the
owner for the amount of excess proceeds obtained plus attorney's fees. 

SECTION 2.  (a) Effective date: September 1, 2001.

(b) Provides that the change in law made by this Act applies to the
disposition of excess proceeds of a property tax foreclosure sale paid into
the court regardless of the date on which the foreclosure sale occurred or
the date on which the proceeds were paid into the court.