By:  Lindsay                                          S.B. No. 1572
         2001S0797/1                            
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to claims for excess proceeds from tax sales.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 34.04, Tax Code, is amended by adding
 1-5     Subsections (e) and (f) to read as follows:
 1-6           (e)  An order entered under this section is appealable.
 1-7           (f)  A person may not take an assignment of an owner's claim
 1-8     to excess proceeds unless, before the assignment is made, the
 1-9     person gives written notice to the owner that must inform the owner
1-10     of the amount of excess proceeds and that the owner may have a
1-11     claim to the full amount of the excess proceeds.  A claim for
1-12     excess proceeds filed by an assignee shall include a sworn
1-13     statement that the assignee has complied with the requirements of
1-14     this subsection.  It is the assignee's burden to prove at the
1-15     hearing that the assignee has complied with this subsection.  Any
1-16     person who obtains excess proceeds without compliance with this
1-17     subsection is liable to the owner for the amount of excess proceeds
1-18     obtained plus attorney's fees.
1-19           SECTION 2.  (a)  This Act takes effect September 1, 2001.
1-20           (b)  The change in law made by this Act applies to the
1-21     disposition of excess proceeds of a property tax foreclosure sale
1-22     paid into the court regardless of the date on which the foreclosure
1-23     sale occurred or the date on which the proceeds were paid into the
1-24     court.