BILL ANALYSIS

 

 

 

C.S.S.B. 1202

By: West

Business & Industry

Committee Report (Substituted)

 

 

 

BACKGROUND AND PURPOSE

 

Interested parties have raised concerns regarding the Supreme Court of Texas' recently issued rules relating to expedited foreclosure actions, specifically rules that impact cases where the homeowner is seeking a loan remodification. C.S.S.B. 1202 seeks to address these concerns by clarifying certain law relating to an order to conduct mediation following an application for expedited judicial foreclosure proceedings.

 

RULEMAKING AUTHORITY

 

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

 

ANALYSIS

 

C.S.S.B. 1202 amends the Civil Practice and Remedies Code to authorize a citation for expedited foreclosure to be served in the manner provided by certain specified rules of the Texas Rules of Civil Procedure. The bill authorizes a court, following the filing of a response to an application for an expedited foreclosure proceeding under a specified rule of the Texas Rules of Civil Procedure, in the court's discretion, to conduct a hearing to determine whether to order mediation. The bill prohibits the court from ordering mediation without conducting a hearing and authorizes the petitioner or respondent to request a hearing to determine whether mediation is necessary or whether an application is defective. The bill sets out provisions and procedures relating to such a hearing and relating to the referral of the case to mediation.

 

C.S.S.B. 1202 prohibits the supreme court from amending or adopting rules in conflict with the bill's provisions.

 

EFFECTIVE DATE

 

September 1, 2013.

 

COMPARISON OF ORIGINAL AND SUBSTITUTE

 

While C.S.S.B. 1202 may differ from the engrossed version in minor or nonsubstantive ways, the following comparison is organized and highlighted in a manner that indicates the substantial differences between the engrossed and committee substitute versions of the bill.

 

SENATE ENGROSSED

HOUSE COMMITTEE SUBSTITUTE

SECTION 1. Subchapter B, Chapter 154, Civil Practice and Remedies Code, is amended by adding Section 154.028 to read as follows:

Sec. 154.028. MEDIATION FOLLOWING APPLICATION FOR EXPEDITED FORECLOSURE.

 

 

 

 

(a) Following receipt of an application for an expedited foreclosure proceeding under Rule 736.1, Texas Rules of Civil Procedure, a court may, in the court's discretion, conduct a hearing to determine whether to order mediation. A court may not order mediation without conducting a hearing. The petitioner or respondent may request a hearing to determine whether mediation is necessary or whether an application is defective.

 

(b) A hearing under Subsection (a) may not be conducted before the expiration of the respondent's deadline to file a response.

 

(c) Subject to Subsection (d), a hearing under Subsection (a) may be conducted by telephone.

 

(d) Not later than the 10th day before the date of a hearing under Subsection (a), the court shall send notice of the hearing to the parties concerning whether the hearing will be conducted by telephone and, if applicable, instructions for contacting the court and attending the hearing by telephone.

 

(e) At a hearing under Subsection (a), the court must consider any objections to the referral of the case to mediation.

 

(f) If the court orders the case to mediation, the mediation must be conducted before the expiration of any deadline imposed by Rule 736, Texas Rules of Civil Procedure.

 

(g) If the parties to a case that has been ordered to mediation are unable to agree on the appointment of a mediator, the court may appoint a mediator. If a mediator is appointed by the court, the court shall provide all parties with the name of the chosen mediator at the mediation hearing if the parties are unable to agree to a mediator at that hearing.

 

(h) A mediator's fee shall be divided equally between the parties.

 

(i) The parties may agree to waive the mediation process.

 

(j) If a party does not respond to an application filed under Rule 736, Texas Rules of Civil Procedure, before the deadline established by that rule, notice of any mediation hearing must be made in accordance with Subsection (d), and the hearing must occur not later than the 15th day after the date the petitioner files a motion for default order under Rule 736.7, Texas Rules of Civil Procedure. A petitioner may file a motion to cancel a hearing, and the court may grant the motion if the petitioner submits an affidavit stating that the respondent received actual notice and did not reply before the deadline.

 

No equivalent provision.

 

 

 

 

 

 

 

(k) If a respondent fails to attend a mediation hearing after notice in accordance with Subsection (d), the court:

(1) may not order mediation; and

(2) shall grant or deny the petitioner's motion for default order under Rule 736.7, Texas Rules of Civil Procedure.

 

(l) If a respondent attends a hearing and mediation is ordered, any mediation must take place not later than the 29th day after the date the petitioner filed a motion for default order.

 

(m) Notwithstanding Section 22.004, Government Code, the supreme court may not amend or adopt rules in conflict with this section.

SECTION 1. Subchapter B, Chapter 154, Civil Practice and Remedies Code, is amended by adding Section 154.028 to read as follows:

Sec. 154.028. MEDIATION FOLLOWING APPLICATION FOR EXPEDITED FORECLOSURE.

 

(a) A citation for expedited foreclosure may be served in the manner provided by Rule 106 or 736, Texas Rules of Civil Procedure. Following the filing of a response to an application for an expedited foreclosure proceeding under Rule 736.5, Texas Rules of Civil Procedure, a court may, in the court's discretion, conduct a hearing to determine whether to order mediation. A court may not order mediation without conducting a hearing. The petitioner or respondent may request a hearing to determine whether mediation is necessary or whether an application is defective.

 

(b) A hearing under Subsection (a) may not be conducted before the expiration of the respondent's deadline to file a response.

 

(c) Subject to Subsection (d), a hearing under Subsection (a) may be conducted by telephone.

 

(d) Not later than the 10th day before the date of a hearing under Subsection (a), the court shall send notice of the hearing to the parties concerning whether the hearing will be conducted by telephone and, if applicable, instructions for contacting the court and attending the hearing by telephone.

 

(e) At a hearing under Subsection (a), the court must consider any objections to the referral of the case to mediation.

 

(f) If the court orders the case to mediation, the mediation must be conducted before the expiration of any deadline imposed by Rule 736, Texas Rules of Civil Procedure.

 

(g) If the parties to a case that has been ordered to mediation are unable to agree on the appointment of a mediator, the court may appoint a mediator. If a mediator is appointed by the court, the court shall provide all parties with the name of the chosen mediator at the mediation hearing if the parties are unable to agree to a mediator at that hearing.

 

(h) A mediator's fee shall be divided equally between the parties.

 

(i) The parties may agree to waive the mediation process.

 

No equivalent provision.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(j) The court may not conduct a hearing under this section if the applicant has served the citation in compliance with Rule 106, Texas Rules of Civil Procedure, and a response to the application has not been filed before the deadline provided by Rule 736, Texas Rules of Civil Procedure.

 

(k) If a respondent fails to attend a mediation hearing after notice in accordance with Subsection (d), the court:

(1) may not order mediation; and

(2) shall grant or deny the petitioner's motion for default order under Rule 736.7, Texas Rules of Civil Procedure.

 

(l) If a respondent attends a hearing and mediation is ordered, any mediation must take place not later than the 29th day after the date the petitioner filed a motion for default order.

 

(m) Notwithstanding Section 22.004, Government Code, the supreme court may not amend or adopt rules in conflict with this section.

SECTION 2. This Act takes effect September 1, 2013.

SECTION 2. Same as engrossed version.