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AN ACT
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relating to procedures for expedited judicial foreclosure |
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proceedings. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 17, Civil Practice and |
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Remedies Code, is amended by adding Section 17.031 to read as |
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follows: |
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Sec. 17.031. EXPEDITED FORECLOSURE PROCEEDINGS. For a |
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power of sale exercised by the filing of an application for an |
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expedited court order allowing the foreclosure of a contract lien |
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under the Texas Rules of Civil Procedure 736, service of citation |
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shall be completed in accordance with Rule 736 or 106, Texas Rules |
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of Civil Procedure, or in any other manner provided for petitions |
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under the Texas Rules of Civil Procedure. |
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SECTION 2. Subchapter B, Chapter 154, Civil Practice and |
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Remedies Code, is amended by adding Section 154.028 to read as |
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follows: |
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Sec. 154.028. MEDIATION FOLLOWING APPLICATION FOR |
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EXPEDITED FORECLOSURE. (a) A citation for expedited foreclosure |
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may be served in the manner provided by Rule 106 or 736, Texas Rules |
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of Civil Procedure. Following the filing of a response to an |
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application for an expedited foreclosure proceeding under Rule |
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736.5, Texas Rules of Civil Procedure, a court may, in the court's |
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discretion, conduct a hearing to determine whether to order |
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mediation. A court may not order mediation without conducting a |
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hearing. The petitioner or respondent may request a hearing to |
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determine whether mediation is necessary or whether an application |
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is defective. |
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(b) A hearing under Subsection (a) may not be conducted |
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before the expiration of the respondent's deadline to file a |
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response. |
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(c) Subject to Subsection (d), a hearing under Subsection |
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(a) may be conducted by telephone. |
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(d) Not later than the 10th day before the date of a hearing |
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under Subsection (a), the court shall send notice of the hearing to |
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the parties concerning whether the hearing will be conducted by |
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telephone and, if applicable, instructions for contacting the court |
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and attending the hearing by telephone. |
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(e) At a hearing under Subsection (a), the court must |
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consider any objections to the referral of the case to mediation. |
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(f) If the court orders the case to mediation, the mediation |
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must be conducted before the expiration of any deadline imposed by |
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Rule 736, Texas Rules of Civil Procedure. |
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(g) If the parties to a case that has been ordered to |
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mediation are unable to agree on the appointment of a mediator, the |
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court may appoint a mediator. If a mediator is appointed by the |
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court, the court shall provide all parties with the name of the |
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chosen mediator at the mediation hearing if the parties are unable |
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to agree to a mediator at that hearing. |
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(h) A mediator's fee shall be divided equally between the |
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parties. |
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(i) The parties may agree to waive the mediation process. |
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(j) The court may not conduct a hearing under this section |
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if the applicant has served the citation in compliance with Rule |
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106, Texas Rules of Civil Procedure, and a response to the |
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application has not been filed before the deadline provided by Rule |
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736, Texas Rules of Civil Procedure. |
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(k) If a respondent fails to attend a mediation hearing |
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after notice in accordance with Subsection (d), the court: |
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(1) may not order mediation; and |
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(2) shall grant or deny the petitioner's motion for |
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default order under Rule 736.7, Texas Rules of Civil Procedure. |
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(l) If a respondent attends a hearing and mediation is |
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ordered, any mediation must take place not later than the 29th day |
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after the date the petitioner filed a motion for default order. |
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(m) Notwithstanding Section 22.004, Government Code, the |
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supreme court may not amend or adopt rules in conflict with this |
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section. |
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SECTION 3. Subchapter A, Chapter 22, Government Code, is |
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amended by adding Section 22.018 to read as follows: |
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Sec. 22.018. PROMULGATION OF FORMS FOR CERTAIN EXPEDITED |
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FORECLOSURE PROCEEDINGS. The supreme court shall promulgate the |
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following forms for use in expedited foreclosure proceedings |
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described by Section 50(r), Article XVI, Texas Constitution: |
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(1) a form for application for an expedited |
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foreclosure proceeding; |
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(2) a form for a supporting affidavit; and |
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(3) a form for any court-required citation. |
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SECTION 4. |
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Not later than March 1, 2014, the Texas Supreme |
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Court shall promulgate the forms required by Section 22.018, |
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Government Code, as added by this Act. |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2978 was passed by the House on May 4, |
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2013, by the following vote: Yeas 134, Nays 0, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 2978 on May 24, 2013, by the following vote: Yeas 143, Nays 0, |
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1 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2978 was passed by the Senate, with |
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amendments, on May 22, 2013, by the following vote: Yeas 31, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |