BILL ANALYSIS

H.B. 4250

By: Lalani

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Currently, when a tax sale under the Property Tax Code results in excess proceeds, the clerk of the court issuing the order of sale must send to the former owner a notice stating the amount of those excess proceeds, informing the former owner of their right to claim them, and including a copy or complete text of the applicable state laws. Preparing and sending these notices comes at a cost, which must be incurred by the clerk's office. H.B. 4250 seeks to allow the clerk to recover the amount of these costs by deducting the cost of the postage to send the notice from the amount of the excess proceeds.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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

H.B. 4250 amends the Tax Code to authorize the clerk of the court issuing the order of sale to deduct from the amount of the excess proceeds from a tax sale under the Property Tax Code the cost of postage for sending to the former owner of the property a notice that states the amount of the excess proceeds, informs the former owner of their rights to claim those excess proceeds under state law, and includes a copy or the complete text of that state law and state law relating to the disposition of excess proceeds.

EFFECTIVE DATE

September 1, 2023.