BILL ANALYSIS Senate Research Center H.B. 2978 By: Parker (Paxton) Jurisprudence 5/7/2013 Engrossed
BILL ANALYSIS
Senate Research Center H.B. 2978
By: Parker (Paxton)
Jurisprudence
5/7/2013
Engrossed
Senate Research Center
H.B. 2978
By: Parker (Paxton)
Jurisprudence
5/7/2013
Engrossed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT In order to sell property under a contract lien, notice of sale is provided by certified mail to each debtor. Stakeholders have observed that individuals who are served with such notice commonly do not respond to certified mail or cannot be located with a physical address, resulting in the service being returned as undeliverable mail. There is concern that this limitation on method of service causes unnecessary delays to the sale of the property. H.B. 2978 amends current law relating to service of citation in connection with an expedited judicial foreclosure proceeding. 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 Subchapter B, Chapter 17, Civil Practice and Remedies Code, by adding Section 17.031, as follows: Sec. 17.031. EXPEDITED FORECLOSURE PROCEEDINGS. Provides that for a power of sale exercised by the filing of an application for an expedited court order allowing the foreclosure of a contract lien under the Texas Rules of Civil Procedure, a citation issued to a person who is a respondent in the expedited order proceeding is considered complete when service is accomplished in accordance with Rule 736, Texas Rules of Civil Procedure, or in the manner provided for petitions under the Texas Rules of Civil Procedure. SECTION 2. Effective date: upon passage or September 1, 2013.
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
In order to sell property under a contract lien, notice of sale is provided by certified mail to each debtor. Stakeholders have observed that individuals who are served with such notice commonly do not respond to certified mail or cannot be located with a physical address, resulting in the service being returned as undeliverable mail. There is concern that this limitation on method of service causes unnecessary delays to the sale of the property.
H.B. 2978 amends current law relating to service of citation in connection with an expedited judicial foreclosure proceeding.
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 Subchapter B, Chapter 17, Civil Practice and Remedies Code, by adding Section 17.031, as follows:
Sec. 17.031. EXPEDITED FORECLOSURE PROCEEDINGS. Provides that for a power of sale exercised by the filing of an application for an expedited court order allowing the foreclosure of a contract lien under the Texas Rules of Civil Procedure, a citation issued to a person who is a respondent in the expedited order proceeding is considered complete when service is accomplished in accordance with Rule 736, Texas Rules of Civil Procedure, or in the manner provided for petitions under the Texas Rules of Civil Procedure.
SECTION 2. Effective date: upon passage or September 1, 2013.