H.B. No. 2978
AN ACT
relating to procedures for expedited judicial foreclosure
proceedings.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 17, Civil Practice and
Remedies Code, is amended by adding Section 17.031 to read as
follows:
Sec. 17.031. EXPEDITED FORECLOSURE PROCEEDINGS. 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 736, service of citation
shall be completed in accordance with Rule 736 or 106, Texas Rules
of Civil Procedure, or in any other manner provided for petitions
under the Texas Rules of Civil Procedure.
SECTION 2. 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.
(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 3. Subchapter A, Chapter 22, Government Code, is
amended by adding Section 22.018 to read as follows:
Sec. 22.018. PROMULGATION OF FORMS FOR CERTAIN EXPEDITED
FORECLOSURE PROCEEDINGS. The supreme court shall promulgate the
following forms for use in expedited foreclosure proceedings
described by Section 50(r), Article XVI, Texas Constitution:
(1) a form for application for an expedited
foreclosure proceeding;
(2) a form for a supporting affidavit; and
(3) a form for any court-required citation.
SECTION 4.
Not later than March 1, 2014, the Texas Supreme
Court shall promulgate the forms required by Section 22.018,
Government Code, as added by this Act.
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2013.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2978 was passed by the House on May 4,
2013, by the following vote: Yeas 134, Nays 0, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 2978 on May 24, 2013, by the following vote: Yeas 143, Nays 0,
1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2978 was passed by the Senate, with
amendments, on May 22, 2013, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor