| 1 | 1 | | 83R22784 DDT-F |
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| 2 | 2 | | By: Martinez H.B. No. 2425 |
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| 3 | 3 | | Substitute the following for H.B. No. 2425: |
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| 4 | 4 | | By: Hilderbran C.S.H.B. No. 2425 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the form, content, and provision of payoff statements |
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| 10 | 10 | | for property tax loans. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 32.06, Tax Code, is amended by amending |
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| 13 | 13 | | Subsection (a-4) and adding Subsections (a-5) and (a-6) to read as |
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| 14 | 14 | | follows: |
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| 15 | 15 | | (a-4) The Finance Commission of Texas shall: |
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| 16 | 16 | | (1) prescribe the form and content of an appropriate |
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| 17 | 17 | | disclosure statement to be provided to a property owner before the |
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| 18 | 18 | | execution of a tax lien transfer; |
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| 19 | 19 | | (2) adopt rules relating to the reasonableness of |
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| 20 | 20 | | closing costs, fees, and other charges permitted under this |
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| 21 | 21 | | section; [and] |
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| 22 | 22 | | (3) by rule prescribe the form and content of the sworn |
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| 23 | 23 | | document under Subsection (a-1) and the certified statement under |
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| 24 | 24 | | Subsection (b); and |
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| 25 | 25 | | (4) by rule prescribe the form and content of a request |
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| 26 | 26 | | a lender with an existing recorded lien on the property must use to |
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| 27 | 27 | | request a payoff statement and the transferee's response to the |
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| 28 | 28 | | request, including the period within which the transferee must |
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| 29 | 29 | | respond. |
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| 30 | 30 | | (a-5) At the time the transferee provides the disclosure |
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| 31 | 31 | | statement required by Subsection (a-4)(1), the transferee must also |
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| 32 | 32 | | describe the type and approximate cost range of each additional |
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| 33 | 33 | | charge or fee that the property owner may incur in connection with |
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| 34 | 34 | | the transfer. |
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| 35 | 35 | | (a-6) Notwithstanding Subsection (f-3), a lender described |
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| 36 | 36 | | by Subsection (a-4)(4) may request a payoff statement before the |
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| 37 | 37 | | tax loan becomes delinquent. The Finance Commission of Texas by |
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| 38 | 38 | | rule shall require a transferee who receives a request for a payoff |
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| 39 | 39 | | statement to deliver the requested payoff statement on the |
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| 40 | 40 | | prescribed form within a period prescribed by finance commission |
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| 41 | 41 | | rule. The prescribed period must allow the transferee at least |
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| 42 | 42 | | seven business days after the date the request is received to |
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| 43 | 43 | | deliver the payoff statement. The consumer credit commissioner may |
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| 44 | 44 | | assess an administrative penalty under Subchapter F, Chapter 14, |
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| 45 | 45 | | Finance Code, against a transferee who wilfully fails to provide |
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| 46 | 46 | | the payoff statement as prescribed by finance commission rule. |
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| 47 | 47 | | SECTION 2. As soon as practicable after the effective date |
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| 48 | 48 | | of this Act, the Finance Commission of Texas shall adopt rules |
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| 49 | 49 | | necessary to implement the changes in law made by this Act. |
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| 50 | 50 | | SECTION 3. This Act takes effect immediately if it receives |
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| 51 | 51 | | a vote of two-thirds of all the members elected to each house, as |
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| 52 | 52 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 53 | 53 | | Act does not receive the vote necessary for immediate effect, this |
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| 54 | 54 | | Act takes effect September 1, 2013. |
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