84R9937 SCL-D
By: Davis of Dallas H.B. No. 3250
A BILL TO BE ENTITLED
AN ACT
relating to disclosures and transfer expenses for transfers of
structured settlement payments.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 141.003, Civil Practice and Remedies
Code, is amended to read as follows:
Sec. 141.003. REQUIRED DISCLOSURES TO PAYEE. At least 10
[three] days before the date on which the payee signs a transfer
agreement, the transferee shall provide to the payee a separate
disclosure statement, in bold type at least 14 points in size, that
states in plain language:
(1) the amounts and due dates of the structured
settlement payments to be transferred;
(2) the aggregate amount of the payments;
(3) the discounted present value of the payments to be
transferred, which shall be identified as the "calculation of
current value of the transferred structured settlement payments
under federal standards for valuing annuities," and the amount of
the Applicable Federal Rate used in calculating the discounted
present value;
(4) the gross advance amount;
(5) an itemized listing of all applicable transfer
expenses, other than attorney's fees and related disbursements
payable in connection with the transferee's application for
approval of the transfer, and the transferee's best estimate of the
amount of those expenses;
(6) the net advance amount;
(7) the amount of any penalties or liquidated damages
payable by the payee in the event of any breach of the transfer
agreement by the payee; [and]
(8) [a statement] that the payee has the right to
cancel the transfer agreement, without penalty or further
obligation, not later than the third business day after the date the
agreement is signed by the payee; and
(9) that the payee is advised to seek independent
legal and financial advice before entering into the transaction and
that the transferee will reimburse the payee up to $1,500 for the
costs incurred in obtaining that advice.
SECTION 2. Chapter 141, Civil Practice and Remedies Code,
is amended by adding Section 141.0035 to read as follows:
Sec. 141.0035. MAXIMUM TRANSFER EXPENSES; REIMBURSEMENT OF
CERTAIN PAYEE COSTS. (a) A transferee may not charge a payee
transfer expenses in excess of six percent of the aggregate amount
of the structured settlement payments due to the payee. The
limitation described by this subsection excludes reasonable
attorney's fees, taxes incurred by the transferee as a result of the
transfer, and any other liabilities or costs arising from obtaining
approval of the transfer under this chapter.
(b) The transferee shall reimburse the payee up to $1,500 of
the payee's costs to obtain independent legal and financial advice
with respect to the transfer agreement before the agreement is
entered into. The transferee may not refer the payee to an attorney
or financial advisor.
SECTION 3. This Act takes effect September 1, 2015.