89R13682 PRL-F
By: Dorazio H.B. No. 3903
A BILL TO BE ENTITLED
AN ACT
relating to the persons who are authorized to request a payoff
statement from a property tax lender.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 32.06(a-4) and (a-6), Tax Code, are
amended to read as follows:
(a-4) The Finance Commission of Texas shall:
(1) prescribe the form and content of an appropriate
disclosure statement to be provided to a property owner before the
execution of a tax lien transfer;
(2) adopt rules relating to the reasonableness of
closing costs, fees, and other charges permitted under this
section;
(3) by rule prescribe the form and content of the sworn
document under Subsection (a-1) and the certified statement under
Subsection (b); and
(4) by rule prescribe the form and content of a request
a lender with an existing recorded lien on the property, a property
owner, or a person authorized by the property owner must use to
request a payoff statement and the transferee's response to the
request, including the period within which the transferee must
respond.
(a-6) Notwithstanding Subsection (f-3), a person [lender]
described by Subsection (a-4)(4) may request a payoff statement
before the tax loan becomes delinquent. The Finance Commission of
Texas by rule shall require a transferee who receives a request for
a payoff statement to deliver to the requesting lender, property
owner, or person authorized by the property owner the requested
payoff statement on the prescribed form within a period prescribed
by finance commission rule. The prescribed period must allow the
transferee at least seven business days after the date the request
is received to deliver the payoff statement. The consumer credit
commissioner may assess an administrative penalty under Subchapter
F, Chapter 14, Finance Code, against a transferee who wilfully
fails to provide the payoff statement as prescribed by finance
commission rule.
SECTION 2. As soon as practicable after the effective date
of this Act, the Finance Commission of Texas shall adopt rules
necessary to implement the changes in law made by this Act.
SECTION 3. This Act takes effect September 1, 2025.