| 1 | 1 | | 89R13682 PRL-F |
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| 2 | 2 | | By: Dorazio H.B. No. 3903 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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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 persons who are authorized to request a payoff |
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| 10 | 10 | | statement from a property tax lender. |
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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. Sections 32.06(a-4) and (a-6), Tax Code, are |
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| 13 | 13 | | amended to read as follows: |
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| 14 | 14 | | (a-4) The Finance Commission of Texas shall: |
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| 15 | 15 | | (1) prescribe the form and content of an appropriate |
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| 16 | 16 | | disclosure statement to be provided to a property owner before the |
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| 17 | 17 | | execution of a tax lien transfer; |
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| 18 | 18 | | (2) adopt rules relating to the reasonableness of |
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| 19 | 19 | | closing costs, fees, and other charges permitted under this |
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| 20 | 20 | | section; |
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| 21 | 21 | | (3) by rule prescribe the form and content of the sworn |
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| 22 | 22 | | document under Subsection (a-1) and the certified statement under |
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| 23 | 23 | | Subsection (b); and |
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| 24 | 24 | | (4) by rule prescribe the form and content of a request |
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| 25 | 25 | | a lender with an existing recorded lien on the property, a property |
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| 26 | 26 | | owner, or a person authorized by the property owner 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-6) Notwithstanding Subsection (f-3), a person [lender] |
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| 31 | 31 | | described by Subsection (a-4)(4) may request a payoff statement |
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| 32 | 32 | | before the tax loan becomes delinquent. The Finance Commission of |
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| 33 | 33 | | Texas by rule shall require a transferee who receives a request for |
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| 34 | 34 | | a payoff statement to deliver to the requesting lender, property |
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| 35 | 35 | | owner, or person authorized by the property owner the requested |
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| 36 | 36 | | payoff statement on the prescribed form within a period prescribed |
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| 37 | 37 | | by finance commission rule. The prescribed period must allow the |
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| 38 | 38 | | transferee at least seven business days after the date the request |
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| 39 | 39 | | is received to deliver the payoff statement. The consumer credit |
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| 40 | 40 | | commissioner may assess an administrative penalty under Subchapter |
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| 41 | 41 | | F, Chapter 14, Finance Code, against a transferee who wilfully |
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| 42 | 42 | | fails to provide the payoff statement as prescribed by finance |
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| 43 | 43 | | commission rule. |
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| 44 | 44 | | SECTION 2. As soon as practicable after the effective date |
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| 45 | 45 | | of this Act, the Finance Commission of Texas shall adopt rules |
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| 46 | 46 | | necessary to implement the changes in law made by this Act. |
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| 47 | 47 | | SECTION 3. This Act takes effect September 1, 2025. |
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