| 1 | 1 | | By: Menéndez S.B. No. 3019 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | relating to authority process of a recorded lien. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 32.06, Tax Code, is amended as follows: |
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| 11 | 11 | | (a-4) The Finance Commission of Texas shall: |
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| 12 | 12 | | (1) prescribe the form and content of an appropriate |
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| 13 | 13 | | disclosure statement to be provided to a property owner before the |
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| 14 | 14 | | execution of a tax lien transfer; |
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| 15 | 15 | | (2) adopt rules relating to the reasonableness of |
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| 16 | 16 | | closing costs, fees, and other charges permitted under this |
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| 17 | 17 | | section; |
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| 18 | 18 | | (3) by rule prescribe the form and content of the sworn |
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| 19 | 19 | | document under Subsection (a-1) and the certified statement under |
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| 20 | 20 | | Subsection (b); and |
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| 21 | 21 | | (4) by rule prescribe the form and content of a request |
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| 22 | 22 | | a lender with an existing recorded lien on the property, consumer, |
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| 23 | 23 | | or third party authorized by the consumer must use to request a |
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| 24 | 24 | | payoff statement and the transferee's response to the request, |
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| 25 | 25 | | including the period within which the transferee must respond. |
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| 26 | 26 | | (a-5) At the time the transferee provides the disclosure |
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| 27 | 27 | | statement required by Subsection (a-4)(1), the transferee must also |
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| 28 | 28 | | describe the type and approximate cost range of each additional |
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| 29 | 29 | | charge or fee that the property owner may incur in connection with |
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| 30 | 30 | | the transfer. |
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| 31 | 31 | | (a-6) Notwithstanding Subsection (f-3), a lenderparty |
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| 32 | 32 | | described by Subsection (a-4)(4) may request a payoff statement |
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| 33 | 33 | | before the tax loan becomes delinquent. The Finance Commission of |
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| 34 | 34 | | Texas by rule shall require a transferee who receives a request for |
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| 35 | 35 | | a payoff statement to deliver the requested payoff statement on the |
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| 36 | 36 | | prescribed form within a period prescribed by finance commission |
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| 37 | 37 | | rule. The prescribed period must allow the transferee at least |
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| 38 | 38 | | seven business days after the date the request is received to |
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| 39 | 39 | | deliver the payoff statement. The consumer credit commissioner may |
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| 40 | 40 | | assess an administrative penalty under Subchapter F, Chapter 14, |
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| 41 | 41 | | Finance Code, against a transferee who wilfully fails to provide |
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| 42 | 42 | | the payoff statement as prescribed by finance commission rule. |
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| 43 | 43 | | SECTION 2. This Act takes effect January 1, 2025. |
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