By: Gallego H.B. No. 1032 73R289 NSC-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the imposition of a lien on certain persons convicted 1-3 of criminal offenses to secure payment of restitution, fines, or 1-4 costs. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Chapter 42, Code of Criminal Procedure, is 1-7 amended by adding Article 42.20 to read as follows: 1-8 Art. 42.20. RESTITUTION LIENS 1-9 Sec. 1. DEFINITIONS. In this article: 1-10 (1) "Department" means the Texas Department of 1-11 Transportation. 1-12 (2) "Motor vehicle" has the meaning assigned by 1-13 Section 2, Certificate of Title Act (Article 6687-1, Vernon's Texas 1-14 Civil Statutes). 1-15 Sec. 2. LIEN ESTABLISHED. (a) The victim of a criminal 1-16 offense has a restitution lien to secure the amount of restitution 1-17 to which the victim is entitled under the order of a court in a 1-18 criminal case. 1-19 (b) The state also has a restitution lien to secure the 1-20 amount of fines or costs entered against a defendant in the 1-21 judgment in a criminal case. 1-22 Sec. 3. PERFECTION. A restitution lien is perfected when an 1-23 affidavit to perfect the lien is filed in accordance with this 1-24 article. 2-1 Sec. 4. JUDGMENT REQUIRED. An affidavit to perfect a 2-2 restitution lien may not be filed under this article until a court 2-3 has ordered restitution or entered a judgment requiring the 2-4 defendant to pay a fine or costs. 2-5 Sec. 5. PERSONS WHO MAY FILE. The following persons may 2-6 file an affidavit to perfect a restitution lien: 2-7 (1) the attorney representing the state in a criminal 2-8 case in which a victim is determined by the court to be entitled to 2-9 restitution or in which a defendant is ordered to pay fines or 2-10 costs; or 2-11 (2) a victim in a criminal case determined by the 2-12 court to be entitled to restitution. 2-13 Sec. 6. AFFIDAVIT. An affidavit to perfect a restitution 2-14 lien must be signed by the attorney representing the state or a 2-15 magistrate and must contain: 2-16 (1) the name and date of birth of the defendant whose 2-17 property or other interests are subject to the lien; 2-18 (2) the residence or principal place of business of 2-19 the person named in the lien, if known; 2-20 (3) the criminal proceeding giving rise to the lien, 2-21 including the name of the court, the name of the case, and the 2-22 court's file number for the case; 2-23 (4) the name and address of the attorney representing 2-24 the state and the name and address of the person entitled to 2-25 restitution; 2-26 (5) a statement that the notice is being filed under 2-27 this article; 3-1 (6) the amount of restitution and the amount of fines 3-2 and costs the defendant has been ordered to pay by the court; and 3-3 (7) a statement that the amount of restitution owed at 3-4 any one time may be less than the original balance and that the 3-5 outstanding balance is reflected in the records of the clerk of the 3-6 court hearing the criminal proceeding giving rise to the lien. 3-7 Sec. 7. FILING. (a) An affidavit to perfect a restitution 3-8 lien may be filed with: 3-9 (1) the secretary of state; 3-10 (2) the department; or 3-11 (3) the county clerk of the county in which: 3-12 (A) the crime was committed; 3-13 (B) the defendant resides; or 3-14 (C) the property is located. 3-15 (b) A person who files an affidavit to perfect a restitution 3-16 lien shall pay a filing fee of $25 to the secretary of state, the 3-17 department, or the county clerk. The state or a political 3-18 subdivision of the state is exempt from paying the fee. 3-19 (c) The secretary of state or the department shall deposit 3-20 the filing fee in the state treasury to the credit of the general 3-21 revenue fund. The county clerk shall deposit the fee in the county 3-22 treasury. 3-23 (d) The county clerk shall immediately record the 3-24 restitution lien in the judgment records of the county. The clerk 3-25 shall note in the records the date and hour the lien is received. 3-26 (e) The secretary of state shall immediately file the 3-27 restitution lien in the security interest and financing statements 4-1 records of the secretary of state. The secretary of state shall 4-2 note in the records the date and hour the lien is received. 4-3 (f) The department shall immediately file the restitution 4-4 lien in the motor vehicles records of the department. The 4-5 department shall note in the records the date and hour the lien is 4-6 received. 4-7 (g) When a restitution lien is filed, the county clerk, 4-8 secretary of state, or department shall enter the restitution lien 4-9 in an alphabetical index to the records in which the lien is filed 4-10 showing: 4-11 (1) the name of the person entitled to restitution; 4-12 (2) the name of the defendant obligated to pay 4-13 restitution, fines, or costs; 4-14 (3) the amount of the lien; and 4-15 (4) the name of the court that ordered restitution. 4-16 (h) A person who files an affidavit to perfect a restitution 4-17 lien under this article shall notify in writing the clerk of the 4-18 court entering the judgment creating the lien of all officers or 4-19 entities with which the affidavit was filed. 4-20 Sec. 8. SUBJECT PROPERTY. A restitution lien extends to: 4-21 (1) any interest of the defendant in real property 4-22 located in a county in which the lien is perfected by the filing of 4-23 an affidavit with the county clerk; 4-24 (2) any interest of the defendant in personal property 4-25 other than a motor vehicle if the lien is perfected by the filing 4-26 of the affidavit with the secretary of state; or 4-27 (3) any interest of the defendant in a motor vehicle 5-1 if the lien is perfected by the filing of the affidavit with the 5-2 department. 5-3 Sec. 9. PRIORITY. The perfection of a restitution lien 5-4 under this article is notice of the claim to all persons dealing 5-5 with the defendant or the property identified in the affidavit 5-6 perfecting the lien. A perfected lien in favor of a victim is 5-7 superior and prior to a lien perfected by the state under this 5-8 article, and the perfected lien in favor of the state is superior 5-9 and prior to the claim or interest of any other person, other than: 5-10 (1) a person who possesses a valid lien, or security 5-11 interest, perfected before the perfection of the restitution lien; 5-12 (2) a bona fide purchaser who acquires an interest in 5-13 the property, if personal property, before the filing of the 5-14 restitution lien, to the extent that the purchaser gives value; or 5-15 (3) a bona fide purchaser who acquires and records an 5-16 interest in the property, if real property, before the perfection 5-17 of the restitution lien, to the extent that the purchaser gives 5-18 value. 5-19 Sec. 10. PAYMENT. The clerk or other agency receiving a 5-20 payment from a defendant ordered to pay restitution shall make 5-21 payments to the person having an interest in the restitution lien 5-22 on a schedule of not less than quarterly payments as determined by 5-23 the clerk or agency. 5-24 Sec. 11. FORECLOSURE. If a defendant fails to timely make a 5-25 payment required by the order of the court entering the judgment 5-26 creating the restitution lien, the person having an interest in the 5-27 lien may file suit in a court of competent jurisdiction to 6-1 foreclose the lien. If the defendant cures the default on or 6-2 before the 20th day after the date the suit is filed and pays the 6-3 person who files the suit costs of court and reasonable attorney's 6-4 fees, the court may dismiss the suit without prejudice to the 6-5 person. The person may refile the suit against the defendant if 6-6 the defendant subsequently defaults. 6-7 Sec. 12. EXPIRATION; RECORDS. (a) A restitution lien 6-8 expires on the 10th anniversary of the date the lien was filed or 6-9 on the date the defendant satisfies the judgment creating the lien, 6-10 whichever occurs first. The person having an interest in the lien 6-11 may refile the lien before the date the lien expires. A lien that 6-12 is refiled expires on the 10th anniversary of the date the lien was 6-13 refiled or the date the defendant satisfies the judgment creating 6-14 the lien, whichever occurs first. 6-15 (b) The failure to execute or foreclose the restitution lien 6-16 does not cause dormancy of the lien. 6-17 (c) The clerk of the court entering the judgment creating 6-18 the restitution lien shall maintain a record of the outstanding 6-19 balance of restitution, fines, or costs owed. If the defendant 6-20 satisfies the judgment, the clerk shall immediately notify all 6-21 officers or entities with which the affidavit perfecting the lien 6-22 was filed, as indicated by the notice received by the clerk under 6-23 Section 7(h) of this article. 6-24 SECTION 2. A restitution lien arises only from a judgment in 6-25 a criminal case entered on or after the effective date of this Act. 6-26 SECTION 3. This Act takes effect September 1, 1993. 6-27 SECTION 4. The importance of this legislation and the 7-1 crowded condition of the calendars in both houses create an 7-2 emergency and an imperative public necessity that the 7-3 constitutional rule requiring bills to be read on three several 7-4 days in each house be suspended, and this rule is hereby suspended.