SRC-SLL S.B. 309 75(R) BILL ANALYSIS Senate Research CenterS.B. 309 By: Wentworth Jurisprudence 4-22-97 As Filed DIGEST Currently, Texas law allows a creditor to obtain a judgment against a debtor for unpaid or delinquent payments. After obtaining a judgment, creditors follow the common practice of abstracting and filing the judgment to establish priority and to inform the public. In certain circumstances, debtors who have refused to pay, or become delinquent on loan payments, have sued their creditors for obtaining, abstracting, and filing judgments. This bill will prohibit recovery of damages in a suit for slander of title to real property alleging that a lien filed against the property creates a cloud on the title. PURPOSE As proposed, S.B. 309 prohibits recovery of damages in certain suits for slander of title to real property. RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Title 4, Property Code, by adding Chapter 30, as follows: CHAPTER 30. SLANDER OF TITLE Sec. 30.001. UNENFORCEABLE LIEN. Prohibits a person from recovering damages in a suit for slander of title to real property alleging that a lien filed against the property creates a cloud on the title to the property if the lien is not enforceable against the property. SECTION 2. Effective date: September 1, 1997. Makes application of this Act prospective.