SRC-PNG S.B. 520 76(R) BILL ANALYSIS Senate Research Center S.B. 520 76R3548 DWS-DBy: Cain Economic Development 3/5/1999 As Filed DIGEST Currently, under Texas law, upon the complete payment of a vehicle and the satisfaction of the lien, it is incumbent upon the owner to go to the county tax assessor's office to have the lien released by the state for a fee. This procedure is often not completed by the owner, causing future problems with the vehicle's title. This bill requires the owner of the vehicle to pay the release of lien fee up front to the lender, in order for the tax assessor-collector to process the title immediately upon satisfaction of the lien. PURPOSE As proposed, S.B. 520 sets forth requirements regarding the discharge of a lien on a motor vehicle. 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 Section 501.115, Transportation Code, to require the lienholder, when a debt or claim secured by a lien has been satisfied, to execute and deliver certain documents and required fees to the assessor-collector of the county in which the owner resides within a certain time period. Requires the Department of Transportation (department) to issue a new certificate of title on delivery of those documents. Deletes text authorizing the owner to present certain documents to the county assessor-collector with an application for a new certificate of title. Makes conforming changes. SECTION 2. Amends Section 348.005, Finance Code, to include among the fees for registration, certificate of title, and license, the fees for the issuance of a new certificate of title on discharge of a lien as provided by Section 501.115, Transportation Code, if a lien is to be recorded on a certificate of title under Chapter 501, Transportation Code. Makes conforming changes. SECTION 3. Amends Section 342.502, Finance Code, by adding Subsection (d), to authorize a lender to assess and collect from the borrower, on a loan subject to Subchapter E, an amount for a fee for issuance of a new certificate of title on discharge of a lien as as provided by Section 501.115, Transportation Code, if a lien is to be recorded on a certificate of title under Chapter 501, Transportation Code. SECTION 4. Amends Section 3A.852, Article 5069, V.T.C.S., by adding Subsection (c), to authorize a lender to assess and collect from the borrower, on a loan subject to Subchapter E, an amount for a fee for issuance of a new certificate of title on discharge of a lien as as provided by Section 501.115, Transportation Code, if a lien is to be recorded on a certificate of title under Chapter 501, Transportation Code. SECTION 5. Makes application of this Act prospective. SECTION 6. (a) Effective date: September 1, 1999, except as provided by Subsections (b) and (c). (b) - (c) Provides that SECTION 3 and SECTION 4 of this Act take effect only if the Act of the 76th Legislature, Regular Session, 1999, relating to nonsubstantive additions to and corrections in enacted codes takes effect. SECTION 7. Emergency clause.