SRC-PNG C.S.S.B. 520 76(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 520
76R9092 DWS-FBy: Cain
Economic Development
3/9/1999
Committee Report (Substituted)


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, C.S.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, except as provided by Subsection (c).  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.  Requires the lienholder to
deliver to the designated dealer, by a certain time, a discharge of lien on
a form prescribed by the department, if the final payment received by the
lienholder is from a dealer designated by the owner to act on behalf of the
owner in the transfer of title and registration of the vehicle.  Prohibits
the lienholder from charging a fee for complying with this subsection.
Defines "dealer."  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.



SUMMARY OF COMMITTEE CHANGES

SECTION 1. 

Amends Section 501.115, Transportation Code, by changing the maximum time a
lienholder has to execute and deliver certain documents, including a
certificate of title, to the assessorcollector of the county in which the
owner resides, except as provided by Subsection (c). Requires the
lienholder to deliver to the designated dealer, by a certain time, a
discharge of lien on a form prescribed by the department, if the final
payment received by the lienholder is from a dealer designated by the owner
to act on behalf of the owner in the transfer of title and registration of
the vehicle.  Prohibits the lienholder from charging a fee for complying
with this subsection.   Defines "dealer."  Makes conforming changes.