By Cain S.B. No. 520
76R3548 DWS-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to discharge of a lien on a motor vehicle.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 501.115, Transportation Code, is amended
1-5 to read as follows:
1-6 Sec. 501.115. DISCHARGE OF LIEN. (a) When a debt or claim
1-7 secured by a lien has been satisfied, the lienholder shall, within
1-8 a reasonable time not to exceed 21 days from receipt of the final
1-9 payment, execute and deliver to the assessor-collector of the
1-10 county in which the owner resides:
1-11 (1) [owner, or the owner's designee,] a discharge of
1-12 the lien on a form prescribed by the department;
1-13 (2) an application for a new title in the name of the
1-14 owner of the vehicle; and
1-15 (3) the fee required by Section 501.138(a).
1-16 (b) On delivery of the discharge, application, and fee under
1-17 Subsection (a), [The owner may present the discharge and
1-18 certificate of title to the county assessor-collector with an
1-19 application for a new certificate of title and] the department
1-20 shall issue a new certificate of title.
1-21 SECTION 2. Section 348.005, Finance Code, is amended to read
1-22 as follows:
1-23 Sec. 348.005. ITEMIZED CHARGE. An amount in a retail
1-24 installment contract is an itemized charge if the amount is not
2-1 included in the cash price and is the amount of:
2-2 (1) fees for registration, certificate of title, and
2-3 license, including:
2-4 (A) [and] any additional registration fees
2-5 charged by a full service deputy under Section 502.114,
2-6 Transportation Code; and
2-7 (B) fees for issuance of a new certificate of
2-8 title on discharge of a lien as provided by Section 501.115,
2-9 Transportation Code, if a lien is to be recorded on a certificate
2-10 of title under Chapter 501, Transportation Code;
2-11 (2) any taxes;
2-12 (3) fees or charges prescribed by law and connected
2-13 with the sale or inspection of the motor vehicle; and
2-14 (4) charges authorized for insurance, service
2-15 contracts, or warranties by Subchapter C.
2-16 SECTION 3. Section 342.502, Finance Code, is amended by
2-17 adding Subsection (d) to read as follows:
2-18 (d) On a loan subject to Subchapter E a lender may assess
2-19 and collect from the borrower an amount for a fee for issuance of a
2-20 new certificate of title on discharge of a lien as provided by
2-21 Section 501.115, Transportation Code, if a lien is to be recorded
2-22 on a certificate of title under Chapter 501, Transportation Code.
2-23 SECTION 4. Section 3A.852, Title 79, Revised Statutes
2-24 (Article 5069-3A.852, Vernon's Texas Civil Statutes), is amended by
2-25 adding Subsection (c) to read as follows:
2-26 (c) On a loan subject to Subchapter E a lender may assess
2-27 and collect from the borrower an amount for a fee for issuance of a
3-1 new certificate of title on discharge of a lien as provided by
3-2 Section 501.115, Transportation Code, if a lien is to be recorded
3-3 on a certificate of title under Chapter 501, Transportation Code.
3-4 SECTION 5. The changes in law made by this Act apply only to
3-5 a lien established on or after the effective date of this Act. A
3-6 lien established before the effective date of this Act is governed
3-7 by the law in effect when the lien was established, and that law is
3-8 continued in effect for that purpose.
3-9 SECTION 6. (a) Except as provided by Subsections (b) and
3-10 (c) of this section, this Act takes effect September 1, 1999.
3-11 (b) Section 3 of this Act takes effect only if the Act of
3-12 the 76th Legislature, Regular Session, 1999, relating to
3-13 nonsubstantive additions to and corrections in enacted codes takes
3-14 effect.
3-15 (c) Section 4 of this Act takes effect only if the Act of
3-16 the 76th Legislature, Regular Session, 1999, relating to
3-17 nonsubstantive additions to and corrections in enacted codes does
3-18 not take effect.
3-19 SECTION 7. The importance of this legislation and the
3-20 crowded condition of the calendars in both houses create an
3-21 emergency and an imperative public necessity that the
3-22 constitutional rule requiring bills to be read on three several
3-23 days in each house be suspended, and this rule is hereby suspended.