1-1 By: Cain S.B. No. 520
1-2 (In the Senate - Filed February 16, 1999; February 17, 1999,
1-3 read first time and referred to Committee on Economic Development;
1-4 March 15, 1999, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 5, Nays 0; March 15, 1999,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 520 By: Sibley
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to discharge of a lien on a motor vehicle.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 501.115, Transportation Code, is amended
1-13 to read as follows:
1-14 Sec. 501.115. DISCHARGE OF LIEN. (a) Except as provided by
1-15 Subsection (c), when [When] a debt or claim secured by a lien has
1-16 been satisfied, the lienholder shall, within a reasonable time not
1-17 to exceed the maximum time allowed by Section 348.408, Finance Code
1-18 [21 days from receipt of the final payment], execute and deliver to
1-19 the assessor-collector of the county in which the owner resides:
1-20 (1) [owner, or the owner's designee,] a discharge of
1-21 the lien on a form prescribed by the department;
1-22 (2) the vehicle's certificate of title;
1-23 (3) an application for a new title in the name of the
1-24 owner of the vehicle; and
1-25 (4) the fee required by Section 501.138(a).
1-26 (b) On delivery of [The owner may present] the discharge,
1-27 [and] certificate of title, application, and fee under Subsection
1-28 (a), [to the county assessor-collector with an application for a
1-29 new certificate of title and] the department shall issue a new
1-30 certificate of title.
1-31 (c) If the final payment received by a lienholder is from a
1-32 dealer designated by the owner to act on behalf of the owner in the
1-33 transfer of title and registration of the vehicle, the lienholder
1-34 shall, in the time provided by this section, deliver to the
1-35 designated dealer a discharge of lien on a form prescribed by the
1-36 department. A lienholder may not be charged a fee for complying
1-37 with this subsection. In this subsection, "dealer" means a person
1-38 who has a dealer general distinguishing number under Chapter 503.
1-39 SECTION 2. Section 348.005, Finance Code, is amended to read
1-40 as follows:
1-41 Sec. 348.005. ITEMIZED CHARGE. An amount in a retail
1-42 installment contract is an itemized charge if the amount is not
1-43 included in the cash price and is the amount of:
1-44 (1) fees for registration, certificate of title, and
1-45 license, including:
1-46 (A) [and] any additional registration fees
1-47 charged by a full service deputy under Section 502.114,
1-48 Transportation Code; and
1-49 (B) fees for issuance of a new certificate of
1-50 title on discharge of a lien as provided by Section 501.115,
1-51 Transportation Code, if a lien is to be recorded on a certificate
1-52 of title under Chapter 501, Transportation Code;
1-53 (2) any taxes;
1-54 (3) fees or charges prescribed by law and connected
1-55 with the sale or inspection of the motor vehicle; and
1-56 (4) charges authorized for insurance, service
1-57 contracts, or warranties by Subchapter C.
1-58 SECTION 3. Section 342.502, Finance Code, is amended by
1-59 adding Subsection (d) to read as follows:
1-60 (d) On a loan subject to Subchapter E a lender may assess
1-61 and collect from the borrower an amount for a fee for issuance of a
1-62 new certificate of title on discharge of a lien as provided by
1-63 Section 501.115, Transportation Code, if a lien is to be recorded
1-64 on a certificate of title under Chapter 501, Transportation Code.
2-1 SECTION 4. Section 3A.852, Title 79, Revised Statutes
2-2 (Article 5069-3A.852, Vernon's Texas Civil Statutes), is amended by
2-3 adding Subsection (c) to read as follows:
2-4 (c) On a loan subject to Subchapter E a lender may assess
2-5 and collect from the borrower an amount for a fee for issuance of a
2-6 new certificate of title on discharge of a lien as provided by
2-7 Section 501.115, Transportation Code, if a lien is to be recorded
2-8 on a certificate of title under Chapter 501, Transportation Code.
2-9 SECTION 5. The changes in law made by this Act apply only to
2-10 a lien established on or after the effective date of this Act. A
2-11 lien established before the effective date of this Act is governed
2-12 by the law in effect when the lien was established, and that law is
2-13 continued in effect for that purpose.
2-14 SECTION 6. (a) Except as provided by Subsections (b) and
2-15 (c) of this section, this Act takes effect September 1, 1999.
2-16 (b) Section 3 of this Act takes effect only if the Act of
2-17 the 76th Legislature, Regular Session, 1999, relating to
2-18 nonsubstantive additions to and corrections in enacted codes takes
2-19 effect.
2-20 (c) Section 4 of this Act takes effect only if the Act of
2-21 the 76th Legislature, Regular Session, 1999, relating to
2-22 nonsubstantive additions to and corrections in enacted codes does
2-23 not take effect.
2-24 SECTION 7. The importance of this legislation and the
2-25 crowded condition of the calendars in both houses create an
2-26 emergency and an imperative public necessity that the
2-27 constitutional rule requiring bills to be read on three several
2-28 days in each house be suspended, and this rule is hereby suspended.
2-29 * * * * *