79(R) SB 1152 - Senate Committee Report version


                                                                                


By:  Harris                                                       S.B. No. 1152
	(In the Senate - Filed March 8, 2005; March 21, 2005, read 
first time and referred to Committee on Jurisprudence; May 2, 2005, 
reported adversely, with favorable Committee Substitute by the 
following vote:  Yeas 4, Nays 0; May 2, 2005, sent to printer.)


COMMITTEE SUBSTITUTE FOR S.B. No. 1152                                   By:  Gallegos


A BILL TO BE ENTITLED

AN ACT


relating to the perfection of a child support lien on a motor 
vehicle.    
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 157.316, Family Code, is amended by 
amending Subsection (b) and adding Subsection (c) to read as 
follows:
	(b)  If a lien established under this subchapter attaches to 
a motor vehicle, the lien must be perfected in the manner provided 
by Chapter 501, Transportation Code, and unless the lien is 
asserted by the Title IV-D agency as described by Subsection (c), 
the court [or Title IV-D agency] that rendered the order of child 
support shall include in the order a requirement that the obligor 
surrender to the court [or Title IV-D agency] evidence of the legal 
ownership of the motor vehicle against which the lien may attach.  A 
lien against a motor vehicle under this subchapter is not perfected 
under this subsection until the obligor's title to the vehicle has 
been surrendered to the court [or Title IV-D agency] and the Texas 
Department of Transportation has issued a subsequent title that 
discloses on its face the fact that the vehicle is subject to a 
child support lien under this subchapter.
	(c)  The Title IV-D agency may perfect a lien asserted by the 
Title IV-D agency against a motor vehicle under this subchapter in 
the manner provided by Section 501.1135, Transportation Code.
	SECTION 2.  Section 157.322, Family Code, is amended to read 
as follows:     
	Sec. 157.322.  MANDATORY RELEASE OF LIEN.  (a)  On payment 
in full of the amount of child support due, together with any costs 
and reasonable attorney's fees, the child support lien claimant 
shall execute and deliver to the obligor or the obligor's attorney a 
release of the child support lien.  If the Title IV-D agency 
asserted a child support lien against a motor vehicle, the agency 
shall deliver to the obligor or the obligor's attorney a discharge 
of the lien under Section 501.115, Transportation Code.
	(b)  The release or discharge of the child support lien is 
effective when:
		(1)  filed with the county clerk with whom the lien 
notice or abstract of judgment was filed; or
		(2)  delivered to any other individual or organization 
that may have been served with a lien notice under this subchapter.
	SECTION 3.  Subsection (a), Section 501.113, Transportation 
Code, is amended to read as follows:
	(a)  Except as provided by Section 501.1135, recordation
[Recordation] of a lien under this chapter is considered to occur 
when the county assessor-collector:
		(1)  is presented with an application for a certificate 
of title that discloses the lien with tender of the filing fee; or
		(2)  accepts the application.                                                 
	SECTION 4.  Subchapter F, Chapter 501, Transportation Code, 
is amended by adding Section 501.1135 to read as follows:
	Sec. 501.1135.  PERFECTION AND RECORDATION OF CHILD SUPPORT 
LIEN.  (a)  In this section:
		(1)  "Obligor" has the meaning assigned by Section 
101.022, Family Code.
		(2)  "Title IV-D agency" has the meaning assigned by 
Section 101.033, Family Code.
	(b)  The Title IV-D agency may perfect a child support lien 
asserted by the Title IV-D agency on a motor vehicle registered in 
this state by delivering to the department a copy of the child 
support lien notice issued by the Title IV-D agency under 
Subchapter G, Chapter 157, Family Code.  The child support lien 
notice must contain the information required by Section 157.313, 
Family Code, including the identification number of the motor 
vehicle against which the lien is asserted.
	(c)  On receiving a copy of a child support lien notice from 
the Title IV-D agency under Subsection (b), if the department finds 
a record of a certificate of title issued in the name of the 
obligor, the department shall process the lien and issue a new 
certificate of title that discloses on its face the fact that the 
vehicle is subject to a child support lien asserted by the Title 
IV-D agency under Subchapter G, Chapter 157, Family Code.
	(d)  A lien perfected under this section does not affect the 
validity or priority of a conveyance of an interest in the motor 
vehicle, a lien of a holder of a security interest in the motor 
vehicle, or a vendor's lien on the motor vehicle established before 
the date the child support lien was perfected on the certificate of 
title.
	(e)  A certificate of title issued under this section is 
exempt from the fee imposed under Section 501.138.
	(f)  The department and the Title IV-D agency by rule shall 
adopt procedures for the implementation of this section.
	SECTION 5.  The Texas Department of Transportation and the 
Title IV-D agency shall adopt the rules required by Subsection (f), 
Section 501.1135, Transportation Code, as added by this Act, as 
soon as practicable after the effective date of this Act.
	SECTION 6.  This Act takes effect September 1, 2005.                           



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