BILL ANALYSIS
Senate Research Center S.B. 300
By: Ellis
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Current law provides that a judgment becomes dormant (or "stale") if not revived every 10 years by the issuance of a writ of execution, which has the effect of renewing the judgment lien once an abstract of the judgment is recorded. Ordinarily, the judgment lien expires if not properly renewed, and studies have found that the renewal process is both time-consuming and costly.
S.B. 300 prevents a judgment in favor of the state or a state agency (including an institution of higher education) from becoming dormant and extends the life of a judgment lien from 10 to 20 years, thereby reducing the time and costs associated with the renewal process.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 52.006, Property Code, as follows:
(a) Creates this subsection from existing text. Provides an exception.
(b) Provides that, notwithstanding Section 34.001 (No Execution on Dormant Judgment), Civil Practices and Remedies Code, a judgment in favor of the state or a state agency does not become dormant. Provides that a properly filed abstract continues to constitute a lien under Section 52.001 until the earlier of the 20th anniversary of the date the abstract is recorded and indexed or the date the judgment is satisfied or the lien is released. Authorizes the lien to be renewed for one additional 20-year period by filing a renewed abstract of judgment in a certain manner before the expiration of the original 20-year period. Provides that the renewed judgment lien relates back to the date the original abstract was filed.
SECTION 2. Sets forth the judgments to which this Act applies.
SECTION 3. Effective date: upon passage or September 1, 2007.