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A BILL TO BE ENTITLED
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AN ACT
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relating to the form, content, and provision of payoff statements |
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for property tax loans. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 32.06, Tax Code, is amended by amending |
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Subsection (a-4) and adding Subsections (a-5) and (a-6) to read as |
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follows: |
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(a-4) The Finance Commission of Texas shall: |
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(1) prescribe the form and content of an appropriate |
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disclosure statement to be provided to a property owner before the |
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execution of a tax lien transfer; |
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(2) adopt rules relating to the reasonableness of |
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closing costs, fees, and other charges permitted under this |
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section; [and] |
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(3) by rule prescribe the form and content of the sworn |
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document under Subsection (a-1) and the certified statement under |
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Subsection (b); and |
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(4) by rule prescribe the form and content of a request |
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a lender with an existing recorded lien on the property must use to |
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request a payoff statement and the transferee's response to the |
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request, including the period within which the transferee must |
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respond. |
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(a-5) At the time the transferee provides the disclosure |
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statement required by Subsection (a-4)(1), the transferee must also |
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describe the type and approximate cost range of each additional |
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charge or fee that the property owner may incur in connection with |
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the transfer. |
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(a-6) Notwithstanding Subsection (f-3), a lender described |
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by Subsection (a-4)(4) may request a payoff statement before the |
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tax loan becomes delinquent. The Finance Commission of Texas by |
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rule shall require a transferee who receives a request for a payoff |
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statement to deliver the requested payoff statement on the |
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prescribed form within a period prescribed by finance commission |
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rule. The prescribed period must allow the transferee at least |
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seven business days after the date the request is received to |
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deliver the payoff statement. The consumer credit commissioner may |
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assess an administrative penalty under Subchapter F, Chapter 14, |
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Finance Code, against a transferee who wilfully fails to provide |
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the payoff statement as prescribed by finance commission rule. |
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SECTION 2. As soon as practicable after the effective date |
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of this Act, the Finance Commission of Texas shall adopt rules |
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necessary to implement the changes in law made by this Act. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |