BILL ANALYSIS

 

 

Senate Research Center

S.B. 3009

 

By: Parker

 

Jurisprudence

 

5/13/2025

 

As Filed

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

Texas has strong laws protecting a judgment debtor's property. However, debtor attorneys have exploited legal ambiguities to expand these protections beyond their original intent, allowing more individuals to avoid paying valid debts. Some justices of the peace have even refused to appoint receivers under any circumstances, making it difficult to collect valid judgments. A fair and efficient debt collection process is crucial for the financial system, for small businesses, and for Texans who responsibly pay their debts. The refusal to enforce judgments undermines accountability, weakens creditors' rights, drives up borrowing costs for responsible Texans, and endangers the ability of small businesses and lenders to stay in business.

 

S.B. 3009 restores fairness and uniformity in several ways. First, it clarifies that wage proceeds in bank accounts can be turned over, pursuant to current case law. Second, it requires receivers after six months of unpaid judgments. Third, it allows receivers to seize non-exempt property discovered. Lastly, S.B. 3009 permits receiver appointment for judgment renewal.

 

As proposed, S.B. 3009 amends current law relating to the collection or execution of certain judgments and authorizes fees.

 

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 31.002, Civil Practice and Remedies Code, by adding Subsections (b-1), (d-1), and (e-1) and amending Subsections (f) and (h), as follows:

 

(b-1) Requires the court, additionally, if a judgment creditor is unable to obtain satisfaction on a judgment of a justice court within six months after such judgment was rendered and application for the appointment of a receiver has been made by the judgment creditor, to either grant said application on submission or set the application for hearing, with notice provided by the court to all parties at least fourteen days prior to the hearing. Requires the court, at the hearing, to appoint a receiver unless the judgment debtor contests the application.

 

(d-1) Authorizes a justice court to charge a fee for a motion for the court's assistance under Section 31.002 (Collection of Judgement Through Court Proceeding) not to exceed $25.

 

(e-1) Authorizes an order entered under this section, if the order entered is for the enforcement of a child support obligation or a judgment for past due child support, any costs recoverable under this section, including the fee of a receiver appointed under Subsection (b)(3) (relating to the appointment of a receiver to take possession of certain property and sell it to satisfy a judgement), to be enforced by any means available for the enforcement of the child support obligation or judgment for past due child support.

 

(f) Prohibits a court from entering or enforcing an order under this section that requires the turnover of the sales proceeds of, or the disbursement of, property exempt under any statute, including Section 42.0021 (Additional Exemption For Certain Savings Plans), Property Code. Provides that this subsection does not� prohibit the turnover of nonexempt property subject to garnishment. Makes nonsubstantive changes.

 

(h) Authorizes a court to enter or enforce an order under this section that requires the turnover of nonexempt property without requiring a judgment creditor to prove the existence of specific property subject to turnover. Makes nonsubstantive changes.

 

SECTION 2. Amends Sections 34.001 (a) and (b), Civil Practice and Remedies Code, as follows:

 

(a) Provides that if a writ of execution is not issued or a receiver is not appointed under Section 31.002 within 10 years after the rendition of a judgment of a court of record or a justice court, the judgment is dormant and execution is prohibited from being issued on the judgment unless it is revived.

 

(b) Provides that if a writ of execution is issued or a receiver is appointed under Section 31.002 within 10 years after rendition of a judgment but a second writ is not issued or a receiver is not appointed within 10 years after issuance of the first writ or appointment of that receiver, the judgment becomes dormant.� Authorizes a second writ to be issued or receiver to be appointed at any time within 10 years after issuance of the first writ or receiver appointment.

 

SECTION 3. Provides that Sections 31.002 and 31.010 (Turnover by Financial Institution), Civil Practice and Remedies Code, as amended by this Act, apply to the collection of any judgment, regardless of whether the judgment was entered before, on, or after the effective date of this Act.

 

SECTION 4. (a) Provides that Section 34.001, Civil Practice and Remedies Code, as amended by this Act, applies only to a judgment that is not dormant on the effective date of this Act and� was entered before, on, or after the effective date of this Act.

 

(b) Provides that a judgment that is dormant on the effective date of this Act is governed by the law applicable to the judgment immediately before the effective date of this Act, and that law is continued in effect for that purpose.

 

SECTION 5.� Effective date: September 1, 2025.