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A BILL TO BE ENTITLED
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AN ACT
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relating to the persons who are authorized to request a payoff |
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statement from a property tax lender. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 32.06(a-4) and (a-6), Tax Code, are |
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amended to read as 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; |
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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, a property |
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owner, or a person authorized by the property owner 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-6) Notwithstanding Subsection (f-3), a person [lender] |
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described by Subsection (a-4)(4) may request a payoff statement |
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before the tax loan becomes delinquent. The Finance Commission of |
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Texas by rule shall require a transferee who receives a request for |
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a payoff statement to deliver to the requesting lender, property |
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owner, or person authorized by the property owner the requested |
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payoff statement on the prescribed form within a period prescribed |
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by finance commission rule. The prescribed period must allow the |
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transferee at least seven business days after the date the request |
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is received to deliver the payoff statement. The consumer credit |
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commissioner may assess an administrative penalty under Subchapter |
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F, Chapter 14, Finance Code, against a transferee who wilfully |
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fails to provide the payoff statement as prescribed by finance |
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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 September 1, 2025. |