HBA-MSH H.B. 2557 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2557
By: Jones, Elizabeth
Civil Practices
7/19/2001
Enrolled



BACKGROUND AND PURPOSE 

Occasionally,  a person owed money as a result of a judgment on a claim
(judgment creditor) will refuse to accept payment from the other party to a
suit (judgment debtor) in order to adversely affect the credit rating of
the judgment debtor, which can have financial repercussions beyond the
amount owed under the judgment.  House Bill 2557 provides for the issuance
of a recordable release of judgment if the judgment creditor refuses to
accept payment. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 2557 amends the Civil Practice and Remedies Code to provide that
if a judgment debtor fulfills specified notification requirements and the
judgment creditor refuses to accept payment of the amount under the
judgment or accepts payment under the judgment and refuses to execute a
release of judgment, the bill requires the court to set the matter for
hearing on a party's motion or on the court's own motion to determine
whether or not a release should be filed. On notice and hearing the bill
authorizes the court to direct the judgment debtor to prepare and file a
release of the judgment if the court finds that the amount under the
judgment has been paid or the judgment creditor has accepted payment and
refused to execute a release of judgment.  

EFFECTIVE DATE

September 1, 2001.