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


Office of House Bill AnalysisC.S.H.B. 2557
By: Jones, Elizabeth
Civil Practices
4/3/2001
Committee Report (Substituted)



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.  C.S.H.B. 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

C.S.H.B. 2557 amends the Civil Practice and Remedies Code to authorize a
judgment debtor who fulfills specified notification requirements to pay to
the court that rendered the judgment the money owed under the judgment to a
judgment creditor whose location is unknown to the judgment debtor or who
refuses to accept payment.  The bill requires a clerk of the court to issue
a recordable release of judgment if the judgment creditor refuses to accept
payment.  If a judgment creditor refuses to accept payment of the amount
under the judgment or accepts payment and refuses to execute a release of
judgment, the bill authorizes the court to set the matter for hearing to
determine whether or not a release should be issued. The bill authorizes
the court to issue a release of judgment if the court finds that the amount
under the judgment has been paid into the court or the judgment creditor
has accepted payment and refuses to execute a release of judgment.   

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2557 differs from the original by authorizing the court to hold a
hearing on the matter and issue a  release of judgment if a judgment
creditor refuses to accept payment or execute a release of judgment.