Amends TCA Title 55.

This bill requires that the notation of liens and encumbrances and extensions of mortgages on certificates of title be performed by county clerks. <br /> <br /> PRESENT LAW<br /> <br /> Generally under present law, when a new lien is placed on a motor vehicle in a transaction not involving any change of ownership, the owner delivers the certificate of title, if in the owner's possession, to the lienor, and the lienor forwards the certificate of title, with proof of the lien directly to the department of revenue. The department, when satisfied of the lienor's right to have the lien noted on the certificate of title, notes the lien on the certificate of title and returns the certificate of title to the lienor. <br /> <br /> Present law authorizes county clerks to perform, at their option, duties in connection with services normally performed by the department related to the notation of liens and encumbrances and the extension of mortgages. <br /> <br /> The fee for noting a new lien or encumbrance, transferring a lien or encumbrance, or noting on a certificate of title the extension of any mortgage is $11.00.<br /> <br /> THIS BILL<br /> <br /> This bill requires, instead of authorizes, county clerks to perform the duties in connection with the notation of liens and encumbrances on certificates of title. Under this bill, lienors will forward certificates to title and proof of a lien directly to the county clerks for notation, thereby removing the department from the notation process. <br /> <br /> Under this bill, the county clerk will retain $3.00 of the $11.00. The funds retained by the clerk will be earmarked for office supplies and equipment required to perform duties in connection with services related to the notation of liens and encumbrances and the extension of mortgages on certificates of title. The remaining $8.00 will go to the department.<br /> <br /> ON APRIL 8, 2019, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 82, AS AMENDED.<br /> <br /> AMENDMENT #1 revises the provisions governing situations where the certificate of title is in the possession of some prior lienor. In such cases under this bill, the new or subordinate lienor will forward to the clerk only the required fee for noting the lien, together with proof of the lien, and the clerk, when satisfied of the right of the lienor to have the lien noted on the certificate of title, will forward the application and proof of lien to the department, and the department will procure the certificate of title from the lienor in whose possession it is being held for the sole purpose of noting the new lien before returning the noted certificate to the lienor. This amendment also deletes this bill's provision for the clerk retaining $3.00 of the $11.00 fee.<br /> <br />