88R7634 BEE-F
By: Lujan H.B. No. 1933
A BILL TO BE ENTITLED
AN ACT
relating to the process for rescinding or canceling a dealer's sale
of a used motor vehicle.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 501, Transportation Code,
is amended by adding Section 501.054 to read as follows:
Sec. 501.054. RESCISSION OR CANCELLATION OF USED MOTOR
VEHICLE SALE. (a) The retail sale of a used motor vehicle by a
dealer may be rescinded or canceled if the rescission or
cancellation of the sale is acknowledged in a written rescission or
cancellation agreement signed by the dealer and the buyer not later
than the 30th day after the date of the sale.
(b) A dealer shall retain a rescission or cancellation
agreement described by Subsection (a) with the sale records for the
vehicle.
(c) If the sale of a used motor vehicle is rescinded or
canceled under Subsection (a) before the dealer has submitted an
application under Section 501.0234 or remitted any money to a
county or the state in connection with the sale, the dealer:
(1) is not required to send any application or money to
a county or the state in connection with the sale; and
(2) shall return any money that was paid to the dealer
in connection with the sale to the person who paid the money to the
dealer.
(d) If the sale of a used motor vehicle is rescinded or
canceled under Subsection (a) after the dealer has submitted an
application under Section 501.0234 or remitted money to a county or
the state in connection with the sale, the dealer:
(1) shall refund any money that was paid to the dealer
in connection with the sale to the person who paid the money to the
dealer; and
(2) may request a refund under Subsection (f).
(e) If the sale of a used motor vehicle is rescinded or
canceled under Subsection (a), the dealer may request a title for
resale purposes under Subsection (f).
(f) Not later than the 15th day after the date the
rescission or cancellation agreement described by Subsection (a) is
signed by all required parties, the dealer may submit to the county
assessor-collector to whom the application was submitted or money
was remitted:
(1) a form prescribed by the department certifying
that the dealer has refunded any money required under Subsection
(d);
(2) a copy of the rescission or cancellation
agreement;
(3) any certificate of title that was issued in
connection with the sale before the sale was rescinded or canceled
or a form prescribed by the department certifying that the title was
lost or destroyed; and
(4) a fee in the amount required under Section
501.138(a), regardless of whether the fee was paid for the
rescinded or canceled sale.
(g) Not later than the seventh day after the date the county
assessor-collector receives all the items described by Subsection
(f), the county assessor-collector shall, as applicable:
(1) refund to the dealer all money remitted by the
dealer to the county assessor-collector in connection with the
rescinded or canceled sale, except:
(A) any application fee paid under Section
501.138(a); and
(B) any registration processing and handling fee
paid under Section 502.1911; and
(2) issue a title to the dealer as described by Section
501.021 with:
(A) the dealer as the owner; and
(B) the odometer reading as recorded at the time
of the rescinded or canceled sale.
(h) A dealer may not offer for sale a vehicle that has been
subject to rescission or cancellation under this section and for
which a title was issued in connection with the rescinded or
canceled sale unless the dealer has received a title to the vehicle
under Subsection (g).
(i) The rescission or cancellation of the sale of a used
motor vehicle under this section does not affect the status of the
vehicle as having been subject to a previous retail sale.
SECTION 2. This Act takes effect September 1, 2023.