Texas 2023 - 88th Regular

Texas House Bill HB1933 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R26709 BEE-D
2	2	By: Lujan H.B. No. 1933
3	3	Substitute the following for H.B. No. 1933:
4	4	By: Canales C.S.H.B. No. 1933
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the process for rescinding or canceling a dealer's sale
10	10	of a used motor vehicle.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter C, Chapter 501, Transportation Code,
13	13	is amended by adding Section 501.054 to read as follows:
14	14	Sec. 501.054. RESCISSION OR CANCELLATION OF USED MOTOR
15	15	VEHICLE SALE. (a) The retail sale of a used motor vehicle by a
16	16	dealer may be rescinded or canceled if the rescission or
17	17	cancellation of the sale is acknowledged in a written rescission or
18	18	cancellation agreement signed by the dealer and the buyer not later
19	19	than the 30th day after the date recorded on the vehicle's title
20	20	certificate for the assignment of ownership from the dealer to the
21	21	buyer.
22	22	(b) A dealer shall retain a rescission or cancellation
23	23	agreement described by Subsection (a) with the sale records for the
24	24	vehicle.
25	25	(c) If the sale of a used motor vehicle is rescinded or
26	26	canceled under Subsection (a) before the dealer has submitted an
27	27	application under Section 501.0234 or remitted any money to a
28	28	county or the state in connection with the sale, the dealer:
29	29	(1) is not required to send any application or money to
30	30	a county or the state in connection with the sale; and
31	31	(2) shall return any money that was paid to the dealer
32	32	in connection with the sale to the person who paid the money to the
33	33	dealer.
34	34	(d) If the sale of a used motor vehicle is rescinded or
35	35	canceled under Subsection (a) after the dealer has submitted an
36	36	application under Section 501.0234 or remitted money to a county or
37	37	the state in connection with the sale, the dealer:
38	38	(1) shall refund any money that was paid to the dealer
39	39	in connection with the sale to the person who paid the money to the
40	40	dealer; and
41	41	(2) may request a refund under Subsection (f).
42	42	(e) If the sale of a used motor vehicle is rescinded or
43	43	canceled under Subsection (a), the dealer may request a title for
44	44	resale purposes under Subsection (f).
45	45	(f) Not later than the 15th day after the date the
46	46	rescission or cancellation agreement described by Subsection (a) is
47	47	signed by all required parties, the dealer may submit to the county
48	48	assessor-collector to whom the application was submitted or money
49	49	was remitted:
50	50	(1) a form prescribed by the department certifying
51	51	that the dealer has refunded any money required under Subsection
52	52	(d);
53	53	(2) a copy of the rescission or cancellation
54	54	agreement;
55	55	(3) any certificate of title that was issued in
56	56	connection with the sale before the sale was rescinded or canceled
57	57	or a form prescribed by the department certifying that the title was
58	58	lost or destroyed; and
59	59	(4) a fee in the amount required under Section
60	60	501.138(a), regardless of whether the fee was paid for the
61	61	rescinded or canceled sale.
62	62	(g) Not later than the seventh day after the date the county
63	63	assessor-collector receives all the items described by Subsection
64	64	(f), the county assessor-collector shall, as applicable:
65	65	(1) refund to the dealer all money remitted by the
66	66	dealer to the county assessor-collector in connection with the
67	67	rescinded or canceled sale, except:
68	68	(A) any application fee paid under Section
69	69	501.138(a); and
70	70	(B) any registration processing and handling fee
71	71	paid under Section 502.1911; and
72	72	(2) issue a title to the dealer as described by Section
73	73	501.021 with:
74	74	(A) the dealer as the owner; and
75	75	(B) the odometer reading as recorded at the time
76	76	of the rescinded or canceled sale.
77	77	(h) A dealer may not offer for sale a vehicle that has been
78	78	subject to rescission or cancellation under this section and for
79	79	which a title was issued in connection with the rescinded or
80	80	canceled sale unless the dealer has received a title to the vehicle
81	81	under Subsection (g).
82	82	(i) The rescission or cancellation of the sale of a used
83	83	motor vehicle under this section does not affect the status of the
84	84	vehicle as having been subject to a previous retail sale.
85	85	SECTION 2. Section 152.063, Tax Code, is amended by adding
86	86	Subsection (i) to read as follows:
87	87	(i) The seller of a vehicle the sale of which is rescinded or
88	88	canceled under Section 501.054, Transportation Code, shall keep at
89	89	the seller's principal office for at least four years from the date
90	90	of the sale a copy of the rescission or cancellation agreement.
91	91	SECTION 3. Section 152.121, Tax Code, is amended by adding
92	92	Subsection (d) to read as follows:
93	93	(d) A county assessor-collector may deduct from the amount
94	94	required to be sent to the comptroller under this section an amount
95	95	equal to the amount of taxes and penalties imposed under this
96	96	chapter attributable to the retail sale of a used motor vehicle that
97	97	is rescinded or canceled under Section 501.054, Transportation
98	98	Code, and that the county assessor-collector is required to refund
99	99	under that section. If the county assessor-collector learns of the
100	100	rescission or cancellation of the sale after the amount of the taxes
101	101	and penalties attributable to that sale has been sent to the
102	102	comptroller, the county assessor-collector may deduct the amount of
103	103	those taxes and penalties from the next amount required to be sent
104	104	to the comptroller under this section.
105	105	SECTION 4. This Act takes effect January 1, 2024.