88R3618 SRA-D
By: Lujan H.B. No. 3412
A BILL TO BE ENTITLED
AN ACT
relating to the release of a motor vehicle title to a dealer after
the discharge of a lien.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 501, Transportation Code,
is amended by adding Section 501.0237 to read as follows:
Sec. 501.0237. ISSUANCE OF TITLE TO DEALER ON DISCHARGE OF
LIEN. (a) A dealer who is unable to obtain a title for a motor
vehicle from a lienholder after the discharge of a lien under
Section 501.115(a) may apply to the department for a title in the
dealer's name for resale purposes not earlier than the 20th day
after the date the debt or claim secured by the lien is fully paid.
(b) An application under Subsection (a) must include:
(1) evidence of full payment of the lien in the form of
a release of lien, proof of payment, electronic funds transfer, or
other sufficient evidence acceptable to the department;
(2) evidence of ownership transfer from the previous
recorded owner to the dealer; and
(3) if the vehicle is subject to odometer disclosure
under Section 501.072, an odometer disclosure statement on a secure
power of attorney form.
(c) If the department issues a title to a dealer under
Subsection (a), the dealer assumes liability for any outstanding
balance due to a lienholder on the motor vehicle and the lienholder
may exercise any available legal remedy to collect the outstanding
balance.
(d) If a title issued to a dealer by the department under
Subsection (a) is later rescinded, canceled, or revoked under
Section 501.051, the department may revalidate a previously
superseded or invalidated title.
SECTION 2. This Act takes effect September 1, 2023.