| 1 | 1 | | 88R3618 SRA-D |
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| 2 | 2 | | By: Lujan H.B. No. 3412 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the release of a motor vehicle title to a dealer after |
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| 8 | 8 | | the discharge of a lien. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter B, Chapter 501, Transportation Code, |
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| 11 | 11 | | is amended by adding Section 501.0237 to read as follows: |
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| 12 | 12 | | Sec. 501.0237. ISSUANCE OF TITLE TO DEALER ON DISCHARGE OF |
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| 13 | 13 | | LIEN. (a) A dealer who is unable to obtain a title for a motor |
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| 14 | 14 | | vehicle from a lienholder after the discharge of a lien under |
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| 15 | 15 | | Section 501.115(a) may apply to the department for a title in the |
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| 16 | 16 | | dealer's name for resale purposes not earlier than the 20th day |
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| 17 | 17 | | after the date the debt or claim secured by the lien is fully paid. |
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| 18 | 18 | | (b) An application under Subsection (a) must include: |
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| 19 | 19 | | (1) evidence of full payment of the lien in the form of |
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| 20 | 20 | | a release of lien, proof of payment, electronic funds transfer, or |
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| 21 | 21 | | other sufficient evidence acceptable to the department; |
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| 22 | 22 | | (2) evidence of ownership transfer from the previous |
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| 23 | 23 | | recorded owner to the dealer; and |
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| 24 | 24 | | (3) if the vehicle is subject to odometer disclosure |
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| 25 | 25 | | under Section 501.072, an odometer disclosure statement on a secure |
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| 26 | 26 | | power of attorney form. |
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| 27 | 27 | | (c) If the department issues a title to a dealer under |
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| 28 | 28 | | Subsection (a), the dealer assumes liability for any outstanding |
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| 29 | 29 | | balance due to a lienholder on the motor vehicle and the lienholder |
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| 30 | 30 | | may exercise any available legal remedy to collect the outstanding |
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| 31 | 31 | | balance. |
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| 32 | 32 | | (d) If a title issued to a dealer by the department under |
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| 33 | 33 | | Subsection (a) is later rescinded, canceled, or revoked under |
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| 34 | 34 | | Section 501.051, the department may revalidate a previously |
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| 35 | 35 | | superseded or invalidated title. |
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| 36 | 36 | | SECTION 2. This Act takes effect September 1, 2023. |
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