89R5545 SRA-F
By: West S.B. No. 2245
A BILL TO BE ENTITLED
AN ACT
relating to procedures for the issuance of a bonded title for a
motor vehicle.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 501.053, Transportation Code, is amended
by amending Subsections (a) and (c) and adding Subsections (b-1)
and (b-2) to read as follows:
(a) As an alternative to the procedure provided by Section
501.052, the person may obtain a title by filing a bond with the
department if the vehicle is in the possession of the applicant and:
(1) there is no security interest on the vehicle;
(2) any lien on the vehicle is at least 10 years old;
[or]
(3) the person provides a release of all liens less
than 10 years old; or
(4) the lienholder of any lien less than 10 years old
has gone out of business, the security interest on the vehicle was
not transferred to or otherwise acquired by another person, and the
applicant provides sufficient evidence of those facts in the form
and manner prescribed by department rule [with bond].
(b-1) On receipt of a bond filing under this section, the
department shall notify any recorded owner or lienholder of the
vehicle of the bond filing.
(b-2) If a person who files a bond under this section does
not hold a general distinguishing number issued under Subchapter B,
Chapter 503, the department:
(1) may only issue title on or after the 30th day after
the date on which the person submits an application for title under
Section 501.023; and
(2) may not issue title if any recorded owner or
lienholder with an interest in the vehicle objects to the issuance
of the title.
(c) An interested person has a right of action to recover on
the bond for a breach of the bond's condition. The aggregate
liability of the surety to all persons may not exceed the amount of
the bond. Failure to object to the issuance of title under
Subsection (b-2)(2) does not waive the right of an interested
person to bring an action to recover on the bond filed under this
section.
SECTION 2. The changes in law made by this Act apply only to
a bond for a motor vehicle title that is filed on or after the
effective date of this Act.
SECTION 3. This Act takes effect September 1, 2025.