| 2 | | - | (In the Senate - Filed March 11, 2025; March 25, 2025, read |
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| 3 | | - | first time and referred to Committee on Transportation; |
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| 4 | | - | April 23, 2025, reported favorably by the following vote: Yeas 9, |
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| 5 | | - | Nays 0; April 23, 2025, sent to printer.) |
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| 6 | | - | Click here to see the committee vote |
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| 7 | 3 | | |
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| 8 | 4 | | |
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| 9 | 5 | | |
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| 10 | 6 | | |
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| 11 | 7 | | A BILL TO BE ENTITLED |
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| 12 | 8 | | AN ACT |
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| 13 | 9 | | relating to procedures for the issuance of a bonded title for a |
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| 14 | 10 | | motor vehicle. |
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| 15 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 16 | 12 | | SECTION 1. Section 501.053, Transportation Code, is amended |
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| 17 | 13 | | by amending Subsections (a) and (c) and adding Subsections (b-1) |
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| 18 | 14 | | and (b-2) to read as follows: |
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| 19 | 15 | | (a) As an alternative to the procedure provided by Section |
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| 20 | 16 | | 501.052, the person may obtain a title by filing a bond with the |
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| 21 | 17 | | department if the vehicle is in the possession of the applicant and: |
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| 22 | 18 | | (1) there is no security interest on the vehicle; |
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| 23 | 19 | | (2) any lien on the vehicle is at least 10 years old; |
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| 24 | 20 | | [or] |
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| 25 | 21 | | (3) the person provides a release of all liens less |
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| 26 | 22 | | than 10 years old; or |
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| 27 | 23 | | (4) the lienholder of any lien less than 10 years old |
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| 28 | 24 | | has gone out of business, the security interest on the vehicle was |
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| 29 | 25 | | not transferred to or otherwise acquired by another person, and the |
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| 30 | 26 | | applicant provides sufficient evidence of those facts in the form |
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| 31 | 27 | | and manner prescribed by department rule [with bond]. |
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| 32 | 28 | | (b-1) On receipt of a bond filing under this section, the |
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| 33 | 29 | | department shall notify any recorded owner or lienholder of the |
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| 34 | 30 | | vehicle of the bond filing. |
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| 35 | 31 | | (b-2) If a person who files a bond under this section does |
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| 36 | 32 | | not hold a general distinguishing number issued under Subchapter B, |
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| 37 | 33 | | Chapter 503, the department: |
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| 38 | 34 | | (1) may only issue title on or after the 30th day after |
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| 39 | 35 | | the date on which the person submits an application for title under |
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| 40 | 36 | | Section 501.023; and |
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| 41 | 37 | | (2) may not issue title if any recorded owner or |
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| 42 | 38 | | lienholder with an interest in the vehicle objects to the issuance |
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| 43 | 39 | | of the title. |
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| 44 | 40 | | (c) An interested person has a right of action to recover on |
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| 45 | 41 | | the bond for a breach of the bond's condition. The aggregate |
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| 46 | 42 | | liability of the surety to all persons may not exceed the amount of |
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| 47 | 43 | | the bond. Failure to object to the issuance of title under |
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| 48 | 44 | | Subsection (b-2)(2) does not waive the right of an interested |
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| 49 | 45 | | person to bring an action to recover on the bond filed under this |
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| 50 | 46 | | section. |
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| 51 | 47 | | SECTION 2. The changes in law made by this Act apply only to |
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| 52 | 48 | | a bond for a motor vehicle title that is filed on or after the |
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| 53 | 49 | | effective date of this Act. |
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| 54 | 50 | | SECTION 3. This Act takes effect September 1, 2025. |
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