Bill Text: TX HB1933 | 2023-2024 | 88th Legislature | Comm Sub
Bill Title: Relating to the process for rescinding or canceling a dealer's sale of a used motor vehicle.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-05-11 - Placed on General State Calendar [HB1933 Detail]
Download: Texas-2023-HB1933-Comm_Sub.html
88R26709 BEE-D | |||
By: Lujan | H.B. No. 1933 | ||
Substitute the following for H.B. No. 1933: | |||
By: Canales | C.S.H.B. No. 1933 |
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relating to the process for rescinding or canceling a dealer's sale | ||
of a used motor vehicle. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter C, Chapter 501, Transportation Code, | ||
is amended by adding Section 501.054 to read as follows: | ||
Sec. 501.054. RESCISSION OR CANCELLATION OF USED MOTOR | ||
VEHICLE SALE. (a) The retail sale of a used motor vehicle by a | ||
dealer may be rescinded or canceled if the rescission or | ||
cancellation of the sale is acknowledged in a written rescission or | ||
cancellation agreement signed by the dealer and the buyer not later | ||
than the 30th day after the date recorded on the vehicle's title | ||
certificate for the assignment of ownership from the dealer to the | ||
buyer. | ||
(b) A dealer shall retain a rescission or cancellation | ||
agreement described by Subsection (a) with the sale records for the | ||
vehicle. | ||
(c) If the sale of a used motor vehicle is rescinded or | ||
canceled under Subsection (a) before the dealer has submitted an | ||
application under Section 501.0234 or remitted any money to a | ||
county or the state in connection with the sale, the dealer: | ||
(1) is not required to send any application or money to | ||
a county or the state in connection with the sale; and | ||
(2) shall return any money that was paid to the dealer | ||
in connection with the sale to the person who paid the money to the | ||
dealer. | ||
(d) If the sale of a used motor vehicle is rescinded or | ||
canceled under Subsection (a) after the dealer has submitted an | ||
application under Section 501.0234 or remitted money to a county or | ||
the state in connection with the sale, the dealer: | ||
(1) shall refund any money that was paid to the dealer | ||
in connection with the sale to the person who paid the money to the | ||
dealer; and | ||
(2) may request a refund under Subsection (f). | ||
(e) If the sale of a used motor vehicle is rescinded or | ||
canceled under Subsection (a), the dealer may request a title for | ||
resale purposes under Subsection (f). | ||
(f) Not later than the 15th day after the date the | ||
rescission or cancellation agreement described by Subsection (a) is | ||
signed by all required parties, the dealer may submit to the county | ||
assessor-collector to whom the application was submitted or money | ||
was remitted: | ||
(1) a form prescribed by the department certifying | ||
that the dealer has refunded any money required under Subsection | ||
(d); | ||
(2) a copy of the rescission or cancellation | ||
agreement; | ||
(3) any certificate of title that was issued in | ||
connection with the sale before the sale was rescinded or canceled | ||
or a form prescribed by the department certifying that the title was | ||
lost or destroyed; and | ||
(4) a fee in the amount required under Section | ||
501.138(a), regardless of whether the fee was paid for the | ||
rescinded or canceled sale. | ||
(g) Not later than the seventh day after the date the county | ||
assessor-collector receives all the items described by Subsection | ||
(f), the county assessor-collector shall, as applicable: | ||
(1) refund to the dealer all money remitted by the | ||
dealer to the county assessor-collector in connection with the | ||
rescinded or canceled sale, except: | ||
(A) any application fee paid under Section | ||
501.138(a); and | ||
(B) any registration processing and handling fee | ||
paid under Section 502.1911; and | ||
(2) issue a title to the dealer as described by Section | ||
501.021 with: | ||
(A) the dealer as the owner; and | ||
(B) the odometer reading as recorded at the time | ||
of the rescinded or canceled sale. | ||
(h) A dealer may not offer for sale a vehicle that has been | ||
subject to rescission or cancellation under this section and for | ||
which a title was issued in connection with the rescinded or | ||
canceled sale unless the dealer has received a title to the vehicle | ||
under Subsection (g). | ||
(i) The rescission or cancellation of the sale of a used | ||
motor vehicle under this section does not affect the status of the | ||
vehicle as having been subject to a previous retail sale. | ||
SECTION 2. Section 152.063, Tax Code, is amended by adding | ||
Subsection (i) to read as follows: | ||
(i) The seller of a vehicle the sale of which is rescinded or | ||
canceled under Section 501.054, Transportation Code, shall keep at | ||
the seller's principal office for at least four years from the date | ||
of the sale a copy of the rescission or cancellation agreement. | ||
SECTION 3. Section 152.121, Tax Code, is amended by adding | ||
Subsection (d) to read as follows: | ||
(d) A county assessor-collector may deduct from the amount | ||
required to be sent to the comptroller under this section an amount | ||
equal to the amount of taxes and penalties imposed under this | ||
chapter attributable to the retail sale of a used motor vehicle that | ||
is rescinded or canceled under Section 501.054, Transportation | ||
Code, and that the county assessor-collector is required to refund | ||
under that section. If the county assessor-collector learns of the | ||
rescission or cancellation of the sale after the amount of the taxes | ||
and penalties attributable to that sale has been sent to the | ||
comptroller, the county assessor-collector may deduct the amount of | ||
those taxes and penalties from the next amount required to be sent | ||
to the comptroller under this section. | ||
SECTION 4. This Act takes effect January 1, 2024. |