Bill Text: TX HB3412 | 2023-2024 | 88th Legislature | Introduced

Texas House Bill 3412

Introduced

Bill Title: Relating to the release of a motor vehicle title to a dealer after the discharge of a lien.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-04-26 - Left pending in committee [HB3412 Detail]

Download: Texas-2023-HB3412-Introduced.html

	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	Subsection (a) is later rescinded, canceled, or revoked under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	superseded or invalidated title.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.