Bill Text: TX HB3412 | 2023-2024 | 88th Legislature | 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 | |
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| 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| Subsection (a) is later rescinded, canceled, or revoked under | ||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| superseded or invalidated title.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. | ||
