1-1 AN ACT
1-2 relating to the discharge of a lien on a motor vehicle and the
1-3 subsequent sale of or issuance of temporary tags for the vehicle.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 501.115(a), Transportation Code, is
1-6 amended to read as follows:
1-7 (a) When a [If the] debt or claim secured by a lien has been
1-8 satisfied, the lienholder[, on the demand of the owner,] shall,
1-9 within a reasonable time not to exceed 21 days from receipt of the
1-10 final payment, execute and deliver to the owner, or the owner's
1-11 designee, a discharge of the lien on a form prescribed by the
1-12 department.
1-13 SECTION 2. Section 501.152, Transportation Code, is amended
1-14 to read as follows:
1-15 Sec. 501.152. Sale or Offer Without Title Receipt or Title.
1-16 (a) Except as provided by this section, a [A] person commits an
1-17 offense if the person:
1-18 (1) sells, offers to sell, or offers as security for
1-19 an obligation a motor vehicle registered in this state; and
1-20 (2) does not possess the title receipt or certificate
1-21 of title for the vehicle.
1-22 (b) It is not a violation of this section for the beneficial
1-23 owner of a vehicle to sell or offer to sell a vehicle without
1-24 having possession of the certificate of title to the vehicle if the
2-1 sole reason he or she does not have possession of the certificate
2-2 of title is that the title is in the possession of a lienholder who
2-3 has not complied with the terms of Section 501.115(a) of this code.
2-4 SECTION 3. Section 503.063, Transportation Code, is amended
2-5 by amending Subsections (a) and (b) and by adding Subsection (f) to
2-6 read as follows:
2-7 (a) Except as provided by this section, a [A] dealer may
2-8 issue to a person who buys an unregistered vehicle one temporary
2-9 cardboard buyer's tag for the vehicle.
2-10 (b) Except as provided by this section, the [The] buyer's
2-11 tag is valid for the operation of the vehicle until the earlier of:
2-12 (1) the date on which the vehicle is registered; or
2-13 (2) the 21st day after the date of purchase.
2-14 (f) A dealer may issue an additional temporary cardboard
2-15 buyer's tag to a person after the expiration of 21 days after the
2-16 issue of a temporary cardboard buyer's tag, and the person may
2-17 operate the vehicle for which the tag was issued on the additional
2-18 temporary cardboard buyer's tag if the dealer has been unable to
2-19 obtain on behalf of the vehicle's owner the necessary documents to
2-20 obtain permanent metal license plates because the documents are in
2-21 the possession of a lienholder who has not complied with the terms
2-22 of Section 501.115(a) of this code. An additional tag issued under
2-23 the terms of this subsection is valid for a maximum of 21 days
2-24 after the date of issue.
2-25 SECTION 4. The importance of this legislation and the
2-26 crowded condition of the calendars in both houses create an
2-27 emergency and an imperative public necessity that the
3-1 constitutional rule requiring bills to be read on three several
3-2 days in each house be suspended, and this rule is hereby suspended,
3-3 and that this Act take effect and be in force from and after its
3-4 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1137 was passed by the House on April
16, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1137 was passed by the Senate on May
12, 1997, by the following vote: Yeas 31, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor