By Uher                                               H.B. No. 1137

         Substitute the following for H.B. No. 1137:

         By Alexander                                      C.S.H.B. No. 1137

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the requirement that the holder of a discharged lien on

 1-3     a motor vehicle execute the discharge of the lien.

 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 the dealer has been unable

2-19     to obtain on behalf of the vehicle's owner, the necessary documents

2-20     to obtain permanent metal license plates because the documents are

2-21     in the possession of a lienholder who has not complied with the

2-22     terms of Section 501.115(a) of this code.  An additional tag issued

2-23     under the terms of this subsection is valid for a maximum of 21

2-24     days 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.