SRC-LBB S.B. 1507 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1507
By: Harris
Infrastructure Development and Security
4/3/2003
As Filed


DIGEST AND PURPOSE 

As proposed, S.B. 1507 authorizes an owner of a vehicle, under certain
conditions, to use a power of attorney to authorize an agent to execute
title documents for the owner when the owner is voluntarily transferring
title to the vehicle. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 501.076, Transportation Code, as follows:

(a)  Authorizes an owner who has a contractual option to transfer
ownership of a vehicle in full or partial satisfaction of the balance owed
on the vehicle, as provided in Section 348.123(b)(5) (Motor Vehicle
Installment Sales), Finance Code, to execute a written power of attorney
that authorizes an agent to complete and sign for the owner, and provide
to the transferee, the form to transfer the title under Section 501.071
and the odometer disclosure under Section 501.072 of the Transportation
Code, and the other documents necessary to transfer title. 

(b)  Authorizes the owner to execute the power of attorney at the time the
owner enters the contract giving the owner the option to transfer the
vehicle, or at any time after that date.  Authorizes the power of attorney
to only be used if an owner elects to transfer the vehicle in full or
partial satisfaction of the contract, and prohibits use by the holder of
the contract as part of the holder's exercise of a remedy for a default by
the owner under the contract. 

(c)  Requires the person named as the agent in the power of attorney to
meet certain requirements. 

(d)  Requires the holder of a contract to accompany the power of attorney
with a written statement that the vehicle was returned at the election of
the owner in full or partial satisfaction of the owner's obligations under
the contract and not as the result of the exercise by the holder of the
contract of its remedies for default, if a power of attorney is used under
subsection (a). 

(e)  Authorizes a written odometer statement to be included on or with the
power of attorney, or be provided at a later date.  Provides that if a
written odometer statement is not provided, the agent is authorized to
rely upon physical inspection of the odometer or other reasonable measures
to determine the vehicle mileage and complete the odometer disclosure for
the transfer.  Authorizes the holder of the contract or agent to, at least
twenty days before the transfer of title, mail to the owner at the owner's
address on the title or the last address known to the holder of the
contract, notification that the owner is required by law to notify the
agent, at an address specified in the notice, before the expiration of the
notice period if the owner knows that the odometer does not reflect the
actual mileage of the vehicle, if the agent does not receive a written
odometer statement.  Requires such a notification to be in bold letters,
underlined or otherwise conspicuous, and to be a separate statement or
included in documents with other information relating to the potential
transfer.  Requires an owner to notify the agent of that fact within the
stated notice period, if the owner knows that the odometer does not
reflect the actual mileage of the vehicle.  

(f)  Provides that this section does not in any way impair or impede any
transfers made through use of a power of attorney prior to the effective
date of this section, and requires such transfers to continue to be valid
if they comply with the provisions of this section or would otherwise
comply with the law in effect prior to the effective date of this section.
Provides that this section does not apply to powers of attorney authorized
under federal law or regulation that authorize a transferee to act as the
agent of the transferor under certain circumstances, or to powers of
attorney otherwise authorized by the law of this State.  Provides that
this section does not affect the use of powers of attorney to sign,
complete and deliver the form to transfer title and other documents
necessary to transfer title, including the odometer disclosure, in title
transfers other than those described in Subsection (a). 

SECTION 2.  Effective date:  September 1, 2003.