By: Harris S.B. No. 1507
A BILL TO BE ENTITLED
AN ACT
relating to the use of powers of attorney in certain motor vehicle
transfers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 501, Transportation Code,
is amended by adding Section 501.076 to read as follows:
Sec. 501.076. LIMITED POWER OF ATTORNEY. (a) 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), Finance Code, may execute a
written limited 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, and the other documents necessary
to transfer title.
(b) The owner may execute the limited 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. The limited
power of attorney may only be used if an owner elects to transfer
the vehicle in full or partial satisfaction of the contract and may
not be used 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) The person named as the agent in the limited power of
attorney must meet the following requirements:
(1) the person may be a person who has been appointed
by the Commissioner's Court as a deputy to perform vehicle
registration functions under Section 502.112, a license vehicle
auction company holding a wholesale general distinguishing number
under Section 503.022, a person who has a permit similar to one of
the foregoing that is issued by the state in which the owner is
located, or another person authorized by law to execute title
documents in the state in which the owner executes the documents;
and
(2) the person may not be the transferee or an employee
of the transferee. The person may not act as the agent of both the
transferor and transferee in the transaction. For the purposes of
this section, a person is not the agent of both the transferor and
transferee in a transaction unless the person has the authority to
sign the documents pertaining to the transfer of title on behalf of
both the transferor and the transferee.
(d) If a limited power of attorney is used under Subsection
(a), the holder of the contract shall 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.
(e) A written odometer statement may be included on or with
the power of attorney or may be provided at a later date. 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. If the agent does not
receive a written odometer statement, the holder of the contract or
agent may also, at least 20 days before the transfer of title, mail
to the owner at the owner's address on the title or the last known
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. Such a notification shall be in bold
letters, underlined or otherwise conspicuous, and may be a separate
statement or included in documents with other information relating
to the potential transfer. If the owner knows that the odometer
does not reflect the actual mileage of the vehicle, the owner shall
notify the agent of that fact within the stated notice period.
(f) 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 such transfers shall 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. 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. 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).
(g) The power of attorney created in this section shall be
limited for the purposes and duration specified in this section.
SECTION 2. This Act takes effect September 1, 2003.