By:  Wong (Senate Sponsor - Lindsay)                              H.B. No. 2495
	(In the Senate - Received from the House May 10, 2005; 
May 12, 2005, read first time and referred to Committee on 
Transportation and Homeland Security; May 20, 2005, reported 
favorably by the following vote:  Yeas 6, Nays 0; May 20, 2005, 
sent to printer.)


A BILL TO BE ENTITLED

AN ACT


relating to the transfer of a motor vehicle title at a dealer 
auction.    
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 501.071(a), Transportation Code, is 
amended to read as follows:
	(a)  Except as provided in Section 503.039, a [A] motor 
vehicle may not be the subject of a subsequent sale unless the owner 
designated in the certificate of title transfers the certificate of 
title at the time of the sale.
	SECTION 2.  Subchapter B, Chapter 503, Transportation Code, 
is amended by adding Section 503.039 to read as follows:
	Sec. 503.039.  PUBLIC MOTOR VEHICLE AUCTIONS.  A motor 
vehicle may not be the subject of a subsequent sale at an auction by 
a holder of a dealer's general distinguishing number unless:
		(1)  equitable or legal title passes to the holder of a 
dealer's general distinguishing number before a transfer of title 
to the buyer; and
		(2)  the holder of a dealer's general distinguishing 
number transfers the certificate of title to the buyer before the 
21st day after the date of the sale.
	SECTION 3.  This Act takes effect September 1, 2005.                           



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