Amend HB 3842 (senate committee printing) by adding the following appropriately numbered SECTIONS to the bill and renumbering subsequent SECTIONS of the bill accordingly:
SECTION ____. Subchapter B, Chapter 501, Transportation Code, is amended by adding Section 501.0236 to read as follows:
Sec. 501.0236. ISSUANCE OF TITLE AND PERMITS WHEN DEALER GOES OUT OF BUSINESS. (a) This section applies only to a person who is the purchaser of a motor vehicle for which the dealer:
(1) is required to apply for a title for the vehicle under Section 501.0234; and
(2) does not apply for the title because the dealer has gone out of business.
(b) A purchaser to whom this section applies may apply for:
(1) a title in the manner prescribed by the department by rule; and
(2) on expiration of the buyer's tag issued to the purchaser under Section 503.063, a 30-day permit under Section 502.095.
(c) An application for a title under this section must include a release of any recorded lien on the motor vehicle unless the only recorded lienholder is a dealer described by Subsection (a).
(d) The department shall waive the payment of fees for:
(1) a title issued to a purchaser described by this section, if the purchaser can show that fees for a title were paid to the dealer; and
(2) one 30-day permit issued to a purchaser described by this section.
(e) Notwithstanding Section 503.033(e), the department may recover against the surety bond executed by the dealer under Section 503.033 the amount of any fee waived for a title or permit issued under this section.
(f) The department shall adopt the rules necessary to implement this section.
SECTION ____. The heading to Section 503.033, Transportation Code, is amended to read as follows:
Sec. 503.033. SURETY BOND REQUIRED; LIABILITY OF SURETY [SECURITY REQUIREMENT].
SECTION ____. Sections 503.033(a) and (d), Transportation Code, are amended to read as follows:
(a) The department may not issue or renew a motor vehicle dealer general distinguishing number or a wholesale motor vehicle auction general distinguishing number unless the applicant provides to the department[:
[(1)] satisfactory proof that the applicant has purchased a properly executed surety bond in the amount of $50,000 [$25,000] with a good and sufficient surety approved by the department[; or
[(2) other security under Subsection (c)].
(d) A person may recover against a surety bond [or other security] if the person obtains against a person issued a motor vehicle dealer general distinguishing number or a wholesale motor vehicle auction general distinguishing number a judgment assessing damages and reasonable attorney's fees based on an act or omission on which the bond is conditioned that occurred during the term for which the general distinguishing number was valid.