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A BILL TO BE ENTITLED
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AN ACT
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relating to the process for rescinding or canceling a dealer's sale |
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of a used motor vehicle. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 501, Transportation Code, |
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is amended by adding Section 501.054 to read as follows: |
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Sec. 501.054. RESCISSION OR CANCELLATION OF USED MOTOR |
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VEHICLE SALE. (a) The retail sale of a used motor vehicle by a |
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dealer may be rescinded or canceled if the rescission or |
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cancellation of the sale is acknowledged in a written rescission or |
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cancellation agreement signed by the dealer and the buyer not later |
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than the 30th day after the date of the sale. |
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(b) A dealer shall retain a rescission or cancellation |
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agreement described by Subsection (a) with the sale records for the |
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vehicle. |
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(c) If the sale of a used motor vehicle is rescinded or |
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canceled under Subsection (a) before the dealer has submitted an |
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application under Section 501.0234 or remitted any money to a |
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county or the state in connection with the sale, the dealer: |
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(1) is not required to send any application or money to |
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a county or the state in connection with the sale; and |
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(2) shall return any money that was paid to the dealer |
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in connection with the sale to the person who paid the money to the |
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dealer. |
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(d) If the sale of a used motor vehicle is rescinded or |
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canceled under Subsection (a) after the dealer has submitted an |
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application under Section 501.0234 or remitted money to a county or |
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the state in connection with the sale, the dealer: |
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(1) shall refund any money that was paid to the dealer |
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in connection with the sale to the person who paid the money to the |
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dealer; and |
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(2) may request a refund under Subsection (f). |
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(e) If the sale of a used motor vehicle is rescinded or |
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canceled under Subsection (a), the dealer may request a title for |
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resale purposes under Subsection (f). |
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(f) Not later than the 15th day after the date the |
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rescission or cancellation agreement described by Subsection (a) is |
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signed by all required parties, the dealer may submit to the county |
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assessor-collector to whom the application was submitted or money |
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was remitted: |
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(1) a form prescribed by the department certifying |
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that the dealer has refunded any money required under Subsection |
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(d); |
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(2) a copy of the rescission or cancellation |
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agreement; |
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(3) any certificate of title that was issued in |
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connection with the sale before the sale was rescinded or canceled |
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or a form prescribed by the department certifying that the title was |
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lost or destroyed; and |
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(4) a fee in the amount required under Section |
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501.138(a), regardless of whether the fee was paid for the |
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rescinded or canceled sale. |
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(g) Not later than the seventh day after the date the county |
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assessor-collector receives all the items described by Subsection |
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(f), the county assessor-collector shall, as applicable: |
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(1) refund to the dealer all money remitted by the |
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dealer to the county assessor-collector in connection with the |
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rescinded or canceled sale, except: |
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(A) any application fee paid under Section |
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501.138(a); and |
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(B) any registration processing and handling fee |
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paid under Section 502.1911; and |
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(2) issue a title to the dealer as described by Section |
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501.021 with: |
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(A) the dealer as the owner; and |
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(B) the odometer reading as recorded at the time |
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of the rescinded or canceled sale. |
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(h) A dealer may not offer for sale a vehicle that has been |
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subject to rescission or cancellation under this section and for |
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which a title was issued in connection with the rescinded or |
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canceled sale unless the dealer has received a title to the vehicle |
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under Subsection (g). |
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(i) The rescission or cancellation of the sale of a used |
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motor vehicle under this section does not affect the status of the |
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vehicle as having been subject to a previous retail sale. |
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SECTION 2. This Act takes effect September 1, 2023. |