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A BILL TO BE ENTITLED
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AN ACT
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relating to the release of a motor vehicle title to a dealer after |
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the discharge of a lien. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 501, Transportation Code, |
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is amended by adding Section 501.0237 to read as follows: |
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Sec. 501.0237. ISSUANCE OF TITLE TO DEALER ON DISCHARGE OF |
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LIEN. (a) A dealer who is unable to obtain a title for a motor |
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vehicle from a lienholder after the discharge of a lien under |
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Section 501.115(a) may apply to the department for a title in the |
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dealer's name for resale purposes not earlier than the 20th day |
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after the date the debt or claim secured by the lien is fully paid. |
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(b) An application under Subsection (a) must include: |
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(1) evidence of full payment of the lien in the form of |
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a release of lien, proof of payment, electronic funds transfer, or |
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other sufficient evidence acceptable to the department; |
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(2) evidence of ownership transfer from the previous |
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recorded owner to the dealer; and |
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(3) if the vehicle is subject to odometer disclosure |
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under Section 501.072, an odometer disclosure statement on a secure |
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power of attorney form. |
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(c) If the department issues a title to a dealer under |
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Subsection (a), the dealer assumes liability for any outstanding |
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balance due to a lienholder on the motor vehicle and the lienholder |
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may exercise any available legal remedy to collect the outstanding |
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balance. |
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(d) If a title issued to a dealer by the department under |
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Subsection (a) is later rescinded, canceled, or revoked under |
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Section 501.051, the department may revalidate a previously |
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superseded or invalidated title. |
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SECTION 2. This Act takes effect September 1, 2023. |