88R3618 SRA-D     By: Lujan H.B. No. 3412       A BILL TO BE ENTITLED   AN ACT   relating to the release of a motor vehicle title to a dealer after   the discharge of a lien.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter B, Chapter 501, Transportation Code,   is amended by adding Section 501.0237 to read as follows:          Sec. 501.0237.  ISSUANCE OF TITLE TO DEALER ON DISCHARGE OF   LIEN. (a)  A dealer who is unable to obtain a title for a motor   vehicle from a lienholder after the discharge of a lien under   Section 501.115(a) may apply to the department for a title in the   dealer's name for resale purposes not earlier than the 20th day   after the date the debt or claim secured by the lien is fully paid.          (b)  An application under Subsection (a) must include:                (1)  evidence of full payment of the lien in the form of   a release of lien, proof of payment, electronic funds transfer, or   other sufficient evidence acceptable to the department;                 (2)  evidence of ownership transfer from the previous   recorded owner to the dealer; and                (3)  if the vehicle is subject to odometer disclosure   under Section 501.072, an odometer disclosure statement on a secure   power of attorney form.          (c)  If the department issues a title to a dealer under   Subsection (a), the dealer assumes liability for any outstanding   balance due to a lienholder on the motor vehicle and the lienholder   may exercise any available legal remedy to collect the outstanding   balance.          (d)  If a title issued to a dealer by the department under   Subsection (a) is later rescinded, canceled, or revoked under   Section 501.051, the department may revalidate a previously   superseded or invalidated title.          SECTION 2.  This Act takes effect September 1, 2023.