H.B. No. 988




AN ACT

relating to the requirement that a seller of a motor vehicle apply 
for registration and a certificate of title for the vehicle.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 501.0234, Transportation Code, is 
amended by amending Subsection (a) and by adding Subsections (d), 
(e), and (f) to read as follows:
	(a)  A person who sells at the first or a subsequent sale a 
motor vehicle and who holds a general distinguishing number issued 
under Chapter 503 of this code or Chapter 2301, Occupations Code, 
shall:
		(1)  except as provided by this section, in the time and 
manner provided by law, apply, in the name of the purchaser of the 
vehicle, for the registration of the vehicle, if the vehicle is to 
be registered, and a certificate of title for the vehicle and file 
with the appropriate designated agent each document necessary to 
transfer title to or register the vehicle; and at the same time
		(2)  remit any required motor vehicle sales tax.                              
	(d)  A seller who applies for the registration or a 
certificate of title for a motor vehicle under Subsection (a)(1) 
shall apply in the county as directed by the purchaser from the 
counties set forth in Section 501.023 of this code.
	(e)  The department shall promulgate a form on which the 
purchaser of a motor vehicle shall designate the purchaser's choice 
as set out in Section 501.023 as the recipient of all taxes, fees, 
and other revenue collected as a result of the transaction, which 
the tax assessor-collector is authorized by law to retain.  A seller 
shall make that form available to the purchaser of a vehicle at the 
time of purchase.
	(f)  A seller has a reasonable time to comply with the terms 
of Subsection (a)(1) and is not in violation of that provision 
during the time the seller is making a good faith effort to comply.  
Notwithstanding compliance with this chapter, equitable title to a 
vehicle passes to the purchaser of the vehicle at the time the 
vehicle is the subject of a sale that is enforceable by either 
party.
	SECTION 2.  This Act takes effect September 1, 2005.                           




______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      

	I certify that H.B. No. 988 was passed by the House on May 10, 
2005, by a non-record vote; and that the House concurred in Senate 
amendments to H.B. No. 988 on May 26, 2005, by a non-record vote.

                                                  ______________________________
                                                     Chief Clerk of the House   

	
I certify that H.B. No. 988 was passed by the Senate, with 
amendments, on May 24, 2005, by the following vote:  Yeas 31, Nays 
0.

                                                  ______________________________
                                                      Secretary of the Senate   



APPROVED: __________________                                                
 
                Date                                                         




 
         __________________                                              
 
              Governor