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Signed Into Law
Signed May 24, 2025Effective 2025-09-01
SB1464

Regular Session

Relating to a hearing on the refusal to issue or the revocation or suspension of a vehicle title.

Government Affairs & Regulatory Compliance Analysis

SB1464: Government Affairs Overview

Senate Bill 1464 eliminates the administrative remedy of a county-level hearing for vehicle title disputes involving salvage vehicles, pending litigation, or criminal evidence. Effective September 1, 2025, auto dealers, lenders, and salvage operators must bypass the County Assessor-Collector and seek relief through civil courts for these specific title clouds, significantly increasing the legal cost and time required to clear distressed inventory.

Sen. Juan Hinojosa·Senate Bill·Regular Session

Moderate
Low Cost
Effective:2025-09-01
Enforcing Agencies

County Assessor-Collectors • Texas Department of Motor Vehicles (TxDMV)

Business Impact

Who SB1464 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.

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Transportation

Affected business types:

  • Trucking companies
  • Towing operators
  • Fleet operators
  • Logistics providers
View all transportation legislation

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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SB1464
Moderate
Relating to a hearing on the refusal to issue or the revocation or suspension of a vehicle title.
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
County Assessor-CollectorsTexas Department of Motor Vehicles
Primary Author: Sen. Juan Hinojosa
89th Texas Legislature
jdkey.com
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Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: August 31, 2025 (Last day to file hearing applications under current rules. Applications filed on or after September 1 will be subject to the new exclusions).
  • Agency Rulemaking: While no specific rulemaking deadline is mandated, TxDMV and County Tax Assessor-Collectors will likely update the *Notice of Denial* forms and internal guidance regarding what constitutes "proof" of pending litigation or criminal holds prior to the effective date.

Immediate Action Plan

  • 1. Audit Suspended Titles: Immediately review all inventory with suspended or revoked titles.
  • 2. File Before Deadline: Identify any disputes involving salvage status or litigation and file your hearing applications before September 1, 2025. Filings made now are processed under current law.
  • 3. Update SOPs: Revise Standard Operating Procedures to forbid filing Form VTR-415 (or county equivalents) for the excluded categories after the effective date.
  • 4. Revise Vendor Instructions: Send written notice to title service providers regarding the new "Do Not File" criteria to prevent wasted billing.

Operational Changes Required

Contracts

  • Wholesale & Auction Indemnity: Update buy-sell agreements to strengthen indemnity clauses. If you acquire a vehicle that is subsequently blocked from a title hearing due to a criminal hold or undisclosed litigation, the seller must be contractually obligated to repurchase the unit immediately, as your administrative path to clear the title is now barred.
  • Title Service Vendor Agreements: Amend scopes of work to prohibit third-party title runners from filing hearing requests for vehicles falling under the new Subsection (f) exclusions (salvage, litigation, evidence). You must not pay processing fees for filings that are statutorily guaranteed to be denied.

Hiring/Training

  • Title Clerk Triage: Train title clerks and compliance staff to identify the specific reason for a TxDMV title rejection. They must stop the workflow for any rejection involving "Salvage/Nonrepairable" status or "Law Enforcement Hold" and route these directly to Legal rather than attempting a county hearing.
  • Litigation Awareness: Staff handling repossessions must be trained to cross-reference inventory against active civil dockets. Attempting to file a county hearing on a vehicle involved in a known divorce or probate case will result in summary denial.

Reporting & Record-Keeping

  • Denial Classification: Implement a logging system for all TxDMV title revocations. You must categorize them immediately to determine if they are eligible for a county hearing or if they require a court order.
  • Litigation Tracking: Maintain a register of Case Numbers and Court jurisdictions for any inventory tied to civil disputes. This data is now required to determine if you are barred from administrative remedies.

Fees & Costs

  • Legal Budget: Anticipate a sharp increase in legal spend for title resolution. Disputes that were previously resolved via a low-cost administrative hearing at the county tax office will now require formal petitions in District or County Courts at Law.
  • Holding Costs: Budget for increased floorplan costs on distressed inventory, as the timeline to clear titles via civil court is significantly longer than the county hearing process.

Strategic Ambiguities & Considerations

  • "Related To" Scope: The statute bars hearings if the issue is "related to" a salvage certificate. It is unclear if this allows agencies to deny hearings for minor clerical errors simply because the underlying vehicle has a salvage history. Expect strict interpretation by counties until clarified.
  • "Held as Evidence" Verification: The law does not provide a mechanism for business owners to verify if a vehicle is flagged as "held as evidence" if it has not been physically seized. You may face "black box" denials based on non-public law enforcement data.
  • Definition of "Pending Litigation": The statute does not distinguish between active, dormant, or peripheral litigation. Agencies may deny hearings based on stale lawsuits until TxDMV issues guidance on what constitutes "active" litigation.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Feb 20, 2025
Passed Senate
Apr 10, 2025
Passed House
May 10, 2025
Signed
May 24, 2025
Effective
Sep 1, 2025
TopicsVehicles & TrafficVehicles & Traffic--vehicle RegistrationCounty Tax Assessor-collectors
03

Senate Authors

Sen. Juan HinojosaDemocrat · Primary Author

House Sponsor

Rep. Denise VillalobosRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Sen. Juan Hinojosa

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about SB1464

Q

What does Texas SB1464 do?

Senate Bill 1464 eliminates the administrative remedy of a county-level hearing for vehicle title disputes involving salvage vehicles, pending litigation, or criminal evidence. Effective September 1, 2025, auto dealers, lenders, and salvage operators must bypass the County Assessor-Collector and seek relief through civil courts for these specific title clouds, significantly increasing the legal cost and time required to clear distressed inventory.

Q

Who authored SB1464?

SB1464 was authored by Texas Senator Juan Hinojosa during the Regular Session.

Q

When was SB1464 signed into law?

SB1464 was signed into law by Governor Greg Abbott on May 24, 2025.

Q

Which agencies enforce SB1464?

SB1464 is enforced by County Assessor-Collectors and Texas Department of Motor Vehicles (TxDMV).

Q

How significant are the changes in SB1464?

The regulatory priority for SB1464 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB1464?

The cost impact of SB1464 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB1464 address?

SB1464 addresses topics including vehicles & traffic, vehicles & traffic--vehicle registration and county tax assessor-collectors.

Q

What are the key dates for SB1464?

Key dates for SB1464: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026