SB1464

Regular Session

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

ModeratePlan for compliance

Low Cost

Effective:2025-09-01

Enforcing Agencies

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

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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Legislative Timeline

This bill's path through the Texas Legislature

TopicsVehicles & Traffic Vehicles & Traffic--vehicle Registration County Tax Assessor-collectors

Official Analysis

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BILL ANALYSIS

Senate Research Center	S.B. 1464
89R9954 MZM-D	By: Hinojosa, Juan "Chuy"
	Transportation
	3/20/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Section 501.051 of the Transportation Code outlines the grounds under which the Texas Department of Motor Vehicles (TxDMV) can refuse to issue, revoke, suspend, or cancel a vehicle title application. Section 501.052 of the Transportation Code allows a dissatisfied person to appeal a title-related decision made by the TxDMV to their local county tax assessor-collector. However, the county tax assessor-collector is mandated to grant the applicant's request for a hearing under Section 501.052(b) with no exceptions to deny hearing. This mandated hearing has caused some aggrieved parties to exploit this loophole to circumvent the legal system and force a county tax assessor-collector to award ownership of a vehicle when there was already a court order to return the property to the titled owner. The purpose of these hearings was to avoid bonded titles or the expenses of legal challenges.

S.B. 1464 aims to close this loophole by specifying that a person aggrieved by TxDMV's decision cannot apply for a hearing if the decision is related to a vehicle that is the subject of pending litigation or court proceedings, a vehicle for which a court has awarded ownership or possession to another person, or a vehicle held as evidence in a criminal investigation. A county assessor-collector who receives an application for a hearing submitted in violation of these provisions must deny the application and is not required to send notice or hold a hearing.

As proposed, S.B. 1464 amends current law relating to a hearing on the refusal to issue or the revocation or suspension of a vehicle title.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 501.052, Transportation Code, by amending Subsections (a) and (f) and adding Subsection (g), as follows:

(a) Creates an exception under Subsection (f).

(f) Prohibits a person from applying for a hearing under Section 501.052 (Hearing on Refusal to Issue or Revocation or Suspension of Title; Appeal) if the Texas Department of Motor Vehicles' decision under Section 501.051 (Grounds for Refusal to Issue or For Revocation or Suspension of Title) is related to titles for certain vehicles, including a title for a vehicle that is the subject of any pending litigation or court proceedings, for which a court has awarded ownership or possession to another person, or that is held as evidence in a criminal investigation. Makes nonsubstantive changes.

(g) Provides that a county assessor-collector who receives an application for a hearing submitted in violation of Subsection (f) is required to deny the application and is not required to send notice under Subsection (a) (relating to application by an interested person aggrieved by certain actions under Section 501.051 for a hearing) or hold a hearing under Subsection (b) (relating to requiring the county assessor-collector to hold the hearing within a certain timeframe after the date the assessor-collector receives the application for a hearing).

SECTION 2. Effective date: September 1, 2025.

Senate Authors

Sen. Juan HinojosaDemocrat · Primary Author

House Sponsor

Rep. Denise VillalobosRepublican · Primary Sponsor

Bill Text(with markup)

S.B. No. 1464

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to a hearing on the refusal to issue or the revocation or
	suspension of a vehicle title.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 501.052, Transportation Code, is amended
	by amending Subsections (a) and (f) and adding Subsection (g) to
	read as follows:
	(a) Except as provided by Subsection (f), an [An]
	interested person aggrieved by a refusal, rescission,
	cancellation, suspension, or revocation under Section 501.051 may
	apply for a hearing to the county assessor-collector for the county
	in which the person is a resident. On the day an assessor-collector
	receives the application, the assessor-collector shall notify the
	department of the date of the hearing.
	(f) A person may not apply for a hearing under this section
	if the department's decision under Section 501.051 is related to:
	(1) a title for a salvage motor vehicle or a
	nonrepairable motor vehicle, as defined by Section 501.091; or
	(2) a title for a vehicle:
	(A) that is the subject of any pending litigation
	or court proceedings;
	(B) for which a court has awarded ownership or
	possession to another person; or
	(C) that is held as evidence in a criminal
	investigation.
	(g) A county assessor-collector who receives an application
	for a hearing submitted in violation of Subsection (f):
	(1) shall deny the application; and
	(2) is not required to send notice under Subsection
	(a) or hold a hearing under Subsection (b).
	SECTION 2. This Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 24, 2025

TO:	Honorable Robert Nichols, Chair, Senate Committee on Transportation

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB1464 by Hinojosa, Juan "Chuy" (Relating to a hearing on the refusal to issue or the revocation or suspension of a vehicle title.), As Introduced

No fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

608 Department of Motor Vehicles

LBB Staff:

JMc, AAL, TG

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Frequently Asked Questions

Common questions about SB1464

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. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: August 31, 2025 (Last day to file hearing applications under current rules.

Who authored SB1464?

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

When was SB1464 signed into law?

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

Which agencies enforce SB1464?

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

How urgent is compliance with SB1464?

The compliance urgency for SB1464 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

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.

What topics does SB1464 address?

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

Legislative data provided by LegiScanLast updated: November 25, 2025

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