By: Martinez (Senate Sponsor - Seliger) H.B. No. 3531

(In the Senate - Received from the House May 17, 2021; May 17, 2021, read first time and referred to Committee on Transportation; May 21, 2021, reported adversely, with favorable Committee Substitute by the following vote: Yeas 9, Nays 0; May 21, 2021, sent to printer.) Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR H.B. No. 3531 By: Seliger

A BILL TO BE ENTITLED

AN ACT

relating to motor vehicle titles, registration, and license plates.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The heading to Subchapter B, Chapter 501, Transportation Code, is amended to read as follows:

SUBCHAPTER B. [CERTIFICATE OF] TITLE REQUIREMENTS

SECTION 2. Section 501.0234(b), Transportation Code, is amended to read as follows:

(b) This section does not apply to a motor vehicle:

(1) that has been declared a total loss by an insurance company in the settlement or adjustment of a claim;

(2) for which the title has been surrendered in exchange for:

(A) a salvage vehicle title [or salvage record of title] issued under this chapter;

(B) a nonrepairable vehicle title [or nonrepairable vehicle record of title] issued under this chapter or a certificate of authority issued under Subchapter D, Chapter 683; or

(C) an ownership document issued by another state that is comparable to a document described by Paragraph (A) or (B);

(3) with a gross weight in excess of 11,000 pounds; or

(4) purchased by a commercial fleet buyer who:

(A) is a deputy authorized by rules adopted under Section 520.0071;

(B) utilizes the dealer title application process developed to provide a method to submit title transactions to the county in which the commercial fleet buyer is a deputy; and

(C) has authority to accept an application for registration and application for title transfer that the county assessor-collector may accept.

SECTION 3. Section 501.0276, Transportation Code, is amended to read as follows:

Sec. 501.0276. DENIAL OF TITLE RECEIPT OR [,] TITLE [, OR RECORD OF TITLE] FOR FAILURE TO PROVIDE PROOF OF EMISSIONS TESTING. A county assessor-collector may not issue a title receipt and the department may not issue a [certificate of] title for a vehicle subject to Section 548.3011 unless proof that the vehicle has passed a vehicle emissions test as required by that section, in a manner authorized by that section, is presented to the county assessor-collector with the application for a title.

SECTION 4. Section 501.0301(b), Transportation Code, is amended to read as follows:

(b) A county assessor-collector may not issue a title receipt and the department may not issue a [certificate of] title for an off-highway vehicle purchased from a retailer located outside this state and designated by the manufacturer as a model year that is not more than one year before the year in which the application for title is made unless the applicant for the title delivers to the assessor-collector or the department, as applicable, satisfactory evidence showing that the applicant:

(1) has paid to the comptroller the applicable use tax imposed on the vehicle under Subchapter D, Chapter 151, Tax Code; or

(2) is not required to pay any taxes described by Subdivision (1).

SECTION 5. The heading to Section 501.038, Transportation Code, is amended to read as follows:

Sec. 501.038. [CERTIFICATE OF] TITLE FOR CUSTOM VEHICLE OR STREET ROD.

SECTION 6. Section 501.038(b), Transportation Code, is amended to read as follows:

(b) Notwithstanding any other provision of this chapter, if the department issues a [certificate of] title for a custom vehicle or street rod, the model year and make of the vehicle must be listed on the [certificate of] title and must be the model year and make that the body of the vehicle resembles. The [certificate of] title must also include the word "replica."

SECTION 7. The heading to Subchapter C, Chapter 501, Transportation Code, is amended to read as follows:

SUBCHAPTER C. REFUSAL TO ISSUE, REVOCATION, SUSPENSION, OR

ALTERATION OF TITLE [CERTIFICATE]

SECTION 8. Section 501.051, Transportation Code, is amended by adding Subsection (d) to read as follows:

(d) The department shall place a hold on processing a title application for a motor vehicle if the department receives a request for a hold accompanied by evidence of a legal action regarding ownership of or a lien interest in the motor vehicle. The hold shall continue until a final, nonappealable judgment is entered in the action or the party requesting the hold requests that the hold be removed.

SECTION 9. Section 501.052, Transportation Code, is amended by amending Subsection (e) and adding Subsection (f) to read as follows:

(e) An applicant aggrieved by the determination under Subsection (d) may appeal only to the county or district court of the county of the applicant's residence. An applicant must file an appeal not later than the fifth day after receipt [the date] of the assessor-collector's determination. The judge shall try the appeal in the manner of other civil cases. All rights and immunities granted in the trial of a civil case are available to the interested parties. If the department's action is not sustained, the department shall promptly issue a title for the vehicle.

(f) A person may not apply for a hearing under this section if the department's decision under Section 501.051 is related to a title for a salvage motor vehicle or a nonrepairable motor vehicle, as defined by Section 501.091.

SECTION 10. Section 501.053, Transportation Code, is amended by adding Subsection (f) to read as follows:

(f) A person may not obtain a title under this section for a salvage motor vehicle or a nonrepairable motor vehicle, as defined by Section 501.091.

SECTION 11. Section 501.074(a), Transportation Code, is amended to read as follows:

(a) The department shall issue a new title for a motor vehicle registered in this state for which the ownership is transferred by operation of law or other involuntary divestiture of ownership after receiving:

(1) a certified copy of an order appointing a temporary administrator or of the probate proceedings;

(2) letters testamentary or letters of administration;

(3) if administration of an estate is not necessary, an affidavit showing that administration is not necessary, identifying all heirs, and including a statement by the heirs of the name in which the title [certificate] shall be issued;

(4) a court order; or

(5) the bill of sale from an officer making a judicial sale.

SECTION 12. Section 501.091, Transportation Code, is amended by adding Subdivision (1-a) and amending Subdivisions (10) and (16) to read as follows:

(1-a) "Auction sales receipt" means a document certifying the sale of a motor vehicle at auction by a law enforcement agency or public sale for a lien foreclosure.

(10) "Nonrepairable vehicle title" means a nonrepairable record of title or printed document issued by the department that evidences ownership of a nonrepairable motor vehicle.

(16) "Salvage vehicle title" means a salvage record of title or printed document issued by the department that evidences ownership of a salvage motor vehicle.

SECTION 13. The heading to Section 501.09111, Transportation Code, is amended to read as follows:

Sec. 501.09111. RIGHTS AND LIMITATIONS OF NONREPAIRABLE VEHICLE TITLE OR [, NONREPAIRABLE RECORD OF TITLE,] SALVAGE VEHICLE TITLE [, OR SALVAGE RECORD OF TITLE].

SECTION 14. Section 501.09111(b), Transportation Code, is amended to read as follows:

(b) A person who holds a nonrepairable vehicle [certificate of] title issued prior to September 1, 2003, is entitled to the same rights listed in Subsection (a) and may repair, rebuild, or reconstruct the motor vehicle.

SECTION 15. Sections 501.09112(b), (d), (e), and (f), Transportation Code, are amended to read as follows:

(b) A nonrepairable vehicle title must clearly indicate that the motor vehicle:

(1) may not be:

(A) issued a [regular] title;

(B) registered in this state; or

(C) repaired, rebuilt, or reconstructed; and

(2) may be used only as a source for used parts or scrap metal.

(d) A salvage vehicle title [or a salvage record of title] for a vehicle that is a salvage motor vehicle because of damage caused exclusively by flood must bear a notation that the department considers appropriate. If the title for a motor vehicle reflects the notation required by this subsection, the owner may sell, transfer, or release the motor vehicle only as provided by this subchapter.

(e) An electronic application for a nonrepairable vehicle title or [, nonrepairable record of title,] salvage vehicle title [, or salvage record of title] must clearly advise the applicant of the same provisions required on a printed title.

(f) A nonrepairable vehicle title or [, nonrepairable record of title,] salvage vehicle title [, or salvage record of title] in the department's electronic database must include appropriate remarks so that the vehicle record clearly shows the status of the vehicle.

SECTION 16. The heading to Section 501.0925, Transportation Code, is amended to read as follows:

Sec. 501.0925. INSURANCE COMPANY NOT REQUIRED TO SURRENDER EVIDENCE OF OWNERSHIP [CERTIFICATES OF TITLE] IN CERTAIN SITUATIONS.

SECTION 17. Sections 501.0925(a), (b), (c), (d), and (f), Transportation Code, are amended to read as follows:

(a) An insurance company that acquires, through payment of a claim, ownership or possession of a motor vehicle covered by a [certificate of] title or a manufacturer's certificate of origin that the company is unable to obtain may obtain from the department not earlier than the 30th day after the date of payment of the claim:

(1) a salvage vehicle title for a salvage motor vehicle;

(2) a nonrepairable vehicle title for a nonrepairable motor vehicle; or

(3) a [regular certificate of] title for a motor vehicle other than a salvage motor vehicle or a nonrepairable motor vehicle.

(b) An application for a title under Subsection (a) must be [submitted to the department] on a form prescribed by the department and include:

(1) a statement that the insurance company has provided at least two written notices attempting to obtain the evidence of ownership [certificate of title] for the motor vehicle; and

(2) evidence acceptable to the department that the insurance company has made payment of a claim involving the motor vehicle.

(c) An insurance company that acquires, through payment of a claim, ownership or possession of a motor vehicle covered by a [certificate of] title or a manufacturer's certificate of origin for which the company is unable to obtain proper assignment of the title or manufacturer's certificate of origin [certificate] may obtain from the department not earlier than the 30th day after the date of payment of the claim:

(1) a salvage vehicle title for a salvage motor vehicle;

(2) a nonrepairable vehicle title for a nonrepairable motor vehicle; or

(3) a [regular certificate of] title for a motor vehicle other than a salvage motor vehicle or a nonrepairable motor vehicle.

(d) An application for a title under Subsection (c) must be [submitted to the department] on a form prescribed by the department and include:

(1) a statement that the insurance company has provided at least two written notices attempting to obtain a proper assignment of the evidence of ownership [certificate of title]; and

(2) the evidence of ownership [certificate of title].

(f) An insurance company that acquires, through payment of a claim, ownership or possession of a motor vehicle, salvage motor vehicle, or nonrepairable motor vehicle covered by an out-of-state title or out-of-state ownership document may obtain from the department a title, salvage vehicle title, or nonrepairable vehicle title, as appropriate, if:

(1) the motor vehicle was damaged, stolen, or recovered in this state;

(2) the motor vehicle owner from whom the company acquired ownership resides in this state; or

(3) otherwise allowed by department rule.

SECTION 18. Sections 501.097(a) and (c-1), Transportation Code, are amended to read as follows:

(a) An application for a nonrepairable vehicle title or [, nonrepairable record of title,] salvage vehicle title [, or salvage record of title] must:

(1) be made in a manner prescribed by the department and accompanied by a $8 application fee;

(2) include, in addition to any other information required by the department:

(A) the name and current address of the owner; and

(B) a description of the motor vehicle, including the make, style of body, model year, and vehicle identification number; and

(3) include the name and address of:

(A) any currently recorded lienholder, if the motor vehicle is a nonrepairable motor vehicle; or

(B) any currently recorded lienholder or a new lienholder, if the motor vehicle is a salvage motor vehicle.

(c-1) The department's titling system must include a remark that clearly identifies the vehicle as a salvage motor vehicle or nonrepairable motor vehicle.

SECTION 19. The heading to Section 501.100, Transportation Code, is amended to read as follows:

Sec. 501.100. APPLICATION FOR [REGULAR CERTIFICATE OF] TITLE FOR SALVAGE VEHICLE.

SECTION 20. Sections 501.100(a) and (f), Transportation Code, are amended to read as follows:

(a) The owner of a motor vehicle for which a nonrepairable vehicle title issued prior to September 1, 2003, [or] for which a salvage vehicle title [or salvage record of title] has been issued, or for which a comparable out-of-state ownership document for a salvage motor vehicle has been issued may apply for a title under Section 501.023 after the motor vehicle has been repaired, rebuilt, or reconstructed and, in addition to any other requirement of law, only if the application:

(1) describes each major component part used to repair, rebuild, or reconstruct the motor vehicle;

(2) states the name of each person from whom the parts used in repairing, rebuilding, or reconstructing [assembling] the vehicle were obtained; and

(3) shows the identification number required by federal law to be affixed to or inscribed on the part.

(f) The department may not issue a [regular] title for a motor vehicle based on a:

(1) nonrepairable vehicle title issued on or after September 1, 2003, or comparable out-of-state ownership document or record, or evidence of a notation described by Section 501.09113(a)(2) on an out-of-state ownership document or record in the National Motor Vehicle Title Information System;

(2) receipt issued under Section 501.1003(b); or

(3) certificate of authority issued under Chapter 683.

SECTION 21. Sections 501.1001(b), (c), and (d), Transportation Code, are amended to read as follows:

(b) For a salvage motor vehicle, the insurance company shall apply for a salvage vehicle title [or salvage record of title]. For a nonrepairable motor vehicle, the insurance company shall apply for a nonrepairable vehicle title [or nonrepairable record of title].

(c) An insurance company or other person who acquires ownership of a motor vehicle other than a nonrepairable motor vehicle or salvage motor vehicle may voluntarily and on proper application obtain a salvage vehicle title or [, salvage record of title,] nonrepairable vehicle title [, or nonrepairable record of title] for the vehicle.

(d) This subsection applies only to a motor vehicle in this state that is a self-insured motor vehicle and that is damaged to the extent it becomes a nonrepairable motor vehicle or salvage motor vehicle. The owner of a motor vehicle to which this subsection applies shall submit to the department before the 31st business day after the date of the damage, in a manner prescribed by the department, a statement that the motor vehicle was self-insured and damaged. When the owner submits a report, the owner shall surrender the ownership document and apply for a nonrepairable vehicle title or [, nonrepairable record of title,] salvage vehicle title [, or salvage record of title].

SECTION 22. Section 501.1002(b), Transportation Code, is amended to read as follows:

(b) The owner of a salvage motor vehicle or nonrepairable motor vehicle may not transfer ownership of the motor vehicle by sale or otherwise unless the department has issued a salvage vehicle title or [, salvage record of title,] nonrepairable vehicle title [, or nonrepairable record of title] for the motor vehicle or a comparable ownership document has been issued by another state or jurisdiction for the motor vehicle in the name of the owner.

SECTION 23. Section 501.1003, Transportation Code, is amended to read as follows:

Sec. 501.1003. SALVAGE VEHICLE DEALER RESPONSIBILITIES. (a) If a salvage vehicle dealer acquires ownership of a nonrepairable motor vehicle or salvage motor vehicle for the purpose of dismantling, scrapping, or destroying the motor vehicle, the dealer shall, before the 31st day after the date the dealer acquires the motor vehicle, submit to the department a report stating that the motor vehicle will be dismantled, scrapped, or destroyed. The dealer shall:

(1) make the report in a manner prescribed by the department; and

(2) submit with the report a properly assigned manufacturer's certificate of origin, [regular certificate of] title, nonrepairable vehicle title, salvage vehicle title, auction sales receipt, or comparable out-of-state ownership document for the motor vehicle.

(b) After receiving the report and title, manufacturer's certificate of origin, auction sales receipt, or document, the department shall issue the salvage vehicle dealer a receipt for the manufacturer's certificate of origin, [regular certificate of] title, nonrepairable vehicle title, salvage vehicle title, auction sales receipt, or comparable out-of-state ownership document.

(c) The department shall adopt rules to notify the salvage vehicle dealer if the vehicle was not issued a printed title, but has a record of title in the department's titling system.

SECTION 24. Section 501.107(b), Transportation Code, is amended to read as follows:

(b) A metal recycler shall submit to the department the properly assigned manufacturer's certificate of origin, [regular certificate of] title, nonrepairable vehicle title, salvage vehicle title, or comparable out-of-state ownership document that the person receives in conjunction with the purchase of a motor vehicle not later than the 60th day after the date the metal recycler receives the title or out-of-state ownership document.

SECTION 25. Section 501.109(c), Transportation Code, is amended to read as follows:

(c) A person commits an offense if the person knowingly fails or refuses to surrender a [regular] certificate of title after the person:

(1) receives a notice from an insurance company that the motor vehicle is a nonrepairable motor vehicle or salvage motor vehicle; or

(2) knows the vehicle has become a nonrepairable motor vehicle or salvage motor vehicle under Section 501.1001.

SECTION 26. Section 501.110(b), Transportation Code, is amended to read as follows:

(b) The department, an agent, officer, or employee of the department, or another person enforcing this subchapter is not liable to a person damaged or injured by an act or omission relating to the issuance or revocation of a title, nonrepairable vehicle title, or [nonrepairable record of title,] salvage vehicle title [, or salvage record of title] under this subchapter.

SECTION 27. Section 501.152(a), Transportation Code, is amended to read as follows:

(a) Except as provided by this section, a person commits an offense if the person:

(1) sells, offers to sell, or offers as security for an obligation a motor vehicle registered in this state; and

(2) does not possess or have electronic access to the title receipt or [certificate of] title for the vehicle.

SECTION 28. Section 502.094, Transportation Code, is amended by adding Subsection (i) to read as follows:

(i) A permit issued under this section must be carried in the vehicle, or, if the vehicle is a trailer or semitrailer, in the motor vehicle pulling the trailer or semitrailer, at all times during the period in which the permit is valid, including when the vehicle is being operated.

SECTION 29. Section 502.095(f), Transportation Code, is amended to read as follows:

(f) A registration receipt shall be carried in the vehicle at all times during the period in which it is valid. The permit [temporary tag] must contain all pertinent information required by this section and must be attached to the vehicle in the license plate display area located at the rear of the vehicle, so that the entire permit is visible and legible at all times, including when the vehicle is being operated. If the vehicle does not have a license plate display area at the rear of the vehicle, the permit [displayed in the rear window of the vehicle so that the tag is clearly visible and legible when viewed from the rear of the vehicle. If the vehicle does not have a rear window, the temporary tag] must be attached to [on or carried in] the vehicle to allow ready inspection. The registration receipt must be carried, in a manner prescribed by the department, in the vehicle at all times during the period in which it is valid.

SECTION 30. Sections 502.454(a), (b), and (f), Transportation Code, are amended to read as follows:

(a) The owner of a commercial motor vehicle, trailer, or semitrailer may apply for registration under Section 502.451 and is exempt from the payment of the registration fee that would otherwise be required by this chapter if the vehicle is:

(1) owned [and used exclusively for emergencies] by a nonprofit disaster relief organization; and

(2) used by the organization exclusively for emergencies, training, equipment maintenance, transportation of disaster relief supplies, or other activities related to disaster relief.

(b) An application for registration under this section must include:

(1) a statement by the owner of the vehicle that the vehicle is used exclusively as described by Subsection (a) [for emergencies] and has not been used for any other purpose;

(2) a statement signed by an officer of the nonprofit disaster relief organization that the vehicle has [not] been used exclusively as described by Subsection (a) [for any purpose other than emergencies] and qualifies for registration under this section; and

(3) a reasonable description of the vehicle and the emergency equipment included in the vehicle.

(f) A vehicle registered under this section that is used [for any purpose] other than as described by Subsection (a) [an emergency] may not again be registered under this section.

SECTION 31. Section 502.474, Transportation Code, is amended to read as follows:

Sec. 502.474. OPERATION OF ONE-TRIP PERMIT VEHICLE. A person commits an offense if the person operates a vehicle for which a one-trip permit is required without the registration receipt and properly displayed permit [temporary tag].

SECTION 32. Section 504.202(e-1), Transportation Code, is amended to read as follows:

(e-1) Other than license plates issued under Subsection (h), license plates issued under this section may include, on request, [:

[(1) the emblem of the veteran's branch of service; or

[(2)] one emblem or design from another license plate to which the person is entitled under Subchapter D [Section 504.308, 504.309, 504.310(b), 504.311, 504.312, 504.313, 504.3135, 504.314, 504.315, 504.316, 504.3161, 504.318, 504.319, 504.320, 504.323, as added by Chapter 1085 (H.B. 3567), Acts of the 85th Legislature, Regular Session, 2017, or 504.325].

SECTION 33. Section 504.3015(a), Transportation Code, is amended to read as follows:

(a) A person applying for a set of license plates under this subchapter shall pay the registration fee required under Chapter 502 and the applicable special plate fee required under this section, except that one set of license plates shall be issued without the payment of the registration fee under:

(1) Section 504.308;

(2) Section 504.310(b);

(3) Section 504.315, other than Subsections (c) and (q) of that section; [and]

(4) Section 504.316; and

(5) Section 504.319.

SECTION 34. Section 504.403, Transportation Code, as amended by Chapter 1296 (H.B. 2357), Acts of the 82nd Legislature, Regular Session, 2011, and repealed by Chapter 1290 (H.B. 2017), Acts of the 82nd Legislature, Regular Session, 2011, is reenacted and amended to read as follows:

Sec. 504.403. STATE AND FEDERAL JUDGES. (a) The department shall issue specialty license plates for a current or visiting state or federal judge. Except as provided by Subsection (b), the [The] license plates must include the words "State Judge" or "U.S. Judge," as appropriate.

(b) A person entitled to license plates under this section may elect to receive license plates that do not include the words "State Judge" or "U.S. Judge."

(c) [(d)] In this section, "state[:

[(2) "State] judge" means:

(1) [(A)] a justice of the supreme court;

(2) [(B)] a judge of the court of criminal appeals;

(3) [(C)] a judge of a court of appeals of this state;

(4) [(D)] a district court judge;

(5) [(E)] a presiding judge of an administrative judicial district; or

(6) [(F)] a statutory county court judge.

SECTION 35. Section 504.943(b), Transportation Code, is amended to read as follows:

(b) A person commits an offense if the person operates on a public highway during a registration period a road tractor, truck tractor, motorcycle, trailer, or semitrailer that does not display a license plate that:

(1) has been assigned by the department for the period; and

(2) complies with department rules regarding the placement of license plates.

SECTION 36. Sections 504.654, 504.660, and 504.664, Transportation Code, are repealed.

SECTION 37. To the extent of any conflict, this Act prevails over another Act of the 87th Legislature, Regular Session, 2021, relating to nonsubstantive additions to and corrections in enacted codes.

SECTION 38. This Act takes effect September 1, 2021.

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