| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the issuance of title to a salvage pool operator for |
|
|
certain motor vehicles. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 501.0935, Transportation Code, is |
|
|
amended by amending Subsections (a), (b), (b-1), (g), and (j) and |
|
|
adding Subsections (b-2), (c-1), (c-2), (f-1), and (j-1) to read as |
|
|
follows: |
|
|
(a) In this section: |
|
|
(1) "Nonprofit organization" means an organization |
|
|
exempt from federal income taxation under Section 501(c)(3), |
|
|
Internal Revenue Code of 1986, as amended. |
|
|
(2) "Salvage [, "salvage] pool operator" has the |
|
|
meaning assigned by Section 2302.001, Occupations Code. |
|
|
(b) This section applies only to a salvage pool operator |
|
|
who: |
|
|
(1) [,] on request of an insurance company, takes |
|
|
possession of a motor vehicle that is the subject of an insurance |
|
|
claim and the insurance company subsequently: |
|
|
(A) [(1)] denies coverage with respect to the |
|
|
motor vehicle; or |
|
|
(B) [(2)] does not otherwise take ownership of |
|
|
the motor vehicle; or |
|
|
(2) on request of a nonprofit organization, takes |
|
|
possession of a motor vehicle that was donated to the nonprofit and |
|
|
the nonprofit: |
|
|
(A) does not possess title to the vehicle; and |
|
|
(B) does not otherwise take ownership of the |
|
|
motor vehicle. |
|
|
(b-1) An insurance company described by Subsection (b)(1) |
|
|
[(b)] shall notify the salvage pool operator of the denial of the |
|
|
claim regarding the motor vehicle or other disposition of the motor |
|
|
vehicle. The insurance company must include in the notice the name |
|
|
and address of the owner of the motor vehicle and the lienholder, if |
|
|
any. |
|
|
(b-2) A nonprofit organization described by Subsection |
|
|
(b)(2) shall notify the salvage pool operator of the disposition of |
|
|
the motor vehicle and must include in the notice the name and |
|
|
address of: |
|
|
(1) the person who donated the motor vehicle; |
|
|
(2) the previous owner of the motor vehicle; and |
|
|
(3) any lienholder, if known. |
|
|
(c-1) Before the 15th day after receiving notice under |
|
|
Subsection (b-2), a salvage pool operator shall notify the owner of |
|
|
the motor vehicle and any lienholder that: |
|
|
(1) the owner or lienholder must remove the motor |
|
|
vehicle from the salvage pool operator's possession at the location |
|
|
specified in the notice to the owner and any lienholder not later |
|
|
than the 60th day after the date the notice is mailed; and |
|
|
(2) if the motor vehicle is not removed within the time |
|
|
specified in the notice, the salvage pool operator will sell the |
|
|
motor vehicle and retain the proceeds of the sale. |
|
|
(c-2) A salvage pool operator shall provide subsequent |
|
|
notice described by Subsection (c-1) to the owner of the motor |
|
|
vehicle and any lienholder not later than the 30th and 45th day |
|
|
after receiving notice under Subsection (b-2) if the motor vehicle |
|
|
was not removed after the preceding notice. |
|
|
(f-1) If a motor vehicle is not removed from a salvage pool |
|
|
operator's possession before the 61st day after the date notice is |
|
|
mailed to the motor vehicle's owner and any lienholder under |
|
|
Subsection (c-1), the salvage pool operator may obtain from the |
|
|
department: |
|
|
(1) a salvage vehicle title for a salvage motor |
|
|
vehicle; or |
|
|
(2) a nonrepairable vehicle title for a nonrepairable |
|
|
motor vehicle. |
|
|
(g) An application for a title under Subsection (f) or |
|
|
(f-1), as applicable, must: |
|
|
(1) be submitted to the department on a form |
|
|
prescribed by the department; and |
|
|
(2) include evidence that the notice was mailed as |
|
|
required by Subsections [Subsection] (c), (c-1), and (c-2), as |
|
|
applicable, to the motor vehicle owner and any lienholder. |
|
|
(j) On receipt of a title under this section for a motor |
|
|
vehicle described by Subsection (b)(1), the salvage pool operator |
|
|
shall: |
|
|
(1) sell the motor vehicle and retain from the |
|
|
proceeds of the sale the costs incurred by the salvage pool operator |
|
|
as permitted by Subsection (d) along with the cost of titling and |
|
|
selling the motor vehicle; and |
|
|
(2) [. The salvage pool operator shall] pay any excess |
|
|
proceeds from the sale to the previous owner of the motor vehicle |
|
|
and the lienholder, if any, by mailing the [. The] excess proceeds |
|
|
[must be mailed] to the lienholder. |
|
|
(j-1) On receipt of a title under this section for a motor |
|
|
vehicle described by Subsection (b)(2), the salvage pool operator |
|
|
may sell the motor vehicle and retain the proceeds of the sale. |
|
|
SECTION 2. This Act takes effect September 1, 2023. |