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House Bill 1422 |
House Author: Truitt |
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Effective: 9-1-11 |
Senate Sponsor: Watson |
Under current law, an insurance company that acquires a salvage motor vehicle or nonrepairable motor vehicle is prohibited from selling the vehicle unless the Texas Department of Motor Vehicles has issued a salvage vehicle title or nonrepairable vehicle title for the vehicle. House Bill 1422 amends the Transportation Code to establish a process for issuing a title for such a vehicle, depending on whether the insurance company takes ownership or possession of the vehicle or requests a salvage pool operator to take possession. If the insurance company takes ownership or possession of the vehicle, the title application requirements depend on whether the vehicle is covered by a title that the company is unable to obtain, a title for which the company is unable to obtain proper assignment, or an out-of-state ownership document. If a salvage pool operator takes possession of the vehicle, the title application requirements include providing evidence that proper notice was given to the motor vehicle owner and any lienholder regarding removal of the vehicle from the salvage pool operator's possession. The bill requires a salvage pool operator that sells a vehicle under these provisions to retain from the proceeds certain costs and requires any excess proceeds to escheat to the State of Texas if the owner and lienholder of the vehicle cannot be located.