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Senate Bill 1035 |
Senate Author: Williams |
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Effective: Vetoed |
House Sponsor: Harless |
Senate Bill 1035 amends the Transportation Code to prohibit, effective January 1, 2012, a person from acting as a motor vehicle title service or title service runner unless that person holds a permit issued by the county, if required by the county where the titles are required to be filed, and a license issued by the Texas Department of Motor Vehicles. The bill makes license requirements in certain counties apply instead to permit requirements in a county that requires a motor vehicle title service permit. The bill establishes state license application requirements, including surety bond requirements, and requires the holder of a motor vehicle title service license to maintain records as required by department rule. The bill also establishes certain remedies, including criminal and civil penalties, for a violation of a law or rule adopted by the department or a county tax assessor-collector, as applicable.
Reason Given for Veto: "Senate Bill 1035 would expand county permitting of motor vehicle title service companies and create a state licensing requirement administered by the Texas Department of Motor Vehicles (DMV). The bill would establish additional criminal and civil penalties, including a state jail felony if a service company violated a license requirement.
"While the state may benefit from the DMV performing a licensing or oversight function, this bill would not address the burden imposed on motor vehicle title service companies by a state licensing requirement, nor would it address the inherent problems of the creation of 254 different county registration processes. The dual state and county registration and licensing procedures, and different associated fees, are too cumbersome.
"Senate Bill 1035 could also have unintended consequences through its definition of a motor vehicle title service company. That definition would include any individual directly or indirectly assisting with the registration process. It would be problematic that a friend or family member who is familiar with the registration process could not assist, if any compensation was received, without being subject to civil and criminal penalties.
"Because I appreciate the goal of Senate Bill 1035, I am requesting the DMV to work with the motor vehicle title service industry and county governments to find a reasonable solution that does not add layers of government, but protects Texans against individuals operating with the intent to defraud consumers or the state."