By: Montford S.B. No. 904
73R5423 JD-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the issuance of titles to certain motor vehicles.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. The Certificate of Title Act (Article 6687-1,
1-5 Vernon's Texas Civil Statutes) is amended by adding Section 37A to
1-6 read as follows:
1-7 Sec. 37A. (a) In this section:
1-8 (1) "Certificate of destruction" means a document of
1-9 ownership issued by the department for an unrepairable late model
1-10 motor vehicle.
1-11 (2) "Salvage certificate of title" means a written
1-12 instrument that is issued by the department for a vehicle for which
1-13 the certificate of title or other negotiable evidence of ownership
1-14 has been surrendered to the department and that includes a
1-15 description of the vehicle and the names and addresses of the owner
1-16 and any lienholders.
1-17 (3) "Unrepairable late model motor vehicle" means a
1-18 late model motor vehicle that has been damaged as a result of
1-19 collision, fire, flood, accident, trespass, or other occurrence to
1-20 the extent that the estimated cost of repair is greater than 95
1-21 percent of the vehicle's fair market value.
1-22 (4) "Late model motor vehicle" means a motor vehicle
1-23 that is the current year's model of a motor vehicle or any of the
1-24 five preceding years' model of the motor vehicle.
2-1 (5) "Fair market value" means the value of a motor
2-2 vehicle as determined from publications commonly used by the
2-3 automotive and insurance industries to establish the value of motor
2-4 vehicles. In this section, the term refers to the value of a
2-5 damaged motor vehicle as if the vehicle were not damaged.
2-6 (6) "Person" means an individual, firm, corporation,
2-7 company, partnership, or other entity.
2-8 (7) "Insurance company" means a person authorized to
2-9 write automobile insurance in Texas or an out-of-state insurance
2-10 company that pays a loss claim for a motor vehicle in Texas.
2-11 (8) "Late model salvage motor vehicle" means a late
2-12 model motor vehicle, other than an unrepairable late model motor
2-13 vehicle, that has been damaged as a result of collision, fire,
2-14 flood, accident, trespass, or other occurrence to the extent that
2-15 the estimated cost of repair is greater than 75 percent of its fair
2-16 market value.
2-17 (9) "Demolisher" means a person that is in the
2-18 business of converting motor vehicles into processed scrap or scrap
2-19 metal.
2-20 (10) "Rebuilder" means a person that acquires and
2-21 repairs, for operation on public highways, five or more late model
2-22 salvage motor vehicles in any 12-month period.
2-23 (11) "Salvage dealer" means a person that is in the
2-24 business of acquiring motor vehicles for the purpose of selling
2-25 parts from those vehicles.
2-26 (12) "Scrap metal processor" means a person that is in
2-27 the business of processing motor vehicles into scrap for remelting
3-1 purposes and that uses machinery and equipment at a fixed location
3-2 to process and manufacture metallic scrap into prepared grades, if
3-3 the principal product of the business is metallic scrap.
3-4 (13) "Other negotiable evidence of ownership" means a
3-5 document other than a Texas certificate of title or a salvage
3-6 certificate of title that relates to a motor vehicle that the
3-7 department considers sufficient to support issuance of a Texas
3-8 certificate of title for the vehicle.
3-9 (b) An insurance company that becomes the owner of a late
3-10 model salvage motor vehicle that had a fair market value of $4,000
3-11 or more, or an unrepairable late model motor vehicle that had a
3-12 fair market value of $4,000 or more, shall:
3-13 (1) surrender a properly assigned certificate of title
3-14 to the vehicle or other negotiable evidence of ownership of the
3-15 vehicle with a release of all recorded liens to the department
3-16 before the 21st day after the date that the company becomes the
3-17 owner; and
3-18 (2) on a form prescribed by the department, include:
3-19 (A) the fair market value of the vehicle;
3-20 (B) a description of all damage to the vehicle;
3-21 and
3-22 (C) the estimated cost of repairing the vehicle.
3-23 (c)(1) If the department determines that the vehicle
3-24 described by a certificate of title or other negotiable evidence of
3-25 ownership surrendered under Subsection (b) of this section is a
3-26 late model salvage motor vehicle, the department shall:
3-27 (A) cancel the certificate of title or other
4-1 negotiable evidence of ownership for the vehicle; and
4-2 (B) issue a salvage certificate of title for the
4-3 vehicle.
4-4 (2) If the department determines that the vehicle
4-5 described by a surrendered certificate of title or other negotiable
4-6 evidence of ownership surrendered under Subsection (b) of this
4-7 section is an unrepairable late model motor vehicle, the department
4-8 shall:
4-9 (A) cancel the certificate of title or other
4-10 negotiable evidence of ownership for the vehicle;
4-11 (B) issue a certificate of destruction for the
4-12 vehicle; and
4-13 (C) require the insurance company to remove the
4-14 vehicle identification number plate from the vehicle or to have the
4-15 plate removed from the vehicle.
4-16 (d) An insurance company that pays a total loss settlement
4-17 on a late model salvage motor vehicle that had a fair market value
4-18 of $4,000 or more, or an unrepairable late model motor vehicle that
4-19 had a fair market value of $4,000 or more, but does not become the
4-20 owner of that vehicle shall, on a form prescribed by the
4-21 department:
4-22 (1) notify the department of the settlement;
4-23 (2) state the fair market value of the vehicle;
4-24 (3) describe all damage to the vehicle; and
4-25 (4) state the estimated cost of repairing the vehicle.
4-26 (e) If the department determines that a vehicle for which
4-27 the certificate of title is surrendered under Subsection (b) of
5-1 this section is a late model salvage motor vehicle, the department
5-2 shall take the actions required by Subsection (c)(1) of this
5-3 section.
5-4 (f) If the department determines that a vehicle for which
5-5 the certificate of title is surrendered under Subsection (b) of
5-6 this section is an unrepairable late model motor vehicle, the
5-7 department shall:
5-8 (1) cancel the certificate of title for the vehicle;
5-9 (2) issue a certificate of destruction for the
5-10 vehicle; and
5-11 (3) require the owner to remove the vehicle
5-12 identification number plate from the vehicle or to have the plate
5-13 removed from the vehicle.
5-14 (g) A salvage dealer, scrap metal processor, demolisher, or
5-15 rebuilder that purchases an unrepairable late model motor vehicle
5-16 for scrapping or disassembly for parts only shall:
5-17 (1) immediately indicate on the certificate of title,
5-18 salvage certificate of title, or other negotiable evidence of
5-19 ownership for the vehicle that the vehicle was scrapped,
5-20 disassembled for parts, or demolished;
5-21 (2) surrender the certificate, salvage certificate, or
5-22 other negotiable evidence of ownership to the department before the
5-23 sixth working day after the date that the vehicle was scrapped,
5-24 disassembled for parts, or demolished; and
5-25 (3) remove the vehicle identification number plate
5-26 from the vehicle.
5-27 (h) On receipt of a certificate of title, salvage
6-1 certificate of title, or other negotiable evidence of ownership
6-2 surrendered under Subsection (g) of this section, the department
6-3 shall:
6-4 (1) cancel the certificate of title, salvage
6-5 certificate of title, or other negotiable evidence of ownership for
6-6 the vehicle; and
6-7 (2) issue a certificate of destruction for the
6-8 vehicle.
6-9 (i) An insurance company that pays a total loss claim and
6-10 becomes the owner of a motor vehicle that was stolen and has not
6-11 been recovered shall:
6-12 (1) surrender the certificate of title or other
6-13 negotiable evidence of ownership for the vehicle to the department;
6-14 and
6-15 (2) on a form prescribed by the department, apply to
6-16 the department for a certificate of title to be issued in the name
6-17 of the company.
6-18 (j) The department shall maintain a stolen vehicle notation
6-19 on each vehicle reported to the department under Subsection (i) of
6-20 this section until the department is notified that the vehicle has
6-21 been recovered.
6-22 (k) When a late model motor vehicle that had a fair market
6-23 value of $4,000 or more and was previously stolen is recovered in a
6-24 damaged condition, the person or the insurance company that is the
6-25 owner of the vehicle shall, on a form prescribed by the
6-26 department:
6-27 (1) report the recovery to the department;
7-1 (2) state the fair market value of the vehicle;
7-2 (3) describe all damage to the vehicle; and
7-3 (4) state the estimated cost of repairing the vehicle.
7-4 (l)(1) If the department determines that the vehicle
7-5 described in a report made to the department under Subsection (k)
7-6 of this section is an unrepairable late model motor vehicle, the
7-7 department shall:
7-8 (A) cancel the certificate of title for the
7-9 vehicle;
7-10 (B) issue a certificate of destruction for the
7-11 vehicle; and
7-12 (C) require the owner to remove the vehicle
7-13 identification number plate from the vehicle or to have the plate
7-14 removed from the vehicle.
7-15 (2) If the department determines that the vehicle
7-16 described in a report made to the department under Subsection (k)
7-17 of this section is a late model salvage motor vehicle, the
7-18 department shall:
7-19 (A) cancel the certificate of title for the
7-20 vehicle; and
7-21 (B) issue a salvage certificate of title for the
7-22 vehicle.
7-23 (m) The owner of an uninsured or self-insured late model
7-24 motor vehicle that had a fair market value of $4,000 or more and
7-25 that has been damaged as a result of collision, fire, flood,
7-26 accident, trespass, or other occurrence to the extent that the
7-27 estimated cost of repairing the vehicle is greater than 75 percent
8-1 of the fair market value of the vehicle shall surrender the
8-2 certificate of title or other negotiable evidence of ownership and
8-3 make the report to the department that is required by Subsection
8-4 (b) of this section.
8-5 (n) On receipt of a report under Subsection (m) of this
8-6 section, the department shall take the actions required of the
8-7 department by Subsection (c)(1) of this section.
8-8 (o) The department shall print salvage certificates of title
8-9 and certificates of destruction in a color that distinguishes them
8-10 from certificates of title and so that each document clearly shows
8-11 that it is the ownership document for a late model salvage motor
8-12 vehicle or a late model unrepairable motor vehicle.
8-13 (p) A rebuilder must possess a certificate of title or
8-14 salvage certificate of title for any motor vehicle that is:
8-15 (1) in the rebuilder's inventory; and
8-16 (2) being offered for resale.
8-17 (q)(1) A person that rebuilds a late model salvage motor
8-18 vehicle for which the department has issued a salvage certificate
8-19 of title, or who assembles a late model salvage motor vehicle from
8-20 component parts, may apply to the department for a certificate of
8-21 title for the vehicle.
8-22 (2) An application for a certificate of title under
8-23 this subsection must:
8-24 (A) be on a form prescribed by the department;
8-25 (B) include a properly assigned certificate of
8-26 title, salvage certificate of title, or other negotiable evidence
8-27 of ownership for the vehicle;
9-1 (C) be accompanied by the affidavit of the
9-2 applicant, or of the person who rebuilt or assembled the vehicle,
9-3 describing the actions that were necessary to rebuild or assemble
9-4 the vehicle; and
9-5 (D) be made to the department's designated agent
9-6 in the county in which the applicant is domiciled.
9-7 (r) Section 57 of this Act applies to a certificate of title
9-8 issued under this section.
9-9 (s)(1) The department may issue a certificate of title to a
9-10 person who applies for a certificate of title under Subsection (q)
9-11 of this section.
9-12 (2) A certificate of title issued or reissued under
9-13 this subsection shall bear the notation "Rebuilt Vehicle."
9-14 (t)(1) A person that is the owner of a motor vehicle that
9-15 was not manufactured for sale in the United States, or that is a
9-16 rebuilt or reconstructed motor vehicle for which a certificate of
9-17 title or other negotiable evidence of ownership was previously
9-18 issued by another state, may apply to the department for a
9-19 certificate of title for the vehicle.
9-20 (2) An application for a certificate of title under
9-21 this subsection shall be on a form prescribed by the department and
9-22 include all information required by the department to support the
9-23 application.
9-24 (3) A person applying for a certificate of title under
9-25 this subsection must surrender to the department the certificate of
9-26 title or other negotiable evidence of ownership that relates to the
9-27 vehicle.
10-1 (4) The department may issue or reissue a certificate
10-2 of title to a person that applies for a certificate of title under
10-3 this subsection and, if the certificate is issued or reissued, the
10-4 department shall place an appropriate notation on the certificate.
10-5 (u) The department, or an agent, officer, or employee of the
10-6 department, is not liable to a person damaged or injured by an act
10-7 or omission relating to the issuance of a certificate of title,
10-8 salvage certificate of title, or certificate of destruction under
10-9 this section.
10-10 SECTION 2. Section 37, Certificate of Title Act (Article
10-11 6687-1, Vernon's Texas Civil Statutes), is repealed.
10-12 SECTION 3. This Act takes effect September 1, 1993.
10-13 SECTION 4. The importance of this legislation and the
10-14 crowded condition of the calendars in both houses create an
10-15 emergency and an imperative public necessity that the
10-16 constitutional rule requiring bills to be read on three several
10-17 days in each house be suspended, and this rule is hereby suspended.