By Bosse H.B. No. 2151
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the issuance of titles to certain motor vehicles;
1-3 providing a penalty.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The Certificate of Title Act (Article 6687-1,
1-6 Vernon's Texas Civil Statutes) is amended by adding Section 37A to
1-7 read as follows:
1-8 Sec. 37A. (a) In this section:
1-9 (1) "Actual cash value" means the market value of a
1-10 motor vehicle as determined:
1-11 (A) from publications commonly used by the
1-12 automotive and insurance industries to establish the value of motor
1-13 vehicles; or
1-14 (B) if the entity determining the value is an
1-15 insurance company, by any other procedure recognized by the
1-16 insurance industry, including market surveys, that is applied by
1-17 the company in a uniform manner.
1-18 (2) "Automobile recycler" means a person in the
1-19 business of dealing in salvage motor vehicles for the purpose of
1-20 dismantling the vehicles to sell used parts or a person otherwise
1-21 engaged in the business of acquiring, selling, or dealing in
1-22 salvage parts for reuse or resale as parts. The term includes a
1-23 dealer in used motor vehicle parts.
1-24 (3) "Casual sale" means the sale at auction of not
2-1 more than one nonrepairable motor vehicle or late model salvage
2-2 motor vehicle to the same person during a calendar year.
2-3 (4) "Insurance company" means a person authorized to
2-4 write automobile insurance in Texas or an out-of-state insurance
2-5 company that pays a loss claim for a motor vehicle in Texas.
2-6 (5) "Late model motor vehicle" means a motor vehicle
2-7 that was manufactured during the preceding six model years,
2-8 including the current model year.
2-9 (6) "Late model salvage motor vehicle" or "salvage
2-10 motor vehicle" means a late model motor vehicle, other than a late
2-11 model vehicle that is a nonrepairable motor vehicle, that is
2-12 damaged to the extent that the total estimated cost of repairs,
2-13 other than repairs related to hail damage but including parts and
2-14 labor, is equal to or greater than an amount equal to 75 percent of
2-15 the actual cash value of the vehicle in its predamaged condition.
2-16 (7) "Major component part" means one of the following
2-17 parts of a motor vehicle:
2-18 (A) the engine;
2-19 (B) the transmission;
2-20 (C) the frame;
2-21 (D) the right or left front fender;
2-22 (E) the hood;
2-23 (F) a door allowing entrance to or egress from
2-24 the passenger compartment of the vehicle;
2-25 (G) the front or rear bumper;
2-26 (H) the right or left quarter panel;
2-27 (I) the deck lid, tailgate, or hatchback;
3-1 (J) the cargo box of a pickup truck;
3-2 (K) the cab of a truck; or
3-3 (L) the body of a passenger vehicle.
3-4 (8) "Nonrepairable motor vehicle" means a late model
3-5 motor vehicle that is damaged or missing a major component part to
3-6 the extent that the total estimated cost of repairs to rebuild or
3-7 reconstruct the vehicle, including parts and labor other than the
3-8 costs of materials and labor for repainting the vehicle and
3-9 excluding sales taxes on the total cost of the repairs, and
3-10 excluding the cost of repairs to repair hail damage, is equal to or
3-11 greater than an amount equal to 95 percent of the actual cash value
3-12 of the vehicle in its predamaged condition.
3-13 (9) "Nonrepairable motor vehicle certificate of title"
3-14 means a document issued by the department that evidences ownership
3-15 of a nonrepairable motor vehicle.
3-16 (10) "Older model motor vehicle" means a motor vehicle
3-17 that was manufactured in a model year before the sixth preceding
3-18 model year, including the current model year.
3-19 (11) "Other negotiable evidence of ownership" means a
3-20 document other than a Texas certificate of title or a salvage
3-21 certificate of title that relates to a motor vehicle that the
3-22 department considers sufficient to support issuance of a Texas
3-23 certificate of title for the vehicle.
3-24 (12) "Out-of-state buyer" means a person licensed by
3-25 another state or jurisdiction in an automotive business if the
3-26 Texas Department of Transportation has listed the holders of such
3-27 license as permitted purchasers of salvage motor vehicles or
4-1 nonrepairable motor vehicles based on substantially similar
4-2 licensing requirements and on whether salvage vehicle dealers
4-3 licensed in Texas are permitted to purchase salvage motor vehicles
4-4 or nonrepairable motor vehicles in the other state or jurisdiction.
4-5 (13) "Person" means an individual, firm, corporation,
4-6 company, partnership, or other entity.
4-7 (14) "Rebuilder" means a person that acquires and
4-8 repairs, for operation on public highways, five or more late model
4-9 salvage motor vehicles in any 12-month period.
4-10 (15) "Salvage motor vehicle certificate of title"
4-11 means any document issued by the department that evidences
4-12 ownership of a salvage motor vehicle.
4-13 (16) "Salvage vehicle dealer" has the meaning assigned
4-14 by Section 1.01, Article 6687-1a, Revised Statutes.
4-15 (b)(1) An insurance company that is licensed to conduct
4-16 business in this state and that acquires ownership of a late model
4-17 salvage motor vehicle through payment of a claim shall surrender a
4-18 properly assigned certificate of title to the department, on a form
4-19 prescribed by the department.
4-20 (2) For a vehicle described by Subsection (a)(6) of
4-21 this section but not by Subsection (a)(8) of this section, the
4-22 insurance company shall apply for a salvage motor vehicle
4-23 certificate of title. For a vehicle described by Subsection (a)(8)
4-24 of this section, the insurance company shall apply for a
4-25 nonrepairable motor vehicle certificate of title.
4-26 (3) An insurance company may not sell a late model
4-27 salvage motor vehicle to which this subsection applies unless the
5-1 department has issued a salvage motor vehicle certificate of title
5-2 or a nonrepairable motor vehicle certificate of title for the
5-3 vehicle or a comparable ownership document has been issued by
5-4 another state or jurisdiction for the vehicle.
5-5 (4) An insurance company may sell a late model salvage
5-6 motor vehicle to which this subsection applies, or assign a salvage
5-7 motor vehicle certificate of title or a nonrepairable motor vehicle
5-8 certificate of title for the vehicle, only to a salvage vehicle
5-9 dealer, an out-of-state buyer, a buyer in a casual sale at auction,
5-10 or a person described by Subsection (g), Article 6687-2b, Revised
5-11 Statutes. If the total estimated cost of repairs to rebuild or
5-12 reconstruct the vehicle, including parts and labor, is less than 75
5-13 percent of the actual cash value of the vehicle in its predamaged
5-14 condition, the insurance company is not required to surrender the
5-15 regular certificate of title for the vehicle or to be issued a
5-16 salvage motor vehicle certificate of title or a nonrepairable motor
5-17 vehicle certificate of title for the vehicle.
5-18 (5) If an insurance company acquires ownership of a
5-19 motor vehicle other than a late model salvage motor vehicle or a
5-20 nonrepairable motor vehicle through payment of a claim, the company
5-21 shall, on delivery of the vehicle to a buyer of the vehicle,
5-22 deliver the buyer a properly assigned certificate of title for the
5-23 vehicle.
5-24 (6) This subsection does not apply to a vehicle that
5-25 has been stolen and recovered unless the damage to the vehicle
5-26 causes the vehicle to be a salvage motor vehicle or a nonrepairable
5-27 motor vehicle.
6-1 (c)(1) If after payment of a total loss claim on a late
6-2 model salvage motor vehicle or a nonrepairable motor vehicle an
6-3 insurance company does not acquire ownership of the vehicle, the
6-4 insurance company shall submit to the department, before the 31st
6-5 day after the date of the payment of the claim, on the form
6-6 prescribed by the department, a report stating that:
6-7 (A) the insurance company has paid a total loss
6-8 claim on the vehicle; and
6-9 (B) the insurance company has not acquired
6-10 ownership of the vehicle.
6-11 (2) The owner of a late model salvage motor vehicle to
6-12 which this subsection applies may not transfer ownership of the
6-13 vehicle by sale or otherwise unless the department has issued a
6-14 salvage motor vehicle certificate of title or a nonrepairable motor
6-15 vehicle certificate of title for the vehicle or a comparable
6-16 ownership document has been issued by another state or jurisdiction
6-17 for the vehicle.
6-18 (d)(1) A person that owns a late model salvage motor vehicle
6-19 may not sell, transfer, or release the vehicle to a person other
6-20 than a salvage vehicle dealer, the former owner of the vehicle, a
6-21 governmental entity, an out-of-state buyer, a buyer in a casual
6-22 sale at auction, or a person described by Subsection (g), Article
6-23 6687-2b, Revised Statutes, and shall deliver to that person a
6-24 properly assigned certificate of title for the vehicle. If the
6-25 assigned certificate of title is not a salvage motor vehicle
6-26 certificate of title, a nonrepairable motor vehicle certificate of
6-27 title, or a comparable ownership document issued by another state
7-1 or jurisdiction, the purchaser shall, not later than the 10th day
7-2 after the date the purchaser receives the certificate of title from
7-3 the owner:
7-4 (A) surrender the certificate of title to the
7-5 department; and
7-6 (B) apply for a salvage motor vehicle
7-7 certificate of title or a nonrepairable motor vehicle certificate
7-8 of title for the vehicle, as appropriate.
7-9 (2) A salvage vehicle dealer that acquires ownership
7-10 of a late model salvage motor vehicle or a nonrepairable motor
7-11 vehicle for the purpose of dismantling, scrapping, or destroying
7-12 the vehicle shall, before the 31st day after the date the dealer
7-13 acquires the vehicle, submit to the department, on the form
7-14 prescribed by the department, a report stating that the vehicle
7-15 will be dismantled, scrapped, or destroyed, accompanied by a
7-16 properly assigned regular certificate of title, salvage motor
7-17 vehicle certificate of title, nonrepairable motor vehicle
7-18 certificate of title, or a comparable ownership document issued by
7-19 another state or jurisdiction for the vehicle.
7-20 (3) On receipt of the report and the certificate of
7-21 title, the department shall issue the salvage vehicle dealer a
7-22 receipt for the certificate of title, salvage motor vehicle
7-23 certificate of title, nonrepairable motor vehicle certificate of
7-24 title, or a comparable ownership document issued by another state
7-25 or jurisdiction.
7-26 (e) A salvage vehicle dealer that acquires an older model
7-27 vehicle for the purpose of dismantling, scrapping, or destroying
8-1 the vehicle and that receives a properly assigned certificate of
8-2 title for the vehicle shall, before the 31st day after the date the
8-3 dealer acquires the vehicle:
8-4 (1) submit to the department, on the form prescribed
8-5 by the department, a report stating that the vehicle will be
8-6 dismantled, scrapped, or destroyed, accompanied by the properly
8-7 assigned regular certificate of title, salvage motor vehicle
8-8 certificate of title, nonrepairable motor vehicle certificate of
8-9 title, or a comparable ownership document issued by another state
8-10 or jurisdiction for the vehicle; and
8-11 (2) keep on the business premises of the dealer, until
8-12 the third anniversary of the date the report on the vehicle is
8-13 submitted to the department, a record of the vehicle.
8-14 (f) A person, other than a salvage vehicle dealer or an
8-15 insurance company licensed to do business in this state, that
8-16 acquires ownership of a late model salvage motor vehicle or a
8-17 nonrepairable motor vehicle which has not been issued a salvage
8-18 motor vehicle certificate of title, a nonrepairable motor vehicle
8-19 certificate of title, or a comparable ownership document issued by
8-20 another state or jurisdiction shall, before selling the vehicle,
8-21 surrender the properly assigned certificate of title for the
8-22 vehicle to the department and:
8-23 (1) if the vehicle is a vehicle described by
8-24 Subsection (a)(6) but not by Subsection (a)(8) of this section,
8-25 apply to the department for a salvage motor vehicle certificate of
8-26 title for the vehicle; or
8-27 (2) if the vehicle is a vehicle described by
9-1 Subsection (a)(8) of this section, apply to the department for a
9-2 nonrepairable motor vehicle certificate of title for the vehicle.
9-3 (g) The owner of a late model salvage motor vehicle that has
9-4 been issued a salvage motor vehicle certificate of title or a
9-5 nonrepairable motor vehicle certificate of title may sell the
9-6 vehicle only to a salvage vehicle dealer in this state, an
9-7 out-of-state buyer, a buyer in a casual sale at auction, or a
9-8 person described by Subsection (g), Article 6687-2b, Revised
9-9 Statutes.
9-10 (h) An application for a salvage motor vehicle certificate
9-11 of title or a nonrepairable motor vehicle certificate of title
9-12 must:
9-13 (1) be made on a form prescribed by the department and
9-14 accompanied by a fee established by the department, not to exceed
9-15 an amount that is sufficient, when added to other fees collected
9-16 under this Act, to recover the actual costs to the department of
9-17 issuing the certificate; and
9-18 (2) include, in addition to any other information
9-19 required by the department:
9-20 (A) the name and current address of the owner;
9-21 (B) a description of the vehicle, including the
9-22 make, style of body, model year, and vehicle identification number;
9-23 (C) a description of the damage to the vehicle;
9-24 (D) the estimated cost of repairs to the
9-25 vehicle, including parts and labor; and
9-26 (E) the predamaged actual cash value of the
9-27 vehicle.
10-1 (i)(1) On receipt of a complete application and the
10-2 prescribed application fee, the department shall, before the sixth
10-3 business day after the date the department receives the
10-4 application, issue the applicant a salvage motor vehicle
10-5 certificate of title or a nonrepairable motor vehicle certificate
10-6 of title, as appropriate.
10-7 (2) A nonrepairable motor vehicle certificate of title
10-8 must state on its face that the vehicle:
10-9 (A) may not be issued a regular certificate of
10-10 title or registered in this state; and
10-11 (B) may only be used for parts or scrap metal.
10-12 (j) A person who holds a salvage motor vehicle certificate
10-13 of title is entitled to possess the vehicle, record a lien on the
10-14 vehicle, transport the vehicle, and transfer ownership of the
10-15 vehicle. A vehicle for which a salvage motor vehicle certificate
10-16 of title is the most current title may not be operated on a public
10-17 highway.
10-18 (k)(1) A vehicle for which a salvage motor vehicle
10-19 certificate of title has been issued may be issued a regular
10-20 certificate of title only after application and, in addition to any
10-21 other requirement of law, only if the application:
10-22 (A) describes each major component part used to
10-23 repair the vehicle and shows the identification number required by
10-24 federal law to be affixed to or inscribed on the part; and
10-25 (B) is accompanied by a written statement signed
10-26 by a specially trained commissioned officer of the Department of
10-27 Public Safety certifying to the department that:
11-1 (i) the vehicle identification numbers and
11-2 parts identification numbers are accurate;
11-3 (ii) the applicant has proof that the
11-4 applicant owns the parts used to repair the vehicle; and
11-5 (iii) the vehicle may be safely operated
11-6 and complies with all applicable motor vehicle safety standards of
11-7 this state.
11-8 (2) The Department of Public Safety may prescribe a
11-9 fee, in an amount not to exceed the actual cost to that department,
11-10 for conducting an inspection and providing the written statement
11-11 required by this subsection.
11-12 (l)(1) On receipt of a complete application under Subsection
11-13 (k) of this section, accompanied by the peace officer's statement
11-14 and the appropriate fee for the certificate of title, the
11-15 department shall issue the applicant a certificate of title for
11-16 the vehicle.
11-17 (2) A certificate of title issued under this
11-18 subsection must:
11-19 (A) bear on its face the words "REBUILT
11-20 SALVAGE"; and
11-21 (B) describe or disclose the vehicle's former
11-22 condition in a manner understandable to a potential purchaser of
11-23 the vehicle.
11-24 (m)(1) On proper application by the owner of a vehicle
11-25 brought into this state from another state or jurisdiction that has
11-26 on any certificate of title issued by the other state or
11-27 jurisdiction a "rebuilt," "salvage," "nonrepairable," or analogous
12-1 notation, the department shall issue the applicant a certificate of
12-2 title or other appropriate document for the vehicle.
12-3 (2) A certificate of title or other appropriate
12-4 document issued under this subsection must show on its face:
12-5 (A) the date of issuance;
12-6 (B) the name and address of the owner;
12-7 (C) any registration number assigned to the
12-8 vehicle;
12-9 (D) a description of the vehicle as determined
12-10 by the department; and
12-11 (E) any notation the department considers
12-12 necessary or appropriate.
12-13 (n) A person who holds a nonrepairable motor vehicle
12-14 certificate of title for a vehicle:
12-15 (1) is entitled to possess the vehicle, dismantle,
12-16 scrap, or destroy the vehicle, transport the vehicle or parts of
12-17 the vehicle, or rebuild the vehicle;
12-18 (2) may not operate or permit the operation of the
12-19 vehicle on a public highway; and
12-20 (3) may transfer ownership of the vehicle only if
12-21 affirmatively authorized by law to transfer ownership of a vehicle
12-22 for which a nonrepairable motor vehicle certificate of title has
12-23 been issued.
12-24 (o) Except as provided by Subsection (p) of this section, a
12-25 person commits an offense if the person:
12-26 (1) applies to the department for a certificate of
12-27 title for a motor vehicle; and
13-1 (2) knows that the vehicle is a nonrepairable motor
13-2 vehicle that has been rebuilt.
13-3 (p)(1) A person who rebuilds a nonrepairable vehicle may
13-4 apply to the department for a certificate of title for the vehicle
13-5 if, in addition to any other requirement of law, the application:
13-6 (A) contains the information required by
13-7 Subsection (k)(1)(A) of this section; and
13-8 (B) is accompanied by a written statement that
13-9 complies with Subsection (k)(1)(B) of this section.
13-10 (2) The Department of Public Safety may prescribe a
13-11 fee, in an amount not to exceed the actual cost to that department,
13-12 for conducting an inspection and providing the written statement
13-13 required by this subsection.
13-14 (3) On receipt of a complete application under this
13-15 subsection, accompanied by the appropriate fee for the certificate
13-16 of title, the department shall issue the applicant a certificate of
13-17 title for the vehicle that conforms to Subsection (l)(2) of this
13-18 section.
13-19 (q) For purposes of this section:
13-20 (1) the estimated cost of repair parts shall be
13-21 determined by using a manual of repair costs or other instrument
13-22 that is generally recognized and commonly used in the motor vehicle
13-23 insurance industry to determine those costs or an estimate of the
13-24 actual cost of the repair parts; and
13-25 (2) the estimated labor costs shall be computed by
13-26 using the hourly rate and time allocations that are reasonable and
13-27 commonly assessed in the repair industry in the community in which
14-1 the repairs are performed.
14-2 (r) The department shall print salvage motor vehicle
14-3 certificates of title and nonrepairable motor vehicle certificates
14-4 of title in a color that distinguishes them from certificates of
14-5 title and so that each document clearly shows that it is the
14-6 ownership document for a late model salvage motor vehicle or a
14-7 nonrepairable motor vehicle.
14-8 (s) A rebuilder must possess a certificate of title, a
14-9 salvage motor vehicle certificate of title, a nonrepairable motor
14-10 vehicle certificate of title, or a comparable ownership document
14-11 issued by another state or jurisdiction for any motor vehicle that
14-12 is:
14-13 (1) in the rebuilder's inventory; and
14-14 (2) being offered for resale.
14-15 (t) A person that rebuilds a late model salvage motor
14-16 vehicle for which the department has issued a salvage motor vehicle
14-17 certificate of title, or who assembles a late model salvage motor
14-18 vehicle from component parts, may apply to the department for a
14-19 certificate of title for the vehicle. A certificate of title
14-20 issued by the department under this subsection must bear the words
14-21 "REBUILT SALVAGE."
14-22 (u) The department, or an agent, officer, or employee of the
14-23 department, is not liable to a person damaged or injured by an act
14-24 or omission relating to the issuance of a certificate of title,
14-25 salvage motor vehicle certificate of title, or nonrepairable motor
14-26 vehicle certificate of title under this section.
14-27 (v)(1) This section does not apply to, and does not preclude
15-1 or prohibit any sales to, purchases by, or other transactions by or
15-2 with, a person described by Subsection (g), Article 6687-2b,
15-3 Revised Statutes, except as provided by Subdivision (2) or (3) of
15-4 this subsection.
15-5 (2) A person described by Subsection (g), Article
15-6 6687-2b, Revised Statutes, shall submit to the department the
15-7 certificate of title or equivalent document that the person
15-8 receives in conjunction with the purchase of a motor vehicle not
15-9 later than the 60th day after the date of receipt of the
15-10 certificate of title or equivalent document.
15-11 (3) This section applies to a transaction with a
15-12 person described by Subsection (g), Article 6687-2b, Revised
15-13 Statutes, in which a motor vehicle is sold or delivered to the
15-14 person for the purpose of reuse or resale as a motor vehicle or as
15-15 motor vehicle parts if the motor vehicle is so used.
15-16 SECTION 2. Section 62, Certificate of Title Act (Article
15-17 6687-1, Vernon's Texas Civil Statutes), is amended to read as
15-18 follows:
15-19 Sec. 62. (a) Except as provided by Subsection (b) of this
15-20 section, any <Any> person who shall violate any provisions of this
15-21 Act shall be guilty of a misdemeanor, and upon conviction thereof
15-22 shall be fined in any sum not less than One Dollar ($1) nor more
15-23 than One Hundred Dollars ($100) for the first offense, and may,
15-24 upon any subsequent conviction for a violation of the same
15-25 provision, within the discretion of the jury, be given double the
15-26 amount of punishment provided for a first violation.
15-27 (b) A person who violates Section 37A of this Act or a rule
16-1 adopted under Section 37A of this Act commits a Class A
16-2 misdemeanor.
16-3 SECTION 3. Section 37, Certificate of Title Act (Article
16-4 6687-1, Vernon's Texas Civil Statutes), is repealed.
16-5 SECTION 4. This Act takes effect September 1, 1995, but only
16-6 if H.B. No. 2599, 74th Legislature, Regular Session, 1995, is
16-7 enacted and becomes law. If H.B. No. 2599, 74th Legislature,
16-8 Regular Session, 1995, does not become law, this Act has no effect.
16-9 SECTION 5. The importance of this legislation and the
16-10 crowded condition of the calendars in both houses create an
16-11 emergency and an imperative public necessity that the
16-12 constitutional rule requiring bills to be read on three several
16-13 days in each house be suspended, and this rule is hereby suspended.