By Bosse H.B. No. 2151
74R3369 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) "Actual cash value" means the retail dollar value
1-9 of a motor vehicle as determined from publications commonly used by
1-10 the automotive and insurance industries to establish the value of
1-11 motor vehicles.
1-12 (2) "Automobile recycler" means a person in the
1-13 business of dealing in salvage motor vehicles for the purpose of
1-14 dismantling the vehicles to sell used parts and the resulting scrap
1-15 metal or a person otherwise engaged in the business of acquiring,
1-16 selling, or dealing in salvage parts. The term includes a dealer
1-17 in used motor vehicle parts.
1-18 (3) "Demolisher" means a person in the business of
1-19 converting motor vehicles into processed scrap or scrap metal.
1-20 (4) "Insurance company" means a person authorized to
1-21 write automobile insurance in Texas or an out-of-state insurance
1-22 company that pays a loss claim for a motor vehicle in Texas.
1-23 (5) "Late model motor vehicle" means a motor vehicle
1-24 that was manufactured during the preceding six model years,
2-1 including the current model year.
2-2 (6) "Late model salvage motor vehicle" means a late
2-3 model motor vehicle, other than a late model vehicle that is a
2-4 nonrepairable motor vehicle, that is damaged to the extent that the
2-5 total estimated cost of repairs, including parts and labor, is
2-6 equal to or greater than an amount equal to 75 percent of the
2-7 actual cash value of the vehicle in its predamaged condition.
2-8 (7) "Major component part" means one of the following
2-9 parts of a motor vehicle:
2-10 (A) the engine;
2-11 (B) the transmission;
2-12 (C) the frame;
2-13 (D) the right or left front fender;
2-14 (E) the hood;
2-15 (F) a door allowing entrance to or egress from
2-16 the passenger compartment of the vehicle;
2-17 (G) the front or rear bumper;
2-18 (H) the right or left quarter panel;
2-19 (I) the deck lid, tailgate, or hatchback;
2-20 (J) the cargo box of a pickup truck;
2-21 (K) the cab of a truck; or
2-22 (L) the body of a passenger vehicle.
2-23 (8) "Nonrepairable motor vehicle" means a motor
2-24 vehicle that is damaged or missing a major component part to the
2-25 extent that the total estimated cost of repairs to rebuild or
2-26 reconstruct the vehicle, including parts and labor, is equal to or
2-27 greater than an amount equal to 95 percent of the actual cash value
3-1 of the vehicle in its predamaged condition.
3-2 (9) "Nonrepairable motor vehicle certificate of title"
3-3 means a document issued by the department that evidences ownership
3-4 of a nonrepairable motor vehicle.
3-5 (10) "Older model motor vehicle" means a motor vehicle
3-6 that was manufactured in a model year before the sixth preceding
3-7 model year, including the current model year.
3-8 (11) "Other negotiable evidence of ownership" means a
3-9 document other than a Texas certificate of title or a salvage
3-10 certificate of title that relates to a motor vehicle that the
3-11 department considers sufficient to support issuance of a Texas
3-12 certificate of title for the vehicle.
3-13 (12) "Person" means an individual, firm, corporation,
3-14 company, partnership, or other entity.
3-15 (13) "Rebuilder" means a person that acquires and
3-16 repairs, for operation on public highways, five or more late model
3-17 salvage motor vehicles in any 12-month period.
3-18 (14) "Salvage motor vehicle" means a motor vehicle
3-19 that is damaged or missing a major component part to the extent
3-20 that the total estimated cost of repairs to rebuild or reconstruct
3-21 the vehicle, including parts and labor, is equal to or greater than
3-22 an amount equal to 75 percent of the actual cash value of the
3-23 vehicle in its predamaged condition.
3-24 (15) "Salvage motor vehicle certificate of title"
3-25 means any document issued by the department that evidences
3-26 ownership of a salvage motor vehicle.
3-27 (16) "Salvage vehicle dealer" has the meaning assigned
4-1 by Section 1.01, Article 6687-1A, Vernon's Texas Civil Statutes.
4-2 (17) "Scrap metal processor" means a person in the
4-3 business of processing motor vehicles into scrap for remelting
4-4 purposes and that uses machinery and equipment to process and
4-5 manufacture metallic scrap into prepared grades, if the principal
4-6 product of the business is metallic scrap.
4-7 (b)(1) An insurance company that is licensed to conduct
4-8 business in this state and that acquires ownership of a late model
4-9 salvage motor vehicle through payment of a claim shall surrender a
4-10 properly assigned certificate of title to the department, on a form
4-11 prescribed by the department.
4-12 (2) For a vehicle described by Subsection (a)(14) of
4-13 this section but not by Subsection (a)(8) of this section, the
4-14 insurance company shall apply for a salvage motor vehicle
4-15 certificate of title. For a vehicle described by Subsection (a)(8)
4-16 of this section, the insurance company shall apply for a
4-17 nonrepairable motor vehicle certificate of title.
4-18 (3) An insurance company may not sell a late model
4-19 salvage motor vehicle to which this subsection applies unless the
4-20 department has issued a salvage motor vehicle certificate of title
4-21 or a nonrepairable motor vehicle certificate of title for the
4-22 vehicle.
4-23 (4) An insurance company may sell a late model salvage
4-24 motor vehicle to which this subsection applies, or assign a salvage
4-25 motor vehicle certificate of title or a nonrepairable motor vehicle
4-26 certificate of title for the vehicle, only to a salvage vehicle
4-27 dealer. If the total estimated cost of repairs to rebuild or
5-1 reconstruct the vehicle, including parts and labor, is less than 75
5-2 percent of the actual cash value of the vehicle in its predamaged
5-3 condition, the insurance company is not required to surrender the
5-4 regular certificate of title for the vehicle or to be issued a
5-5 salvage motor vehicle certificate of title or a nonrepairable motor
5-6 vehicle certificate of title for the vehicle.
5-7 (5) If an insurance company acquires ownership of a
5-8 motor vehicle other than a late model salvage motor vehicle through
5-9 payment of a claim, the company shall, on delivery of the vehicle
5-10 to a buyer of the vehicle, deliver the buyer a properly assigned
5-11 certificate of title for the vehicle.
5-12 (6) This subsection does not apply to a vehicle that
5-13 has been stolen and recovered and has no major component part
5-14 removed, missing, damaged, or destroyed.
5-15 (c)(1) If after payment of a total loss claim on a late
5-16 model salvage motor vehicle an insurance company does not acquire
5-17 ownership of the vehicle, the insurance company shall:
5-18 (A) require the owner of the vehicle to:
5-19 (i) sign an application for a salvage
5-20 motor vehicle certificate of title or a nonrepairable motor vehicle
5-21 certificate of title; and
5-22 (ii) surrender the certificate of title to
5-23 the vehicle to the insurance company; and
5-24 (B) submit, on behalf of the owner, the signed
5-25 application for title, accompanied by the surrendered certificate
5-26 of title, to the department.
5-27 (2) For a vehicle described by Subsection (a)(14) of
6-1 this section but not by Subsection (a)(8) of this section, the
6-2 insurance company shall apply on behalf of the owner for a salvage
6-3 motor vehicle certificate of title. For a vehicle described by
6-4 Subsection (a)(8) of this section, the insurance company shall
6-5 apply on behalf of the owner for a nonrepairable motor vehicle
6-6 certificate of title.
6-7 (3) The owner of a late model salvage motor vehicle to
6-8 which this subsection applies may not transfer ownership of the
6-9 vehicle by sale or otherwise unless the department has issued a
6-10 salvage motor vehicle certificate of title or a nonrepairable motor
6-11 vehicle certificate of title for the vehicle.
6-12 (d)(1) A person that owns a late model salvage motor vehicle
6-13 may not sell, transfer, or release the vehicle to a person other
6-14 than a salvage vehicle dealer, the former owner of the vehicle, or
6-15 a governmental entity, and shall deliver to that person a properly
6-16 assigned certificate of title for the vehicle. If the assigned
6-17 certificate of title is not a salvage motor vehicle certificate of
6-18 title or a nonrepairable motor vehicle certificate of title, the
6-19 salvage vehicle dealer shall, not later than the 10th day after the
6-20 date the dealer receives the certificate of title from the owner:
6-21 (A) surrender the certificate of title to the
6-22 department; and
6-23 (B) apply for a salvage motor vehicle
6-24 certificate of title or a nonrepairable motor vehicle certificate
6-25 of title for the vehicle, as appropriate.
6-26 (2) A salvage vehicle dealer that acquires ownership
6-27 of a late model salvage motor vehicle or a nonrepairable motor
7-1 vehicle for the purpose of dismantling, scrapping, or destroying
7-2 the vehicle shall, before the 31st day after the date the dealer
7-3 acquires the vehicle, submit to the department, on the form
7-4 prescribed by the department, a report stating that the vehicle
7-5 will be dismantled, scrapped, or destroyed, accompanied by a
7-6 properly assigned regular certificate of title, salvage motor
7-7 vehicle certificate of title, or nonrepairable motor vehicle
7-8 certificate of title for the vehicle.
7-9 (3) On receipt of the report and the certificate of
7-10 title, the department shall issue the salvage vehicle dealer a
7-11 receipt for the certificate of title, salvage motor vehicle
7-12 certificate of title, or nonrepairable motor vehicle certificate of
7-13 title.
7-14 (e) A salvage vehicle dealer or scrap metal processor that
7-15 acquires an older model vehicle for the purpose of dismantling,
7-16 scrapping, or destroying the vehicle and that receives a properly
7-17 assigned certificate of title for the vehicle shall, before the
7-18 31st day after the date the dealer or processor acquires the
7-19 vehicle:
7-20 (1) submit to the department, on the form prescribed
7-21 by the department, a report stating that the vehicle will be
7-22 dismantled, scrapped, or destroyed, accompanied by the properly
7-23 assigned regular certificate of title, salvage motor vehicle
7-24 certificate of title, or nonrepairable motor vehicle certificate of
7-25 title for the vehicle; and
7-26 (2) keep on the business premises of the dealer or
7-27 processor, until the third anniversary of the date the report on
8-1 the vehicle is submitted to the department, a record of the
8-2 vehicle.
8-3 (f) A person, other than a salvage vehicle dealer or an
8-4 insurance company licensed to do business in this state, that
8-5 acquires ownership of a late model salvage motor vehicle shall,
8-6 before selling the vehicle, surrender the properly assigned
8-7 certificate of title for the vehicle to the department and:
8-8 (1) if the vehicle is a vehicle described by
8-9 Subsection (a)(14) but not by Subsection (a)(8) of this section,
8-10 apply to the department for a salvage motor vehicle certificate of
8-11 title for the vehicle; or
8-12 (2) if the vehicle is a vehicle described by
8-13 Subsection (a)(8) of this section, apply to the department for a
8-14 nonrepairable motor vehicle certificate of title for the vehicle.
8-15 (g) The owner of a late model salvage motor vehicle that has
8-16 been issued a salvage motor vehicle certificate of title or a
8-17 nonrepairable motor vehicle certificate of title may sell the
8-18 vehicle only to a salvage vehicle dealer in this state.
8-19 (h) An application for a salvage motor vehicle certificate
8-20 of title or a nonrepairable motor vehicle certificate of title
8-21 must:
8-22 (1) be made on a form prescribed by the department and
8-23 accompanied by a fee established by the department, not to exceed
8-24 an amount that is sufficient, when added to other fees collected
8-25 under this Act, to recover the actual costs to the department of
8-26 issuing the certificate; and
8-27 (2) include, in addition to any other information
9-1 required by the department:
9-2 (A) the name and current address of the owner;
9-3 (B) a description of the vehicle, including the
9-4 make, style of body, model year, and vehicle identification number;
9-5 (C) a description of the damage to the vehicle;
9-6 (D) the estimated cost of repairs to the
9-7 vehicle, including parts and labor; and
9-8 (E) the predamaged actual cash value of the
9-9 vehicle.
9-10 (i)(1) On receipt of a complete application and the
9-11 prescribed application fee, the department shall, before the sixth
9-12 business day after the date the department receives the
9-13 application, issue the applicant a salvage motor vehicle
9-14 certificate of title or a nonrepairable motor vehicle certificate
9-15 of title, as appropriate.
9-16 (2) A nonrepairable motor vehicle certificate of title
9-17 must state on its face that the vehicle:
9-18 (A) may not be issued a regular certificate of
9-19 title or registered in this state; and
9-20 (B) may only be used for parts or scrap metal.
9-21 (j) A person who holds a salvage motor vehicle certificate
9-22 of title is entitled to possess the vehicle, record a lien on the
9-23 vehicle, transport the vehicle, and transfer ownership of the
9-24 vehicle. A vehicle for which a salvage motor vehicle certificate
9-25 of title is the most current title may not be operated on a public
9-26 highway.
9-27 (k)(1) A vehicle for which a salvage motor vehicle
10-1 certificate of title has been issued may be issued a regular
10-2 certificate of title only after application and, in addition to any
10-3 other requirement of law, only if the application:
10-4 (A) describes each major component part used to
10-5 repair the vehicle and shows the identification number required by
10-6 federal law to be affixed to or inscribed on the part; and
10-7 (B) is accompanied by a written statement signed
10-8 by a specially trained commissioned officer of the Department of
10-9 Public Safety certifying to the department that:
10-10 (i) the vehicle identification numbers and
10-11 parts identification numbers are accurate;
10-12 (ii) the applicant has proof that the
10-13 applicant owns the parts used to repair the vehicle; and
10-14 (iii) the vehicle may be safely operated
10-15 and complies with all applicable motor vehicle safety standards of
10-16 this state.
10-17 (2) The Department of Public Safety may prescribe a
10-18 fee, in an amount not to exceed the actual cost to that department,
10-19 for conducting an inspection and providing the written statement
10-20 required by this subsection.
10-21 (l)(1) On receipt of a complete application under Subsection
10-22 (k) of this section, accompanied by the peace officer's statement
10-23 and the appropriate fee for the certificate of title, the
10-24 department shall issue the applicant a certificate of title for
10-25 the vehicle.
10-26 (2) A certificate of title issued under this
10-27 subsection must:
11-1 (A) bear on its face the words "REBUILT
11-2 SALVAGE"; and
11-3 (B) describe or disclose the vehicle's former
11-4 condition in a manner understandable to a potential purchaser of
11-5 the vehicle.
11-6 (m)(1) On proper application by the owner of a vehicle
11-7 brought into this state from another state or jurisdiction that has
11-8 on any certificate of title issued by the other state or
11-9 jurisdiction a "rebuilt," "salvage," "nonrepairable," or analogous
11-10 notation, the department shall issue the applicant a certificate of
11-11 title or other appropriate document for the vehicle.
11-12 (2) A certificate of title or other appropriate
11-13 document issued under this subsection must show on its face:
11-14 (A) the date of issuance;
11-15 (B) the name and address of the owner;
11-16 (C) any registration number assigned to the
11-17 vehicle;
11-18 (D) a description of the vehicle as determined
11-19 by the department; and
11-20 (E) any notation the department considers
11-21 necessary or appropriate.
11-22 (n) A person who holds a nonrepairable motor vehicle
11-23 certificate of title for a vehicle:
11-24 (1) is entitled to possess the vehicle, dismantle,
11-25 scrap, or destroy the vehicle, or transport the vehicle or parts of
11-26 the vehicle;
11-27 (2) may not operate or permit the operation of the
12-1 vehicle on a public highway; and
12-2 (3) may transfer ownership of the vehicle only if
12-3 affirmatively authorized by law to transfer ownership of a vehicle
12-4 for which a nonrepairable motor vehicle certificate of title has
12-5 been issued.
12-6 (o) A person commits an offense if the person:
12-7 (1) applies to the department for a certificate of
12-8 title for a motor vehicle; and
12-9 (2) knows that the vehicle is a nonrepairable motor
12-10 vehicle that has been rebuilt.
12-11 (p) For purposes of this section:
12-12 (1) the estimated cost of repair parts shall be
12-13 determined by using the current published retail cost of original
12-14 manufacturer equipment parts or an estimate of the actual cost of
12-15 the repair parts; and
12-16 (2) the estimated labor costs shall be computed by
12-17 using the hourly rate and time allocations that are reasonable and
12-18 commonly assessed in the repair industry in the community in which
12-19 the repairs are performed.
12-20 (q) The department shall print salvage motor vehicle
12-21 certificates of title and nonrepairable motor vehicle certificates
12-22 of title in a color that distinguishes them from certificates of
12-23 title and so that each document clearly shows that it is the
12-24 ownership document for a late model salvage motor vehicle or a late
12-25 model nonrepairable motor vehicle.
12-26 (r) A rebuilder must possess a certificate of title or
12-27 salvage motor vehicle certificate of title for any motor vehicle
13-1 that is:
13-2 (1) in the rebuilder's inventory; and
13-3 (2) being offered for resale.
13-4 (s) A person that rebuilds a late model salvage motor
13-5 vehicle for which the department has issued a salvage motor vehicle
13-6 certificate of title, or who assembles a late model salvage motor
13-7 vehicle from component parts, may apply to the department for a
13-8 certificate of title for the vehicle. A certificate of title
13-9 issued by the department under this subsection must bear the words
13-10 "REBUILT SALVAGE."
13-11 (t) The department, or an agent, officer, or employee of the
13-12 department, is not liable to a person damaged or injured by an act
13-13 or omission relating to the issuance of a certificate of title,
13-14 salvage motor vehicle certificate of title, or nonrepairable motor
13-15 vehicle certificate of title under this section.
13-16 SECTION 2. Section 37, Certificate of Title Act (Article
13-17 6687-1, Vernon's Texas Civil Statutes), is repealed.
13-18 SECTION 3. This Act takes effect September 1, 1995, but only
13-19 if __.B. No. ___, 74th Legislature, Regular Session, 1995, is
13-20 enacted and becomes law. If _.B. No. ___, 74th Legislature,
13-21 Regular Session, 1995, does not become law, this Act has no effect.
13-22 SECTION 4. The importance of this legislation and the
13-23 crowded condition of the calendars in both houses create an
13-24 emergency and an imperative public necessity that the
13-25 constitutional rule requiring bills to be read on three several
13-26 days in each house be suspended, and this rule is hereby suspended.