By Uher H.B. No. 2741
75R7987 E
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to salvage motor vehicles and to title fees, registration
1-3 fees, and property taxes relating to certain fleet motor vehicles;
1-4 providing penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subchapter E, Chapter 501, Transportation Code,
1-7 is amended to read as follows:
1-8 SUBCHAPTER E. SALVAGE MOTOR VEHICLES
1-9 Sec. 501.0911. DEFINITIONS. In this subchapter:
1-10 (1) "Actual cash value" means the market value of a
1-11 motor vehicle as determined:
1-12 (A) from publications commonly used by the
1-13 automotive and insurance industries to establish the value of motor
1-14 vehicles; or
1-15 (B) if the entity determining the value is an
1-16 insurance company, by any other procedure recognized by the
1-17 insurance industry, including market surveys, that is applied by
1-18 the company in a uniform manner.
1-19 (2) "Casual sale" means the sale by a salvage vehicle
1-20 dealer of not more than four nonrepairable motor vehicles or
1-21 salvage motor vehicles during a calendar year to the same person
1-22 who is not a salvage vehicle dealer or salvage vehicle agent.
1-23 (3) "Commission" means the Texas Transportation
1-24 Commission.
2-1 (4) "Department" means the Texas Department of
2-2 Transportation.
2-3 (5) "Late model motor vehicle" means a motor vehicle
2-4 with a model year equal to the then current calendar year plus the
2-5 five preceding calendar years.
2-6 (6) "Older model motor vehicle" means a motor vehicle
2-7 with a model year of six or more calendar years before the current
2-8 calendar year.
2-9 (7) "Major component part" means one of the following
2-10 parts of a vehicle:
2-11 (A) the engine;
2-12 (B) the transmission;
2-13 (C) the frame;
2-14 (D) the right or left front fender;
2-15 (E) the hood;
2-16 (F) a door allowing entrance to or egress from
2-17 the passenger compartment of the vehicle;
2-18 (G) the front or rear bumper;
2-19 (H) the right or left quarter panel;
2-20 (I) the deck lid, tailgate, or hatchback;
2-21 (J) the cargo box of a pickup truck;
2-22 (K) the cab of a truck; or
2-23 (L) the body of a passenger vehicle.
2-24 (8) "Motor vehicle" has the meaning assigned by
2-25 Section 501.002 of the Transportation Code.
2-26 (9) "Nonrepairable motor vehicle" means:
2-27 (A) a motor vehicle that is damaged, wrecked, or
3-1 burned beyond the reasonable cost of repair to such an extent that
3-2 its only legitimate residual value is as a source of parts or scrap
3-3 metal; or
3-4 (B) a motor vehicle that comes into this state
3-5 with a nonrepairable vehicle certificate of title or other
3-6 comparable certificate of title issued by another state or
3-7 jurisdiction.
3-8 (10) "Nonrepairable vehicle certificate of title"
3-9 means a document issued by the department that evidences ownership
3-10 of a nonrepairable motor vehicle.
3-11 (11) "Out-of-state buyer" means a person who:
3-12 (A) is not a domiciliary of this state; or
3-13 (B) does not hold a license under this article;
3-14 and
3-15 (C) is licensed by another state or jurisdiction
3-16 in an automotive business if the department has not listed the
3-17 holders of such license as prohibited purchasers of salvage motor
3-18 vehicles or nonrepairable motor vehicles based on similar licensing
3-19 requirements and on whether salvage vehicle dealers licensed in
3-20 Texas are permitted to purchase salvage motor vehicles or
3-21 nonrepairable motor vehicles in the other state or jurisdiction.
3-22 (12) "Person" means an individual, partnership,
3-23 corporation, trust, association, or other legal entity.
3-24 (13) "Salvage part" means a used major component part
3-25 of a motor vehicle that is serviceable to the extent that it can be
3-26 reused.
3-27 (14) "Salvage motor vehicle" means:
4-1 (A) a motor vehicle that is damaged to the
4-2 extent that the total estimated cost of repairs to rebuild or
4-3 reconstruct the motor vehicle other than repairs related to hail
4-4 damage, including parts and labor, excluding the cost of repairs to
4-5 repair hail damage, and excluding storage fees, sales tax, and
4-6 towing fees, is equal to or greater than an amount equal to 75
4-7 percent of the actual cash value of the motor vehicle in its
4-8 predamaged condition and that is not a nonrepairable motor vehicle;
4-9 (B) a motor vehicle that comes into this state
4-10 under a salvage vehicle certificate of title or other comparable
4-11 certificate of title that has been issued by another state or
4-12 jurisdiction; or
4-13 (C) a motor vehicle for which the evidence of
4-14 ownership is a salvage vehicle certificate of title.
4-15 (15) "Salvage vehicle agent" means a person under a
4-16 license issued by the department that allows the holder of the
4-17 license to acquire, sell, or otherwise deal in salvage motor
4-18 vehicles, nonrepairable motor vehicles, salvage parts, or used
4-19 component parts in this state for a salvage vehicle dealer. The
4-20 term does not include:
4-21 (A) a bona fide employee, officer, director,
4-22 owner, or partner of a salvage vehicle dealer; or
4-23 (B) a person who transports salvage motor
4-24 vehicles or nonrepairable motor vehicles for a salvage vehicle
4-25 dealer or other permissible purchaser of salvage motor vehicles or
4-26 nonrepairable motor vehicles.
4-27 (16) "Salvage vehicle certificate of title" means a
5-1 document issued by the department that evidences ownership of a
5-2 salvage motor vehicle.
5-3 (17) "Salvage vehicle dealer" means a person who is
5-4 engaged in this state in the business of acquiring, selling, or
5-5 otherwise dealing in salvage motor vehicles, nonrepairable motor
5-6 vehicles, salvage parts, or used component parts of a motor vehicle
5-7 under a license issued by the department that allows the holder of
5-8 the license to acquire, sell, dismantle, repair, or otherwise deal
5-9 in salvage motor vehicles or nonrepairable motor vehicles, salvage
5-10 parts, or used component parts.
5-11 (18) "Salvage pool operator" means a salvage vehicle
5-12 dealer who engages in the business of selling at auction, including
5-13 wholesale auction, or otherwise, nonrepairable motor vehicles,
5-14 salvage motor vehicles, motor vehicles covered under a certificate
5-15 of authority, motor vehicles covered under a salvage certificate,
5-16 or motor vehicles that have been declared a total loss claim by an
5-17 insurance company.
5-18 (19) "Salvage vehicle record" means the record of
5-19 sales and purchases for each salvage motor vehicle, nonrepairable
5-20 motor vehicle, motor vehicle covered under a certificate of
5-21 authority, or motor vehicle covered under a salvage certificate
5-22 handled by a salvage vehicle dealer.
5-23 (20) "Other negotiable evidence of ownership" means a
5-24 document other than a Texas certificate of title or a salvage
5-25 certificate of title that relates to a motor vehicle and that the
5-26 department considers sufficient to support issuance of a Texas
5-27 certificate of title for the vehicle.
6-1 (21) "Estimated repair cost" means:
6-2 (A) the estimated cost of repair parts
6-3 determined by using a manual of repair costs or other instrument
6-4 that is generally recognized and commonly used in the motor vehicle
6-5 insurance industry to determine those costs or an estimate of the
6-6 actual cost of the repair parts; and
6-7 (B) the estimated labor costs computed by using
6-8 the hourly rate and time allocations that are reasonable and
6-9 commonly assessed in the repair industry in the community in which
6-10 the repairs are performed.
6-11 (22) "Salvage certificate" means a negotiable
6-12 document:
6-13 (A) that evidences ownership of a motor vehicle
6-14 issued by the department as a receipt for a certificate of title
6-15 that has been voluntarily surrendered to the department by the
6-16 owner of:
6-17 (i) an older model motor vehicle;
6-18 (ii) a late model motor vehicle that does
6-19 not meet the criteria specified by Subdivision (14)(A); or
6-20 (iii) is not a nonrepairable motor
6-21 vehicle, salvage motor vehicle, or motor vehicle for which a
6-22 certificate of authority has been issued; and
6-23 (B) pursuant to which a person may not offer to
6-24 sell or sell, offer to transfer or transfer, or offer to release or
6-25 release the motor vehicle.
6-26 (23) "Salvage vehicle rebuilder" means a person who
6-27 acquires and repairs, for operation on a public highway, five or
7-1 more salvage motor vehicles, or motor vehicles covered under a
7-2 salvage certificate, in any calendar year.
7-3 (24) "Certificate of authority" means a certificate of
7-4 authority to dispose of a vehicle issued under Section 683.054.
7-5 (25) "Insurance company" means:
7-6 (A) an insurance company or other person
7-7 authorized to write motor vehicle insurance in this state; or
7-8 (B) an insurance company or other person
7-9 authorized to write motor vehicle insurance in another state that
7-10 pays a loss claim for a motor vehicle in this state.
7-11 (26) "Used component part" means the following parts
7-12 of a used motor vehicle or a new motor vehicle:
7-13 (A) the front end assembly or tail section of a
7-14 motor vehicle;
7-15 (B) the cab of a truck (light or heavy);
7-16 (C) the bed of a one ton or lighter truck;
7-17 (D) an interior component part of a motor
7-18 vehicle;
7-19 (E) a special accessory part; or
7-20 (F) a vehicle part that contains or should
7-21 contain a federal safety sticker, a motor number, a serial number,
7-22 a manufacturer's permanent vehicle identification number, or a
7-23 derivative of a vehicle identification number.
7-24 (27) "Front end assembly" means the hood, right or
7-25 left front fender, grill, bumper, radiator, or radiator support, if
7-26 two or more such parts are assembled together as one unit.
7-27 (28) "Tail section" means the roof, floor pan, right
8-1 or left rear quarter panel, deck lid, or rear bumper, if two or
8-2 more of such parts are assembled together as one unit.
8-3 (29) "Federal safety sticker" means a sticker, label,
8-4 or tag required by 49 U.S.C. Section 30115 or rules adopted under
8-5 that section.
8-6 (30) "Interior component part" means the front or rear
8-7 seat or radio of a motor vehicle.
8-8 (31) "Special accessory part" means the tire, wheel,
8-9 tailgate, or removable glass top of a motor vehicle.
8-10 Sec. 501.0912. INSURANCE COMPANY TO SURRENDER CERTIFICATES
8-11 OF TITLE TO CERTAIN SALVAGE MOTOR VEHICLES. (a) An insurance
8-12 company that is licensed to conduct business in this state and that
8-13 acquires ownership of a salvage motor vehicle or a nonrepairable
8-14 motor vehicle through payment of a claim shall surrender a properly
8-15 assigned certificate of title to the department and shall apply on
8-16 a form prescribed by the department.
8-17 (b) For a vehicle described by Section 501.0911(14)(A), the
8-18 insurance company shall apply for a salvage vehicle certificate of
8-19 title.
8-20 (c) For a vehicle described by Section 501.0911(9)(A), the
8-21 insurance company shall apply for a nonrepairable vehicle
8-22 certificate of title.
8-23 (d) An insurance company may not sell a salvage motor
8-24 vehicle or a nonrepairable motor vehicle to which this section
8-25 applies unless the department has issued a salvage vehicle
8-26 certificate of title, a nonrepairable vehicle certificate of title,
8-27 or a certificate of authority for the vehicle, or a comparable
9-1 ownership document has been issued by another state or jurisdiction
9-2 for the vehicle.
9-3 (e) An insurance company, other than an insurance company
9-4 selling the salvage motor vehicle or nonrepairable motor vehicle
9-5 through a salvage vehicle dealer, may sell a salvage motor vehicle
9-6 to which this section applies, or assign a salvage motor vehicle
9-7 certificate of title, a nonrepairable vehicle certificate of title,
9-8 or a certificate of authority for the vehicle, only to a salvage
9-9 vehicle dealer, a salvage vehicle agent, an out-of-state buyer, a
9-10 buyer in a casual sale, or a person described by Subsection (g),
9-11 Article 6687-2b, Revised Statutes. The insurance company is not
9-12 required to surrender the regular certificate of title for the
9-13 vehicle or to be issued a salvage motor vehicle certificate of
9-14 title for the vehicle if the motor vehicle is an older model motor
9-15 vehicle or a late model motor vehicle that does not meet the
9-16 criteria as specified in Section 501.0911(14)(A).
9-17 Sec. 501.0913. INSURANCE COMPANY TO DELIVER CERTIFICATES OF
9-18 TITLE TO CERTAIN MOTOR VEHICLES. (a) If an insurance company
9-19 acquires ownership of a motor vehicle other than a salvage motor
9-20 vehicle or a nonrepairable motor vehicle through payment of a
9-21 claim, the company shall, on delivery of the vehicle to a buyer of
9-22 the vehicle, deliver to the buyer a properly assigned certificate
9-23 of title for the vehicle.
9-24 (b) An insurance company or other person who acquires
9-25 ownership of a motor vehicle that is not a salvage motor vehicle or
9-26 a nonrepairable motor vehicle may voluntarily and on proper
9-27 application obtain a salvage motor vehicle certificate of title, a
10-1 salvage certificate, a nonrepairable vehicle certificate of title,
10-2 or a certificate of authority for the vehicle.
10-3 Sec. 501.0914. NONAPPLICABILITY. Sections 501.0912 and
10-4 501.0913 do not apply to a motor vehicle that has been stolen and
10-5 recovered unless the damage to the motor vehicle causes the vehicle
10-6 to be a salvage motor vehicle or a nonrepairable motor vehicle.
10-7 Sec. 501.0915. INSURANCE COMPANY TO SUBMIT REPORTS TO
10-8 DEPARTMENT. (a) After payment of a total loss claim on a motor
10-9 vehicle, if the insurance company has not applied for or is not
10-10 required to apply for a salvage vehicle certificate of title,
10-11 nonrepairable certificate of title, salvage certificate, or
10-12 certificate of authority for the motor vehicle, the insurance
10-13 company shall submit to the department, before the 15th day after
10-14 the date the insurance company sells or transfers the motor vehicle
10-15 to another person, on a form prescribed by the department, a report
10-16 stating that the insurance company has paid a total loss claim on
10-17 the vehicle.
10-18 (b) The department shall make the total loss claim report a
10-19 part of the title history of the motor vehicle to which the report
10-20 applies.
10-21 (c) The department may increase the fee as described by
10-22 Section 501.0919 or Section 501.0928 by an amount not to exceed $2
10-23 to defer the cost of processing the total loss claim report.
10-24 (d) If the department uses the reported information in the
10-25 total loss claim report or the title history of a motor vehicle for
10-26 any other purpose, the department shall prominently, in any such
10-27 use, describe a reported vehicle that is not a salvage motor
11-1 vehicle or a nonrepairable motor vehicle, with the following words:
11-2 "Although a total loss claim has been paid by an insurance company
11-3 on this motor vehicle, the vehicle is not a salvage motor vehicle
11-4 or a nonrepairable motor vehicle." If the department provides the
11-5 reported information to any information provider or service,
11-6 whether governmental, commercial, or otherwise, the department
11-7 shall require that the person receiving the information prominently
11-8 describe a reported vehicle that is not a salvage motor vehicle
11-9 with the same explanatory language stated above.
11-10 (e) If the insurance company has not acquired ownership of
11-11 the vehicle after a total loss claim and the owner retains
11-12 ownership of a motor vehicle after settlement of a total loss claim
11-13 on a motor vehicle described by Section 501.0911(9) or (14), the
11-14 owner of the motor vehicle may not transfer ownership of the
11-15 vehicle by sale or otherwise unless the owner surrenders to the
11-16 department the certificate of title that shows there are no liens
11-17 on the vehicle or that all recorded liens have been released and
11-18 the department has issued a salvage motor vehicle certificate of
11-19 title, a nonrepairable vehicle certificate of title, or a
11-20 certificate of authority for the vehicle, or a comparable ownership
11-21 document has been issued by another state or jurisdiction for the
11-22 vehicle.
11-23 (f) If, after payment of a total loss claim by an insurance
11-24 company on a motor vehicle, the owner retains ownership of a
11-25 salvage motor vehicle or a nonrepairable motor vehicle and sells
11-26 the motor vehicle and the assigned certificate of title is not a
11-27 salvage motor vehicle certificate of title, a nonrepairable vehicle
12-1 certificate of title, or a certificate of authority, the purchaser
12-2 shall, not later than the 10th day after the date the purchaser
12-3 receives the certificate of title from the owner:
12-4 (1) surrender to the department the certificate of
12-5 title that shows there are no liens on the vehicle or that all
12-6 recorded liens have been released; and
12-7 (2) apply for a salvage vehicle certificate of title
12-8 or a nonrepairable vehicle certificate of title for the vehicle, as
12-9 appropriate.
12-10 Sec. 501.0916. SALE, TRANSFER, OR RELEASE OF SALVAGE MOTOR
12-11 VEHICLE OR NONREPAIRABLE MOTOR VEHICLE. A person, other than a
12-12 salvage vehicle dealer or an insurance company selling the salvage
12-13 motor vehicle or nonrepairable motor vehicle through a salvage
12-14 vehicle dealer, who owns a salvage motor vehicle or nonrepairable
12-15 motor vehicle may not sell, transfer, or release the vehicle to a
12-16 person other than a salvage vehicle dealer, a salvage vehicle
12-17 agent, a governmental entity, an out-of-state buyer, a buyer in a
12-18 casual sale, or a person described by Subsection (g), Article
12-19 6687-2b, Revised Statutes, and shall deliver to that person a
12-20 properly assigned certificate of title, salvage vehicle certificate
12-21 of title, or nonrepairable vehicle certificate of title, as
12-22 applicable.
12-23 Sec. 501.0917. SALVAGE VEHICLE DEALER TO SUBMIT REPORT TO
12-24 DEPARTMENT. (a) A salvage vehicle dealer that acquires a motor
12-25 vehicle for the purpose of dismantling, scrapping, or destroying
12-26 the vehicle and that receives a properly assigned certificate of
12-27 title that shows there are no liens on the vehicle or that all
13-1 recorded liens have been released, a salvage certificate, a salvage
13-2 vehicle certificate of title, a nonrepairable vehicle certificate
13-3 of title, a certificate of authority, other negotiable evidence of
13-4 ownership, or a comparable ownership document issued by another
13-5 state or jurisdiction for the motor vehicle shall, before the 31st
13-6 day after the date the dealer acquires the vehicle:
13-7 (1) submit to the department, on the form prescribed
13-8 by the department, a report stating that the motor vehicle is or
13-9 will be dismantled, scrapped, or destroyed, accompanied by the
13-10 properly assigned regular certificate of title that shows there are
13-11 no liens on the vehicle or that all recorded liens have been
13-12 released, a salvage certificate, a salvage vehicle certificate of
13-13 title, a nonrepairable vehicle certificate of title, a certificate
13-14 of authority, other negotiable evidence of ownership, or a
13-15 comparable ownership document issued by another state or
13-16 jurisdiction for the motor vehicle as applicable; and
13-17 (2) keep on the business premises of the dealer, until
13-18 the third anniversary of the date the report on the vehicle is
13-19 submitted to the department, a record of the vehicle.
13-20 (b) On receipt of a report under Subsection (a), the
13-21 department shall issue the salvage vehicle dealer a receipt on a
13-22 prescribed form for the certificate of title that shows there are
13-23 no liens on the vehicle or that all recorded liens have been
13-24 released, a salvage certificate, a salvage vehicle certificate of
13-25 title, a nonrepairable vehicle certificate of title, a certificate
13-26 of authority, other negotiable evidence of ownership, or a
13-27 comparable ownership document issued by another state or
14-1 jurisdiction for the vehicle that accompanied the report.
14-2 Sec. 501.0918. PERSON ACQUIRING SALVAGE MOTOR VEHICLE OR
14-3 NONREPAIRABLE MOTOR VEHICLE OR VEHICLE COVERED BY CERTIFICATE OF
14-4 AUTHORITY TO SURRENDER CERTIFICATE OF TITLE. A person, other than
14-5 a salvage vehicle dealer or an insurance company licensed to do
14-6 business in this state, that acquires ownership of a salvage motor
14-7 vehicle or a nonrepairable motor vehicle that has not been issued a
14-8 salvage vehicle certificate of title, a nonrepairable vehicle
14-9 certificate of title, a certificate of authority, or a comparable
14-10 ownership document issued by another state or jurisdiction shall,
14-11 before selling the vehicle, surrender the properly assigned
14-12 certificate of title that shows there are no liens on the vehicle
14-13 or that all recorded liens have been released for the motor vehicle
14-14 to the department and if the motor vehicle is a motor vehicle
14-15 described by Section 501.0911(9)(A) or (14)(A), apply to the
14-16 department for a salvage vehicle certificate of title, or a
14-17 nonrepairable vehicle certificate of title, as applicable.
14-18 Sec. 501.0919. APPLICATION FOR SALVAGE VEHICLE CERTIFICATE
14-19 OF TITLE. (a) An application for a salvage vehicle certificate of
14-20 title must:
14-21 (1) be made on a form prescribed by the department and
14-22 accompanied by a fee established by the department not to exceed an
14-23 amount that is sufficient, when added to other fees collected under
14-24 this chapter, to recover the actual costs to the department of
14-25 issuing the certificate; and
14-26 (2) include, in addition to any other information
14-27 required by the department:
15-1 (A) the name and current address of the owner;
15-2 (B) a description of the vehicle, including the
15-3 make, style of body, model year, and vehicle identification number;
15-4 (C) a description of the damage to the vehicle;
15-5 (D) the estimated cost of repairs to the
15-6 vehicle, including parts and labor, as adjusted by Section
15-7 501.0911(14)(A); and
15-8 (E) the predamaged actual cash value of the
15-9 vehicle.
15-10 (b) On receipt of a complete application and the prescribed
15-11 application fee, the department shall, before the sixth business
15-12 day after the date the department receives the application, issue
15-13 the applicant a salvage vehicle certificate of title.
15-14 Sec. 501.0920. POSSESSION AND OPERATION OF SALVAGE MOTOR
15-15 VEHICLE. (a) A person who holds a salvage motor vehicle
15-16 certificate of title is entitled to possess the vehicle, record a
15-17 lien on the vehicle, transport the vehicle, and transfer ownership
15-18 of the vehicle.
15-19 (b) A vehicle for which a salvage vehicle certificate of
15-20 title is the most current title may not be operated on a public
15-21 highway.
15-22 Sec. 501.0921. APPLICATION FOR REGULAR CERTIFICATE OF TITLE
15-23 FOR SALVAGE MOTOR VEHICLE. (a) A vehicle for which a salvage
15-24 vehicle certificate of title has been issued may be issued a
15-25 regular certificate of title only after application and, in
15-26 addition to any other requirement of law, only if the application:
15-27 (1) describes each major component part used to repair
16-1 the vehicle and shows the identification number required by federal
16-2 law to be affixed to or inscribed on the part; and
16-3 (2) is accompanied by a written statement signed by a
16-4 specially trained commissioned officer of the Department of Public
16-5 Safety certifying to the department that:
16-6 (A) the vehicle identification numbers and parts
16-7 identification numbers are accurate;
16-8 (B) the applicant has proof that the applicant
16-9 owns the parts used to repair the vehicle; and
16-10 (C) the vehicle may be safely operated and
16-11 complies with all applicable motor vehicle safety standards of this
16-12 state.
16-13 (b) The Department of Public Safety may impose a fee, in an
16-14 amount not to exceed the lesser of $200 or the actual cost to that
16-15 department, for conducting an inspection and providing the written
16-16 statement required by Subsection (a).
16-17 Sec. 501.0922. ISSUANCE OF CERTIFICATE OF TITLE FOR REBUILT
16-18 SALVAGE MOTOR VEHICLE. (a) On receipt of a complete application
16-19 under Section 501.0921, accompanied by the peace officer's
16-20 statement and the appropriate fee for the certificate of title, the
16-21 department shall issue the applicant a certificate of title for the
16-22 vehicle.
16-23 (b) Except as provided by Subsection (c), a certificate of
16-24 title issued under this section must bear on its face the words
16-25 "REBUILT SALVAGE" and describe or disclose the vehicle's former
16-26 condition in a manner reasonably likely to be understood by a
16-27 potential purchaser of the motor vehicle.
17-1 (c) If the motor vehicle has been issued a comparable
17-2 ownership document by another state or jurisdiction, the
17-3 certificate of title must bear on its face the words "REBUILT
17-4 SALVAGE" and the recognized postal abbreviation for the state or
17-5 jurisdiction in which the title was issued.
17-6 Sec. 501.0923. ISSUANCE OF CERTIFICATE OF TITLE TO CERTAIN
17-7 VEHICLES BROUGHT INTO STATE. (a) On proper application by the
17-8 owner of a vehicle brought into this state from another state or
17-9 jurisdiction that has on any certificate of title issued by the
17-10 other state or jurisdiction a "rebuilt," "salvage," or analogous
17-11 notation, the department shall issue the applicant a certificate of
17-12 title or other appropriate document for the vehicle.
17-13 (b) A certificate of title or other appropriate document
17-14 issued under this section must show on its face:
17-15 (1) the date of issuance;
17-16 (2) the name and address of the owner;
17-17 (3) any registration number assigned to the vehicle;
17-18 (4) a description of the vehicle as determined by the
17-19 department; and
17-20 (5) the appropriate notation under Section
17-21 501.0922(c).
17-22 Sec. 501.0924. APPLICATION FOR SALVAGE CERTIFICATE. (a) An
17-23 application for a salvage certificate must:
17-24 (1) be made on a form prescribed by the department;
17-25 and
17-26 (2) include, in addition to any other information
17-27 required by the department:
18-1 (A) the name and current address of the owner of
18-2 the motor vehicle;
18-3 (B) a description of the motor vehicle,
18-4 including the make, body style, model year, and vehicle
18-5 identification number; and
18-6 (C) a statement as to whether the damage to the
18-7 motor vehicle was caused by flood, collision, or otherwise.
18-8 (b) The department shall issue a salvage certificate to a
18-9 qualified applicant before the sixth business day after the date
18-10 the department receives the application.
18-11 Sec. 501.0925. POSSESSION AND OPERATION OF MOTOR VEHICLE
18-12 ISSUED SALVAGE CERTIFICATE. (a) A person who holds a salvage
18-13 certificate for a motor vehicle is entitled to possess the vehicle,
18-14 transport the vehicle, and transfer ownership of the vehicle.
18-15 (b) A vehicle for which a salvage certificate is the most
18-16 current ownership document may not be operated on a public highway.
18-17 Sec. 501.0926. SUBSEQUENT ISSUANCE OF REGULAR CERTIFICATE OF
18-18 TITLE TO VEHICLE COVERED BY SALVAGE CERTIFICATE. A motor vehicle
18-19 for which a salvage certificate has been issued may be issued a
18-20 regular certificate of title only after application and, in
18-21 addition to any other requirement of law, only if:
18-22 (1) the application describes each major component
18-23 part used to repair the vehicle and shows the identification number
18-24 required by federal law to be affixed to or inscribed on the part;
18-25 and
18-26 (2) the applicant states under oath and penalty of
18-27 perjury that the vehicle may be safely operated and complies with
19-1 all applicable motor vehicle safety standards of this state.
19-2 Sec. 501.0927. SUBSEQUENT ISSUANCE OF CERTIFICATE OF TITLE
19-3 TO VEHICLE COVERED BY SALVAGE CERTIFICATE. (a) On receipt of a
19-4 complete application under Section 501.0926, accompanied by the
19-5 appropriate fee for the certificate of title, the department shall
19-6 issue the applicant a certificate of title for the vehicle.
19-7 (b) A certificate of title issued under this section must
19-8 bear on its face:
19-9 (1) the words "REBUILT SALVAGE--LOSS UNKNOWN"; and
19-10 (2) an appropriate notation if the damage to the
19-11 vehicle was caused exclusively by flood.
19-12 Sec. 501.0928. APPLICATION FOR NONREPAIRABLE VEHICLE
19-13 CERTIFICATE OF TITLE. An application for a nonrepairable vehicle
19-14 certificate of title must:
19-15 (1) be made on a form prescribed by the department and
19-16 accompanied by a fee established by the department, not to exceed
19-17 an amount that is sufficient when added to other fees collected
19-18 under this chapter to recover the actual costs to the department of
19-19 issuing the certificate; and
19-20 (2) include, in addition to any other information
19-21 required by the department:
19-22 (A) the name and current address of the owner;
19-23 (B) a description of the vehicle, including the
19-24 make, body style, model year, and vehicle identification number;
19-25 and
19-26 (C) a description of the damage to the vehicle.
19-27 Sec. 501.0929. ISSUANCE OF NONREPAIRABLE VEHICLE CERTIFICATE
20-1 OF TITLE. (a) On receipt of a complete application under Section
20-2 501.0928, accompanied by the appropriate fee for the certificate of
20-3 title, the department shall issue the applicant a nonrepairable
20-4 vehicle certificate of title for the vehicle.
20-5 (b) A certificate of title issued under this section must
20-6 bear on its face the word "NONREPAIRABLE" and if appropriate any
20-7 other words the department may consider necessary.
20-8 (c) Any motor vehicle that has been issued a nonrepairable
20-9 vehicle certificate of title before September 1, 1997, may not be
20-10 rebuilt on or after that date.
20-11 Sec. 501.0930. APPLYING FOR CERTIFICATE OF TITLE FOR VEHICLE
20-12 ISSUED CERTIFICATE OF AUTHORITY OR NONREPAIRABLE VEHICLE
20-13 CERTIFICATE OF TITLE PROHIBITED. A person commits an offense if
20-14 the person applies to the department for a certificate of title for
20-15 a motor vehicle knowing that the vehicle was previously issued a
20-16 certificate of authority or a nonrepairable vehicle certificate of
20-17 title. It is not an offense if the certificate of authority or a
20-18 nonrepairable vehicle certificate of title was applied for in error
20-19 or issued in error.
20-20 Sec. 501.0931. DEPARTMENT TO PRINT SALVAGE VEHICLE
20-21 CERTIFICATES OF TITLE. (a) The department shall print salvage
20-22 vehicle certificates of title in a color that distinguishes them
20-23 from certificates of title, nonrepairable vehicle certificates of
20-24 title, or salvage certificates so that the document clearly shows
20-25 that it is the ownership document for a salvage motor vehicle.
20-26 (b) A salvage vehicle certificate of title for a vehicle
20-27 that is a salvage motor vehicle because of damage caused
21-1 exclusively by flood must bear an appropriate notation on its face.
21-2 Sec. 501.0932. DEPARTMENT TO PRINT NONREPAIRABLE VEHICLE
21-3 CERTIFICATES OF TITLE. The department shall print nonrepairable
21-4 vehicle certificates of title in a color that distinguishes them
21-5 from certificates of title, salvage vehicle certificates of title,
21-6 and salvage certificates so that the document clearly shows that it
21-7 is the ownership document for a nonrepairable motor vehicle.
21-8 Sec. 501.0933. REBUILDER TO POSSESS CERTIFICATE OF TITLE.
21-9 (a) A rebuilder must possess a regular certificate of title, a
21-10 salvage certificate, a salvage vehicle certificate of title, a
21-11 nonrepairable vehicle certificate of title, a certificate of
21-12 authority, other negotiable evidence of ownership, or a comparable
21-13 ownership document issued by another state or jurisdiction for any
21-14 motor vehicle that is:
21-15 (1) in the rebuilder's inventory; and
21-16 (2) being offered for resale.
21-17 (b) A person who rebuilds a salvage motor vehicle for which
21-18 the department has issued a salvage vehicle certificate of title or
21-19 a comparable ownership document issued by another state or
21-20 jurisdiction and who assembles a salvage motor vehicle from
21-21 component parts may apply to the department for a certificate of
21-22 title for the vehicle. A certificate of title issued by the
21-23 department under this subsection must bear, in addition to any
21-24 other word or description required by this subchapter, the words:
21-25 (1) "REBUILT SALVAGE" and describe or disclose the
21-26 vehicle's former condition in a manner reasonably likely to be
21-27 understood by a potential purchaser of the motor vehicle; or
22-1 (2) "REBUILT SALVAGE" and, if appropriate, any other
22-2 words the department may consider necessary if the motor vehicle
22-3 had been issued a comparable ownership document by another state or
22-4 jurisdiction.
22-5 Sec. 501.0934. ENFORCEMENT OF SUBCHAPTER. (a) This
22-6 subchapter shall be exclusively enforced by the department and its
22-7 personnel, except as provided by this subchapter.
22-8 (b) The department or an agent, officer, or employee of the
22-9 department is not liable to a person damaged or injured by an act
22-10 or omission relating to the issuance of a certificate of title, a
22-11 salvage vehicle certificate of title, a nonrepairable vehicle
22-12 certificate of title, a salvage certificate, or a certificate of
22-13 authority under this subchapter.
22-14 Sec. 501.0935. APPLICABILITY OF SUBCHAPTER. (a) This
22-15 subchapter does not apply to, and does not preclude or prohibit a
22-16 sale to, purchase by, or other transaction by or with, a person
22-17 described by Subsection (g), Article 6687-2b, Revised Statutes,
22-18 except as provided by Subsections (b) and (c).
22-19 (b) A person described by Subsection (g), Article 6687-2b,
22-20 Revised Statutes, shall submit to the department the certificate of
22-21 title or equivalent document that the person receives in
22-22 conjunction with the purchase of a motor vehicle not later than the
22-23 60th day after the date the person receives the certificate of
22-24 title or equivalent document.
22-25 (c) This subchapter applies to a transaction with a person
22-26 described by Subsection (g), Article 6687-2b, Revised Statutes, in
22-27 which a motor vehicle is sold or delivered to the person for the
23-1 purpose of reuse or resale as a motor vehicle or as motor vehicle
23-2 parts if the motor vehicle is so used.
23-3 (d) This subchapter does not:
23-4 (1) prohibit the owner of a salvage motor vehicle from
23-5 selling the vehicle to any person if the vehicle is so classified
23-6 solely because of hail damage or water damage caused by a flood; or
23-7 (2) limit the ability or authority of an insurance
23-8 company to adjust or settle a claim for loss on a motor vehicle.
23-9 [SUBCHAPTER E. JUNKED, REBUILT, AND FLOOD-DAMAGED MOTOR VEHICLES]
23-10 [Sec. 501.091. JUNKED MOTOR VEHICLES. (a) The person named
23-11 in a certificate of title as the present owner of a motor vehicle
23-12 registered in this state shall surrender the certificate of title
23-13 to the department together with the written consent of the holder
23-14 of each unreleased lien noted on the certificate of title if:]
23-15 [(1) the vehicle is junked, dismantled, or destroyed;]
23-16 [(2) the vehicle's motor number is changed; or]
23-17 [(3) the vehicle is changed in a manner such that the
23-18 vehicle:]
23-19 [(A) loses its character as a motor vehicle; or]
23-20 [(B) is not the vehicle described in the
23-21 certificate of title.]
23-22 [(b) The department shall cancel in its records a
23-23 certificate of title surrendered under Subsection (a).]
23-24 [(c) This section does not affect the sale of used parts for
23-25 an automobile when sold as used parts.]
23-26 [Sec. 501.092. REBUILT OR ASSEMBLED MOTOR VEHICLE. (a) A
23-27 person who rebuilds or assembles a motor vehicle must obtain a
24-1 certificate of title for the vehicle before the person:]
24-2 [(1) transfers the vehicle; or]
24-3 [(2) operates or permits the operation of the vehicle.]
24-4 [(b) To obtain the certificate of title, the person must
24-5 provide to the department an affidavit stating where, when, how,
24-6 and from whom the parts used in rebuilding or assembling the
24-7 vehicle were obtained.]
24-8 [(c) The department may issue a certificate of title under
24-9 this section only if it is satisfied that:]
24-10 [(1) the affidavit is true; and]
24-11 [(2) the affiant is the person described in the
24-12 affidavit as its maker.]
24-13 [Sec. 501.093. FLOOD-DAMAGED MOTOR VEHICLE. (a) The owner
24-14 of a motor vehicle that has been rendered a total loss because of
24-15 flood damage to the vehicle must surrender to the department the
24-16 certificate of title or the manufacturer's statement of origin and
24-17 the written consent of the holders of an unreleased lien noted on
24-18 the certificate of title or manufacturer's statement of origin.]
24-19 [(b) On receipt of the certificate of title, the department
24-20 shall cancel the certificate.]
24-21 [(c) Before a motor vehicle that has been rendered a total
24-22 loss because of flood damage to the vehicle may be operated in this
24-23 state, the owner of the vehicle must:]
24-24 [(1) disclose to the department that the vehicle has
24-25 been rendered a total loss because of flood damage, whether the
24-26 vehicle was last titled in this state or elsewhere; and]
24-27 [(2) obtain a new certificate of title from the
25-1 department.]
25-2 [Sec. 501.094. CERTIFICATE OF TITLE DESIGNATION FOR JUNKED,
25-3 REBUILT, OR FLOOD-DAMAGED MOTOR VEHICLE. The department shall make
25-4 an appropriate designation on the face of a certificate of title:]
25-5 [(1) issued under Section 501.092 for a vehicle as to
25-6 which the certificate of title or other evidence of ownership is
25-7 surrendered to the department under Section 501.091 or Chapter 506,
25-8 Acts of the 57th Legislature, Regular Session, 1961 (Article
25-9 6687-2, Vernon's Texas Civil Statutes); or]
25-10 [(2) issued under Section 501.093.]
25-11 SECTION 2. Section 501.157, Transportation Code, is amended
25-12 to read as follows:
25-13 Sec. 501.157. PENALTIES [PENALTY]. (a) A person commits an
25-14 offense if the person violates Subchapter E or a rule adopted under
25-15 that subchapter. A first offense under this subsection is a Class
25-16 C misdemeanor. A subsequent offense under the same provision of
25-17 Subchapter E or the same rule is a Class A misdemeanor.
25-18 (b) A person commits an offense if the person commits theft
25-19 as defined by Section 31.03, Penal Code, and the person violates
25-20 Subchapter E or a rule adopted under that subchapter in conjunction
25-21 with the commission of the theft.
25-22 (c) If it is shown on the trial of an offense under
25-23 Subsection (b) of this section that the defendant has previously
25-24 been convicted of an offense under that subsection, the offense is
25-25 punishable as a felony of the third degree. [Unless otherwise
25-26 provided by this chapter, an offense under this chapter is a
25-27 misdemeanor punishable by a fine of not less than $1 or more than
26-1 $100 for the first offense. If a person is subsequently convicted
26-2 of the same offense, at the jury's discretion, a person may be
26-3 fined not less than $2 or more than $200.]
26-4 SECTION 3. Chapter 20, Title 132, Revised Statutes, is
26-5 amended by adding Articles 9026a and 9026b to read as follows:
26-6 Art. 9026a. CHARGES FOR TITLE FEES, REGISTRATION FEES, AND
26-7 PROPERTY TAXES. (a) A person required to register under Section
26-8 152.065, Tax Code, may include in a customer agreement a separate
26-9 charge for the proportionate amount of title fees, registration
26-10 fees, and property taxes paid in the preceding calendar year on the
26-11 person's vehicle fleet.
26-12 (b) If a person includes a charge under Subsection (a) of
26-13 this article in a customer agreement, the charge:
26-14 (1) must be included on a nondiscriminatory basis; and
26-15 (2) shall be collected in each agreement other than an
26-16 agreement that is exempt from a tax imposed under Section 152.026,
26-17 Tax Code.
26-18 (c) A person commits an offense if the person violates this
26-19 article. An offense under this subsection is a Class A
26-20 misdemeanor.
26-21 Art. 9026b. RETENTION OR USE OF CERTAIN MOTOR VEHICLES
26-22 PROHIBITED. (a) An owner to whom Section 152.065, Tax Code,
26-23 applies is prohibited from retaining for use or using a motor
26-24 vehicle that has been issued a certificate of title under Section
26-25 501.0922, Transportation Code, for a usual commercial purpose of
26-26 that owner.
26-27 (b) A person commits an offense if the person violates
27-1 Subsection (a) of this article. An offense under this subsection
27-2 is a Class A misdemeanor.
27-3 (c) In this article, "certificate of title," "owner," and
27-4 "motor vehicle" have the meanings assigned by Section 501.002,
27-5 Transportation Code.
27-6 SECTION 4. Sections 1 and 2, Chapter 394, Acts of the 74th
27-7 Legislature, Regular Session, 1995, are repealed.
27-8 SECTION 5. (a) This Act takes effect September 1, 1997, but
27-9 only if _B. No. __, Acts of the 75th Legislature, Regular Session,
27-10 1997, is enacted and becomes law. If _B. No. __ does not become
27-11 law, this Act has no effect.
27-12 (b) In addition to the substantive changes in the
27-13 certificate of title law, Chapter 501, Transportation Code, made by
27-14 this Act, this Act conforms the certificate of title law and
27-15 Chapter 20, Title 132, Revised Statutes, to Sections 1 and 2,
27-16 Chapter 394, Acts of the 74th Legislature, Regular Session, 1995.
27-17 To the extent of any conflict, this Act prevails over another Act
27-18 of the 75th Legislature, Regular Session, 1997, relating to
27-19 nonsubstantive additions and amendments to enacted codes.
27-20 (c) The substantive changes in law made by this Act apply
27-21 only to an offense committed on or after September 1, 1997. An
27-22 offense committed before September 1, 1997, is covered by the law
27-23 in effect when the offense was committed, and the former law is
27-24 continued in effect for that purpose. For purposes of this
27-25 section, an offense was committed before September 1, 1997, if any
27-26 element of the offense occurred before that date.
27-27 SECTION 6. The importance of this legislation and the
28-1 crowded condition of the calendars in both houses create an
28-2 emergency and an imperative public necessity that the
28-3 constitutional rule requiring bills to be read on three several
28-4 days in each house be suspended, and this rule is hereby suspended.