HBA-MPA S.B. 1598 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1598
By: Cain
Transportation
5/20/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, Texas law requires persons who deal salvage automobiles to be
licensed, and requires rebuilt salvage vehicles to have a permanent brand
on their title and be inspected for stolen parts. S.B. 1598 requires
out-of-state buyers to be licensed, prohibits nonrepairable vehicles from
being rebuilt, authorizes a licensed salvage vehicle dealer to sell a
salvage vehicle to an individual, and sets forth eligibility criteria for a
salvage vehicle agent.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS


SECTION 1. Amends Section 501.0912(d), Transportation Code, to authorize an
insurance company to sell a late model salvage motor vehicle  or assign
certain certificates of title only to a licensed salvage vehicle dealer or
certain other enumerated parties.  Deletes text regarding a buyer in a
casual sale at auction. 

SECTION 2. Amends Section 501.0916(a), Transportation Code, to authorize a
licensed salvage vehicle dealer to sell a late model salvage motor vehicle
to an individual.  Makes conforming changes. 

SECTION 3. Amends Section 501.0919, Transportation Code, to authorize a
licensed salvage vehicle dealer to sell to an individual a late model
salvage motor vehicle that has been issued a salvage motor vehicle
certificate of title or a nonrepairable motor vehicle certificate of title. 

SECTION 4. Amends Section 501.0923, Transportation Code, to set forth
required format for the words on a certificate of title for a "Rebuilt
Salvage" vehicle. 

SECTION 5. Amends Section 501.0925, Transportation Code, to prohibit a
person who holds a nonrepairable motor vehicle certificate of title
(nonrepairable title) for a vehicle from rebuilding the vehicle.  Makes
conforming changes.  

SECTION 6. Amends Section 501.0928, Transportation Code, by adding
Subsection (d), to provide that a nonrepairable title state on its face
that the vehicle is prohibited from being issued a regular certificate of
title, registered in this state, or rebuilt, and is to be used only for
parts or scrap metal. 

SECTION 7. Amends Subchapter E, Chapter 501, Transportation Code, by adding
Section 501.0933, as follows: 

Sec. 501.0933. OUT-OF-STATE BUYER'S LICENSE. Prohibits an out-of-state
buyer from purchasing a salvage or nonrepairable motor vehicle in this
state without a license issued by the Texas Department of Transportation
(TxDOT) that authorizes the purchase of such a vehicle.  Provides that a
person must apply to TxDOT to obtain an out-of-state buyer's license, and
include certain information, documents, and a fee in the application.
Provides  that an applicant is not eligible for an out-of-state buyer's
license if the applicant proposes to purchase a vehicle in this state on
behalf of a salvage vehicle dealer in another state, unless the applicant
is a resident of the state or jurisdiction in which the salvage vehicle
dealer is licensed and holds a valid driver's license appropriately issued
by that state or jurisdiction. 

SECTION 8. Amends Section 1.01(15), Article 6687-1a, V.T.C.S., to redefine
"salvage vehicle agent." 

SECTION 9. Repealer: Sections 501.0911(a)(3) (defining "casual sale") and
501.0927 (Application for Certificate of Title by Rebuilder of
Nonrepairable Motor Vehicle), Transportation Code. 

SECTION 10. Effective date: September 1, 1999.

SECTION 11. Emergency clause.