SRC-DPW S.B. 1598 76(R) BILL ANALYSIS Senate Research Center S.B. 1598 76R8467 JD-DBy: Cain Infrastructure 4/19/1999 As Filed DIGEST Currently, Texas law requires persons who deal salvage automobiles to be licensed, and requires rebuilt salvage vehicle to have a permanent brand on their title and be inspected for stolen parts. This bill would require out-of-state buyers to be licensed, would prohibit non-repairable vehicles from being rebuilt, authorize a licensed salvage vehicle dealer to sell a salvage vehicle to an individual, and set forth eligibility criteria for a salvage vehicle agent. PURPOSE As proposed, S.B. 1598 sets forth guidelines for the sale and purchase of nonrepairable and salvage motor vehicles. RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. 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. SECTION 2. Amends Section 501.0919, Transportation Code, to authorize a licensed salvage vehicle dealer to sell a late model salvage motor vehicle described by this section to an individual. SECTION 3. 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 4. Amends Section 501.0928, Transportation Code, by adding Subsection (d), to require a nonrepairable title to state on its face that the vehicle may: not be issued a regular certificate of title or be registered in this state; be used only for parts or scrap metal; and not be rebuilt. SECTION 5. Amends Chapter 501E, Transportation Code, by adding Section 501.0932, as follows: Sec. 501.0932. OTHER SALVAGE CERTIFICATES PROHIBITED. Prohibits the Texas Department of Transportation (TxDOT) from adopting or enforcing rules or policies that permit the issuance of certain certificates, receipts, instruments, and documents, in lieu of salvage motor vehicle certificate of title or a nonrepairable title under this subchapter. SECTION 6. Amends Chapter 501E, 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 TxDOT that authorizes the purchase of such a vehicle. Requires a person to 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 in which the salvage vehicle dealer is licensed and holds a valid driver's license appropriately issued by that state. SECTION 7. Amends Section 1.01(15), Article 6687-1a, V.T.C.S., to define "salvage vehicle agent." SECTION 8. Repealer: Section 501.0927, Transportation Code (Application for Certificate of Title by Rebuilder of Nonrepairable Motor Vehicle). SECTION 9. Effective date: September 1, 1999. SECTION 10. Emergency clause.