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.