By Bosse                                              H.B. No. 2854
         76R8467 JD-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to nonrepairable and salvage motor vehicles.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 501.0916(a), Transportation Code, is
 1-5     amended to read as follows:
 1-6           (a)  A person who owns a late model salvage motor vehicle may
 1-7     not sell, transfer, or release the vehicle to a person other than a
 1-8     salvage vehicle dealer, the former owner of the vehicle, a
 1-9     governmental entity, an out-of-state buyer, a buyer in a casual
1-10     sale at auction, or a person described by Subsection (g), Article
1-11     6687-2b, Revised Statutes, and shall deliver to that person a
1-12     properly assigned certificate of title for the vehicle.  A licensed
1-13     salvage vehicle dealer may also sell a late model salvage motor
1-14     vehicle to an individual.
1-15           SECTION 2.  Section 501.0919, Transportation Code, is amended
1-16     to read as follows:
1-17           Sec. 501.0919.  SALE OF CERTAIN LATE MODEL SALVAGE MOTOR
1-18     VEHICLES.  The owner of a late model salvage motor vehicle that has
1-19     been issued a salvage motor vehicle certificate of title or a
1-20     nonrepairable motor vehicle certificate of title may sell the
1-21     vehicle only to a salvage vehicle dealer in this state, an
1-22     out-of-state buyer, a buyer in a casual sale at auction, or a
1-23     person described by Subsection (g), Article 6687-2b, Revised
1-24     Statutes.  A licensed salvage vehicle dealer may also sell a late
 2-1     model salvage motor vehicle described by this section to an
 2-2     individual.
 2-3           SECTION 3.  Section 501.0925, Transportation Code, is amended
 2-4     to read as follows:
 2-5           Sec. 501.0925.  RIGHTS OF HOLDER OF NONREPAIRABLE MOTOR
 2-6     VEHICLE CERTIFICATE OF TITLE.  A person who holds a nonrepairable
 2-7     motor vehicle certificate of title for a vehicle:
 2-8                 (1)  is entitled to possess the vehicle, dismantle,
 2-9     scrap, or destroy the vehicle, transport the vehicle or parts of
2-10     the vehicle, or rebuild the vehicle;
2-11                 (2)  may not operate or permit the operation of the
2-12     vehicle on a public highway; [and]
2-13                 (3)  may not rebuild the vehicle; and
2-14                 (4)  may transfer ownership of the vehicle only as
2-15     permitted by law.
2-16           SECTION 4.  Section 501.0928, Transportation Code, is amended
2-17     by adding Subsection (d) to read as follows:
2-18           (d)  A nonrepairable motor vehicle certificate of title must
2-19     state on its face that the vehicle may:
2-20                 (1)  not be issued a regular certificate of title or
2-21     registered in this state;
2-22                 (2)  be used only for parts or scrap metal; and
2-23                 (3)  not be rebuilt.
2-24           SECTION 5.  Subchapter E, Chapter 501, Transportation Code,
2-25     is amended by adding Section 501.0932 to read as follows:
2-26           Sec. 501.0932.  OTHER SALVAGE CERTIFICATES PROHIBITED.
2-27     Effective September 1, 1999, the department may not adopt or
 3-1     enforce a rule or policy that permits the issuance of a salvage
 3-2     certificate, Texas salvage certificate, salvage certificate
 3-3     receipt, salvage receipt, or any comparable instrument or document
 3-4     in lieu of a salvage motor vehicle certificate of title or a
 3-5     nonrepairable motor vehicle certificate of title under this
 3-6     subchapter.
 3-7           SECTION 6.  Subchapter E, Chapter 501, Transportation Code,
 3-8     is amended by adding Section 501.0933 to read as follows:
 3-9           Sec. 501.0933.  OUT-OF-STATE BUYER'S LICENSE.  (a)  An
3-10     out-of-state buyer may not purchase a salvage motor vehicle or a
3-11     nonrepairable motor vehicle in this state unless the person holds a
3-12     license issued by the department that authorizes the purchase of
3-13     the vehicle.
3-14           (b)  To obtain an out-of-state buyer's license, the person
3-15     must apply to the department.  The application must be accompanied
3-16     by:
3-17                 (1)  a copy, photocopy, or other accurate reproduction
3-18     of a valid driver's license issued to the person by the appropriate
3-19     licensing authority of the state or jurisdiction in which the
3-20     person resides;
3-21                 (2)  a copy, photocopy, or other accurate reproduction
3-22     of a valid automotive business license issued to the person by the
3-23     appropriate licensing authority of the state or jurisdiction in
3-24     which the person resides;
3-25                 (3)  a nonrefundable application fee of $200; and
3-26                 (4)  a statement as to whether the person proposes to
3-27     purchase vehicles on behalf of a salvage vehicle dealer in another
 4-1     state.
 4-2           (c)  If the applicant proposes to purchase a vehicle in this
 4-3     state on behalf of a salvage vehicle dealer in another state, the
 4-4     person is not eligible for a license under this section unless the
 4-5     person:
 4-6                 (1)  is a resident of the state or jurisdiction in
 4-7     which the salvage vehicle dealer is licensed as a salvage vehicle
 4-8     dealer; and
 4-9                 (2)  holds a valid driver's license issued by the
4-10     appropriate licensing authority of that state or jurisdiction.
4-11           SECTION 7.  Section 1.01(15), Article 6687-1a, Revised
4-12     Statutes, is amended to read as follows:
4-13                 (15)  "Salvage vehicle agent" means a person operating
4-14     under a legally binding contract to purchase [employed by a
4-15     licensed salvage vehicle  dealer to acquire, sell, or otherwise
4-16     deal in late model] salvage vehicles [or salvage parts] in this
4-17     state for a licensed salvage vehicle dealer.  The term does not
4-18     include a person who:
4-19                       (A)  is a licensed salvage dealer;
4-20                       (B)  is an employee of a licensed salvage dealer;
4-21                       (C)  is a partner in or an owner or officer of a
4-22     business entity that holds a salvage vehicle dealer license; or
4-23                       (D)  only transports salvage vehicles for a
4-24     licensed salvage vehicle dealer.
4-25           SECTION 8.  Section 501.0927, Transportation Code, is
4-26     repealed.
4-27           SECTION 9.  This Act takes effect September 1, 1999.
 5-1           SECTION 10.  The importance of this legislation and the
 5-2     crowded condition of the calendars in both houses create an
 5-3     emergency and an imperative public necessity that the
 5-4     constitutional rule requiring bills to be read on three several
 5-5     days in each house be suspended, and this rule is hereby suspended.