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.