By Noriega H.B. No. 3521
76R11338 WP-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to motor vehicle title services; providing a criminal
1-3 penalty.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 520, Transportation Code, is amended by
1-6 adding Subchapter E to read as follows:
1-7 SUBCHAPTER E. MOTOR VEHICLE TITLE SERVICES
1-8 Sec. 520.051. DEFINITIONS. In this subchapter:
1-9 (1) "Motor vehicle" has the meaning assigned by
1-10 Section 501.002.
1-11 (2) "Motor vehicle title service" means any person
1-12 that for compensation directly or indirectly assists other persons
1-13 in obtaining title documents by submitting, transmitting, or
1-14 sending applications for title documents to the appropriate
1-15 government agencies.
1-16 (3) "Title documents" means motor vehicle title
1-17 applications, motor vehicle registration renewal applications,
1-18 motor vehicle mechanic's lien title applications, motor vehicle
1-19 storage lien title applications, motor vehicle temporary
1-20 registration permits, motor vehicle title application transfers
1-21 occasioned by the death of the title holder, or notifications under
1-22 Chapter 683 of this code or Chapter 70, Property Code.
1-23 (4) "Title service license holder" means a person who
1-24 holds a motor vehicle title service license or a title service
2-1 runner's license.
2-2 (5) "Title service record" means the written record
2-3 for each transaction in which a motor vehicle title service
2-4 receives compensation.
2-5 (6) "Title service runner" means any person employed
2-6 by a licensed motor vehicle title service to submit or present
2-7 title documents to the county tax assessor-collector.
2-8 Sec. 520.052. APPLICABILITY. This subchapter applies to any
2-9 motor vehicle title service operating in a county that has a
2-10 population of more than 2.8 million.
2-11 Sec. 520.053. LICENSE REQUIRED. A person may not act as a
2-12 motor vehicle title service or act as an agent for that business
2-13 unless that person holds a license issued under this subchapter.
2-14 Sec. 520.054. GENERAL LICENSE APPLICATION REQUIREMENTS.
2-15 (a) An applicant for a motor vehicle title service license must
2-16 apply on a form prescribed by the county tax assessor-collector.
2-17 The application form must be signed by the applicant and
2-18 accompanied by the application fee.
2-19 (b) An application must include:
2-20 (1) the applicant's name, business address, and
2-21 business telephone number;
2-22 (2) the name under which the applicant will do
2-23 business;
2-24 (3) the physical address of each office from which the
2-25 applicant will conduct business;
2-26 (4) a statement indicating whether the applicant has
2-27 previously applied for a license under this subchapter, the result
3-1 of the previous application, and whether the applicant has ever
3-2 been the holder of a license under this subchapter that was revoked
3-3 or suspended;
3-4 (5) information from the applicant as required by the
3-5 county tax assessor-collector to establish the business reputation
3-6 and character of the applicant;
3-7 (6) the applicant's federal tax identification number;
3-8 (7) the applicant's state sales tax number; and
3-9 (8) any other information required by rules adopted
3-10 under this subchapter.
3-11 Sec. 520.055. APPLICATION REQUIREMENTS: CORPORATION. In
3-12 addition to the information required in Section 520.054, an
3-13 applicant for a motor vehicle title service license that intends to
3-14 engage in business as a corporation shall submit the following
3-15 information:
3-16 (1) the state of incorporation;
3-17 (2) the name, address, date of birth, and social
3-18 security number of each of the principal owners and directors of
3-19 the corporation;
3-20 (3) information about each officer and director as
3-21 required by the county tax assessor-collector to establish the
3-22 business reputation and character of the applicant; and
3-23 (4) a statement indicating whether an employee,
3-24 officer, or director has been refused a motor vehicle title service
3-25 license or a title service runner's license or has been the holder
3-26 of a license that was revoked or suspended.
3-27 Sec. 520.056. APPLICATION REQUIREMENTS: PARTNERSHIP. In
4-1 addition to the information required in Section 520.054, a motor
4-2 vehicle title service license applicant that intends to engage in
4-3 business as a partnership shall submit an application that includes
4-4 the following information:
4-5 (1) the name, address, date of birth, and social
4-6 security number of each partner;
4-7 (2) information about each partner as required by the
4-8 county tax assessor-collector to establish the business reputation
4-9 and character of the applicant; and
4-10 (3) a statement indicating whether a partner or
4-11 employee has been refused a motor vehicle title service license or
4-12 a title service runner's license or has been the holder of a
4-13 license that was revoked or suspended.
4-14 Sec. 520.057. RECORDS. (a) A holder of a motor vehicle
4-15 title service license shall maintain records as required by this
4-16 section on a form prescribed and made available by the county tax
4-17 assessor-collector for each transaction in which the license holder
4-18 receives compensation. The records shall include:
4-19 (1) the date of the transaction;
4-20 (2) the name, age, address, sex, driver's license
4-21 number, and a legible photocopy of the driver's license for each
4-22 customer; and
4-23 (3) the license plate number, vehicle identification
4-24 number, and a legible photocopy of proof of financial
4-25 responsibility for the motor vehicle involved.
4-26 (b) A motor vehicle title service shall keep:
4-27 (1) two copies of all records required under this
5-1 section for at least two years after the date of the transaction;
5-2 (2) legible photocopies of any documents submitted by
5-3 a customer; and
5-4 (3) legible photocopies of any documents submitted to
5-5 the county tax assessor-collector.
5-6 Sec. 520.058. INSPECTION OF RECORDS. A motor vehicle title
5-7 service license holder or any of its employees shall allow an
5-8 inspection of records required under Section 520.057 by a peace
5-9 officer on the premises of the motor vehicle title service at any
5-10 reasonable time to verify, check, or audit the records.
5-11 Sec. 520.059. DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.
5-12 (a) The county tax assessor-collector may deny, suspend, revoke,
5-13 or reinstate a license issued under this subchapter.
5-14 (b) The county tax assessor-collector shall adopt rules that
5-15 establish grounds for the denial, suspension, revocation, or
5-16 reinstatement of a license and rules that establish procedures for
5-17 disciplinary action. Procedures issued under this subchapter are
5-18 subject to Chapter 2001, Government Code.
5-19 (c) A person whose license is revoked may not apply for a
5-20 new license before the first anniversary of the date of the
5-21 revocation.
5-22 (d) A license may not be issued under a fictitious name that
5-23 is similar to or may be confused with the name of a governmental
5-24 entity or that is deceptive or misleading to the public.
5-25 Sec. 520.060. LICENSE RENEWAL. (a) A license issued under
5-26 this subchapter expires on the first anniversary of the date of
5-27 issuance and may be renewed annually on or before the expiration
6-1 date on payment of the required renewal fee.
6-2 (b) A person who is otherwise eligible to renew a license
6-3 may renew an unexpired license by paying to the county tax
6-4 assessor-collector before the expiration date of the license the
6-5 required renewal fee. A person whose license has expired may not
6-6 engage in activities that require a license until the license has
6-7 been renewed under this section.
6-8 (c) If a person's license has been expired for 90 days or
6-9 less, the person may renew the license by paying to the county tax
6-10 assessor-collector 1-1/2 times the required renewal fee.
6-11 (d) If a person's license has been expired for longer than
6-12 90 days but less than one year, the person may renew the license by
6-13 paying to the county tax assessor-collector two times the required
6-14 renewal fee.
6-15 (e) If a person's license has been expired for one year or
6-16 longer, the person may not renew the license. The person may
6-17 obtain a new license by complying with the requirements and
6-18 procedures for obtaining an original license.
6-19 (f) Notwithstanding Subsection (e), if a person was licensed
6-20 in this state, moved to another state, and has been doing business
6-21 in the other state for the two years preceding application, the
6-22 person may renew an expired license. The person must pay to the
6-23 county tax assessor-collector a fee that is equal to two times the
6-24 required renewal fee for the license.
6-25 (g) Before the 30th day preceding the date on which a
6-26 person's license expires, the county tax assessor-collector shall
6-27 notify the person of the impending expiration. The notice must be
7-1 in writing and sent to the person's last known address according to
7-2 the records of the county tax assessor-collector.
7-3 Sec. 520.061. CRIMINAL PENALTY. (a) A person commits an
7-4 offense if the person violates this subchapter or a rule adopted by
7-5 the county tax assessor-collector under this subchapter.
7-6 (b) An offense under this section is a Class A misdemeanor.
7-7 Sec. 520.062. INJUNCTION. (a) A district attorney of the
7-8 county in which the motor vehicle title service is located may
7-9 bring an action to enjoin the operation of a motor vehicle title
7-10 service if the motor vehicle title service license holder or a
7-11 runner of the motor vehicle title service while in the scope of the
7-12 runner's employment is convicted of more than one offense under
7-13 this subchapter.
7-14 (b) If the court grants relief under Subsection (a), the
7-15 court may:
7-16 (1) enjoin the person from maintaining or
7-17 participating in the business of a motor vehicle title service for
7-18 a period of time as determined by the court; or
7-19 (2) declare the place where the person's business is
7-20 located to be closed for any use relating to the business of the
7-21 motor vehicle title service for as long as the person is enjoined
7-22 from participating in that business.
7-23 Sec. 520.063. EXEMPTIONS. The following persons and their
7-24 agents are exempt from the licensing and other requirements
7-25 established by this subchapter:
7-26 (1) a franchised motor vehicle dealer or independent
7-27 motor vehicle dealer who holds a general distinguishing number
8-1 issued by the department under Chapter 503;
8-2 (2) a motor vehicle lessor holding a license issued by
8-3 the Motor Vehicle Board under the Texas Motor Vehicle Commission
8-4 Code (Article 4413(36), Vernon's Texas Civil Statutes) or a trust
8-5 or other entity that is specifically not required to obtain a
8-6 lessor license under Section 4.01(a) of that Act; and
8-7 (3) a lease facilitator holding a license issued by
8-8 the Motor Vehicle Board under the Texas Motor Vehicle Commission
8-9 Code (Article 4413(36), Vernon's Texas Civil Statutes).
8-10 SECTION 2. This Act takes effect September 1, 1999.
8-11 SECTION 3. The importance of this legislation and the
8-12 crowded condition of the calendars in both houses create an
8-13 emergency and an imperative public necessity that the
8-14 constitutional rule requiring bills to be read on three several
8-15 days in each house be suspended, and this rule is hereby suspended.