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