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