76R11338 WP-F                           
         By Noriega                                            H.B. No. 3521
         Substitute the following for H.B. No. 3521:
         By Alexander                                      C.S.H.B. No. 3521
                                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.