By Noriega H.B. No. 3521
76R5675 WP-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to motor vehicle title services; providing criminal
1-3 penalties.
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, lost
1-18 motor vehicle title applications, motor vehicle mechanic's lien
1-19 title applications, motor vehicle storage lien title applications,
1-20 motor vehicle temporary registration permits, motor vehicle title
1-21 application transfers occasioned by the death of the title holder,
1-22 motor vehicle salvage title applications, certificates, or
1-23 non-repairable salvage title certified applications.
1-24 (4) "Title service clerk" means any person:
2-1 (A) having an ownership interest in a motor
2-2 vehicle title service;
2-3 (B) having managerial authority over the
2-4 operations of a motor vehicle title service; or
2-5 (C) who directly or indirectly provides services
2-6 for compensation to assist a motor vehicle title service in the
2-7 processing and filing of title documents, including assistance from
2-8 office managers, clerical personnel, notaries, subcontractors, or
2-9 consultants.
2-10 (5) "Title service license holder" means a person who
2-11 holds a motor vehicle title service license, a title service
2-12 runner's license, or a title service clerk's license.
2-13 (6) "Title service record" means the written record
2-14 for each transaction in which a motor vehicle title service
2-15 receives compensation.
2-16 (7) "Title service runner" means any person employed
2-17 by a licensed motor vehicle title service to submit or present
2-18 title documents to the department or any county tax
2-19 assessor-collector in this state.
2-20 Sec. 520.052. APPLICABILITY. This subchapter applies to any
2-21 motor vehicle title service operating in a county that has a
2-22 population of more than 1.6 million.
2-23 Sec. 520.053. LICENSE REQUIRED. (a) A person may not act
2-24 as a motor vehicle title service or act as an agent for that
2-25 business unless that person holds a license issued under this
2-26 subchapter.
2-27 (b) A person may not act as a title service clerk or a title
3-1 service runner unless the person holds a license issued under this
3-2 subchapter.
3-3 Sec. 520.054. GENERAL LICENSE APPLICATION REQUIREMENTS.
3-4 (a) An applicant for a motor vehicle title service license must
3-5 apply on a form prescribed by the county tax assessor-collector.
3-6 The application form must be signed by the applicant and
3-7 accompanied by the application fee.
3-8 (b) An application must include:
3-9 (1) the applicant's name, business address, and
3-10 business telephone number;
3-11 (2) the name under which the applicant will do
3-12 business;
3-13 (3) the physical address of each office from which the
3-14 applicant will conduct business;
3-15 (4) a statement indicating whether the applicant has
3-16 previously applied for a license under this subchapter, the result
3-17 of the previous application, and whether the applicant has ever
3-18 been the holder of a license under this subchapter that was revoked
3-19 or suspended;
3-20 (5) information from the applicant as required by the
3-21 county tax assessor-collector to establish the business reputation
3-22 and character of the applicant;
3-23 (6) the applicant's federal tax identification number;
3-24 (7) the applicant's state sales tax number; and
3-25 (8) any other information required by rules adopted
3-26 under this subchapter.
3-27 Sec. 520.055. APPLICATION REQUIREMENTS: CORPORATION. In
4-1 addition to the information required in Section 520.054, an
4-2 applicant for a motor vehicle title service license that intends to
4-3 engage in business as a corporation shall submit the following
4-4 information:
4-5 (1) the state of incorporation;
4-6 (2) the name, address, date of birth, and social
4-7 security number of each of the principal owners and directors of
4-8 the corporation;
4-9 (3) information about each officer and director as
4-10 required by the county tax assessor-collector to establish the
4-11 business reputation and character of the applicant; and
4-12 (4) a statement indicating whether an employee,
4-13 officer, or director has been refused a motor vehicle title service
4-14 license, a title service clerk's license, or a title service
4-15 runner's license, or has been the holder of a license that was
4-16 revoked or suspended.
4-17 Sec. 520.056. APPLICATION REQUIREMENTS: PARTNERSHIP. In
4-18 addition to the information required in Section 520.054, a motor
4-19 vehicle title service license applicant that intends to engage in
4-20 business as a partnership shall submit an application that includes
4-21 the following information:
4-22 (1) the name, address, date of birth, and social
4-23 security number of each partner;
4-24 (2) information about each partner as required by the
4-25 county tax assessor-collector to establish the business reputation
4-26 and character of the applicant; and
4-27 (3) a statement indicating whether a partner or
5-1 employee has been refused a motor vehicle title service license, a
5-2 title service clerk's license, or a title service runner's license,
5-3 or has been the holder of a license that was revoked or suspended.
5-4 Sec. 520.057. CLASSIFICATION OF LICENSE ENDORSEMENTS.
5-5 (a) The county tax assessor-collector shall classify motor vehicle
5-6 title service employees according to the type of activity performed
5-7 by the license holder. An employee of a motor vehicle title
5-8 service may not engage in activities for a particular
5-9 classification under this subchapter unless the employee holds a
5-10 license under that classification.
5-11 (b) An applicant may apply for a motor vehicle title service
5-12 license with an endorsement for an employee in one or more of the
5-13 following classifications:
5-14 (1) title service clerk; or
5-15 (2) title service runner.
5-16 (c) The county tax assessor-collector shall prescribe the
5-17 procedures and qualifications for obtaining a title service clerk's
5-18 or a title service runner's license.
5-19 Sec. 520.058. RECORDS. (a) A holder of a motor vehicle
5-20 title service license shall maintain records as required by this
5-21 section on a form prescribed and made available by the county tax
5-22 assessor-collector for each transaction in which the licensee
5-23 receives compensation. The records shall include:
5-24 (1) the date of the transaction;
5-25 (2) the name, age, address, sex, driver's license
5-26 number, and a legible photocopy of the driver's license for each
5-27 customer; and
6-1 (3) the license plate number and vehicle
6-2 identification number for the motor vehicle involved.
6-3 (b) A motor vehicle title service shall keep two copies of
6-4 all records required under this section for at least two years
6-5 after the date of the transaction.
6-6 Sec. 520.059. INSPECTION OF RECORDS. A motor vehicle title
6-7 service license holder or any of its employees shall allow an
6-8 inspection of records required under Section 520.058, by a peace
6-9 officer on the premises of the motor vehicle title service at any
6-10 reasonable time to verify, check, or audit the records.
6-11 Sec. 520.060. AGENT. The holder of a title service clerk's
6-12 license may authorize not more than five individuals to operate as
6-13 a title service runner under the holder's license. A person
6-14 authorized to operate as a title service runner under a title
6-15 service clerk's license is not required to hold a license under
6-16 Section 520.053(b) or 520.057(a).
6-17 Sec. 520.061. DENIAL, SUSPENSION, OR REVOCATION OF LICENSE.
6-18 (a) The county tax assessor-collector may deny, suspend, revoke,
6-19 or reinstate a license issued under this subchapter.
6-20 (b) The county tax assessor-collector shall adopt rules that
6-21 establish grounds for the denial, suspension, revocation, or
6-22 reinstatement of a license and rules that establish procedures for
6-23 disciplinary action. Any procedures issued under this subchapter
6-24 are subject to Chapter 2001, Government Code.
6-25 (c) A person whose license is revoked may not apply for a
6-26 new license before the first anniversary of the date of the
6-27 revocation.
7-1 (d) A license may not be issued under a fictitious name that
7-2 is similar to or may be confused with the name of a governmental
7-3 entity or that is deceptive or misleading to the public.
7-4 Sec. 520.062. CRIMINAL PENALTY. (a) A person commits an
7-5 offense if the person violates a provision of this subchapter or a
7-6 rule adopted by the commission under this subchapter.
7-7 (b) An offense under this section is a Class A misdemeanor.
7-8 Sec. 520.063. INJUNCTION. (a) A district attorney of the
7-9 county in which the motor vehicle title service is located may
7-10 bring an action to enjoin the operation of a motor vehicle title
7-11 service if the motor vehicle title service license holder, or a
7-12 title service clerk or runner of the motor vehicle title service,
7-13 while in the scope of the clerk's or runner's employment, is
7-14 convicted of more than one offense under this subchapter.
7-15 (b) If the court grants relief under Subsection (a), the
7-16 court may:
7-17 (1) enjoin the person from maintaining or
7-18 participating in the business of a motor vehicle title service for
7-19 a period of time as determined by the court; or
7-20 (2) declare the place where the person's business is
7-21 located to be closed for any use relating to the business of the
7-22 motor vehicle title service for as long as the person is enjoined
7-23 from participating in that business.
7-24 SECTION 2. This Act takes effect September 1, 1999.
7-25 SECTION 3. The importance of this legislation and the
7-26 crowded condition of the calendars in both houses create an
7-27 emergency and an imperative public necessity that the
8-1 constitutional rule requiring bills to be read on three several
8-2 days in each house be suspended, and this rule is hereby suspended.