By Uher H.B. No. 3566
76R5441 WP-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to salvaged and nonrepairable motor vehicles.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Sections 1.01(8), (9), (10), (15), (17), and
1-5 (18), Article 6687-1a, Revised Statutes, are amended to read as
1-6 follows:
1-7 (8) "Motor vehicle" has the meaning assigned by
1-8 Section 501.002, Transportation Code [the Uniform Act Regulating
1-9 Traffic on Highways (Article 6701d, Vernon's Texas Civil
1-10 Statutes)].
1-11 (9) "Nonrepairable motor vehicle" means:
1-12 (A) a motor [late model] vehicle that is
1-13 damaged, wrecked, or burned beyond the reasonable cost of repair to
1-14 an extent that its only legitimate residual value is as a source
1-15 of parts or scrap metal [or missing a major component part to the
1-16 extent that the total estimated cost of repairs to rebuild or
1-17 reconstruct the vehicle, including parts and labor other than the
1-18 cost of materials and labor for repainting the vehicle but
1-19 excluding sales taxes on the total cost of the repairs, and
1-20 excluding the cost of repairs to repair hail damage, is equal to or
1-21 greater than an amount equal to 95 percent of the actual cash value
1-22 of the vehicle in its predamaged condition]; [or]
1-23 (B) a motor vehicle that comes into this state
1-24 with a nonrepairable vehicle certificate of title or [other]
2-1 comparable ownership document issued by another state or
2-2 jurisdiction; or
2-3 (C) a motor vehicle that the owner has
2-4 irreversibly designated as a source of parts or scrap metal
2-5 [certificate of title].
2-6 (10) "Nonrepairable motor vehicle certificate [of
2-7 title]" means a [any] document issued by the department that
2-8 evidences ownership of a nonrepairable motor vehicle.
2-9 (15) "Salvage vehicle agent" means a person operating
2-10 under a salvage vehicle dealer's license issued by the department
2-11 that allows the holder of the license to acquire, sell, or
2-12 otherwise deal in salvage motor vehicles, nonrepairable motor
2-13 vehicles, salvage parts, or used component parts in this state.
2-14 The term does not include:
2-15 (A) a bona fide employee, officer, director,
2-16 owner, or partner of a salvage vehicle dealer; or
2-17 (B) a person who transports salvage motor
2-18 vehicles or nonrepairable motor vehicles for a salvage vehicle
2-19 dealer or other permissible purchaser of salvage motor vehicles or
2-20 nonrepairable motor vehicles [employed by a licensed salvage
2-21 vehicle dealer to acquire, sell, or otherwise deal in late model
2-22 salvage vehicles or salvage parts in this state].
2-23 (17) "Salvage vehicle dealer" means a person who is
2-24 engaged in this state in the business of acquiring, selling, or
2-25 otherwise dealing in salvage vehicles or vehicle parts of a type
2-26 required to be covered by a salvage vehicle certificate of title or
2-27 nonrepairable motor vehicle certificate [of title] under a license
3-1 issued by the department that allows the holder of the license to
3-2 acquire, sell, dismantle, repair, or otherwise deal in salvage
3-3 vehicles.
3-4 (18) "Salvage pool operator" means a person who
3-5 engages in the business of selling nonrepairable motor vehicles or
3-6 salvage vehicles at auction, including wholesale auction, or
3-7 otherwise.
3-8 SECTION 2. Section 1(a)(8), Chapter 506, Acts of the 57th
3-9 Legislature, Regular Session, 1961 (Article 6687-2, Vernon's Texas
3-10 Civil Statutes), is amended to read as follows:
3-11 (8) "Motor vehicle" has the meaning given by Section
3-12 501.002, Transportation Code [Subsection (b), Section 2, Uniform
3-13 Act Regulating Traffic on Highways (Article 6701d, Vernon's Texas
3-14 Civil Statutes)].
3-15 SECTION 3. Sections 501.0911(a)(8) and (9), Transportation
3-16 Code, are amended to read as follows:
3-17 (8) "Nonrepairable motor vehicle" means:
3-18 (A) a [late model] motor vehicle that is
3-19 damaged, wrecked, or burned beyond a reasonable cost of repair to
3-20 an extent that its only legitimate residual value is as a source of
3-21 parts or scrap metal;
3-22 (B) a motor vehicle that comes into this state
3-23 with a nonrepairable vehicle certificate of title or comparable
3-24 ownership document issued by another state or jurisdiction; or
3-25 (C) a motor vehicle that the owner has
3-26 irreversibly designated as a source of parts or scrap metal [or
3-27 missing a major component part to the extent that the total
4-1 estimated cost of repairs to rebuild or reconstruct the vehicle,
4-2 including parts and labor other than the costs of materials and
4-3 labor for repainting the vehicle and excluding sales taxes on the
4-4 total cost of the repairs, and excluding the cost of repairs to
4-5 repair hail damage, is equal to or greater than an amount equal to
4-6 95 percent of the actual cash value of the vehicle in its
4-7 predamaged condition].
4-8 (9) "Nonrepairable motor vehicle certificate [of
4-9 title]" means a document issued by the department that evidences
4-10 ownership of a nonrepairable motor vehicle.
4-11 SECTION 4. Sections 2.01(g) and (h), Article 6687-1a,
4-12 Revised Statutes, are amended to read as follows:
4-13 (g) Except as otherwise provided by this subsection, this
4-14 article does not apply to a person who purchases a nonrepairable
4-15 motor vehicle or salvage vehicle from a salvage pool operator in a
4-16 casual sale. The commission shall adopt rules as necessary to
4-17 regulate casual sales and to enforce this subsection. A salvage
4-18 vehicle pool operator that sells a vehicle in a casual sale shall
4-19 comply with each rule adopted by the commission regarding that
4-20 sale.
4-21 (h) This article does not prohibit the sale to any person of
4-22 a vehicle that is classified as a late model salvage vehicle or a
4-23 nonrepairable motor vehicle solely because of water damage caused
4-24 by flood conditions.
4-25 SECTION 5. Sections 3.01(a) and (b), Article 6687-1a,
4-26 Revised Statutes, are amended to read as follows:
4-27 (a) If a salvage vehicle dealer acquires ownership of a late
5-1 model salvage vehicle from an owner, the dealer must receive an
5-2 assigned certificate of title. If the assigned certificate of
5-3 title is not a salvage vehicle certificate of title, a
5-4 nonrepairable motor vehicle certificate [of title], or comparable
5-5 ownership document issued by another state or jurisdiction, the
5-6 licensed salvage vehicle dealer shall, not later than the 10th day
5-7 after the date of receipt of the title, surrender the assigned
5-8 certificate of title to the department and apply for a salvage
5-9 vehicle certificate of title or a nonrepairable motor vehicle
5-10 certificate [of title], as appropriate.
5-11 (b) If a late model salvage vehicle or nonrepairable motor
5-12 vehicle is to be dismantled, scrapped, or destroyed, the salvage
5-13 vehicle dealer shall surrender an assigned certificate of title,
5-14 salvage vehicle certificate of title, nonrepairable motor vehicle
5-15 certificate [of title], or comparable ownership document issued by
5-16 another state or jurisdiction to the department in the manner
5-17 prescribed by the department not later than the 30th day after the
5-18 date the vehicle is acquired and report to the department that the
5-19 vehicle was dismantled, scrapped, or destroyed.
5-20 SECTION 6. Section 3.04, Article 6687-1a, Revised Statutes,
5-21 is amended to read as follows:
5-22 Sec. 3.04. AGENTS. The holder of a salvage vehicle dealer
5-23 license may authorize not more than five persons to operate as
5-24 salvage vehicle agents under the dealer's license. An agent may
5-25 acquire, sell, or otherwise deal in late model salvage vehicles,
5-26 nonrepairable motor vehicles, or salvage parts as directed by the
5-27 dealer. An agent authorized to operate under this section is
6-1 entitled to a salvage vehicle agent license on application to the
6-2 department and payment of the required fee.
6-3 SECTION 7. Section 501.0234(b), Transportation Code, is
6-4 amended to read as follows:
6-5 (b) This section does not apply to a vehicle:
6-6 (1) that has been declared a total loss by an
6-7 insurance company in the settlement or adjustment of a claim; or
6-8 (2) for which the certificate of title has been
6-9 surrendered in exchange for:
6-10 (A) a salvage certificate of title issued under
6-11 this chapter;
6-12 (B) a nonrepairable motor vehicle certificate
6-13 [of title] issued under this chapter;
6-14 (C) a certificate of authority issued under
6-15 Subchapter D, Chapter 683; or
6-16 (D) an ownership document issued by another
6-17 state that is comparable to a document described by Paragraphs
6-18 (A)-(C).
6-19 SECTION 8. Sections 501.0912(b)-(d), Transportation Code,
6-20 are amended to read as follows:
6-21 (b) For a vehicle described by Section 501.0911(6) but not
6-22 by Section 501.0911(8), the insurance company shall apply for a
6-23 salvage motor vehicle certificate of title. For a vehicle
6-24 described by Section 501.0911(8), the insurance company shall apply
6-25 for a nonrepairable motor vehicle certificate [of title].
6-26 (c) An insurance company may not sell a late model salvage
6-27 motor vehicle to which this section applies unless the department
7-1 has issued a salvage motor vehicle certificate of title or a
7-2 nonrepairable motor vehicle certificate [of title] for the vehicle
7-3 or a comparable ownership document has been issued by another state
7-4 or jurisdiction for the vehicle.
7-5 (d) An insurance company may sell a late model salvage motor
7-6 vehicle to which this section applies, or assign a salvage motor
7-7 vehicle certificate of title or a nonrepairable motor vehicle
7-8 certificate [of title] for the vehicle, only to a salvage vehicle
7-9 dealer, an out-of-state buyer, a buyer in a casual sale at auction,
7-10 or a person described by Subsection (g), Article 6687-2b, Revised
7-11 Statutes. If the vehicle is not a late model salvage motor vehicle
7-12 or a nonrepairable motor vehicle, the insurance company is not
7-13 required to surrender the regular certificate of title for the
7-14 vehicle or to be issued a salvage motor vehicle certificate of
7-15 title or a nonrepairable motor vehicle certificate [of title] for
7-16 the vehicle.
7-17 SECTION 9. Section 501.0913(b), Transportation Code, is
7-18 amended to read as follows:
7-19 (b) An insurance company or other person who acquires
7-20 ownership of a motor vehicle other than a late model salvage motor
7-21 vehicle or a nonrepairable motor vehicle may voluntarily and on
7-22 proper application obtain a salvage motor vehicle certificate of
7-23 title or a nonrepairable motor vehicle certificate [of title] for
7-24 the vehicle.
7-25 SECTION 10. Section 501.0915(b), Transportation Code, is
7-26 amended to read as follows:
7-27 (b) The owner of a late model salvage motor vehicle to which
8-1 this section applies may not transfer ownership of the vehicle by
8-2 sale or otherwise unless the department has issued a salvage motor
8-3 vehicle certificate of title or a nonrepairable motor vehicle
8-4 certificate [of title] for the vehicle or a comparable ownership
8-5 document has been issued by another state or jurisdiction for the
8-6 vehicle.
8-7 SECTION 11. Sections 501.0916-0920, 501.0925, 501.0926, and
8-8 501.0928, Transportation Code, are amended to read as follows:
8-9 Sec. 501.0916. SALE, TRANSFER, OR RELEASE OF LATE MODEL
8-10 SALVAGE MOTOR VEHICLE. (a) A person who owns a late model salvage
8-11 motor vehicle may not sell, transfer, or release the vehicle to a
8-12 person other than a salvage vehicle dealer in this state, the
8-13 former owner of the vehicle, a governmental entity, an
8-14 out-of-state buyer, a buyer in a casual sale at auction, or a
8-15 person described by Subsection (g), Article 6687-2b, Revised
8-16 Statutes, and shall deliver to that person a properly assigned
8-17 certificate of title for the vehicle.
8-18 (b) If the assigned certificate of title is not a salvage
8-19 motor vehicle certificate of title, a nonrepairable motor vehicle
8-20 certificate [of title], or a comparable ownership document issued
8-21 by another state or jurisdiction, the purchaser shall, not later
8-22 than the 10th day after the date the purchaser receives the
8-23 certificate of title from the owner:
8-24 (1) surrender the certificate of title to the
8-25 department; and
8-26 (2) apply for a salvage motor vehicle certificate of
8-27 title or a nonrepairable motor vehicle certificate [of title] for
9-1 the vehicle, as appropriate.
9-2 (c) A salvage vehicle dealer that acquires ownership of a
9-3 late model salvage motor vehicle or a nonrepairable motor vehicle
9-4 for the purpose of dismantling, scrapping, or destroying the
9-5 vehicle shall, before the 31st day after the date the dealer
9-6 acquires the vehicle, submit to the department, on the form
9-7 prescribed by the department, a report stating that the vehicle
9-8 will be dismantled, scrapped, or destroyed, accompanied by a
9-9 properly assigned regular certificate of title, salvage motor
9-10 vehicle certificate of title, nonrepairable motor vehicle
9-11 certificate [of title], or comparable ownership document issued by
9-12 another state or jurisdiction for the vehicle.
9-13 (d) On receipt of the report and the certificate of title,
9-14 the department shall issue the salvage vehicle dealer a receipt for
9-15 the certificate of title, salvage motor vehicle certificate of
9-16 title, nonrepairable motor vehicle certificate [of title], or
9-17 comparable ownership document issued by another state or
9-18 jurisdiction.
9-19 Sec. 501.0917. SALVAGE VEHICLE DEALER TO SUBMIT REPORT TO
9-20 DEPARTMENT. A salvage vehicle dealer that acquires an older model
9-21 vehicle for the purpose of dismantling, scrapping, or destroying
9-22 the vehicle and that receives a properly assigned certificate of
9-23 title for the vehicle shall, before the 31st day after the date the
9-24 dealer acquires the vehicle:
9-25 (1) submit to the department, on the form prescribed
9-26 by the department, a report stating that the vehicle will be
9-27 dismantled, scrapped, or destroyed, accompanied by the properly
10-1 assigned regular certificate of title, salvage motor vehicle
10-2 certificate of title, nonrepairable motor vehicle certificate [of
10-3 title], or comparable ownership document issued by another state or
10-4 jurisdiction for the vehicle; and
10-5 (2) keep on the business premises of the dealer, until
10-6 the third anniversary of the date the report on the vehicle is
10-7 submitted to the department, a record of the vehicle.
10-8 Sec. 501.0918. PERSON ACQUIRING LATE MODEL SALVAGE MOTOR
10-9 VEHICLE TO SURRENDER CERTIFICATE OF TITLE. A person, other than a
10-10 salvage vehicle dealer or an insurance company licensed to do
10-11 business in this state, who acquires ownership of a late model
10-12 salvage motor vehicle or a nonrepairable motor vehicle that has not
10-13 been issued a salvage motor vehicle certificate of title, a
10-14 nonrepairable motor vehicle certificate [of title], or a comparable
10-15 ownership document issued by another state or jurisdiction shall,
10-16 before selling the vehicle, surrender the properly assigned
10-17 certificate of title for the vehicle to the department and:
10-18 (1) if the vehicle is a vehicle described by Section
10-19 501.0911(6) but not by Section 501.0911(8), apply to the department
10-20 for a salvage motor vehicle certificate of title for the vehicle;
10-21 or
10-22 (2) if the vehicle is a vehicle described by Section
10-23 501.0911(8), apply to the department for a nonrepairable motor
10-24 vehicle certificate [of title] for the vehicle.
10-25 Sec. 501.0919. SALE OF CERTAIN LATE MODEL SALVAGE MOTOR
10-26 VEHICLES. (a) The owner of a late model salvage motor vehicle
10-27 that has been issued a [salvage motor vehicle certificate of title
11-1 or a] nonrepairable motor vehicle certificate [of title] may sell
11-2 the vehicle only to a salvage vehicle dealer in this state, an
11-3 out-of-state buyer in a casual sale at auction, or a person
11-4 described by Subsection (g), Article 6687-2b, Revised Statutes.
11-5 (b) The owner of a late model salvage motor vehicle that has
11-6 been issued a salvage motor vehicle certificate of title may sell
11-7 the vehicle only to a salvage vehicle dealer in this state.
11-8 Sec. 501.0920. APPLICATION FOR SALVAGE MOTOR VEHICLE
11-9 CERTIFICATE OF TITLE. (a) An application for a salvage motor
11-10 vehicle certificate of title or a nonrepairable motor vehicle
11-11 certificate [of title] must:
11-12 (1) be made on a form prescribed by the department and
11-13 accompanied by a fee established by the department, not to exceed
11-14 an amount that is sufficient, when added to other fees collected
11-15 under this chapter, to recover the actual costs to the department
11-16 of issuing the certificate; and
11-17 (2) include, in addition to any other information
11-18 required by the department:
11-19 (A) the name and current address of the owner;
11-20 (B) a description of the vehicle, including the
11-21 make, style of body, model year, and vehicle identification number;
11-22 (C) a description of the damage to the vehicle;
11-23 (D) the estimated cost of repairs to the
11-24 vehicle, including parts and labor; and
11-25 (E) the predamaged actual cash value of the
11-26 vehicle.
11-27 (b) On receipt of a complete application and the prescribed
12-1 application fee, the department shall, before the sixth business
12-2 day after the date the department receives the application, issue
12-3 the applicant a salvage motor vehicle certificate of title or a
12-4 nonrepairable motor vehicle certificate [of title], as appropriate.
12-5 (c) A nonrepairable motor vehicle certificate [of title]
12-6 must state on its face that[, except as provided by Sections
12-7 501.0925 and 501.0927,] the vehicle:
12-8 (1) may not be issued a regular certificate of title
12-9 or registered in this state; and
12-10 (2) may only be used for parts or scrap metal.
12-11 Sec. 501.0925. RIGHTS OF HOLDER OF NONREPAIRABLE MOTOR
12-12 VEHICLE CERTIFICATE [OF TITLE]. A person who holds a nonrepairable
12-13 motor vehicle certificate [of title] for a vehicle:
12-14 (1) is entitled to possess [the vehicle], dismantle,
12-15 scrap, [or] destroy [the vehicle], or transport the vehicle or
12-16 parts of the vehicle[, or rebuild the vehicle];
12-17 (2) may not operate or permit the operation of the
12-18 vehicle on a public highway; and
12-19 (3) may transfer ownership of the vehicle only as
12-20 permitted by law.
12-21 Sec. 501.0926. OFFENSE. A [Except as provided by Section
12-22 501.0927, a] person commits an offense if the person:
12-23 (1) applies to the department for a certificate of
12-24 title for a motor vehicle; and
12-25 (2) knows that the vehicle is a nonrepairable motor
12-26 vehicle that has been rebuilt.
12-27 Sec. 501.0928. DEPARTMENT TO PRINT SALVAGE MOTOR VEHICLE
13-1 CERTIFICATES OF TITLE AND NONREPAIRABLE MOTOR VEHICLE CERTIFICATES
13-2 [OF TITLE]. (a) The department shall print salvage motor vehicle
13-3 certificates of title and nonrepairable motor vehicle certificates
13-4 [of title] in a color that distinguishes them from certificates of
13-5 title and so that each document clearly shows that it is the
13-6 ownership document for a late model salvage motor vehicle or a
13-7 nonrepairable motor vehicle.
13-8 (b) A nonrepairable motor vehicle certificate [of title] for
13-9 a vehicle that is nonrepairable because of damage caused
13-10 exclusively by flood must bear an appropriate notation on its face.
13-11 (c) A salvage motor vehicle certificate of title for a
13-12 vehicle that is a salvage motor vehicle because of damage caused
13-13 exclusively by flood must bear an appropriate notation on its face.
13-14 (d) A nonrepairable motor vehicle certificate must bear on
13-15 its face the word "NONREPAIRABLE."
13-16 SECTION 12. Section 501.0929(a), Transportation Code, is
13-17 amended to read as follows:
13-18 (a) A rebuilder must possess a certificate of title, a
13-19 salvage motor vehicle certificate of title, [a nonrepairable motor
13-20 vehicle certificate of title,] or a comparable ownership document
13-21 issued by another state or jurisdiction for any motor vehicle that
13-22 is:
13-23 (1) in the rebuilder's inventory; and
13-24 (2) being offered for resale.
13-25 SECTION 13. Section 501.0930(b), Transportation Code, is
13-26 amended to read as follows:
13-27 (b) The department, or an agent, officer, or employee of the
14-1 department, is not liable to a person damaged or injured by an act
14-2 or omission relating to the issuance of a certificate of title,
14-3 salvage motor vehicle certificate of title, or nonrepairable motor
14-4 vehicle certificate [of title] under this subchapter.
14-5 SECTION 14. Subchapter E, Chapter 501, Transportation Code,
14-6 is amended by adding Section 501.0932 to read as follows:
14-7 Sec. 501.0932. SALVAGE VEHICLE PURCHASE AND SALE. (a)
14-8 Notwithstanding any other provision of law, a person may purchase a
14-9 motor vehicle that has been issued a salvage motor vehicle
14-10 certificate of title.
14-11 (b) Notwithstanding any other provision of law, a licensed
14-12 salvage vehicle dealer or salvage vehicle agent, as defined by
14-13 Section 1.01, Article 6687-1a, Revised Statutes, may sell a salvage
14-14 motor vehicle that has been issued a salvage vehicle certificate of
14-15 title to any person after the dealer or agent has taken assignment
14-16 of title from the previous owner.
14-17 (c) A person who is not a salvage motor vehicle dealer may
14-18 sell not more than two rebuilt salvage motor vehicles after the
14-19 vehicle has been issued a certificate of title under Section
14-20 501.0923 in a calendar year.
14-21 SECTION 15. Section 152.001(4), Tax Code, is amended to read
14-22 as follows:
14-23 (4) "Motor Vehicle" does not include:
14-24 (A) a device moved only by human power;
14-25 (B) a device used exclusively on stationary
14-26 rails or tracks;
14-27 (C) road-building machinery;
15-1 (D) a mobile office;
15-2 (E) a vehicle with respect to which the
15-3 certificate of title has been surrendered in exchange for:
15-4 (i) a salvage certificate issued pursuant
15-5 to Chapter 501, Transportation Code;
15-6 (ii) a certificate of authority issued
15-7 pursuant to Chapter 683, Transportation Code;
15-8 (iii) a nonrepairable motor vehicle
15-9 certificate [of title] issued pursuant to Chapter 501,
15-10 Transportation Code;
15-11 (iv) an ownership document issued by
15-12 another state if the document is comparable to a document issued
15-13 pursuant to Subparagraph (i), (ii), or (iii); or
15-14 (F) a vehicle that has been declared a total
15-15 loss by an insurance company pursuant to the settlement or
15-16 adjustment of a claim.
15-17 SECTION 16. Sections 2.04 and 3.03, Article 6687-1a, Revised
15-18 Statutes, are repealed.
15-19 SECTION 17. Section 501.0927, Transportation Code, is
15-20 repealed.
15-21 SECTION 18. This Act takes effect September 1, 1999.
15-22 SECTION 19. (a) The change in law made by this Act applies
15-23 only to an offense committed on or after the effective date of this
15-24 Act. For purposes of this section, an offense is committed before
15-25 the effective date of this Act if any element of the offense occurs
15-26 before that date.
15-27 (b) An offense committed before the effective date of this
16-1 Act is covered by the law in effect when the offense was committed,
16-2 and the former law is continued in effect for that purpose.
16-3 (c) A salvage vehicle dealer classified under Section 2.04,
16-4 Article 6687-1a, Revised Statutes, repealed by this Act, shall
16-5 continue to operate under that classification until December 31,
16-6 1999, after which time a salvage vehicle dealer license shall serve
16-7 as the only classification for a salvage vehicle dealer.
16-8 SECTION 20. The importance of this legislation and the
16-9 crowded condition of the calendars in both houses create an
16-10 emergency and an imperative public necessity that the
16-11 constitutional rule requiring bills to be read on three several
16-12 days in each house be suspended, and this rule is hereby suspended.