By Pickett                                            H.B. No. 3574
         76R5199 DWS-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to nonrepairable and salvage motor vehicles.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 501.0915(a), Transportation Code, is
 1-5     amended to read as follows:
 1-6           (a)  If after payment of a total loss claim on a late model
 1-7     salvage motor vehicle or a nonrepairable motor vehicle an insurance
 1-8     company does not acquire ownership of the vehicle, the insurance
 1-9     company shall submit to the department, before the 31st day after
1-10     the date of the payment of the claim:
1-11                 (1)  an application, in the name of the owner of the
1-12     vehicle, for a salvage motor vehicle certificate of title or a
1-13     nonrepairable motor vehicle certificate of title, as applicable;
1-14     and
1-15                 (2)  an application fee of $3 instead of any fee
1-16     required under Section 502.0920(a)(1)[, on the form prescribed by
1-17     the department, a report stating that:]
1-18                 [(1)  the insurance company has paid a total loss claim
1-19     on the vehicle; and]
1-20                 [(2)  the insurance company has not acquired ownership
1-21     of the vehicle].
1-22           SECTION 2.  Sections 501.0920(a) and (c), Transportation
1-23     Code, are amended to read as follows:
1-24           (a)  An application for a salvage motor vehicle certificate
 2-1     of title or a nonrepairable motor vehicle certificate of title
 2-2     must:
 2-3                 (1)  be made on a form prescribed by the department and
 2-4     accompanied by a fee established by the department, not to exceed
 2-5     an amount that is sufficient, when added to other fees collected
 2-6     under this chapter, to recover the actual costs to the department
 2-7     of issuing the certificate; and
 2-8                 (2)  include, in addition to any other information
 2-9     required by the department:
2-10                       (A)  the name and current address of the owner;
2-11                       (B)  a description of the vehicle, including the
2-12     make, style of body, model year, and vehicle identification number;
2-13                       (C)  a description of the damage to the vehicle;
2-14                       (D)  the estimated cost of repairs to the
2-15     vehicle, including parts and labor;  [and]
2-16                       (E)  the predamaged actual cash value of the
2-17     vehicle; and
2-18                       (F)  the name and address of each lienholder and
2-19     the date of each lien on the vehicle.
2-20           (c)  A nonrepairable motor vehicle certificate of title must
2-21     state on its face that[, except as provided by Sections 501.0925
2-22     and 501.0927,] the vehicle:
2-23                 (1)  may not be issued a regular certificate of title
2-24     or registered in this state; and
2-25                 (2)  may only be used for parts or scrap metal.
2-26           SECTION 3.  Section 501.0922(a), Transportation Code, is
2-27     amended to read as follows:
 3-1           (a)  A vehicle for which a salvage motor vehicle certificate
 3-2     of title has been issued may be issued a regular certificate of
 3-3     title only after application and, in addition to any other
 3-4     requirement of law, only if the application is accompanied by:
 3-5                 (1)  an affidavit of the applicant that:
 3-6                       (A)  describes each major component part used to
 3-7     repair the vehicle;
 3-8                       (B)  [and] shows the identification number
 3-9     required by federal law to be affixed to or inscribed on the part;
3-10     and
3-11                       (C)  states where, when, how, and from whom the
3-12     part was obtained; and
3-13                 (2)  [is accompanied by] a written statement signed by
3-14     a specially trained commissioned officer of the Department of
3-15     Public Safety certifying to the department that:
3-16                       (A)  the vehicle identification numbers and parts
3-17     identification numbers are accurate;
3-18                       (B)  the applicant has proof that the applicant
3-19     owns the parts used to repair the vehicle; and
3-20                       (C)  the vehicle may be safely operated and
3-21     complies with all applicable motor vehicle safety standards of this
3-22     state.
3-23           SECTION 4.  Section 501.0925, Transportation Code, is amended
3-24     to read as follows:
3-25           Sec. 501.0925.  RIGHTS OF HOLDER OF NONREPAIRABLE MOTOR
3-26     VEHICLE CERTIFICATE OF TITLE.  A person who holds a nonrepairable
3-27     motor vehicle certificate of title for a vehicle:
 4-1                 (1)  is entitled to possess the vehicle, dismantle,
 4-2     scrap, or destroy the vehicle, or transport the vehicle or parts of
 4-3     the vehicle;
 4-4                 (2)  may not[, or] rebuild the vehicle;
 4-5                 (3) [(2)]  may not operate or permit the operation of
 4-6     the vehicle on a public highway; and
 4-7                 (4) [(3)]  may transfer ownership of the vehicle only
 4-8     as permitted by law.
 4-9           SECTION 5.  Section 501.0927, Transportation Code, is
4-10     repealed.
4-11           SECTION 6.  The change in law made by this Act applies only
4-12     to a motor vehicle for which a nonrepairable motor vehicle
4-13     certificate of title or salvage motor vehicle certificate of title
4-14     is issued  on or after the effective date of this Act.  A motor
4-15     vehicle for which a nonrepairable motor vehicle certificate of
4-16     title or salvage motor vehicle certificate of title was issued
4-17     before the effective date of this Act is governed by the law in
4-18     effect when the certificate of title was issued, and the former law
4-19     is continued in effect for that purpose.
4-20           SECTION 7.  This Act takes effect September 1, 1999.
4-21           SECTION 8.  The importance of this legislation and the
4-22     crowded condition of the calendars in both houses create an
4-23     emergency and an imperative public necessity that the
4-24     constitutional rule requiring bills to be read on three several
4-25     days in each house be suspended, and this rule is hereby suspended.