By:  Cain                                             S.B. No. 1598
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to nonrepairable and salvage motor vehicles.
 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-3           SECTION 1.  Subsection (d), Section 501.0912, Transportation
 1-4     Code, is amended to read as follows:
 1-5           (d)  An insurance company may sell a late model salvage motor
 1-6     vehicle to which this section applies, or assign a salvage motor
 1-7     vehicle certificate of title or a nonrepairable motor vehicle
 1-8     certificate of title for the vehicle, only to a licensed salvage
 1-9     vehicle dealer, an out-of-state buyer, [a buyer in a casual sale at
1-10     auction,] or a person described by Subsection (g), Article 6687-2b,
1-11     Revised Statutes.  If the vehicle is not a late model salvage motor
1-12     vehicle or a nonrepairable motor vehicle, the insurance company is
1-13     not required to surrender the regular certificate of title for the
1-14     vehicle or to be issued a salvage motor vehicle certificate of
1-15     title or a nonrepairable motor vehicle certificate of title for the
1-16     vehicle.
1-17           SECTION 2.  Subsection (a), Section 501.0916, Transportation
1-18     Code, is amended to read as follows:
1-19           (a)  A person who owns a late model salvage motor vehicle may
1-20     not sell, transfer, or release the vehicle to a person other than a
1-21     licensed salvage vehicle dealer, the former owner of the vehicle, a
1-22     governmental entity, an out-of-state buyer, [a buyer in a casual
1-23     sale at auction,] or a person described by Subsection (g), Article
1-24     6687-2b, Revised Statutes, and shall deliver to that person a
 2-1     properly assigned certificate of title for the vehicle.  A licensed
 2-2     salvage vehicle dealer may also sell a late model salvage motor
 2-3     vehicle to an individual.
 2-4           SECTION 3.  Section 501.0919, Transportation Code, is amended
 2-5     to read as follows:
 2-6           Sec. 501.0919.  SALE OF CERTAIN LATE MODEL SALVAGE MOTOR
 2-7     VEHICLES.  The owner of a late model salvage motor vehicle that has
 2-8     been issued a salvage motor vehicle certificate of title or a
 2-9     nonrepairable motor vehicle certificate of title may sell the
2-10     vehicle only to a licensed salvage vehicle dealer in this state, an
2-11     out-of-state buyer, [a buyer in a casual sale at auction,] or a
2-12     person described by Subsection (g), Article 6687-2b, Revised
2-13     Statutes.  A licensed salvage vehicle dealer may also sell a late
2-14     model salvage motor vehicle described by this section to an
2-15     individual.
2-16           SECTION 4.  Section 501.0923, Transportation Code, is amended
2-17     by adding Subsection (c) to read as follows:
2-18           (c)  The words required by Subsection (b)(1) must:
2-19                 (1)  be in capital letters and in red ink;
2-20                 (2)  occupy the middle portion of the certificate of
2-21     title and at least 15 percent of the certificate; and
2-22                 (3)  be printed in a manner that allows a person to
2-23     read the other words on the certificate.
2-24           SECTION 5.  Section 501.0925, Transportation Code, is amended
2-25     to read as follows:
2-26           Sec. 501.0925.  RIGHTS OF HOLDER OF NONREPAIRABLE MOTOR
 3-1     VEHICLE CERTIFICATE OF TITLE.  A person who holds a nonrepairable
 3-2     motor vehicle certificate of title for a vehicle:
 3-3                 (1)  is entitled to possess the vehicle, dismantle,
 3-4     scrap, or destroy the vehicle, or transport the vehicle or parts of
 3-5     the vehicle[, or rebuild the vehicle];
 3-6                 (2)  may not operate or permit the operation of the
 3-7     vehicle on a public highway; [and]
 3-8                 (3)  may not rebuild the vehicle; and
 3-9                 (4)  may transfer ownership of the vehicle only as
3-10     permitted by law.
3-11           SECTION 6.  Section 501.0928, Transportation Code, is amended
3-12     by adding Subsection (d) to read as follows:
3-13           (d)  A nonrepairable motor vehicle certificate of title must
3-14     state on its face that the vehicle may:
3-15                 (1)  not be issued a regular certificate of title or
3-16     registered in this state;
3-17                 (2)  be used only for parts or scrap metal; and
3-18                 (3)  not be rebuilt.
3-19           SECTION 7.  Subchapter E, Chapter 501, Transportation Code,
3-20     is amended by adding Section 501.0933 to read as follows:
3-21           Sec. 501.0933.  OUT-OF-STATE BUYER'S LICENSE.  (a)  An
3-22     out-of-state buyer may not purchase a salvage motor vehicle or a
3-23     nonrepairable motor vehicle in this state unless the person holds a
3-24     license issued by the department that authorizes the purchase of
3-25     the vehicle.
3-26           (b)  To obtain an out-of-state buyer's license, the person
 4-1     must apply to the department.  The application must be accompanied
 4-2     by:
 4-3                 (1)  a copy, photocopy, or other accurate reproduction
 4-4     of a valid driver's license issued to the person by the appropriate
 4-5     licensing authority of the state or jurisdiction in which the
 4-6     person resides;
 4-7                 (2)  a copy, photocopy, or other accurate reproduction
 4-8     of a valid automotive business license issued to the person by the
 4-9     appropriate licensing authority of the state or jurisdiction in
4-10     which the person resides;
4-11                 (3)  a nonrefundable application fee of $200; and
4-12                 (4)  a statement as to whether the person proposes to
4-13     purchase vehicles on behalf of a salvage vehicle dealer in another
4-14     state.
4-15           (c)  If the applicant proposes to purchase a vehicle in this
4-16     state on behalf of a salvage vehicle dealer in another state, the
4-17     person is not eligible for a license under this section unless the
4-18     person:
4-19                 (1)  is a resident of the state or jurisdiction in
4-20     which the salvage vehicle dealer is licensed as a salvage vehicle
4-21     dealer; and
4-22                 (2)  holds a valid driver's license issued by the
4-23     appropriate licensing authority of that state or jurisdiction.
4-24           SECTION 8.  Subdivision (15), Section 1.01, Article 6687-1a,
4-25     Revised Statutes, is amended to read as follows:
4-26                 (15)  "Salvage vehicle agent" means a person operating
 5-1     under a legally binding contract to purchase [employed by a
 5-2     licensed salvage vehicle dealer to acquire, sell, or otherwise deal
 5-3     in late model] salvage vehicles [or salvage parts] in this state
 5-4     for a licensed salvage vehicle dealer.  The term does not include a
 5-5     person who:
 5-6                       (A)  is a licensed salvage dealer;
 5-7                       (B)  is an employee of a licensed salvage dealer;
 5-8                       (C)  is a partner in or an owner or officer of a
 5-9     business entity that holds a salvage vehicle dealer license; or
5-10                       (D)  only transports salvage vehicles for a
5-11     licensed salvage vehicle dealer.
5-12           SECTION 9.  Subdivision (3), Subsection (a), Section
5-13     501.0911, and Section 501.0927, Transportation Code, are repealed.
5-14           SECTION 10.  This Act takes effect September 1, 1999.
5-15           SECTION 11.  The importance of this legislation and the
5-16     crowded condition of the calendars in both houses create an
5-17     emergency and an imperative public necessity that the
5-18     constitutional rule requiring bills to be read on three several
5-19     days in each house be suspended, and this rule is hereby suspended.