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.