1-1 By: Cain S.B. No. 1598
1-2 (In the Senate - Filed March 12, 1999; March 15, 1999, read
1-3 first time and referred to Committee on State Affairs;
1-4 May 10, 1999, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 7, Nays 0; May 10, 1999,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1598 By: Cain
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to nonrepairable and salvage motor vehicles.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subsection (d), Section 501.0912, Transportation
1-13 Code, is amended to read as follows:
1-14 (d) An insurance company may sell a late model salvage motor
1-15 vehicle to which this section applies, or assign a salvage motor
1-16 vehicle certificate of title or a nonrepairable motor vehicle
1-17 certificate of title for the vehicle, only to a licensed salvage
1-18 vehicle dealer, an out-of-state buyer, [a buyer in a casual sale at
1-19 auction,] or a person described by Subsection (g), Article 6687-2b,
1-20 Revised Statutes. If the vehicle is not a late model salvage motor
1-21 vehicle or a nonrepairable motor vehicle, the insurance company is
1-22 not required to surrender the regular certificate of title for the
1-23 vehicle or to be issued a salvage motor vehicle certificate of
1-24 title or a nonrepairable motor vehicle certificate of title for the
1-25 vehicle.
1-26 SECTION 2. Subsection (a), Section 501.0916, Transportation
1-27 Code, is amended to read as follows:
1-28 (a) A person who owns a late model salvage motor vehicle may
1-29 not sell, transfer, or release the vehicle to a person other than a
1-30 licensed salvage vehicle dealer, the former owner of the vehicle, a
1-31 governmental entity, an out-of-state buyer, [a buyer in a casual
1-32 sale at auction,] or a person described by Subsection (g), Article
1-33 6687-2b, Revised Statutes, and shall deliver to that person a
1-34 properly assigned certificate of title for the vehicle. A licensed
1-35 salvage vehicle dealer may also sell a late model salvage motor
1-36 vehicle to an individual.
1-37 SECTION 3. Section 501.0919, Transportation Code, is amended
1-38 to read as follows:
1-39 Sec. 501.0919. SALE OF CERTAIN LATE MODEL SALVAGE MOTOR
1-40 VEHICLES. The owner of a late model salvage motor vehicle that has
1-41 been issued a salvage motor vehicle certificate of title or a
1-42 nonrepairable motor vehicle certificate of title may sell the
1-43 vehicle only to a licensed salvage vehicle dealer in this state, an
1-44 out-of-state buyer, [a buyer in a casual sale at auction,] or a
1-45 person described by Subsection (g), Article 6687-2b, Revised
1-46 Statutes. A licensed salvage vehicle dealer may also sell a late
1-47 model salvage motor vehicle described by this section to an
1-48 individual.
1-49 SECTION 4. Section 501.0923, Transportation Code, is amended
1-50 by adding Subsection (c) to read as follows:
1-51 (c) The words required by Subsection (b)(1) must:
1-52 (1) be in capital letters and in red ink;
1-53 (2) occupy the middle portion of the certificate of
1-54 title and at least 15 percent of the certificate; and
1-55 (3) be printed in a manner that allows a person to
1-56 read the other words on the certificate.
1-57 SECTION 5. Section 501.0925, Transportation Code, is amended
1-58 to read as follows:
1-59 Sec. 501.0925. RIGHTS OF HOLDER OF NONREPAIRABLE MOTOR
1-60 VEHICLE CERTIFICATE OF TITLE. A person who holds a nonrepairable
1-61 motor vehicle certificate of title for a vehicle:
1-62 (1) is entitled to possess the vehicle, dismantle,
1-63 scrap, or destroy the vehicle, or transport the vehicle or parts of
1-64 the vehicle[, or rebuild the vehicle];
2-1 (2) may not operate or permit the operation of the
2-2 vehicle on a public highway; [and]
2-3 (3) may not rebuild the vehicle; and
2-4 (4) may transfer ownership of the vehicle only as
2-5 permitted by law.
2-6 SECTION 6. Section 501.0928, Transportation Code, is amended
2-7 by adding Subsection (d) to read as follows:
2-8 (d) A nonrepairable motor vehicle certificate of title must
2-9 state on its face that the vehicle may:
2-10 (1) not be issued a regular certificate of title or
2-11 registered in this state;
2-12 (2) be used only for parts or scrap metal; and
2-13 (3) not be rebuilt.
2-14 SECTION 7. Subchapter E, Chapter 501, Transportation Code,
2-15 is amended by adding Section 501.0933 to read as follows:
2-16 Sec. 501.0933. OUT-OF-STATE BUYER'S LICENSE. (a) An
2-17 out-of-state buyer may not purchase a salvage motor vehicle or a
2-18 nonrepairable motor vehicle in this state unless the person holds a
2-19 license issued by the department that authorizes the purchase of
2-20 the vehicle.
2-21 (b) To obtain an out-of-state buyer's license, the person
2-22 must apply to the department. The application must be accompanied
2-23 by:
2-24 (1) a copy, photocopy, or other accurate reproduction
2-25 of a valid driver's license issued to the person by the appropriate
2-26 licensing authority of the state or jurisdiction in which the
2-27 person resides;
2-28 (2) a copy, photocopy, or other accurate reproduction
2-29 of a valid automotive business license issued to the person by the
2-30 appropriate licensing authority of the state or jurisdiction in
2-31 which the person resides;
2-32 (3) a nonrefundable application fee of $200; and
2-33 (4) a statement as to whether the person proposes to
2-34 purchase vehicles on behalf of a salvage vehicle dealer in another
2-35 state.
2-36 (c) If the applicant proposes to purchase a vehicle in this
2-37 state on behalf of a salvage vehicle dealer in another state, the
2-38 person is not eligible for a license under this section unless the
2-39 person:
2-40 (1) is a resident of the state or jurisdiction in
2-41 which the salvage vehicle dealer is licensed as a salvage vehicle
2-42 dealer; and
2-43 (2) holds a valid driver's license issued by the
2-44 appropriate licensing authority of that state or jurisdiction.
2-45 SECTION 8. Subdivision (15), Section 1.01, Article 6687-1a,
2-46 Revised Statutes, is amended to read as follows:
2-47 (15) "Salvage vehicle agent" means a person operating
2-48 under a legally binding contract to purchase [employed by a
2-49 licensed salvage vehicle dealer to acquire, sell, or otherwise deal
2-50 in late model] salvage vehicles [or salvage parts] in this state
2-51 for a licensed salvage vehicle dealer. The term does not include a
2-52 person who:
2-53 (A) is a licensed salvage dealer;
2-54 (B) is an employee of a licensed salvage dealer;
2-55 (C) is a partner in or an owner or officer of a
2-56 business entity that holds a salvage vehicle dealer license; or
2-57 (D) only transports salvage vehicles for a
2-58 licensed salvage vehicle dealer.
2-59 SECTION 9. Subdivision (3), Subsection (a), Section
2-60 501.0911, and Section 501.0927, Transportation Code, are repealed.
2-61 SECTION 10. This Act takes effect September 1, 1999.
2-62 SECTION 11. The importance of this legislation and the
2-63 crowded condition of the calendars in both houses create an
2-64 emergency and an imperative public necessity that the
2-65 constitutional rule requiring bills to be read on three several
2-66 days in each house be suspended, and this rule is hereby suspended.
2-67 * * * * *