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 501.0911(a)(12), Transportation Code, is
1-5 amended to read as follows:
1-6 (12) "Out-of-state buyer" means a person licensed in
1-7 an automotive business by another state or jurisdiction if the
1-8 department has listed the holders of such a license as permitted
1-9 purchasers of salvage motor vehicles or nonrepairable motor
1-10 vehicles based on [substantially similar licensing requirements and
1-11 on] whether salvage vehicle dealers licensed in Texas are permitted
1-12 to purchase salvage motor vehicles or nonrepairable motor vehicles
1-13 in the other state or jurisdiction.
1-14 SECTION 2. Section 501.0912(d), Transportation Code, is
1-15 amended to read as follows:
1-16 (d) An insurance company may sell a late model salvage motor
1-17 vehicle to which this section applies, or assign a salvage motor
1-18 vehicle certificate of title or a nonrepairable motor vehicle
1-19 certificate of title for the vehicle, only to a salvage vehicle
1-20 dealer, an out-of-state buyer who holds a license under Section
1-21 501.0933, [a buyer in a casual sale at auction,] or a person
1-22 described by Subsection (g), Article 6687-2b, Revised Statutes. If
1-23 the vehicle is not a late model salvage motor vehicle or a
1-24 nonrepairable motor vehicle, the insurance company is not required
2-1 to surrender the regular certificate of title for the vehicle or to
2-2 be issued a salvage motor vehicle certificate of title or a
2-3 nonrepairable motor vehicle certificate of title for the vehicle.
2-4 SECTION 3. Section 501.0916(a), Transportation Code, is
2-5 amended to read as follows:
2-6 (a) A person who owns a late model salvage motor vehicle may
2-7 not sell, transfer, or release the vehicle to a person other than a
2-8 salvage vehicle dealer, the former owner of the vehicle, a
2-9 governmental entity, an out-of-state buyer who holds a license
2-10 under Section 501.0933, [a buyer in a casual sale at auction,] or a
2-11 person described by Subsection (g), Article 6687-2b, Revised
2-12 Statutes, and shall deliver to that person a properly assigned
2-13 certificate of title for the vehicle. A salvage vehicle dealer may
2-14 also sell a late model salvage motor vehicle to an individual.
2-15 SECTION 4. Section 501.0919, Transportation Code, is amended
2-16 to read as follows:
2-17 Sec. 501.0919. SALE OF CERTAIN LATE MODEL SALVAGE MOTOR
2-18 VEHICLES. The owner of a late model salvage motor vehicle [that
2-19 has been issued a salvage motor vehicle certificate of title or a
2-20 nonrepairable motor vehicle certificate of title] may sell the
2-21 vehicle only to a salvage vehicle dealer in this state, an
2-22 out-of-state buyer who holds a license under Section 501.0933, [a
2-23 buyer in a casual sale at auction,] or a person described by
2-24 Subsection (g), Article 6687-2b, Revised Statutes. A salvage
2-25 vehicle dealer may also sell a late model salvage motor vehicle
2-26 described by this section to an individual.
2-27 SECTION 5. Section 501.0923, Transportation Code, is amended
3-1 by adding Subsection (c) to read as follows:
3-2 (c) The words "REBUILT SALVAGE" must:
3-3 (1) be capitalized and red in color;
3-4 (2) be centered on the face and occupy at least 15
3-5 percent of the certificate of title; and
3-6 (3) not prevent any other words on the certificate of
3-7 title from being read.
3-8 SECTION 6. Section 501.0925, Transportation Code, is amended
3-9 to read as follows:
3-10 Sec. 501.0925. RIGHTS OF HOLDER OF NONREPAIRABLE MOTOR
3-11 VEHICLE CERTIFICATE OF TITLE. A person who holds a nonrepairable
3-12 motor vehicle certificate of title for a vehicle:
3-13 (1) is entitled to possess the vehicle, dismantle,
3-14 scrap, or destroy the vehicle, or transport the vehicle or parts of
3-15 the vehicle[, or rebuild the vehicle];
3-16 (2) may not operate or permit the operation of the
3-17 vehicle on a public highway; [and]
3-18 (3) may not rebuild the vehicle; and
3-19 (4) may transfer ownership of the vehicle only as
3-20 permitted by law.
3-21 SECTION 7. Section 501.0928, Transportation Code, is amended
3-22 by adding Subsection (d) to read as follows:
3-23 (d) A nonrepairable motor vehicle certificate of title must
3-24 state on its face that the vehicle may:
3-25 (1) not be issued a regular certificate of title or
3-26 registered in this state;
3-27 (2) be used only for parts or scrap metal; and
4-1 (3) not be rebuilt.
4-2 SECTION 8. Subchapter E, Chapter 501, Transportation Code,
4-3 is amended by adding Section 501.0933 to read as follows:
4-4 Sec. 501.0933. OUT-OF-STATE BUYER'S LICENSE. (a) An
4-5 out-of-state buyer may not purchase a salvage motor vehicle or a
4-6 nonrepairable motor vehicle in this state unless the person holds a
4-7 license issued by the department that authorizes the purchase of
4-8 the vehicle.
4-9 (b) To obtain an out-of-state buyer's license, the person
4-10 must apply to the department.
4-11 (c) If the applicant is a resident of the United States, the
4-12 application must be accompanied by:
4-13 (1) a copy, photocopy, or other accurate reproduction
4-14 of a valid driver's license issued to the person by the appropriate
4-15 licensing authority of the state in which the person resides;
4-16 (2) a copy, photocopy, or other accurate reproduction
4-17 of a valid automotive business license issued to the person by the
4-18 appropriate licensing authority of the state in which the person
4-19 resides; and
4-20 (3) a nonrefundable application fee of $200.
4-21 (d) If the applicant is not a resident of the United States,
4-22 the application must be accompanied by a nonrefundable application
4-23 fee of $200 and:
4-24 (1) a copy, photocopy, or other accurate reproduction
4-25 of a valid identification card, certificate, or equivalent document
4-26 issued to the person by the appropriate licensing authority of the
4-27 country or jurisdiction in which the person resides that bears a
5-1 photograph of the applicant and is capable of being verified using
5-2 identification standards adopted by the United States; or
5-3 (2) a copy, photocopy, or other accurate reproduction
5-4 of an identification card, certificate, or equivalent document,
5-5 that bears a photograph of the applicant and is capable of being
5-6 verified using identification standards adopted by the
5-7 international community.
5-8 (e) Notwithstanding Subsection (c)(3) or (d), an application
5-9 for a license under this section from an out-of-state buyer who
5-10 purchases salvage or nonrepairable motor vehicles in this state
5-11 only over the Internet must be accompanied by a fee of $25.
5-12 (f) A license issued under this section expires on the first
5-13 anniversary of its date of issuance and may be renewed annually on
5-14 or before its expiration date on payment of the appropriate fee
5-15 under Subsection (c)(3), (d), or (e).
5-16 SECTION 9. Sections 1.01(13) and (15), Article 6687-1a,
5-17 Revised Statutes, are amended to read as follows:
5-18 (13) "Salvage part" means a major component part of a
5-19 late model salvage vehicle that is serviceable to the extent that
5-20 it can be reused as is.
5-21 (15) "Salvage vehicle agent" means a person operating
5-22 under a salvage vehicle dealer's license issued by the department
5-23 that authorizes the holder of the license to acquire, sell, or
5-24 otherwise deal in [employed by a licensed salvage vehicle dealer to
5-25 acquire, sell, or otherwise deal in late model] salvage motor
5-26 vehicles, nonrepairable motor vehicles, [or] salvage parts, or used
5-27 component parts in this state for a licensed salvage vehicle
6-1 dealer. The term does not include a person who:
6-2 (A) is a licensed salvage dealer;
6-3 (B) is an employee of a licensed salvage dealer;
6-4 (C) is a partner in or an owner or officer of a
6-5 business entity that holds a salvage vehicle dealer license; or
6-6 (D) only transports salvage vehicles for a
6-7 licensed salvage vehicle dealer.
6-8 SECTION 10. Sections 501.0911(a)(3) and 501.0927,
6-9 Transportation Code, are repealed.
6-10 SECTION 11. (a) Except as provided by this section, this
6-11 Act takes effect September 1, 2001.
6-12 (b) Section 8 of this Act takes effect March 1, 2002.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1678 was passed by the House on April
23, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1678 was passed by the Senate on May
22, 2001, by the following vote: Yeas 30, Nays 0, 1 present, not
voting.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor