1-1 By: Bosse (Senate Sponsor - Cain) H.B. No. 1678
1-2 (In the Senate - Received from the House April 24, 2001;
1-3 April 25, 2001, read first time and referred to Committee on State
1-4 Affairs; May 10, 2001, reported favorably by the following vote:
1-5 Yeas 5, Nays 0; May 10, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to nonrepairable and salvage motor vehicles.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section 501.0911(a)(12), Transportation Code, is
1-11 amended to read as follows:
1-12 (12) "Out-of-state buyer" means a person licensed in
1-13 an automotive business by another state or jurisdiction if the
1-14 department has listed the holders of such a license as permitted
1-15 purchasers of salvage motor vehicles or nonrepairable motor
1-16 vehicles based on [substantially similar licensing requirements and
1-17 on] whether salvage vehicle dealers licensed in Texas are permitted
1-18 to purchase salvage motor vehicles or nonrepairable motor vehicles
1-19 in the other state or jurisdiction.
1-20 SECTION 2. Section 501.0912(d), Transportation Code, is
1-21 amended to read as follows:
1-22 (d) An insurance company may sell a late model salvage motor
1-23 vehicle to which this section applies, or assign a salvage motor
1-24 vehicle certificate of title or a nonrepairable motor vehicle
1-25 certificate of title for the vehicle, only to a salvage vehicle
1-26 dealer, an out-of-state buyer who holds a license under Section
1-27 501.0933, [a buyer in a casual sale at auction,] or a person
1-28 described by Subsection (g), Article 6687-2b, Revised Statutes. If
1-29 the vehicle is not a late model salvage motor vehicle or a
1-30 nonrepairable motor vehicle, the insurance company is not required
1-31 to surrender the regular certificate of title for the vehicle or to
1-32 be issued a salvage motor vehicle certificate of title or a
1-33 nonrepairable motor vehicle certificate of title for the vehicle.
1-34 SECTION 3. Section 501.0916(a), Transportation Code, is
1-35 amended to read as follows:
1-36 (a) A person who owns a late model salvage motor vehicle may
1-37 not sell, transfer, or release the vehicle to a person other than a
1-38 salvage vehicle dealer, the former owner of the vehicle, a
1-39 governmental entity, an out-of-state buyer who holds a license
1-40 under Section 501.0933, [a buyer in a casual sale at auction,] or a
1-41 person described by Subsection (g), Article 6687-2b, Revised
1-42 Statutes, and shall deliver to that person a properly assigned
1-43 certificate of title for the vehicle. A salvage vehicle dealer may
1-44 also sell a late model salvage motor vehicle to an individual.
1-45 SECTION 4. Section 501.0919, Transportation Code, is amended
1-46 to read as follows:
1-47 Sec. 501.0919. SALE OF CERTAIN LATE MODEL SALVAGE MOTOR
1-48 VEHICLES. The owner of a late model salvage motor vehicle [that
1-49 has been issued a salvage motor vehicle certificate of title or a
1-50 nonrepairable motor vehicle certificate of title] may sell the
1-51 vehicle only to a salvage vehicle dealer in this state, an
1-52 out-of-state buyer who holds a license under Section 501.0933, [a
1-53 buyer in a casual sale at auction,] or a person described by
1-54 Subsection (g), Article 6687-2b, Revised Statutes. A salvage
1-55 vehicle dealer may also sell a late model salvage motor vehicle
1-56 described by this section to an individual.
1-57 SECTION 5. Section 501.0923, Transportation Code, is amended
1-58 by adding Subsection (c) to read as follows:
1-59 (c) The words "REBUILT SALVAGE" must:
1-60 (1) be capitalized and red in color;
1-61 (2) be centered on the face and occupy at least 15
1-62 percent of the certificate of title; and
1-63 (3) not prevent any other words on the certificate of
1-64 title from being read.
2-1 SECTION 6. Section 501.0925, Transportation Code, is amended
2-2 to read as follows:
2-3 Sec. 501.0925. RIGHTS OF HOLDER OF NONREPAIRABLE MOTOR
2-4 VEHICLE CERTIFICATE OF TITLE. A person who holds a nonrepairable
2-5 motor vehicle certificate of title for a vehicle:
2-6 (1) is entitled to possess the vehicle, dismantle,
2-7 scrap, or destroy the vehicle, or transport the vehicle or parts of
2-8 the vehicle[, or rebuild the vehicle];
2-9 (2) may not operate or permit the operation of the
2-10 vehicle on a public highway; [and]
2-11 (3) may not rebuild the vehicle; and
2-12 (4) may transfer ownership of the vehicle only as
2-13 permitted by law.
2-14 SECTION 7. Section 501.0928, Transportation Code, is amended
2-15 by adding Subsection (d) to read as follows:
2-16 (d) A nonrepairable motor vehicle certificate of title must
2-17 state on its face that the vehicle may:
2-18 (1) not be issued a regular certificate of title or
2-19 registered in this state;
2-20 (2) be used only for parts or scrap metal; and
2-21 (3) not be rebuilt.
2-22 SECTION 8. Subchapter E, Chapter 501, Transportation Code,
2-23 is amended by adding Section 501.0933 to read as follows:
2-24 Sec. 501.0933. OUT-OF-STATE BUYER'S LICENSE. (a) An
2-25 out-of-state buyer may not purchase a salvage motor vehicle or a
2-26 nonrepairable motor vehicle in this state unless the person holds a
2-27 license issued by the department that authorizes the purchase of
2-28 the vehicle.
2-29 (b) To obtain an out-of-state buyer's license, the person
2-30 must apply to the department.
2-31 (c) If the applicant is a resident of the United States, the
2-32 application must be accompanied by:
2-33 (1) a copy, photocopy, or other accurate reproduction
2-34 of a valid driver's license issued to the person by the appropriate
2-35 licensing authority of the state in which the person resides;
2-36 (2) a copy, photocopy, or other accurate reproduction
2-37 of a valid automotive business license issued to the person by the
2-38 appropriate licensing authority of the state in which the person
2-39 resides; and
2-40 (3) a nonrefundable application fee of $200.
2-41 (d) If the applicant is not a resident of the United States,
2-42 the application must be accompanied by a nonrefundable application
2-43 fee of $200 and:
2-44 (1) a copy, photocopy, or other accurate reproduction
2-45 of a valid identification card, certificate, or equivalent document
2-46 issued to the person by the appropriate licensing authority of the
2-47 country or jurisdiction in which the person resides that bears a
2-48 photograph of the applicant and is capable of being verified using
2-49 identification standards adopted by the United States; or
2-50 (2) a copy, photocopy, or other accurate reproduction
2-51 of an identification card, certificate, or equivalent document,
2-52 that bears a photograph of the applicant and is capable of being
2-53 verified using identification standards adopted by the
2-54 international community.
2-55 (e) Notwithstanding Subsection (c)(3) or (d), an application
2-56 for a license under this section from an out-of-state buyer who
2-57 purchases salvage or nonrepairable motor vehicles in this state
2-58 only over the Internet must be accompanied by a fee of $25.
2-59 (f) A license issued under this section expires on the first
2-60 anniversary of its date of issuance and may be renewed annually on
2-61 or before its expiration date on payment of the appropriate fee
2-62 under Subsection (c)(3), (d), or (e).
2-63 SECTION 9. Sections 1.01(13) and (15), Article 6687-1a,
2-64 Revised Statutes, are amended to read as follows:
2-65 (13) "Salvage part" means a major component part of a
2-66 late model salvage vehicle that is serviceable to the extent that
2-67 it can be reused as is.
2-68 (15) "Salvage vehicle agent" means a person operating
2-69 under a salvage vehicle dealer's license issued by the department
3-1 that authorizes the holder of the license to acquire, sell, or
3-2 otherwise deal in [employed by a licensed salvage vehicle dealer to
3-3 acquire, sell, or otherwise deal in late model] salvage motor
3-4 vehicles, nonrepairable motor vehicles, [or] salvage parts, or used
3-5 component parts in this state for a licensed salvage vehicle
3-6 dealer. The term does not include a person who:
3-7 (A) is a licensed salvage dealer;
3-8 (B) is an employee of a licensed salvage dealer;
3-9 (C) is a partner in or an owner or officer of a
3-10 business entity that holds a salvage vehicle dealer license; or
3-11 (D) only transports salvage vehicles for a
3-12 licensed salvage vehicle dealer.
3-13 SECTION 10. Sections 501.0911(a)(3) and 501.0927,
3-14 Transportation Code, are repealed.
3-15 SECTION 11. (a) Except as provided by this section, this
3-16 Act takes effect September 1, 2001.
3-17 (b) Section 8 of this Act takes effect March 1, 2002.
3-18 * * * * *