78R3227 JTS-D

By:  Noriega                                                      H.B. No. 602



A BILL TO BE ENTITLED

AN ACT

relating to the operation of a motor vehicle title service.                   
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Sections 520.052, 520.053, and 520.057, 
Transportation Code, are amended to read as follows:
	Sec. 520.052.  APPLICABILITY.  This subchapter applies only
to any motor vehicle title service operating in a county:
		(1)  that has a population of more than 2.8 million; or         
		(2)  in which the commissioners court by order has 
adopted this subchapter.
	Sec. 520.053.  LICENSE REQUIRED.  A person may not act as a 
motor vehicle title service or act as an agent for that business 
unless that person holds a license issued under this subchapter. 
The person shall obtain a separate license for each office at which 
the person acts as a motor vehicle title service or acts as an agent 
for a motor vehicle title service.
	Sec. 520.057.  RECORDS.  (a)  A holder of a motor vehicle 
title service license shall maintain records as required by this 
section on a form prescribed and made available by the county tax 
assessor-collector for each transaction in which the license holder 
receives compensation.  The form adopted by the county tax 
assessor-collector shall be designed to allow the holder of a motor 
vehicle title service license to record multiple transactions on 
the same form. The records shall be kept at the motor vehicle title 
service office from which the title documents are requested and 
shall include:
		(1)  the date of the transaction;                                             
		(2)  the name, age, address, sex, and driver's license 
number of the person requesting assistance from the motor vehicle 
title service [, and a legible photocopy of the driver's license for 
each customer];  and
		(3)  the license plate number and [,] vehicle 
identification number[, and a legible photocopy of proof of 
financial responsibility] for the motor vehicle involved.
	(b)  A motor vehicle title service shall keep:                                 
		(1)  two copies of all records required under this 
section for at least two years after the date of the transaction;
		(2)  a legible copy [photocopies] of any document
[documents] submitted by a person requesting assistance from a 
motor vehicle title service [customer];  [and]
		(3)  a legible copy [photocopies] of any document
[documents] submitted to the county tax assessor-collector;
		(4)  a legible copy of the driver's license of the 
person requesting assistance from a motor vehicle title service;  
and
		(5)  a legible copy of evidence of financial 
responsibility for the vehicle for which a title document is 
applied for, if the application for the title document must be 
accompanied by evidence of financial responsibility that complies 
with Chapter 601.
	SECTION 2.  Section 520.059(b), Transportation Code, is 
amended to read as follows:
	(b)  The county tax assessor-collector shall adopt rules 
that establish grounds for the denial, suspension, revocation, or 
reinstatement of a license and rules that establish procedures for 
disciplinary action. The tax assessor-collector of a county that 
adopts this subchapter after September 1, 2003, must adopt the 
rules adopted by the Harris County tax assessor-collector.  Changes 
to procedures [Procedures] issued by Harris County under this 
subchapter are subject to Chapter 2001, Government Code.
	SECTION 3.  Section 520.063, Transportation Code, is amended 
to read as follows:
	Sec. 520.063.  EXEMPTIONS. (a) The following persons and 
their agents are exempt from the licensing and other requirements 
established by this subchapter:
		(1)  a franchised motor vehicle dealer or independent 
motor vehicle dealer who holds a general distinguishing number 
issued by the department under Chapter 503;
		(2)  a [motor] vehicle lessor holding a license issued 
by the motor vehicle board of the department [Motor Vehicle Board] 
under Chapter 2301, Occupations [the Texas Motor Vehicle 
Commission] Code [(Article 4413(36), Vernon's Texas Civil 
Statutes)] or a trust or other entity that is specifically not 
required to obtain a vehicle lessor license under Section 2301.254 
[4.01(a)] of that chapter [Act];  and
		(3)  a vehicle lease facilitator holding a license 
issued by the motor vehicle board of the department [Motor Vehicle 
Board] under Chapter 2301, Occupations [the Texas Motor Vehicle 
Commission] Code [(Article 4413(36), Vernon's Texas Civil 
Statutes)].
	(b)  For purposes of Subsection (a), a motor vehicle title 
service is not an agent of an exempt entity unless:
		(1)  the person offering the assistance is an employee 
of the exempt entity; or
		(2)  the person offering the assistance can provide 
proof that the person is authorized by the exempt entity to offer 
the assistance on behalf of the entity.
	SECTION 4.  Section 520.060(f), Transportation Code, is 
repealed.            
	SECTION 5.  This Act takes effect September 1, 2003.