By: Gutierrez H.B. No. 2709
A BILL TO BE ENTITLED
AN ACT
relating to nonrepairable and salvage motor vehicles and salvage
vehicle dealers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter E, Chapter 501, Transportation Code,
is amended to read as follows:
SUBCHAPTER E. NONREPAIRABLE AND SALVAGE MOTOR VEHICLES.
Sec. 501.091. [Sec. 501.0911.] Definitions. [(a)] In this
subchapter:
(1) ["Actual cash value" means the market value of a
motor vehicle as determined:
[(A) from publications commonly used by the
automotive and insurance industries to establish the values of
motor vehicles; or
[(B) if the entity determining the value is an
insurance company, by any other procedure recognized by the
insurance industry, including market surveys, that is applied by
the company in a uniform manner.
[(2) "Automobile recycler" means a person in the
business of dealing in salvage motor vehicles for the purpose of
dismantling the vehicles to sell used parts or a person otherwise
engaged in the business of acquiring, selling, or dealing in
salvage parts for reuse or resale as parts. The term includes a
dealer in used motor vehicle parts.
[(3)] "Casual sale" means the sale by a salvage
vehicle dealer or insurance company [at auction] of not more than
two [one] nonrepairable or salvage motor vehicles [vehicle or late
model salvage motor vehicle] to the same person in any 12-month
period. The term does not include a sale at auction to a salvage
vehicle dealer.
(2) "Damage" means sudden damage to a vehicle caused
by the vehicle being wrecked, burned, flooded, or stripped of major
component parts. The term does not include gradual damage from any
cause, sudden damage caused by hail, or any damage caused to the
exterior paint of the vehicle.
(3) "Export-only vehicle" means a motor vehicle
described in Section 501.099(a) [during a calendar year].
(4) "Insurance company" means:
(A) a person authorized to write automobile
insurance in this state; or
(B) an out-of-state insurance company that pays a
loss claim for a motor vehicle in this state.
(5) ["Late model motor vehicle" means a motor vehicle
with the same model year as the current calendar year or one of the
five calendar years preceding that calendar year.
[(6) "Late model salvage motor vehicle" or "salvage
motor vehicle" means a late model motor vehicle, other than a late
model vehicle that is a nonrepairable motor vehicle, that is
damaged to the extent that the total estimated cost of repairs,
other than repairs related to hail damage but including parts and
labor, is equal to or greater than an amount equal to 75 percent of
the actual cash value of the vehicle in its predamaged condition.
[(7)] "Major component part" means one of the
following parts of a motor vehicle:
(A) an [the] engine;
(B) a [the] transmission;
(C) a [the] frame;
(D) a [the right or left front] fender;
(E) a [the] hood;
(F) a door allowing entrance to or egress from
the passenger compartment of the vehicle;
(G) a [the front or rear] bumper;
(H) a [the right or left] quarter panel;
(I) a [the] deck lid, tailgate, or hatchback;
(J) a [the] cargo box of a one ton or smaller
truck, including a pickup truck;
(K) a [the] cab of a truck; [or]
(L) a [the] body of a passenger vehicle; or
(M) a roof or floor pan of a passenger vehicle, if
separate from its body.
(6) "Metal recycler" means a person who:
(A) is predominately engaged in the business of
obtaining ferrous or nonferrous metal that has served its original
economic purpose in order to convert the metal, or sell the metal
for conversion, into raw material products consisting of prepared
grades and having an existing or potential economic value;
(B) has a facility to convert ferrous or
nonferrous metal into raw material products consisting of prepared
grades and having an existing or potential economic value, by
method other than the exclusive use of hand tools, including the
processing, sorting, cutting, classifying, cleaning, baling,
wrapping, shredding, shearing, or changing the physical form or
chemical content of the metal;
(C) sells or purchases the ferrous or nonferrous
metal solely for use as raw material in the production of new
products; and
(D) is required to act under a license issued by
the department that allows the holder of the license to engage in
business activity described in Paragraphs (A) through (C). The
term includes a person engaged in the business of a metal recycler
whether or not the person is licensed by the department to do so.
(7) "Motor vehicle" has the meaning assigned by
Section 541.201.
(8) "Highway" has the meaning assigned by Section
502.001.
(9) [(8)] "Nonrepairable motor vehicle" or
"nonrepairable vehicle" means a [late model] motor vehicle that is:
(A) damaged beyond the reasonable [or missing a
major component part to the extent that the total estimated] cost of
repairs to rebuild or reconstruct the vehicle to such an extent that
its only legitimate residual value is as a source of used parts or
scrap metal; or
(B) damaged and came into this state under an
out-of-state nonrepairable certificate or title or similar
out-of-state ownership document that indicates: "dismantle only,"
"parts only," "junked," "scrapped," or similar notation[,
including parts and labor other than the costs of materials and
labor for repainting the vehicle and excluding sales taxes on the
total cost of the repairs, and excluding the cost of repairs to
repair hail damage, is equal to or greater than an amount equal to
95 percent of the actual cash value of the vehicle in its predamaged
condition].
(10) [(9)] "Nonrepairable motor vehicle certificate
of title" or "nonrepairable vehicle title" means a document issued
by the department that evidences ownership of a nonrepairable motor
vehicle.
(11) [(10) "Older model motor vehicle" means a motor
vehicle that was manufactured in a model year before the sixth
preceding model year, including the current model year.
[(11) "Other negotiable evidence of ownership" means a
document other than a Texas certificate of title or a salvage
certificate of title that relates to a motor vehicle that the
department considers sufficient to support issuance of a Texas
certificate of title for the vehicle.
[(12)] "Out-of-state buyer" means a person licensed
under Section 2302.109, Occupations Code.
(12) "Out-of-state ownership document" means a
negotiable document issued by another state or jurisdiction that
the department considers sufficient to:
(A) prove ownership of a nonrepairable or salvage
vehicle; and
(B) support issuance of a comparable Texas
certificate of title for the vehicle. The term does not include a
Texas certificate of title, including a regular, nonrepairable, or
salvage vehicle title or other ownership document issued by the
department [in an automotive business by another state or
jurisdiction if the department has listed the holders of such a
license as permitted purchasers of salvage motor vehicles or
nonrepairable motor vehicles based on substantially similar
licensing requirements and on whether salvage vehicle dealers
licensed in Texas are permitted to purchase salvage motor vehicles
or nonrepairable motor vehicles in the other state or
jurisdiction].
(13) "Rebuilder" means a person who acquires and
repairs, rebuilds, or reconstructs for operation on a public
highway, three [public highways, five] or more [late model] salvage
motor vehicles in any 12-month period.
(14) "Salvage motor vehicle" or "salvage vehicle"
means a motor vehicle that is:
(A) damaged beyond the reasonable cost of repair and
that has more legitimate residual value than as a source of used
parts or scrap metal; or
(B) damaged and that comes into this state under an
out-of-state salvage motor vehicle certificate of title or similar
out-of-state ownership document that indicates: "accident
damage," "flood damage," "inoperable," "rebuildable,"
"salvageable," or similar notation. The term does not include an
out-of-state vehicle with a "rebuilt," "salvage," or similar
notation, a nonrepairable motor vehicle, or a motor vehicle for
which an insurance company has paid a total loss claim for:
(i) the cost of repairing hail damage; or
(ii) theft, unless the damage to the
vehicle, occurring during the theft and before recovery, meets the
requirements of Paragraph (A).
(15) [(14)] "Salvage motor vehicle certificate of
title" or "salvage vehicle title" means a [any] document issued by
the department that evidences ownership of a salvage motor vehicle.
(16) [(15)] "Salvage vehicle dealer" means a person:
(A) engaged in this state in the business of
acquiring, selling, dismantling, repairing, rebuilding,
reconstructing, or otherwise dealing in nonrepairable or salvage
vehicles or used parts; and
(B) required to act under a license issued by the
department that allows the holder of the license to deal in a
vehicle or part described in Paragraph (A). The term does not
include a person who casually repairs, rebuilds, or reconstructs
not more than two salvage vehicles in a 12-month period. The term
includes a person engaged in the business of:
(i) a salvage vehicle dealer whether or not
the person is licensed by the department to do so;
(ii) dealing in nonrepairable or salvage
vehicles whether or not the person deals in used parts; or
(iii) dealing in used parts whether or not
the person deals in nonrepairable or salvage vehicles.
(17) "Self-insured fleet vehicle" means a motor
vehicle:
(A) for which the department has issued a regular
certificate of title;
(B) that is self-insured by the owner and not by
an insurance company; and
(C) that is owned and operated by a business or
governmental entity without regard to the number of vehicles in the
fleet. The term does not include a vehicle operated by an
individual for private transportation and self-insured by the owner
or insured by an insurance company.
(18) "Used part" means a part salvaged, dismantled, or
removed from a motor vehicle for resale as is or as repaired. The
term includes a major component part. The term does not include a
rebuildable or rebuilt core, including an engine, block,
crankshaft, transmission, or other core part that is acquired,
possessed, or transferred in the ordinary course of business.
Sec. 501.092. [has the meaning assigned by Section 1.01,
Article 6687-1a, Revised Statutes.
[(b) For purposes of this subchapter:
[(1) the estimated cost of repair parts shall be
determined by using a manual of repair costs or other instrument
that is generally recognized and commonly used in the motor vehicle
insurance industry to determine those costs or an estimate of the
actual cost of the repair parts; and
[(2) the estimated labor costs shall be computed by
using the hourly rate and time allocations that are reasonable and
commonly assessed in the repair industry in the community in which
the repairs are performed.
[Sec. 501.0912.] Insurance Company to Surrender
[Certificates of] Title After Acquisition [to Certain Late Model
Salvage Motor Vehicles]. (a) If an [An] insurance company [that is
licensed to conduct business in this state and that] acquires
ownership of a nonrepairable or [late model] salvage [motor]
vehicle through payment of a total loss claim, the company shall:
(1) obtain from the insured [surrender] a properly
assigned regular [certificate of] title to the vehicle;
(2) surrender the regular title to the department;
(3) apply, on a form prescribed by the department, for
a nonrepairable or salvage vehicle title under this subchapter; and
(4) include the original certification made by a
recipient of an export-only vehicle under Section 501.099(b).
(b) An [For a vehicle described by Section 501.0911(6) but
not by Section 501.0911(8), the] insurance company shall apply for
a nonrepairable or salvage vehicle title under this subchapter
[motor vehicle certificate of title. For a vehicle described by
Section 501.0911(8), the insurance company shall apply for a
nonrepairable motor vehicle certificate of title].
(c) An insurance company may sell, transfer, or release a
nonrepairable or [not sell a late model] salvage [motor] vehicle to
which this section applies only to a business or governmental
entity described in Section 501.095(a) or the vehicle's owner or
former owner.
(d) Subsection (c) does not apply if:
(1) [unless] the department has issued a [salvage
motor vehicle certificate of title or a] nonrepairable or salvage
[motor] vehicle [certificate of] title for the vehicle; or
(2) [a comparable ownership document has been issued
by] another state or jurisdiction has issued a comparable
out-of-state ownership document for the vehicle.
Sec. 501.093. [(d) An insurance company may sell a late
model salvage motor vehicle to which this section applies, or
assign a salvage motor vehicle certificate of title or a
nonrepairable motor vehicle certificate of title for the vehicle,
only to a salvage vehicle dealer, an out-of-state buyer, a buyer in
a casual sale at auction, or a person described by Subsection (g),
Article 6687-2b, Revised Statutes. If the vehicle is not a late
model salvage motor vehicle or a nonrepairable motor vehicle, the
insurance company is not required to surrender the regular
certificate of title for the vehicle or to be issued a salvage motor
vehicle certificate of title or a nonrepairable motor vehicle
certificate of title for the vehicle.
[Sec. 501.0913. Insurance Company to Deliver Certificates
of Title to Certain Motor Vehicles. (a) If an insurance company
acquires ownership of a motor vehicle other than a late model
salvage motor vehicle or a nonrepairable motor vehicle through
payment of a claim, the company shall, on delivery of the vehicle to
a buyer of the vehicle, deliver the buyer a properly assigned
certificate of title for the vehicle.
[(b) An insurance company or other person who acquires
ownership of a motor vehicle other than a late model salvage motor
vehicle or a nonrepairable motor vehicle may voluntarily and on
proper application obtain a salvage motor vehicle certificate of
title or a nonrepairable motor vehicle certificate of title for the
vehicle.
[Sec. 501.0914. Nonapplicability. Sections 501.0912 and
501.0913 do not apply to a vehicle that has been stolen and
recovered unless the damage to the vehicle causes the vehicle to be
a salvage motor vehicle or a nonrepairable motor vehicle.
[Sec. 501.0915.] Insurance Company [to Submit] Report If No
Acquisition [to Department]. (a) If an insurance company pays
[after payment of] a total loss claim on a [late model salvage motor
vehicle or a] nonrepairable or salvage [motor] vehicle and [an
insurance company] does not acquire ownership of the vehicle, the
[insurance] company shall make a reasonable effort to obtain from
the insured the regular title to the vehicle.
(b) The insurance company shall, before the 31st day after
the date of the payment of the claim:
(1) apply for a nonrepairable or salvage vehicle title
on behalf of the insured;
(2) obtain from the insured a signed notice under
Subsection (c);
(3) submit to the department [,before the 31st day
after the date of the payment of the claim,] on the form prescribed
by the department [,] a report stating that the company has:
(A) [(1) the insurance company has] paid a total
loss claim on the vehicle; and
(B) [(2) the insurance company has] not acquired
ownership of the vehicle; and
(4) submit to the department with the form a $15
application fee and:
(A) a $100 non-surrender fee; or
(B) the regular title stamped on its face "TOTAL
LOSS CLAIM" in print that:
(i) is capitalized and red in color;
(ii) is centered on the face and occupies at
least 15 percent of the certificate of title; and
(iii) does not prevent any other words on
the title from being read or copied.
(c) If an insurance company does not acquire the vehicle
under this section or sells, transfers, or releases the vehicle
back to the insured under Section 501.095(c), the company shall
obtain the signature of the insured on a printed notice of each
substantial limitation on nonrepairable vehicles under this
subchapter or other law, including the following:
(1) the vehicle may not be operated on the public
highway or sold without first surrendering the regular title;
(2) a nonrepairable vehicle may not be repaired,
rebuilt, reconstructed, issued a regular title, or registered under
Chapter 502;
(3) if the regular title is not surrendered, a $100
non-surrender fee is due;
(4) the non-surrender fee will be deducted from the
claim payment and may be refunded under Subsection (e); and
(5) the non-surrender fee may be refunded under this
section.
(d) The insurance company shall deduct any title fee,
including an application or non-surrender fee, from the claim
payment.
(e) At any time before the 10th business day following the
date the department received the report described in Subsection
(a), the insurance company may surrender the regular title to the
department and obtain a refund of the $100 non-surrender fee. The
company shall forward the refund to the insured if it was deducted
from a claim payment under Subsection (d). The department by rule
may provide for notice of intent to seek a delayed refund by an
insurance company or insured owner and the period of time the
department may delay depositing the non-surrender fee.
(f) The department shall:
(1) forward the nonrepairable or salvage vehicle title
to the address of the insured shown on the application; and
(2) if the fee is not refunded or delayed under
Subsection (e), deposit each $100 non-surrender fee on or after the
last business day of the month after its receipt to the credit of
the state highway fund for use only by the Department of Public
Safety to enforce this chapter.
(g) An insured [(b) The] owner of a [late model salvage
motor] vehicle to which this section applies may sell, [not]
transfer, or release [ownership of] the vehicle only to a business
or governmental entity described in Section 501.095(a).
(h) Subsection (g) does not apply if:
(1) the department has issued a nonrepairable or
salvage vehicle title for the vehicle; or
(2) another state or jurisdiction has issued a
comparable out-of-state ownership document for the vehicle.
Sec. 501.094. Self-insured Fleet Vehicle. (a) This
section applies to a vehicle in this state that:
(1) is a self-insured fleet vehicle;
(2) is damaged to the extent it becomes a
nonrepairable or salvage vehicle; and
(3) is removed from normal fleet operation by the
fleet owner.
(b) The fleet owner of a vehicle to which this section
applies shall submit to the department, before the 31st day after
the date of the damage, on the form prescribed by the department, a
report stating that the vehicle was self-insured, damaged, and was
removed from normal fleet operation.
(c) Along with the report described by Subsection (b), the
fleet owner shall:
(1) surrender the regular title for the vehicle; and
(2) apply for a nonrepairable or salvage vehicle title
under this subchapter.
(d) The fleet owner of a vehicle to which this section
applies may sell, transfer, or release the vehicle only to a
business or governmental entity described in Section 501.095(a) or
a buyer at a casual sale.
(e) Subsection (d) does not apply if:
(1) the department has issued a nonrepairable or
salvage vehicle title for the vehicle; or
(2) another state or jurisdiction has issued a
comparable out-of-state ownership document.
(f) A fleet owner shall make a reasonable effort to obtain a
nonrepairable or salvage vehicle title to a vehicle to which this
section applies before selling, transferring, or releasing the
vehicle.
(g) If a fleet owner sells, transfers, or releases a
nonrepairable or salvage motor vehicle to a buyer at a casual sale
without first obtaining a title under Subsection (a), the owner
shall:
(1) apply for a nonrepairable or salvage vehicle title
on behalf of the recipient;
(2) obtain from the recipient a signed notice under
Subsection (h);
(3) submit to the department on the form prescribed by
the department a report stating that the fleet owner has:
(A) determined the vehicle to be a nonrepairable
or salvage vehicle; and
(B) sold, transferred, or released the vehicle to
another before obtaining a nonrepairable or salvage vehicle title;
and
(4) submit with the form:
(A) a $15 application fee; and
(B) the regular title stamped on its face "FLEET
DAMAGED" in print that:
(i) is capitalized and red in color;
(ii) is centered on the face and occupies at
least 15 percent of the certificate of title; and
(iii) does not prevent any other words on
the title from being read or copied.
(h) If a fleet owner sells, transfers, or releases a
nonrepairable or salvage vehicle to a buyer at a casual sale without
first obtaining a nonrepairable or salvage vehicle title, the owner
shall obtain the signature of the recipient on a printed notice of
each substantial limitation on the vehicle under this subchapter,
including the following:
(1) the vehicle may not be operated on the public
highway or sold without first surrendering the regular title;
(2) a nonrepairable vehicle may not be repaired,
rebuilt, reconstructed, issued a regular title, or registered under
Chapter 502; and
(3) in a 12 month period no more than two salvage
vehicles may be repaired, rebuilt, or reconstructed by a person:
(A) after a casual sale; and
(B) without obtaining a license as a salvage
vehicle dealer.
(i) The department shall forward the nonrepairable or
salvage vehicle title to the address of the recipient shown on the
title application.
Sec. 501.095. [by sale or otherwise unless the department
has issued a salvage motor vehicle certificate of title or a
nonrepairable motor vehicle certificate of title for the vehicle or
a comparable ownership document has been issued by another state or
jurisdiction for the vehicle.
[Sec. 501.0916.] Sale, Transfer, or Release of
Nonrepairable or [Late Model] Salvage [or Nonrepairable Motor]
Vehicle. (a) If the department has not issued a nonrepairable or
salvage vehicle title for the vehicle and no other state or
jurisdiction has issued a comparable out-of-state ownership
document for the vehicle, a business or governmental entity
described in Subdivisions (1) through (5) [A person] may [not]
sell, transfer, or release a [late model salvage motor vehicle or a]
nonrepairable or salvage [motor] vehicle to a person who is:
(1) a licensed salvage vehicle dealer under Chapter
2302, Occupations Code;
(2) a licensed metal recycler under Chapter 2302,
Occupations Code;
(3) a licensed out-of-state buyer under Chapter 2302,
Occupations Code;
(4) an insurance company that has paid a total loss
claim on the vehicle; or
(5) a governmental entity.
(b) If the department has issued a nonrepairable or salvage
vehicle title for the vehicle or another state or jurisdiction has
issued a comparable out-of-state ownership document for the
vehicle, a person may sell, transfer, or release a nonrepairable or
salvage motor vehicle to any person.
(c) A business or governmental entity listed in Subsection
(a) may sell, transfer, or release a nonrepairable or salvage
vehicle to another who is the vehicle's owner, former owner, or
buyer in a casual sale, if the business or entity submits to the
department, before the 31st day after the date of the sale,
transfer, or release, on the form prescribed by the department, a
report stating that the vehicle was a nonrepairable or salvage
vehicle and the business or entity sold, transferred, or released
the vehicle on a regular title to the owner, former owner, or buyer
at a casual sale.
(d) Along with the report described by Subsection (c), the
business or governmental entity shall:
(1) apply for a nonrepairable or salvage vehicle title
on behalf of the recipient of the vehicle;
(2) obtain from the recipient a signed notice under
Subsection (e); and
(3) submit with the form:
(A) a $15 application fee; and
(B) the regular title stamped on its face "CASUAL
SALE" in print that:
(i) is capitalized and red in color;
(ii) is centered on the face and occupies at
least 15 percent of the certificate of title; and
(iii) does not prevent any other words on
the title from being read or copied.
(e) If a business or governmental entity described in
Subsection (a), who sells, transfers, or releases a nonrepairable
or salvage vehicle under Subsection (c) without first obtaining a
nonrepairable or salvage vehicle title, the business or entity
shall obtain the signature of the recipient on a printed notice of
each substantial limitation on the vehicle under this subchapter,
including the following:
(1) the vehicle may not be operated on the public
highway or sold without first surrendering the regular title;
(2) a nonrepairable vehicle may not be repaired,
rebuilt, reconstructed, issued a regular title, or registered under
Chapter 502; and
(3) in a 12 month period no more than two salvage
vehicles may be repaired, rebuilt, or reconstructed by a person:
(A) after a casual sale; or
(B) without obtaining a license as a salvage
vehicle dealer.
(f) The department shall forward the nonrepairable or
salvage vehicle title to the address of the recipient shown on the
title application.
Sec. 501.096. Salvage Vehicle Dismantled, Scrapped, or
Destroyed. (a) If a [other than:
[(1) a person who holds a salvage vehicle dealer
license issued under Chapter 2302, Occupations Code;
[(2) the former owner of the vehicle;
[(3) a governmental entity;
[(4) an out-of-state buyer;
[(5) a buyer in a casual sale at auction; or
[(6) a person described by Section 2302.003,
Occupations Code.
[(b) A person who sells, transfers, or releases a motor
vehicle under Subsection (a) shall deliver a properly assigned
certificate of title for the vehicle to the person to whom the motor
vehicle is sold, transferred, or released. If the assigned
certificate of title is not a salvage motor vehicle certificate of
title, a nonrepairable motor vehicle certificate of title, or a
comparable ownership document issued by another state or
jurisdiction, the purchaser shall, not later than the 10th day
after the date the purchaser receives the certificate of title:
[(1) surrender the certificate of title to the
department; and
[(2) apply for a salvage motor vehicle certificate of
title or a nonrepairable motor vehicle certificate of title for the
vehicle, as appropriate.
[(c) A] salvage vehicle dealer [that] acquires ownership of
a [late model salvage motor vehicle or a] nonrepairable or salvage
[motor] vehicle for the purpose of dismantling, scrapping, or
destroying the vehicle, the dealer shall, before the 31st day after
the date the dealer acquires the vehicle, submit to the
department[, on the form prescribed by the department,] a report
stating that the vehicle will be dismantled, scrapped, or
destroyed. The dealer shall:
(1) make the report on a form prescribed by the
department; and
(2) submit with the report[, accompanied by] a
properly assigned regular, [certificate of title, salvage motor
vehicle certificate of title,] nonrepairable, or salvage [motor]
vehicle [certificate of] title or comparable out-of-state[, or
comparable] ownership document [issued by another state or
jurisdiction] for the vehicle.
(b) [(d)] On receipt of the report and [the certificate of]
title, the department shall issue the salvage vehicle dealer a
receipt for the regular, [certificate of title, salvage motor
vehicle certificate of title,] nonrepairable, or salvage [motor]
vehicle [certificate of] title[,] or comparable out-of-state
ownership document.
(c) The dealer shall: [issued by another state or
jurisdiction.
[(e) A salvage vehicle dealer who submits a report under
Subsection (c) shall report to the department after the action is
taken that the vehicle was dismantled, scrapped, or destroyed.
[Sec. 501.0917. SALVAGE VEHICLE DEALER TO SUBMIT REPORT TO
DEPARTMENT. (a) A salvage vehicle dealer that acquires an older
model vehicle for the purpose of dismantling, scrapping, or
destroying the vehicle and that receives a properly assigned
certificate of title for the vehicle shall, before the 31st day
after the date the dealer acquires the vehicle:
[(1) submit to the department, on the form prescribed
by the department, a report stating that the vehicle will be
dismantled, scrapped, or destroyed, accompanied by the properly
assigned regular certificate of title, salvage motor vehicle
certificate of title, nonrepairable motor vehicle certificate of
title, or comparable ownership document issued by another state or
jurisdiction for the vehicle; and
(1) [(2)] keep on the business premises of the dealer,
until the third anniversary of the date the report on the vehicle is
submitted to the department, a record of the vehicle, its
ownership, and its condition as dismantled, scrapped, or destroyed;
and
(2) [.
[(b) A salvage vehicle dealer that is required to submit a
report under Subsection (a) shall] present to the department, on
the form prescribed by the department, evidence that the vehicle
was dismantled, scrapped, or destroyed, before the 61st day after
the date the dealer completed the dismantling, scrapping, or
destruction of the vehicle.
Sec. 501.097. [Sec. 501.0918. Person Acquiring Late Model
Salvage Motor Vehicle to Surrender Certificate of Title. A person,
other than a salvage vehicle dealer or an insurance company
licensed to do business in this state, who acquires ownership of a
late model salvage motor vehicle or a nonrepairable motor vehicle
that has not been issued a salvage motor vehicle certificate of
title, a nonrepairable motor vehicle certificate of title, or a
comparable ownership document issued by another state or
jurisdiction shall, before selling the vehicle, surrender the
properly assigned certificate of title for the vehicle to the
department and:
[(1) if the vehicle is a vehicle described by Section
501.0911(6) but not by Section 501.0911(8), apply to the department
for a salvage motor vehicle certificate of title for the vehicle; or
[(2) if the vehicle is a vehicle described by Section
501.0911(8), apply to the department for a nonrepairable motor
vehicle certificate of title for the vehicle.
[Sec. 501.0919. Sale of Certain Late Model Salvage Motor
Vehicles. The owner of a late model salvage motor vehicle that has
been issued a salvage motor vehicle certificate of title or a
nonrepairable motor vehicle certificate of title may sell the
vehicle only to a salvage vehicle dealer in this state, an
out-of-state buyer, a buyer in a casual sale at auction, or a person
described by Subsection (g), Article 6687-2b, Revised Statutes.
[Sec. 501.0920.] Application for Nonrepairable or Salvage
[Motor Vehicle Certificate of] Title. (a) An application for a
[salvage motor vehicle certificate of title or a] nonrepairable or
salvage [motor] vehicle certificate of title must:
(1) be made on a form prescribed by the department and
accompanied by a $15 application fee; [established by the
department, not to exceed an amount that is sufficient, when added
to other fees collected under this chapter, to recover the actual
costs to the department of issuing the certificate; and]
(2) include, in addition to any other information
required by the department:
(A) the name and current address of the owner;
(B) a description of the vehicle, including the
make, style of body, model year, and vehicle identification number;
and
(C) a statement describing whether the vehicle:
(i) was the subject of a total loss claim
paid by an insurance company under Section 501.092 or 501.093;
(ii) is a self-insured fleet vehicle under
Section 501.094;
(iii) is an export-only vehicle under
Section 501.099; or
(iv) was sold, transferred, or released to
the vehicle's owner, former owner, or buyer at a casual sale; and
(3) include the name and address of a current lien
holder [description of the damage to the vehicle;
[(D) the estimated cost of repairs to the
vehicle, including parts and labor; and
[(E) the predamaged actual cash value of the
vehicle].
(b) On receipt of a complete application and the $15
[prescribed] application fee, the department shall issue the
applicant an appropriate title[,] before the sixth business day
after the date the department receives the application[, issue the
applicant a salvage motor vehicle certificate of title or a
nonrepairable motor vehicle certificate of title, as appropriate].
(c) A nonrepairable [motor] vehicle [certificate of] title
must state on its face that[, except as provided by Sections
501.0925 and 501.0927,] the vehicle:
(1) may not be issued a regular certificate of title or
registered in this state; and
(2) may only be used as a source for used parts or
scrap metal.
Sec. 501.098. Rights of Holder [Sec. 501.0921. Possession
and Operation] of Nonrepairable or Salvage Vehicle Title [Motor
Vehicle]. (a) A person who holds a nonrepairable vehicle title for
a vehicle:
(1) is entitled to possess, transport, dismantle,
scrap, destroy, record a lien, and sell, transfer, or release
ownership of the vehicle or a used part from the vehicle;
(2) may not:
(A) operate or permit the operation of the
vehicle on a public highway, in addition to any other requirement of
law;
(B) repair, rebuild, or reconstruct the vehicle;
or
(C) register the vehicle.
(b) A person who holds a salvage [motor] vehicle
[certificate of] title for a vehicle:
(1) is entitled to possess [the vehicle, record a lien
on the vehicle], transport, dismantle, scrap, destroy, repair,
rebuild, reconstruct, record a lien, [the vehicle,] and sell,
transfer, or release ownership of the vehicle or a used part from
the vehicle; and
(2)[.
[(b) A vehicle for which a salvage motor vehicle certificate
of title is the most current title] may not operate or permit
operation of the vehicle [be operated] on a public highway, in
addition to any other requirement of law.
Sec. 501.099. Rights of Purchaser of an Export-only
Vehicle. (a) This section applies to a motor vehicle purchased in
this state after the recipient agrees to comply with Subsection
(b).
(b) A person may purchase a nonrepairable or salvage vehicle
without first obtaining a nonrepairable or salvage vehicle title,
if the person:
(1) holds an out-of-state buyer license under Chapter
2302, Occupations Code;
(2) purchases or acquires the vehicle at an auction
from a business or governmental entity described in Section
501.095(a);
(3) certifies to the seller that the person will:
(A) remove the vehicle from the United States;
and
(B) not return the vehicle to any state of the
United States as a vehicle titled or registered under its
manufacturer's vehicle identification number;
(4) obtains a regular title from the seller stamped on
its face "FOR EXPORT ONLY" in print that:
(A) is capitalized and red in color;
(B) is centered on the face and occupies at least
15 percent of the certificate of title; and
(C) does not prevent any other words on the title
from being read or copied; and
(5) surrenders the title back to the seller and agrees
to allow the seller to submit the title and a report to the
department of the transaction on a form provided by the department
and apply for a nonrepairable or salvage vehicle title on behalf of
the person.
(c) Without regard to the amount of damage to the vehicle,
the department shall classify a vehicle and a title received from a
seller under Subsection (b) as a nonrepairable vehicle and title
under this subchapter.
(d) This section does not prevent a person from:
(1) exporting or importing a used part obtained from
an export-only vehicle; or
(2) operating an export-only vehicle in this state
under the reciprocal title and registration law of another
jurisdiction outside the United States.
Sec. 501.100. [Sec. 501.0922.] Application for Regular
[Certificate of] Title for Salvage [Motor] Vehicle. (a) A vehicle
for which a salvage [motor] vehicle [certificate of] title has been
issued may be issued a regular [certificate of] title [only] after
the vehicle has been repaired, rebuilt, or reconstructed by a
person described in Section 501.104(a) [application] and, in
addition to any other requirement of law, only if the application is
accompanied by a separate form:
(1) describing [describes] each major component part
used to repair the vehicle; and
(2) showing [shows] the identification number
required by federal law to be affixed to or inscribed on the part.
(b) [; and
[(2) is accompanied by a written statement signed by a
specially trained commissioned officer of the Department of Public
Safety certifying to the department that:
[(A) the vehicle identification numbers and
parts identification numbers are accurate;
[(B) the applicant has proof that the applicant
owns the parts used to repair the vehicle; and
[(C) the vehicle may be safely operated and
complies with all applicable motor vehicle safety standards of this
state.
[(b) The Department of Public Safety may impose a fee, in an
amount not to exceed the lesser of $200 or the actual cost to that
department, for conducting an inspection and providing the written
statement required by Subsection (a).
[Sec. 501.0923. Issuance of Regular Certificate of Title
for Rebuilt Salvage Motor Vehicle. (a)] On receipt of a complete
application under this section [Section 501.0922], accompanied by
[the peace officer's statement and] the $15 application
[appropriate] fee [for the certificate of title], the department
shall issue the applicant a regular [certificate of] title for the
vehicle.
(c) [(b)] A regular [certificate of] title issued under
this section must:
(1) [bear on its face the words "REBUILT SALVAGE"; and
[(2)] describe or disclose the vehicle's former
condition in a manner reasonably understandable to a potential
purchaser of the vehicle; and
(2) bear on its face the words "REBUILT SALVAGE" in
print that:
(A) is capitalized and red in color;
(B) is centered on the face and occupies at least
15 percent of the certificate of title; and
(C) does not prevent any other words on the title
from being read or copied.
(d) In addition to the fee described by Subsection (b), the
applicant shall pay a $65 rebuilder fee.
(e) On or after the 31st day after its receipt, the
department shall deposit each $65 rebuilder fee to the credit of the
state highway fund to be used only by the Department of Public
Safety to enforce this chapter.
(f) The department may not issue a regular title for a motor
vehicle based on:
(1) a nonrepairable vehicle title or comparable
out-of-state ownership document;
(2) a receipt issued under Section 501.096(b);
(3) a salvage certificate; or
(4) a certificate of authority.
Sec. 501.101. [Sec. 501.0924.] Issuance of [Certificate of]
Title to Vehicle [Certain Vehicles] Brought Into State. (a) This
section applies to [On proper application by the owner of] a motor
vehicle brought into this state from another state or jurisdiction
that has on any certificate of title or comparable out-of-state
ownership document issued by the other state or jurisdiction:
(1) a "rebuilt," "salvage," or similar
["nonrepairable," or analogous] notation;
(2) an "accident damage," "flood damage,"
"inoperable," "rebuildable," "salvageable," or similar notation;
or
(3) a "nonrepairable" "dismantle only," "parts only,"
"junked," "scrapped," or similar notation.
(b) On proper application by the owner, the department shall
issue the applicant an appropriate [a] certificate of title [or
other appropriate document] for the vehicle.
(c) [(b)] A certificate of title [or other appropriate
document] issued under this section must show on its face:
(1) the date of issuance;
(2) the name and address of the owner;
(3) any registration number assigned to the vehicle;
and
(4) a description of the vehicle or other notation [as
determined by] the department[; and
[(5) any notation the department] considers necessary
or appropriate.
Sec. 501.102. [Sec. 501.0925. Rights of Holder of
Nonrepairable Motor Vehicle Certificate of Title. A person who
holds a nonrepairable motor vehicle certificate of title for a
vehicle:
[(1) is entitled to possess the vehicle, dismantle,
scrap, or destroy the vehicle, transport the vehicle or parts of the
vehicle, or rebuild the vehicle;
[(2) may not operate or permit the operation of the
vehicle on a public highway; and
[(3) may transfer ownership of the vehicle only as
permitted by law.
[Sec. 501.0926.] Offense. (a) A [Except as provided by
Section 501.0927, a] person commits an offense if the person:
(1) applies to the department for a regular
certificate of title for a motor vehicle; and
(2) knows or reasonably should know that:
(A) the vehicle is a nonrepairable motor vehicle
that has been repaired, rebuilt, or reconstructed;
(B) the vehicle identification number assigned
to the vehicle belongs to a nonrepairable motor vehicle that has
been repaired, rebuilt, or reconstructed;
(C) the title issued to the vehicle belongs to a
nonrepairable motor vehicle that has been repaired, rebuilt, or
reconstructed;
(D) the vehicle identification number assigned
to the vehicle belongs to an export-only vehicle; or
(E) the vehicle is an export-only vehicle.
(b) A person commits an offense if the person intentionally
or knowingly sells, transfers, or releases a salvage motor vehicle
in violation of this subchapter.
(c) A person commits an offense if the person intentionally
or knowingly fails or refuses to surrender a regular title after the
person:
(1) receives a total loss claim payment from an
insurance company under Sections 501.092 or 501.093; or
(2) knows the vehicle has become a nonrepairable or
salvage motor vehicle under Section 501.094.
(d) Except as provided by Subsection (e), an offense under
this section is a Class C misdemeanor.
(e) If it is shown on the trial of an offense under this
section that the defendant has been previously convicted of:
(1) one offense under this section, the offense is
punishable as a Class B misdemeanor; or
(2) two or more offenses under this section, the
offense is punishable as a state jail felony.
Sec. 501.103. Color of Nonrepairable or [.
[Sec. 501.0927. Application for Certificate of Title by
Rebuilder of Nonrepairable Motor Vehicle. (a) A person who
rebuilds a nonrepairable vehicle may apply to the department for a
certificate of title for the vehicle if, in addition to any other
requirement of law, the application:
[(1) contains the information required by Section
501.0922(a)(1); and
[(2) is accompanied by a written statement that
complies with Section 501.0922(a)(2).
[(b) The Department of Public Safety may impose a fee, in an
amount not to exceed the lesser of $200 or the actual cost to that
department, for conducting an inspection and providing the written
statement required by Subsection (a).
[(c) On receipt of a complete application under this
section, accompanied by the appropriate fee for the certificate of
title, the department shall issue the applicant a certificate of
title for the vehicle that conforms to Section 501.0923(b).
[Sec. 501.0928. Department to Print] Salvage [and
Nonrepairable Motor Vehicle Certificates of] Title. (a) The
department shall print a nonrepairable vehicle title in a color
that distinguishes it from a regular or salvage vehicle title and so
that it clearly shows that it is the negotiable ownership document
for a nonrepairable vehicle.
(b) A nonrepairable vehicle title must state on its face
that the vehicle:
(1) may not be:
(A) issued a regular title;
(B) registered in this state; or
(C) repaired, rebuilt, or reconstructed; and
(2) may be used only as a source for used parts or
scrap metal.
(c) The department shall print a salvage vehicle title
[salvage motor vehicle certificates of title and nonrepairable
motor vehicle certificates of title] in a color that distinguishes
it [them] from a regular or nonrepairable vehicle [certificates of]
title and so that it [each document] clearly shows that it is the
ownership document for a [late model] salvage [motor] vehicle.
(d) [or a nonrepairable motor vehicle.
[(b) A nonrepairable motor vehicle certificate of title for
a vehicle that is nonrepairable because of damage caused
exclusively by flood must bear an appropriate notation on its face.
[(c)] A salvage [motor] vehicle [certificate of] title for a
vehicle that is a salvage [motor] vehicle because of damage caused
exclusively by flood must bear a [an appropriate] notation on its
face the department considers appropriate. If the title for a
vehicle reflects the notation required by this subsection, the
owner may sell, transfer, or release the vehicle as provided by this
subchapter.
(e) The department may provide a stamp to a person for
purposes of marking the face of a title under this subchapter. The
department shall provide the stamp to a person described in Section
501.095(a)(1) at a fee determined by the department necessary to
recover the cost of providing the stamp.
Sec. 501.104. [Sec. 501.0929.] Rebuilder to Possess
Certificate of Title or Other Documentation. (a) This section
applies to:
(1) a rebuilder licensed as a salvage vehicle dealer;
(2) a person engaged in the business of a rebuilder
whether or not the person is licensed to do so; or
(3) a person engaged in the casual repair, rebuilding,
or reconstruction of two or less motor vehicles in a 12-month
period.
(b) A person described in Subsection (a) [A rebuilder] must
possess:
(1) a regular, [a certificate of title, a salvage
motor vehicle certificate of title, a] nonrepairable, or salvage
[motor] vehicle [certificate of] title[,] or a comparable
out-of-state ownership document [issued by another state or
jurisdiction] for any [motor] vehicle that is:
(A) owned by the person;
(B) [(1)] in the person's [rebuilder's]
inventory; and
(C) [(2)] being offered for resale; or
(2) a contract with the owner, a work order, or another
document indicating authority for the person's possession for any
vehicle that is:
(A) owned by another;
(B) on the person's business or casual premises;
and
(C) being repaired, rebuilt, or reconstructed
for the other.
Sec. 501.105. [(b) A person who rebuilds a late model
salvage motor vehicle for which the department has issued a salvage
motor vehicle certificate of title, or who assembles a late model
salvage motor vehicle from component parts, may apply to the
department for a certificate of title for the vehicle. A
certificate of title issued by the department under this subsection
must bear the words "REBUILT SALVAGE."
[Sec. 501.0930.] Enforcement of Subchapter. (a) This
subchapter shall be [exclusively] enforced by the department or
[any] other governmental or law enforcement entity, including the
Department of Public Safety, [agency] or any [its] personnel of the
department or other entity[, except] as provided by this
subchapter.
(b) The department, [or] an agent, officer, or employee of
the department, or other person enforcing this subchapter is not
liable to a person damaged or injured by an act or omission relating
to the issuance of a regular, [certificate of title, salvage motor
vehicle certificate of title, or] nonrepairable, or salvage [motor]
vehicle [certificate of] title under this subchapter.
Sec. 501.106. [Sec. 501.0931.] Applicability of Subchapter
to Recycler. (a) Except as provided by Subsections (b) and (c),
this [This] subchapter does not apply to [, and does not preclude or
prohibit] a sale to, purchase by, or other transaction by or with, a
metal recycler [person described by Subsection (g), Article
6687-2b, Revised Statutes, except as provided by Subsections (b)
and (c)].
(b) A metal recycler [person described by Subsection (g),
Article 6687-2b, Revised Statutes,] shall submit to the department
the regular, nonrepairable, or salvage vehicle [certificate of]
title or comparable out-of-state ownership [equivalent] document
that the recycler [person] receives in conjunction with the
purchase of a motor vehicle not later than the 60th day after the
date the recycler [person] receives the [certificate of] title or
[equivalent] document. A recycler may not destroy a vehicle to
which this subsection applies until the 61st day after the date the
recycler forwarded the title or document to the department.
(c) This subchapter applies to a transaction with a metal
recycler [person described by Subsection (g), Article 6687-2b,
Revised Statutes,] in which a motor vehicle:
(1) is sold or delivered to the recycler [person] for
the purpose of reuse or resale as a motor vehicle or as a source of
used [motor vehicle] parts; and
(2) [if the motor vehicle] is [so] used for that
purpose.
[(d) This subchapter does not:
[(1) prohibit the owner of a late model salvage motor
vehicle or a nonrepairable motor vehicle from selling the vehicle
to any person, if the vehicle is so classified solely because of
water damage caused by a flood; or
[(2) limit the ability or authority of an insurance
company to adjust or settle a claim for loss on a motor vehicle.]
SECTION 2. Subchapter A, Chapter 2302, Occupations Code, is
amended to read as follows:
Sec. 2302.001. Definitions. In this chapter:
(1) ["Actual cash value" has the meaning assigned by
Section 501.0911, Transportation Code.
[(2)] "Casual sale," "damage," "insurance company,"
"major component part," "metal recycler," "motor vehicle,"
"nonrepairable motor vehicle," "nonrepairable motor vehicle
certificate of title," "out-of-state buyer," "rebuilder," "salvage
motor vehicle," "salvage motor vehicle certificate of title,"
"salvage vehicle dealer," "used part" have the meanings [has the
meaning] assigned by Section 501.091 [501.0911], Transportation
Code.
(2) [(3)] "Commission" means the Texas Transportation
Commission.
(3) [(4)] "Department" means the Texas Department of
Transportation.
(4) [(5)] "Federal safety certificate" means the
label or tag required under 49 U.S.C. Section 30115 that certifies
that a vehicle or equipment complies with applicable federal motor
vehicle safety standards.
(5) [(6) "Late model motor vehicle" has the meaning
assigned by Section 501.0911, Transportation Code.
[(7) "Major component part" has the meaning assigned
by Section 501.0911, Transportation Code.
[(8) "Motor vehicle" has the meaning assigned by
Section 541.201, Transportation Code.
[(9) "Nonrepairable motor vehicle certificate of
title" has the meaning assigned by Section 501.0911, Transportation
Code.
[(10) "Out-of-state buyer" has the meaning assigned by
Section 501.0911, Transportation Code.
[(11) "Person" means an individual, partnership,
corporation, trust, association, or other private legal entity.
[(12) "Salvage motor vehicle certificate of title" has
the meaning assigned by Section 501.0911, Transportation Code.
[(13) "Salvage part" means a major component part of a
salvage motor vehicle that is serviceable to the extent that is can
be reused.
[(14)] "Salvage pool operator" means a person who
engages in the business of selling nonrepairable [motor vehicles]
or salvage motor vehicles at auction, including wholesale auction,
or otherwise.
(6) [(15)] "Salvage vehicle agent" means a person
acting under [employed by] a salvage vehicle dealer's license
issued by the department under this chapter that authorizes the
holder of the license [dealer] to acquire, sell, or otherwise deal
in nonrepairable or salvage motor vehicles or used [salvage] parts
in this state for a licensed salvage vehicle dealer. The term does
not include a person who:
(A) is a licensed salvage vehicle dealer;
(B) is a partner, owner, or officer of a business
entity that holds a salvage vehicle dealer license;
(C) is an employee of a licensed salvage vehicle
dealer; or
(D) only transports salvage vehicles for a
licensed salvage vehicle dealer
[(16) "Salvage vehicle dealer" means a person licensed
under this chapter who engages in the business of acquiring,
selling, dismantling, repairing, or dealing in salvage motor
vehicles or vehicle parts of a type required to be covered by a
salvage motor vehicle certificate of title or nonrepairable motor
vehicle certificate of title].
Sec. 2302.002. Consent to Entry and Inspection. (a) A
person consents to an entry or inspection described in Subsection
(b) by:
(1) accepting a license under this chapter; or
(2) engaging in a business or activity regulated under
this chapter.
(b) For the purpose of enforcing or administering this
chapter or Chapters 501 or 502, Transportation Code, a member of the
commission, an employee or agent of the commission or department,
an officer or member of the Department of Public Safety, or a peace
officer may at a reasonable time:
(1) enter the premises of a business regulated under
those chapters; and
(2) inspect or copy any document, record, vehicle,
part, or other item regulated under those chapters.
(c) A person described in Subsection (a):
(1) may not refuse or interfere with an entry or
inspection under this section; and
(2) shall cooperate fully with a person conducting an
inspection under this section to assist in the recovery of stolen
vehicles and parts and to prevent the sale or transfer of stolen
vehicles and parts.
(d) In this section, "reasonable time" means:
(1) during normal business hours of the person or
activity regulated under this chapter; or
(2) while an activity regulated under this chapter is
occurring on the premises.
Sec. 2302.003. [Classification of Vehicles. For purposes
of this chapter:
[(1) a vehicle is a late model salvage motor vehicle or
a salvage motor vehicle if the vehicle:
[(A) is a late model motor vehicle with a major
component part that is damaged or missing to the extent that the
total estimated cost of repairs to rebuild or reconstruct the
vehicle, including parts and labor and excluding the cost to repair
hail damage, is equal to or greater than an amount equal to 75
percent of the actual cash value of the vehicle in its predamaged
condition; or
[(B) is a damaged vehicle that comes into this
state under a salvage motor vehicle certificate of title or other
comparable certificate of title; and
[(2) a vehicle is a nonrepairable motor vehicle if the
vehicle:
[(A) conforms to the definition of that term in
Section 501.0911, Transportation Code; or
[(B) is a vehicle that comes into this state with
a nonrepairable motor vehicle certificate of title or other
comparable certificate of title.
[Sec. 2302.003. Classification as Metal Recycler. For
purposes of this chapter, a person is a metal recycler if the
person:
[(1) is predominately engaged in the business of
obtaining ferrous or nonferrous metal that has served its original
economic purpose in order to convert the metal, or sell the metal
for conversion, into raw material products consisting of prepared
grades and having an existing or potential economic value;
[(2) has a facility to convert ferrous or nonferrous
metal into raw material products consisting of prepared grades and
having an existing or potential economic value, by method other
than the exclusive se of hand tools, including the processing,
sorting, cutting, classifying, cleaning, baling, wrapping,
shredding, shearing, or changing the physical form or chemical
content of the metal; and
[(3) sells or purchases the ferrous or nonferrous
metal solely for use as raw material in the production of new
products.
[Sec. 2302.004. Sale of Certain Water-Damaged Vehicles.
Subchapters B-E do not prohibit the sale to any person of a vehicle
that is classified as a salvage motor vehicle or a nonrepairable
motor vehicle solely because of water damage caused by flood
conditions.
[Sec. 2302.005.] Applicability of Certain Municipal
Ordinances, Licenses, and Permits. This chapter [Subchapters B-E]:
(1) is [are] in addition to any municipal ordinance
relating to the regulation of a person who deals in nonrepairable or
salvage motor vehicles or used parts; and
(2) does [do] not prohibit the enforcement of a
requirement of a municipal license or permit that is related to an
activity regulated under this chapter [those subchapters].
Sec. 2302.004. [Sec. 2302.006.] Application [of
Subchapters B-E] to Metal Recyclers. (a) Except as provided by
Subsection (b), this chapter does [Subchapters B-E do] not apply to
a transaction in which a metal recycler is a party.
(b)(1) This section applies to [, other than] a transaction
in which a motor vehicle:
(A) [(1)] is sold, transferred, released, or
delivered to the [metal] recycler for the purpose of reuse or resale
as a motor vehicle or as a source of used [motor vehicle] parts; and
(B) [(2)] is used for that purpose.
(2) Sections 2302.002 and [(b) Section] 2302.205 apply
[applies] to a metal recycler.
[(c) Subchapter G does not apply to a sale or purchase by a
metal recycler.]
Sec. 2302.005. [Sec. 2302.007.] Application [of
Subchapters B-E] to Insurance Companies. This chapter does
[Subchapters B-E do] not apply to an insurance company [authorized
to engage in the business of insurance in this state].
SECTION 3. Section 2302.051, Occupations Code, is amended
to read as follows:
Sec. 2302.051. Rules and Enforcement Powers. The
commission shall adopt rules as necessary to administer this
chapter [subchapter and Subchapters A and C-E] and may take other
action as necessary to enforce this chapter [those subchapters].
SECTION 4. Section 2302.052, Occupations Code, is amended
to read as follows:
Sec. 2302.052. Duty to Set Fees. The commission shall set
application fees, license fees, renewal fees, and other fees as
required to implement this chapter [Subchapters C-E]. The
commission shall set the fees in amounts reasonable and necessary
to implement and enforce this chapter [those subchapters].
SECTION 5. Section 2302.101, Occupations Code, is amended
to read as follows:
Sec. 2302.101. License Required for Salvage Vehicle Dealer.
[(a) In this section, "automobile recycler" has the meaning
assigned by Section 501.0911, Transportation Code.
[(b)] Unless a person holds a salvage vehicle dealer license
issued under this chapter, the person may not:
(1) act as a salvage vehicle dealer or rebuilder [an
automobile recycler]; or
(2) store or display a vehicle as an agent or escrow
agent of an insurance company.
SECTION 6. Section 2302.107, Occupations Code, is amended
by amending Subsection (d) to read as follows:
(d) A salvage vehicle agent may acquire, sell, or otherwise
deal in [late model salvage motor vehicles,] nonrepairable or
salvage [motor] vehicles or used [, or salvage] parts as directed by
the authorizing dealer, if the salvage vehicle dealer is licensed
under this chapter.
SECTION 7. Subchapter C, Chapter 2302, Occupations Code, is
amended to add Section 2302.109 to read as follows:
Sec. 2302.109. Out-of-State Buyer License. (a) A person
who is from another state or jurisdiction may not purchase a
nonrepairable or salvage vehicle in this state unless the person
holds an out-of-state buyer license issued by the department.
(b) The department may issue an out-of-state buyer license
if:
(1) the person applies to the department under this
section; and
(2) the department has determined that the applicant
is from a state or jurisdiction that permits a salvage vehicle
dealer licensed under this chapter to purchase a nonrepairable or
salvage vehicle in the applicant's state or jurisdiction.
(c) Except as provided by Subsection (d), an applicant for a
license under this section must submit a nonrefundable application
fee of $200.
(d) If the applicant for a license under this section
certifies to the department that the applicant will purchase
vehicles in this state only over the Internet, the applicant may
submit a nonrefundable application fee of $25 in lieu of the fee
described in Subsection (c).
(e) An applicant who resides in the United States must
submit a copy, photocopy, or other accurate reproduction of a valid
license issued to the applicant by the appropriate licensing
authority of the state in which the applicant resides allowing the
person to:
(1) drive or operate a motor vehicle; and
(2) engage in an automotive business.
(f) An applicant who resides in a jurisdiction outside the
United States must submit a copy, photocopy, or other accurate
reproduction of:
(1) a valid identification card, certificate, or
equivalent document issued to the applicant by the appropriate
licensing authority of the jurisdiction in which the applicant
resides that bears a photograph of the applicant and is capable of
being verified using identification standards adopted by the United
States; or
(2) an identification card, certificate, or
equivalent document, that bears a photograph of the applicant and
is capable of being verified using identification standards adopted
by the international community.
(g) A license issued under this section expires on the first
anniversary of its date of issuance and may be renewed annually on
or before its expiration date by submitting a renewal application
accompanied by the appropriate fee under Subsection (c) or (d).
SECTION 8. Subchapter E, Chapter 2302, Occupations Code, is
amended to read as follows:
Sec. 2302.201. Duties on Acquisition of Salvage Motor
Vehicle. (a) A salvage vehicle dealer who acquires ownership of a
salvage [motor] vehicle from an owner must receive from the owner an
assigned certificate of title.
(b) The [If the assigned certificate of title is not a
salvage motor vehicle certificate of title, a nonrepairable motor
vehicle certificate of title, or a comparable ownership document
issued by another state or jurisdiction, the] dealer shall comply
with Subchapter E, Chapter 501, [Section 501.0916(b)],
Transportation Code.
Sec. 2302.202. Records of Purchases. A salvage vehicle
dealer [license holder] shall maintain a record of each salvage
[motor] vehicle and each used [salvage] part purchased or sold by
the dealer [license holder].
Sec. 2302.203. Registration of New Business Location.
Before moving a place of business or opening an additional place of
business, a salvage vehicle dealer must register the new location
with the department.
Sec. 2302.204. Casual Sales. (a) Except as provided by
Subsection (b), this chapter does [This subchapter and Subchapters
B-D do] not apply to a person who purchases two or less [a]
nonrepairable or salvage motor vehicles [vehicle or salvage motor
vehicle] from a salvage dealer or salvage pool operator in a casual
sale at auction.
(b)(1) The [, except that:
[(1) the] commission shall adopt rules as necessary to
regulate each casual sale [sales] by a salvage dealer or salvage
pool operator [operators] and to enforce this section; and
(2) A salvage dealer or [a] salvage pool operator who
sells a vehicle in a casual sale shall comply with those rules and
Subchapter E, Chapter 501, Transportation Code.
Sec. 2302.205. Duty of Metal Recycler. A metal recycler who
purchases a motor vehicle shall submit a regular, nonrepairable, or
salvage vehicle [, not later than the 60th day after the date the
recycler receives the certificate of] title or comparable
out-of-state ownership [equivalent document in conjunction with
the purchase, submit the certificate or] document to the department
and comply with Subchapter E, Chapter 501, Transportation Code.
SECTION 9. Section 2302.251, Occupations Code, is amended
to read as follows:
Sec. 2302.251. Definitions.
Definitions. In this subchapter:
(1) "Component part" means a major or minor component
part.
(2) [:
[(A) a front-end assembly or tail section;
[(B) the cab of a light or heavy truck;
[(C) the bed of a one-ton or lighter truck; or
[(D) an interior component part, a special
accessory part, or a motor vehicle part that displays or should
display one or more of the following:
[(i) a federal safety certificate;
[(ii) a motor number;
[(iii) a serial number;
[(iv) a manufacturer's permanent vehicle
identification number; or
[(v) a derivative of a vehicle
identification number.
[(2) "Front-end assembly" means a motor vehicle hood,
right or left front fender, grill, bumper, radiator, or radiator
support, if two or more of those parts are assembled together as one
unit.
[(3)] "Interior component part" means the front seat,
[or] rear seat, or[the] radio of a motor vehicle.
(3) "Minor component part" means an interior component
part, a special accessory part, or a motor vehicle part that
displays or should display one or more of the following:
(A) a federal safety certificate;
(B) a motor number;
(C) a serial number or a derivative; or
(D) a manufacturer's permanent vehicle
identification number or a derivative.
(4) "Special accessory part" means a tire, wheel,
tailgate, or removable glass top of a motor vehicle.
[(5) "Tail section" means a motor vehicle roof, floor
pan, right or left rear quarter panel, deck lid, or rear bumper, if
two or more of those parts are assembled together as one unit.]
SECTION 10. Section 2302.302, Occupations Code, is amended
to read as follows:
Sec. 2302.302. Limits on Operation of Heavy Machinery. (a)
A salvage vehicle dealer may not operate heavy machinery in a motor
vehicle salvage yard between the hours of 7 p.m. of one day and 7
a.m. of the following day.
(b) This section does not apply to conduct necessary to a
sale or purchase by the dealer.
SECTION 11. Subchapter H, Chapter 2302, Occupations Code,
is amended to read as follows:
Sec. 2302.351. Injunctions. (a) The prosecutor in the
county where a motor vehicle salvage yard is located or the city
attorney in the municipality where the salvage yard is located may
bring suit to enjoin a violation of this chapter for less than one
year [Subchapter G].
(b) If a salvage vehicle dealer, [or an] employee, or agent
[of the dealer] acting in the course of employment is convicted of
more than one offense under Section 2302.352, other than a Class C
misdemeanor [Section 2302.353(a)(2) or (b)], the district attorney
for a [the] county in which the dealer's salvage business is located
may bring an action in that county to enjoin the dealer's business
operations for one year or more.
(c) An action under Subsection (b) must be brought in the
name of the state. If judgment is in favor of the state, the court
shall:
(1) enjoin the dealer from maintaining or
participating in the business of a salvage vehicle dealer for a
definite period of not less than one year or indefinitely, as
determined by the court; and
(2) order that the dealer's place of business be closed
for the same period.
Sec. 2302.352. [Seizure of Vehicle or Part. A peace officer
may seize, hold, and dispose of, according to the code of criminal
procedure, a motor vehicle or a motor vehicle part that is in the
possession of a salvage vehicle dealer and that has been stolen or
been altered by the removal, changing, mutilation, or obliteration
of a permanent vehicle identification number, derivative number,
motor number, serial number, or federal safety certificate.
[Sec. 2302.353.] Offenses. (a) A person commits an offense
if the person intentionally or knowingly violates this chapter[:
[(1) Subchapter C, D, or E] or a rule adopted under
this chapter [Subchapter C, D, or E; or
[(2) Subchapter F].
(b) Except as provided by Subsections (c) and (d), an [A
person commits an offense if the person violates Subchapter F in
conjunction with a violation of Section 31.03, Penal Code.
[(c) A person commits an offense if the person violates
Subchapter G.
[(d) An offense under Subsection (a) is a Class A
misdemeanor.
[(e) An] offense under this section [Subsection (b)] is a
Class A misdemeanor.
(c) If [unless] it is shown on the trial of an [the] offense
under Subsection (a) that the defendant has been previously
convicted of an offense under this section, [that subsection, in
which event] the offense is punishable as a state jail felony [of
the third degree].
(d) If the person violates Subchapter G, an [(f) An]
offense under this section [Subsection (c)] is a Class C
misdemeanor.
SECTION 12. This Act takes effect September 1, 2003.
SECTION 13. (a) A person, who owns a nonrepairable motor
vehicle for which a nonrepairable motor vehicle certificate of
title was issued before the effective date of this Act, may repair,
rebuild, or reconstruct the vehicle and receive a regular title for
the vehicle on or before September 1, 2005.
(b) The Department of Transportation will deem a salvage
certificate issued before the effective date of this Act to be a
salvage motor vehicle certificate of title on the effective date of
this Act.
SECTION 14. (a) The change in law made by this Act applies
only to an offense committed on or after the effective date of this
Act. For purposes of this section, an offense is committed before
the effective date of this Act if any element of the offense occurs
before the effective date.
(b) An offense committed before the effective date of this
Act is covered by the law in effect when the offense was committed,
and the former law is continued in effect for this purpose.