78R6303 DWS-F
By: Lindsay S.B. No. 789
A BILL TO BE ENTITLED
AN ACT
relating to nonrepairable and salvage motor vehicles.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2302.002, Occupations Code, is amended
to read as follows:
Sec. 2302.002. 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) conforms to the definition of that term in
Section 501.0911, Transportation Code [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.
SECTION 2. Section 2302.107, Occupations Code, is amended
by amending Subsections (a) and (d) and adding Subsection (e) to
read as follows:
(a) Except as provided by Subsection (e), a [A] person may
not act as a salvage vehicle agent unless the person holds a salvage
vehicle agent license issued under this chapter.
(d) A salvage vehicle agent may acquire, sell, or otherwise
deal in [late model] salvage motor vehicles, nonrepairable motor
vehicles, or salvage parts as directed by the authorizing dealer.
(e) A person is not required to hold a salvage vehicle agent
license to act as a salvage vehicle agent if the person:
(1) holds a salvage vehicle dealer license;
(2) is a partner, owner, officer, or employee of a
person who holds a salvage vehicle dealer license; or
(3) only transports salvage or nonrepairable motor
vehicles for a person who holds a salvage vehicle dealer license.
SECTION 3. Section 501.0911(a), Transportation Code, is
amended by amending Subdivisions (8), (12), (13), and (15) and
adding Subdivisions (13-a) and (16) to read as follows:
(8) "Nonrepairable motor vehicle" means a [late model]
motor vehicle that:
(A) is damaged, wrecked, or burned to the extent
that the only residual value of the vehicle is as a source of parts
or scrap metal; or
(B) comes into this state under a title or other
ownership document that indicates that the vehicle is
nonrepairable, junked, or for parts or dismantling only [or missing
a major component part to the extent that the total estimated cost
of repairs to rebuild or reconstruct the vehicle, 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].
(12) "Out-of-state buyer" means a person licensed 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, for operation on public highways, five or more [late
model] salvage motor vehicles in any calendar year [12-month
period].
(13-a) "Salvage motor vehicle" means a motor vehicle,
other than a nonrepairable motor vehicle, that:
(A) is the subject of a payment of a total loss
claim by an insurance company to the insured, but not including a
motor vehicle that:
(i) has been stolen and recovered, unless
the vehicle is damaged to the extent that the total estimated cost
of repairs, including parts and labor but excluding repairs related
to hail damage, equals or exceeds 75 percent of the actual cash
value of the vehicle in its predamaged condition; or
(ii) is a total loss solely due to hail
damage;
(B) is sold, transferred, or otherwise disposed
of by the vehicle's owner, other than an insurance company that
acquired the vehicle through payment of a total loss claim, in a
damaged condition to the extent that the total estimated cost of
repairs, including parts and labor but excluding repairs related to
hail damage, equals or exceeds 75 percent of the actual cash value
of the vehicle in its predamaged condition; or
(C) comes into this state under a salvage motor
vehicle certificate of title or other similar ownership document.
(15) "Salvage vehicle dealer" has the meaning assigned
by Section 2302.001, Occupations Code [1.01, Article 6687-1a,
Revised Statutes].
(16) "Total loss claim" means a claim on which an
insurance company pays the owner of a motor vehicle:
(A) on theft of the vehicle; or
(B) the replacement cost of the vehicle, on wreck
of or damage to the vehicle, based on the cost of a motor vehicle of
similar kind and quality.
SECTION 4. Section 501.0912, Transportation Code, is
amended to read as follows:
Sec. 501.0912. INSURANCE COMPANY TO SURRENDER CERTIFICATES
OF TITLE TO CERTAIN [LATE MODEL] SALVAGE MOTOR VEHICLES OR
NONREPAIRABLE MOTOR VEHICLES. (a) An insurance company that is
licensed to conduct business in this state and that acquires,
through payment of a claim, ownership or possession of a [late
model] salvage motor vehicle or nonrepairable motor vehicle covered
by a certificate of title issued by this state [through payment of a
claim] shall surrender a properly assigned certificate of title to
the department, on a form prescribed by the department, except that
not earlier than the 46th day after the date of payment of the claim
the insurance company may surrender a certificate of title, on a
form prescribed by the department, and receive a salvage
certificate of title or a nonrepairable certificate of title
without obtaining a properly assigned certificate of title if the
insurance company:
(1) has obtained the release of all liens on the
vehicle;
(2) is unable to locate one or more owners of the
vehicle; and
(3) has provided notice to the last known address in
the department's records to each owner that has not been located:
(A) by registered or certified mail, return
receipt requested; or
(B) if a notice sent under Paragraph (A) is
returned unclaimed, by publication in a newspaper of general
circulation in the area where the unclaimed mail notice was sent.
(b) For a salvage motor vehicle [described by Section
501.0911(6) but not by Section 501.0911(8)], the insurance company
shall apply for a salvage motor vehicle certificate of title. For a
nonrepairable motor 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 not sell a [late model salvage]
motor vehicle to which this section applies 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.
(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 Section 2302.003, Occupations Code
[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.
SECTION 5. Section 501.0913, Transportation Code, is
amended to read as follows:
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.
SECTION 6. Section 501.0915, Transportation Code, is
amended to read as follows:
Sec. 501.0915. INSURANCE COMPANY TO SUBMIT REPORT TO
DEPARTMENT. (a) If after payment of a total loss claim on a [late
model] salvage motor vehicle or a nonrepairable motor vehicle an
insurance company does not acquire ownership of the vehicle for a
reason other than the inability to locate one or more of the owners
as provided by Section 501.0912(a), the insurance company shall
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:
(1) the insurance company has paid a total loss claim
on the vehicle; and
(2) the insurance company has not acquired ownership
of the vehicle.
(b) The owner of a [late model] salvage motor vehicle to
which this section applies may not transfer ownership of the
vehicle 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.
SECTION 7. The heading to Section 501.0916, Transportation
Code, is amended to read as follows:
Sec. 501.0916. SALE, TRANSFER, OR RELEASE OF [LATE MODEL]
SALVAGE OR NONREPAIRABLE MOTOR VEHICLE.
SECTION 8. Section 501.0916, Transportation Code, is
amended by amending Subsections (a), (b), and (c) and adding
Subsection (f) to read as follows:
(a) Except as provided by Subsection (f), a [A] person may
not sell, transfer, or release a [late model] salvage motor vehicle
or a nonrepairable motor vehicle to a person 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) or (f) 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 motor vehicle
for the purpose of dismantling, scrapping, or destroying the
vehicle 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, accompanied by a
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.
(f) In addition to selling to the authorized buyers listed
by Subsection (a), a salvage vehicle dealer may sell not more than
five salvage motor vehicles or nonrepairable motor vehicles to any
individual during a calendar year.
SECTION 9. Section 501.0918, Transportation Code, is
amended to read as follows:
Sec. 501.0918. PERSON ACQUIRING [LATE MODEL] SALVAGE MOTOR
VEHICLE OR NONREPAIRABLE 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 salvage motor 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 nonrepairable motor vehicle
[described by Section 501.0911(8)], apply to the department for a
nonrepairable motor vehicle certificate of title for the vehicle.
SECTION 10. Section 501.0919, Transportation Code, is
amended to read as follows:
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 Section 2303.003, Occupations Code, except that if the
owner is a salvage vehicle dealer, in addition to selling to the
authorized buyers listed, the dealer may sell not more than five
salvage motor vehicles or nonrepairable motor vehicles to any
individual during a calendar year [Subsection (g), Article 6687-2b,
Revised Statutes].
SECTION 11. Section 501.0920(a), Transportation Code, is
amended to read as follows:
(a) An application for a salvage motor vehicle certificate
of title or a nonrepairable motor vehicle certificate of title
must:
(1) be made on a form prescribed by the department and
accompanied by a fee established by the department, not to exceed
the greater of $5 or 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;
(C) a 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.
SECTION 12. Section 501.0922, Transportation Code, is
amended to read as follows:
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, Texas salvage certificate, or
other salvage ownership document has been issued may be issued a
regular certificate of title only after application and, in
addition to any other requirement of law, only if the application[:
[(1)] describes each major component part used to
repair the vehicle and shows the identification number required by
federal law to be affixed to or inscribed on the part[; 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)].
SECTION 13. Section 501.0923(a), Transportation Code, is
amended to read as follows:
(a) On receipt of a complete application under Section
501.0922, [accompanied by the peace officer's statement and the
appropriate fee for the certificate of title,] the department shall
issue the applicant a certificate of title for the vehicle.
SECTION 14. Section 501.0925, Transportation Code, is
amended to read as follows:
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, or 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.
SECTION 15. Section 501.0926, Transportation Code, is
amended to read as follows:
Sec. 501.0926. OFFENSE. A [Except as provided by Section
501.0927, a] person commits an offense if the person:
(1) applies to the department for a certificate of
title for a motor vehicle; and
(2) knows that the vehicle is a nonrepairable motor
vehicle that has been rebuilt.
SECTION 16. Section 501.0928(a), Transportation Code, is
amended to read as follows:
(a) The department shall print salvage motor vehicle
certificates of title and nonrepairable motor vehicle certificates
of title in a color that distinguishes them from certificates of
title and so that each document clearly shows that it is the
ownership document for a [late model] salvage motor vehicle or a
nonrepairable motor vehicle.
SECTION 17. Section 501.0929(b), Transportation Code, is
amended to read as follows:
(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."
SECTION 18. Section 501.0931, Transportation Code, is
amended to read as follows:
Sec. 501.0931. APPLICABILITY OF SUBCHAPTER. (a) This
subchapter does not apply to, and does not preclude or prohibit a
sale to, purchase by, or other transaction by or with, a person
described by Section 2302.003, Occupations Code [Subsection (g),
Article 6687-2b, Revised Statutes], except as provided by
Subsections (b) and (c).
(b) A person described by Section 2302.003, Occupations
Code [Subsection (g), Article 6687-2b, Revised Statutes], shall
submit to the department the certificate of title or equivalent
document that the person receives in conjunction with the purchase
of a motor vehicle not later than the 60th day after the date the
person receives the certificate of title or equivalent document.
(c) This subchapter applies to a transaction with a person
described by Section 2302.003, Occupations Code [Subsection (g),
Article 6687-2b, Revised Statutes], in which a motor vehicle is
sold or delivered to the person for the purpose of reuse or resale
as a motor vehicle or as motor vehicle parts if the motor vehicle is
so used.
(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 19. Section 501.138(a), Transportation Code, is
amended to read as follows:
(a) Except as provided by Section 501.1381, an [An]
applicant for a certificate of title, other than the state or a
political subdivision of the state, must pay the county
assessor-collector a fee of $13.
SECTION 20. Subchapter G, Chapter 501, Transportation Code,
is amended by adding Section 501.1381 to read as follows:
Sec. 501.1381. COLLECTION AND DISPOSITION OF FEES FOR
NONREPAIRABLE OR SALVAGE MOTOR VEHICLE. (a) In this section,
"nonrepairable motor vehicle certificate of title" and "salvage
motor vehicle certificate of title" have the meanings assigned by
Section 501.0911.
(b) An applicant, other than the state or a political
subdivision of the state, for a certificate of title for a motor
vehicle currently titled under a nonrepairable motor vehicle
certificate of title or a salvage motor vehicle certificate of
title, Texas salvage certificate, or other salvage ownership
document must pay the county assessor-collector a fee of $68.
(c) The county assessor-collector shall send:
(1) $15 of the fee to the county treasurer for deposit
in the officers' salary fund; and
(2) $53 of the fee to the department:
(A) together with the salvage motor vehicle
certificate of title, Texas salvage certificate, or other salvage
ownership document or the nonrepairable motor vehicle certificate
of title and the application within the time prescribed by Section
501.023; or
(B) if the fee is deposited in an
interest-bearing account or certificate in the county depository or
invested in an investment authorized by Subchapter A, Chapter 2256,
Government Code, not later than the 35th day after the date on which
the fee is received.
(d) Of the amount received under Subsection (c)(2), the
department shall deposit:
(1) $5 in the general revenue fund;
(2) $3 to the credit of the state highway fund to
recover the expenses necessary to administer this chapter; and
(3) $45 to the credit of an account to be known as the
motor vehicle theft enforcement account in the state highway fund
to be used only by the Department of Public Safety for the
enforcement of laws related to theft of motor vehicles and the
prevention of motor vehicle theft.
(e) The county owns all interest earned on fees deposited or
invested under Subsection(c)(2)(B). The county treasurer shall
credit that interest to the county general fund.
SECTION 21. The following provisions are repealed:
(1) Section 2302.001(6), Occupations Code;
(2) Sections 501.0911(a)(5) and (6), Transportation
Code; and
(3) Sections 501.0914 and 501.0927, Transportation
Code.
SECTION 22. (a) This Act takes effect September 1, 2003.
(b) The change in law made by this Act applies only to a
certificate of title, Texas salvage certificate, or other salvage
ownership document, or a nonrepairable motor vehicle certificate of
title, issued on or after the effective date of this Act. A
certificate of title, Texas salvage certificate, or other salvage
ownership document, or a nonrepairable motor vehicle certificate of
title, issued before the effective date of this Act is governed by
the law in effect immediately preceding the effective date of this
Act, and the former law is continued in effect for that purpose.