BILL ANALYSIS
By: Denny
BACKGROUND AND PURPOSE
Last session, H.B. 3588 enacted among various provisions new definitions for non-repairable and salvage motor vehicles. The new definitions make it easier for an insurance company to notify the Texas Department of Transportation that a claim was paid on a vehicle, regardless of whether it was a total loss, and have that vehicle's regular title terminated and a non-repairable or salvage vehicle title issued instead. Though the vehicle may be drivable and within inspection specifications, the costly and onerous burden of proving the vehicle is not worthy of a salvage vehicle title falls upon the vehicle owner. The purpose of H.B. 1350 is to reinstate the previous definition of salvage motor vehicle to prevent drive-worthy vehicles from being issued a salvage vehicle title.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
SECTION 1. The bill defines salvage motor vehicle as a vehicle that has damage to or is missing a major component part to the extent that the cost of repairs, including parts and labor other than the cost of materials and labor for repainting the motor vehicle and excluding sales tax on the total cost of repairs, exceeds the actual cash value of the motor vehicle immediately before the damage.
SECTION 2. Effective Date
EFFECTIVE DATE
September 1, 2005.