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A BILL TO BE ENTITLED
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AN ACT
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relating to nonrepairable and salvage motor vehicles. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 501.091(11), Transportation Code, is |
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amended to read as follows: |
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(11) "Out-of-state buyer" means a person licensed in |
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an automotive business by another state or jurisdiction if the |
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department has listed the holders of such a license as permitted |
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purchasers of salvage motor vehicles or nonrepairable motor |
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vehicles based on [substantially similar licensing requirements
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and on] whether salvage vehicle dealers licensed in Texas are |
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permitted to purchase salvage motor vehicles or nonrepairable motor |
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vehicles in the other state or jurisdiction. |
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SECTION 2. Section 501.092(d), Transportation Code, is |
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amended to read as follows: |
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(d) An insurance company may sell a motor vehicle to which |
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this section applies, or assign a salvage vehicle title or a |
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nonrepairable vehicle title for the motor vehicle, only to a |
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salvage vehicle dealer, an out-of-state buyer who holds a license |
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under Section 2302.1071, Occupations Code, [a buyer in a casual
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sale at auction,] or a metal recycler. If the motor vehicle is not a |
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salvage motor vehicle or a nonrepairable motor vehicle, the |
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insurance company is not required to surrender the regular |
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certificate of title for the vehicle or to be issued a salvage |
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vehicle title or a nonrepairable vehicle title for the motor |
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vehicle. |
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SECTION 3. Section 501.095(a), Transportation Code, is |
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amended to read as follows: |
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(a) If the department has not issued a nonrepairable vehicle |
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title or salvage vehicle title for the motor vehicle and an |
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out-of-state ownership document for the motor vehicle has not been |
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issued by another state or jurisdiction, a business or governmental |
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entity described by Subdivisions (1)-(3) may sell, transfer, or |
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release a nonrepairable motor vehicle or salvage motor vehicle only |
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to a person who is: |
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(1) a licensed salvage vehicle dealer or metal |
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recycler under Chapter 2302, Occupations Code; |
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(2) an insurance company that has paid a claim on the |
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nonrepairable or salvage motor vehicle; |
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(3) a governmental entity; or |
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(4) an out-of-state buyer who holds a license under |
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Section 2302.1071, Occupations Code. |
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SECTION 4. Section 501.097(a), Transportation Code, is |
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amended to read as follows: |
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(a) An application for a nonrepairable vehicle title or |
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salvage vehicle title must: |
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(1) be made on a form prescribed by the department and |
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accompanied by a $8 application fee; |
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(2) include, in addition to any other information |
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required by the department: |
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(A) the name and current address of the owner; |
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(B) a description of the motor vehicle, including |
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the make, style of body, model year, and vehicle identification |
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number; and |
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(C) a statement describing whether the motor |
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vehicle: |
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(i) was the subject of a total loss claim |
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paid by an insurance company under Section 501.092 or 501.093; |
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(ii) is a self-insured motor vehicle under |
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Section 501.094; |
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(iii) is an export-only motor vehicle under |
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Section 501.099; or |
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(iv) was sold, transferred, or released to |
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the owner or former owner of the motor vehicle [or a buyer at a
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casual sale]; and |
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(3) include the name and address of: |
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(A) any currently recorded lienholder, if the |
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motor vehicle is a nonrepairable motor vehicle; or |
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(B) any currently recorded lienholder or a new |
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lienholder, if the motor vehicle is a salvage motor vehicle. |
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SECTION 5. Subchapter C, Chapter 2302, Occupations Code, is |
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amended by adding Section 2302.1071 to read as follows: |
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Sec. 2302.1071. OUT-OF-STATE BUYER'S LICENSE. (a) An |
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out-of-state buyer as defined by Section 501.091, Transportation |
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Code, may not purchase a salvage motor vehicle or a nonrepairable |
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motor vehicle in this state unless the person holds a license issued |
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by the department that authorizes the purchase of the vehicle. |
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(b) To obtain an out-of-state buyer's license, the person |
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must apply to the department. |
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(c) If the applicant is a resident of the United States, the |
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application must be accompanied by: |
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(1) a copy, photocopy, or other accurate reproduction |
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of a valid driver's license issued to the person by the appropriate |
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licensing authority of the state in which the person resides; |
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(2) a copy, photocopy, or other accurate reproduction |
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of a valid automotive business license issued to the person by the |
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appropriate licensing authority of the state in which the person |
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resides; and |
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(3) a nonrefundable application fee of $500. |
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(d) If the applicant is not a resident of the United States, |
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the application must be accompanied by a nonrefundable application |
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fee of $500 and: |
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(1) a copy, photocopy, or other accurate reproduction |
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of a valid identification card, certificate, or equivalent |
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document: |
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(A) issued to the person by the appropriate |
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licensing authority of the country or jurisdiction in which the |
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person resides that bears a photograph of the applicant and is |
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capable of being verified using identification standards adopted by |
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the United States; or |
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(B) that bears a photograph of the applicant and |
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is capable of being verified using identification standards adopted |
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by the international community; and |
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(2) a copy, photocopy, or other accurate reproduction |
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of a valid automotive business license issued to the person by the |
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appropriate licensing authority of the country or jurisdiction in |
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which the person resides. |
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(e) The department may issue a license under this section to |
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an applicant who is not a resident of the United States only if the |
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automotive business licensing requirements and regulations of the |
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country or jurisdiction in which the person resides are equivalent |
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to those applicable to a salvage vehicle dealer with a used vehicle |
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parts dealer endorsement in this state. |
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(f) Notwithstanding Subsection (c)(3) or (d), an |
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application for a license under this section from an out-of-state |
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buyer who purchases salvage or nonrepairable motor vehicles in this |
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state only over the Internet must be accompanied by a fee of $25. |
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(g) A license issued under this section expires on the first |
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anniversary of its date of issuance and may be renewed annually on |
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or before its expiration date on payment of the appropriate fee |
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under Subsection (c)(3), (d), or (f). |
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SECTION 6. Sections 501.091(2) and 501.105, Transportation |
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Code, are repealed. |
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SECTION 7. This Act takes effect September 1, 2007. |