80R2603 JD-F

By: Talton H.B. No. 2302

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 501.091(11), Transportation Code, is amended to read as follows:

(11) "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.

SECTION 2. Section 501.092(d), Transportation Code, is amended to read as follows:

(d) An insurance company may sell a motor vehicle to which this section applies, or assign a salvage vehicle title or a nonrepairable vehicle title for the motor vehicle, only to a salvage vehicle dealer, an out-of-state buyer who holds a license under Section 2302.1071, Occupations Code, [a buyer in a casual sale at auction,] or a metal recycler. If the motor vehicle is not a 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 vehicle title or a nonrepairable vehicle title for the motor vehicle.

SECTION 3. Section 501.095(a), Transportation Code, is amended to read as follows:

(a) If the department has not issued a nonrepairable vehicle title or salvage vehicle title for the motor vehicle and an out-of-state ownership document for the motor vehicle has not been issued by another state or jurisdiction, a business or governmental entity described by Subdivisions (1)-(3) may sell, transfer, or release a nonrepairable motor vehicle or salvage motor vehicle only to a person who is:

(1) a licensed salvage vehicle dealer or metal recycler under Chapter 2302, Occupations Code;

(2) an insurance company that has paid a claim on the nonrepairable or salvage motor vehicle;

(3) a governmental entity; or

(4) an out-of-state buyer who holds a license under Section 2302.1071, Occupations Code.

SECTION 4. Section 501.097(a), Transportation Code, is amended to read as follows:

(a) An application for a nonrepairable vehicle title or salvage vehicle title must:

(1) be made on a form prescribed by the department and accompanied by a $8 application fee;

(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 motor vehicle, including the make, style of body, model year, and vehicle identification number; and

(C) a statement describing whether the motor 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 motor vehicle under Section 501.094;

(iii) is an export-only motor vehicle under Section 501.099; or

(iv) was sold, transferred, or released to the owner or former owner of the motor vehicle [or a buyer at a casual sale]; and

(3) include the name and address of:

(A) any currently recorded lienholder, if the motor vehicle is a nonrepairable motor vehicle; or

(B) any currently recorded lienholder or a new lienholder, if the motor vehicle is a salvage motor vehicle.

SECTION 5. Subchapter C, Chapter 2302, Occupations Code, is amended by adding Section 2302.1071 to read as follows:

Sec. 2302.1071. OUT-OF-STATE BUYER'S LICENSE. (a) An out-of-state buyer as defined by Section 501.091, Transportation Code, may not purchase a salvage motor vehicle or a nonrepairable motor vehicle in this state unless the person holds a license issued by the department that authorizes the purchase of the vehicle.

(b) To obtain an out-of-state buyer's license, the person must apply to the department.

(c) If the applicant is a resident of the United States, the application must be accompanied by:

(1) a copy, photocopy, or other accurate reproduction of a valid driver's license issued to the person by the appropriate licensing authority of the state in which the person resides;

(2) a copy, photocopy, or other accurate reproduction of a valid automotive business license issued to the person by the appropriate licensing authority of the state in which the person resides; and

(3) a nonrefundable application fee of $500.

(d) If the applicant is not a resident of the United States, the application must be accompanied by a nonrefundable application fee of $500 and:

(1) a copy, photocopy, or other accurate reproduction of a valid identification card, certificate, or equivalent document:

(A) issued to the person by the appropriate licensing authority of the country or jurisdiction in which the person resides that bears a photograph of the applicant and is capable of being verified using identification standards adopted by the United States; or

(B) that bears a photograph of the applicant and is capable of being verified using identification standards adopted by the international community; and

(2) a copy, photocopy, or other accurate reproduction of a valid automotive business license issued to the person by the appropriate licensing authority of the country or jurisdiction in which the person resides.

(e) The department may issue a license under this section to an applicant who is not a resident of the United States only if the automotive business licensing requirements and regulations of the country or jurisdiction in which the person resides are equivalent to those applicable to a salvage vehicle dealer with a used vehicle parts dealer endorsement in this state.

(f) Notwithstanding Subsection (c)(3) or (d), an application for a license under this section from an out-of-state buyer who purchases salvage or nonrepairable motor vehicles in this state only over the Internet must be accompanied by a fee of $25.

(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 on payment of the appropriate fee under Subsection (c)(3), (d), or (f).

SECTION 6. Sections 501.091(2) and 501.105, Transportation Code, are repealed.

SECTION 7. This Act takes effect September 1, 2007.