85R6671 JAM-D
 
  By: Pickett H.B. No. 2462
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the titling of motor vehicles; creating a criminal
  offense and authorizing fees.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 501.002(30), Transportation Code, is
  amended to read as follows:
               (30)  "Travel trailer" means a house trailer-type
  vehicle or a camper trailer:
                     (A)  that is a recreational vehicle defined under
  24 C.F.R. Section 3282.8(g); or
                     (B)  that:
                           (i)  is less than eight feet six inches in
  width or 45 [40] feet in length, exclusive of any hitch installed on
  the vehicle;
                           (ii)  is designed primarily for use as
  temporary living quarters in connection with recreational,
  camping, travel, or seasonal use;
                           (iii)  is not used as a permanent dwelling;
  and
                           (iv)  is not a utility trailer, enclosed
  trailer, or other trailer that does not have human habitation as its
  primary function.
         SECTION 2.  Section 501.004(b), Transportation Code, is
  amended to read as follows:
         (b)  This chapter does not apply to:
               (1)  a farm trailer or farm semitrailer with a gross
  vehicle weight of not more than 34,000 pounds used only for the
  transportation of farm products if the products are not transported
  for hire;
               (2)  the filing or recording of a lien that is created
  only on an automobile accessory, including a tire, radio, or
  heater;
               (3)  a motor vehicle while it is owned or operated by
  the United States; or
               (4)  a new motor vehicle on loan to a political
  subdivision of the state for use only in a driver education course
  conducted by an entity exempt from licensure under Section
  1001.002, Education Code.
         SECTION 3.  Section 501.021(a), Transportation Code, is
  amended to read as follows:
         (a)  A motor vehicle title issued by the department must
  include:
               (1)  the legal name and address of each purchaser [and
  seller at the first sale or a subsequent sale];
               (2)  the legal name of each seller and the municipality
  and state in which each seller is located or resides [make of the
  motor vehicle];
               (3)  the year, make, and body style [type] of the
  vehicle;
               (4)  the [manufacturer's permanent] vehicle
  identification number of the vehicle [or the vehicle's motor number
  if the vehicle was manufactured before the date that stamping a
  permanent identification number on a motor vehicle was universally
  adopted];
               (5)  if the vehicle is subject to odometer disclosure
  under Section 501.072, the odometer reading and odometer brand as
  recorded on the last title assignment [serial number] for the
  vehicle;
               (6)  the name and address of each lienholder and the
  date of each lien on the vehicle, listed in the chronological order
  in which the lien was recorded;
               (7)  a statement indicating rights of survivorship
  under Section 501.031; and
               (8)  [if the vehicle has an odometer, the odometer
  reading at the time of application for the title; and
               [(9)]  any other information required by the
  department.
         SECTION 4.  Section 501.023(a), Transportation Code, is
  amended to read as follows:
         (a)  The owner of a motor vehicle must present identification
  and apply for a title as prescribed by the department, unless
  otherwise exempted by law. To obtain a title, the owner must apply:
               (1)  to the county assessor-collector in the county in
  which:
                     (A)  the owner is domiciled; or
                     (B)  the motor vehicle is purchased or encumbered;
  or
               (2)  [if the county in which the owner resides has been
  declared by the governor as a disaster area, to the county
  assessor-collector in one of the closest unaffected counties to a
  county that asks for assistance and:
                     [(A)     continues to be declared by the governor as
  a disaster area because the county has been rendered inoperable by
  the disaster; and
                     [(B)     is inoperable for a protracted period of
  time; or
               [(3)     if the county assessor-collector's office of the
  county in which the owner resides is closed for a protracted period
  of time as defined by the department,] to the county
  assessor-collector of a county [that borders the county in which
  the owner resides] who is willing [agrees] to accept the
  application if the county assessor-collector's office of the county
  in which the owner resides is closed or may be closed for a
  protracted period of time as defined by the department.
         SECTION 5.  Section 501.030(a), Transportation Code, is
  amended to read as follows:
         (a)  Before a motor vehicle that was last registered or
  titled in another state or country may be titled in this state, the
  county assessor-collector shall verify that the vehicle has passed
  the inspections required by Chapter 548, as indicated in the
  Department of Public Safety's inspection database under Section
  548.251, or that the owner has obtained an identification number
  inspection in accordance with department rule.
         SECTION 6.  The heading to Section 501.032, Transportation
  Code, is amended to read as follows:
         Sec. 501.032.  [ASSIGNMENT OF VEHICLE] IDENTIFICATION
  NUMBER INSPECTION REQUIRED [BY DEPARTMENT].
         SECTION 7.  Sections 501.032(a) and (b), Transportation
  Code, are amended to read as follows:
         (a)  In addition to any requirement established by
  department rule, a motor vehicle, trailer, or semitrailer must have
  an identification number inspection under Section 501.0321 if:
               (1)  the department does not have a record of title for
  the vehicle, trailer, or semitrailer in the department's
  registration and title system, and the owner of the vehicle,
  trailer, or semitrailer is filing a bond with the department under
  Section 501.053;
               (2)  the vehicle, trailer, or semitrailer was last
  titled or registered outside of the United States and imported into
  the United States; or
               (3)  the owner or person claiming ownership requires an
  assigned or reassigned identification number under Section 501.033
  [On proper application, the department shall assign a vehicle
  identification number to a travel trailer, a trailer or
  semitrailer, a frame, or an item of equipment, including a tractor,
  farm implement, unit of special mobile equipment, or unit of
  off-road construction equipment:
               [(1)     on which a vehicle identification number was not
  die-stamped by the manufacturer;
               [(2)     on which a vehicle identification number
  die-stamped by the manufacturer has been lost, removed, or
  obliterated; or
               [(3)     for which a vehicle identification number was
  never assigned].
         (b)  An active duty member of a branch of the United States
  armed forces, or an immediate family member of such a member,
  returning to Texas with acceptable proof of the active duty status
  is exempt from an identification number inspection required under
  Subsection (a)(2) [The applicant shall die-stamp the assigned
  vehicle identification number at the place designated by the
  department on the travel trailer, trailer, semitrailer, frame, or
  equipment].
         SECTION 8.  Subchapter B, Chapter 501, Transportation Code,
  is amended by adding Sections 501.0321 and 501.0322 to read as
  follows:
         Sec. 501.0321.  IDENTIFICATION NUMBER INSPECTION. (a) An
  inspection required under Section 501.032 must verify, as
  applicable, the identity of:
               (1)  a motor vehicle;
               (2)  a trailer or semitrailer;
               (3)  a frame, body, or motor of a motor vehicle; or
               (4)  an item of equipment not required to be titled but
  that may be registered under Chapter 502 or issued licensed plates
  under Chapter 504.
         (b)  An inspection under this section may not rely solely on
  the public identification number to verify the identity.
         (c)  An inspection under this section may be performed only
  by a person who has successfully completed an appropriate training
  program as determined by department rule and is:
               (1)  an auto theft investigator who is a law
  enforcement officer of this state or a political subdivision of
  this state;
               (2)  a person working under the direct supervision of a
  person described by Subdivision (1); or
               (3)  an employee of the department authorized by the
  department to perform an inspection under this section.
         (d)  The department shall prescribe a form on which the
  identification number inspection is to be recorded.  The department
  may provide the form only to a person described by Subsection (c).
         (e)  The department or another entity that provides an
  inspection under this section may impose a fee of not more than $40
  for the inspection. The county or municipal treasurer of a county
  or municipal entity that provides an inspection under this section
  shall credit the fee to the general fund of the county or
  municipality, as applicable, to defray the entity's cost associated
  with the inspection. If the department provides an inspection
  under this section, the fee shall be deposited to the credit of the
  Texas Department of Motor Vehicles fund.
         (f)  The department may not impose a fee for an inspection
  requested by the department. The department shall include a
  notification of the waiver to the owner at the time the department
  requests the identification number inspection.
         Sec. 501.0322.  ALTERNATIVE IDENTIFICATION NUMBER
  INSPECTION. The department by rule may establish a process for
  verifying the identity of an item listed in Section 501.0321(a) as
  an alternative to an identification number inspection under Section
  501.0321. The rules may include the persons authorized to perform
  the inspection, when an alternative inspection under this section
  is required, and any fees that may be assessed. Any fee authorized
  must comply with Sections 501.0321(e) and (f).
         SECTION 9.  Section 501.033, Transportation Code, is amended
  to read as follows:
         Sec. 501.033.  ASSIGNMENT AND REASSIGNMENT OF
  IDENTIFICATION NUMBER BY DEPARTMENT. (a)  If the permanent
  identification number affixed by the manufacturer has been removed,
  altered, or obliterated, or a permanent identification number was
  never assigned, the department shall assign an identification
  number to [A person determined by law enforcement or a court to be
  the owner of] a motor vehicle, [travel trailer,] semitrailer, [or]
  trailer, engine [a part of a motor vehicle], [travel trailer,
  semitrailer, or trailer, a] frame, or body of a motor vehicle, or an
  item of equipment not required to be titled but that may be
  registered or issued license plates under Chapter 502 on inspection
  under Section 501.0321 and application to the department [including
  a tractor, farm implement, unit of special mobile equipment, or
  unit of off-road construction equipment may apply to the department
  for an assigned vehicle identification number that has been
  removed, altered, obliterated, or has never been assigned].
         (b)  An application under this section must be in a manner
  prescribed by the department and accompanied by valid evidence of
  ownership in the name of, or properly assigned to, the applicant as
  required by the department.
         (c)  A fee of $2 must accompany each application under this
  section to be deposited in the Texas Department of Motor Vehicles
  fund.
         (d)  The assigned [vehicle] identification number shall be
  die-stamped or otherwise affixed in the manner and location
  designated by the department.
         (e)  The department shall reassign an original
  manufacturer's identification number only if the person who
  conducts the inspection under Section 501.0321 determines that the
  permanent identification number affixed by the manufacturer has
  been removed, altered, or obliterated [If the auto theft unit of a
  county or municipal law enforcement agency conducts an inspection
  required by the department under this section, the agency may
  impose a fee of $40.   The county or municipal treasurer shall credit
  the fee to the general fund of the county or municipality, as
  applicable, to defray the agency's cost associated with the
  inspection.   The fee shall be waived by the department or agency
  imposing the fee if the person applying under this section is the
  current registered owner].
         (f)  If the department reassigns a manufacturer's
  identification number, a representative of the department shall
  affix the number in a manner and location designated by the
  department.
         (g)  On affixing an assigned identification number or
  witnessing the affixing of a reassigned identification number, the
  owner shall certify on a form prescribed by the department that the
  identification number has been affixed in the manner and location
  designated by the department and shall submit the form in a manner
  prescribed by the department.
         (h)  Only the department may issue an identification number
  to a motor vehicle, trailer, semitrailer, engine, frame, or body of
  a motor vehicle, or an item of equipment not required to be titled
  but that may be registered or issued license plates under Chapter
  502. The department may not recognize an identification number
  assigned by any other agency or political subdivision of this
  state.
         SECTION 10.  Section 501.036, Transportation Code, is
  amended to read as follows:
         Sec. 501.036.  TITLE FOR FARM TRAILER OR FARM SEMITRAILER.
  (a)  Notwithstanding any other provision of this chapter, the
  department may issue a title for a farm trailer or farm semitrailer
  with a gross vehicle weight of not more than 34,000 [4,000] pounds
  if[:
               [(1)     the farm semitrailer is eligible for registration
  under Section 502.146; and
               [(2)]  all [other] requirements for issuance of a title
  are met.
         (b)  To obtain a title under this section, the owner [of the
  farm semitrailer] must:
               (1)  apply for the title in the manner required by
  Section 501.023; and
               (2)  pay the fee required by Section 501.138.
         (c)  A subsequent purchaser of a farm trailer or farm
  semitrailer titled previously under this section or in another
  jurisdiction must obtain a title under [The department shall adopt
  rules to implement and administer] this section.
         SECTION 11.  Section 501.037, Transportation Code, is
  amended to read as follows:
         Sec. 501.037.  TITLE FOR TRAILERS OR SEMITRAILERS. (a)  
  Notwithstanding any other provision of this chapter, the department
  may issue a title for a trailer or semitrailer that has a gross
  vehicle weight of 4,000 pounds or less if all other requirements for
  issuance of a title are met.
         (b)  To obtain a title under this section, the owner of the
  trailer or semitrailer must:
               (1)  apply for the title in the manner required by
  Section 501.023; and
               (2)  pay the fee required by Section 501.138.
         (c)  A subsequent purchaser of a trailer or semitrailer
  titled previously under this section or in another jurisdiction
  must obtain a title under this section.
         SECTION 12.  Section 501.071(a), Transportation Code, is
  amended to read as follows:
         (a)  Except as provided by Sections 503.036 and [in Section]
  503.039, a motor vehicle may not be the subject of a subsequent sale
  unless the owner designated on the title submits a transfer of
  ownership of the title.
         SECTION 13.  Section 501.072, Transportation Code, is
  amended to read as follows:
         Sec. 501.072.  ODOMETER DISCLOSURE STATEMENT. (a) Except
  as provided by Subsection (c), the transferor [seller] of a motor
  vehicle transferred [sold] in this state shall provide to the
  transferee [buyer, on a form prescribed by the department,] a
  [written] disclosure of the vehicle's odometer reading at the time
  of the transfer in compliance with 49 C.F.R. Part 580 [sale. The
  form must include space for the signature and printed name of both
  the seller and buyer].
         (b)  When application for a [certificate of] title is made,
  the transferee [owner] shall record the [current] odometer reading
  on the application. The [written] disclosure required by
  Subsection (a) must accompany the application.
         (c)  An odometer disclosure statement is not required for the
  transfer [sale] of a motor vehicle that is exempt from odometer
  disclosure requirements under 49 C.F.R. Section 580.17 [:
               [(1)     has a manufacturer's rated carrying capacity of
  more than two tons;
               [(2)  is not self-propelled;
               [(3)  is 10 or more years old;
               [(4)     is sold directly by the manufacturer to an agency
  of the United States government in conformity with contractual
  specifications; or
               [(5)  is a new motor vehicle].
         (d)  The department shall provide for use consistent with 49
  C.F.R. Part 580:
               (1)  a secure power of attorney form; and 
               (2)  a secure reassignment form for licensed motor
  vehicle dealers.
         (e)  In this section, "transferee" and "transferor" have the
  meanings assigned by 49 C.F.R. Section 580.3.
         SECTION 14.  Section 501.091(9), Transportation Code, is
  amended to read as follows:
               (9)  "Nonrepairable motor vehicle" means a motor
  vehicle [that]:
                     (A)  that 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)  that comes into this state under a comparable
  ownership document that indicates that the vehicle is
  nonrepairable;
                     (C)  that a salvage vehicle dealer has reported to
  the department under Section 501.1003;
                     (D)  for which an owner has surrendered evidence
  of ownership for the purpose of dismantling, scrapping, or
  destroying the motor vehicle;
                     (E)  that is sold for export only by a salvage
  motor vehicle dealer under Section 501.099; or
                     (F)  that is sold and the sale is reported as an
  export-only sale to the National Motor Vehicle Title Information
  System by any state, jurisdiction, or entity required to report to
  the National Motor Vehicle Title Information System.
         SECTION 15.  Section 501.09113(a), Transportation Code, is
  amended to read as follows:
         (a)  On receipt of a proper application from the owner of a
  motor vehicle, the department shall issue the applicant the
  appropriate title with any notations determined by the department
  as necessary to describe or disclose the motor vehicle's current or
  former condition if the [This section applies only to a] motor
  vehicle was brought into this state from another state or
  jurisdiction and [that] has on any title or comparable out-of-state
  ownership document issued by the other state or jurisdiction or
  record in the National Motor Vehicle Title Information System
  reported by another state or jurisdiction:
               (1)  a "rebuilt," "repaired," "reconstructed," "flood
  damage," "fire damage," "owner retained," "salvage," or similar
  notation; or
               (2)  a "nonrepairable," "dismantle only," "parts
  only," "junked," "scrapped," "crushed," "totaled," or similar
  notation.
         SECTION 16.  Section 501.097(a), Transportation Code, as
  amended by Chapters 1136 (H.B. 1422) and 1296 (H.B. 2357), Acts of
  the 82nd Legislature, Regular Session, 2011, is reenacted to read
  as follows:
         (a)  An application for a nonrepairable vehicle title,
  nonrepairable record of title, salvage vehicle title, or salvage
  record of title must:
               (1)  be made in a manner 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;
  and
                     (B)  a description of the motor vehicle, including
  the make, style of body, model year, and vehicle identification
  number; 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 17.  Section 501.1001(a), Transportation Code, as
  amended by Chapters 1136 (H.B. 1422) and 1296 (H.B. 2357), Acts of
  the 82nd Legislature, Regular Session, 2011, is reenacted and
  amended to read as follows:
         (a)  Except as provided by Section 501.0925, 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
  salvage motor vehicle or nonrepairable motor vehicle [covered by a
  certificate of title issued by this state or a manufacturer's
  certificate of origin] shall surrender the [a] properly assigned
  evidence of ownership and apply for the appropriate title under
  Section 501.097 [title or manufacturer's certificate of origin to
  the department, on a form prescribed by the department].
         SECTION 18.  Section 501.1002(a), Transportation Code, as
  amended by Chapters 1136 (H.B. 1422) and 1296 (H.B. 2357), Acts of
  the 82nd Legislature, Regular Session, 2011, is reenacted to read
  as follows:
         (a)  If an insurance company pays a claim on a nonrepairable
  motor vehicle or salvage motor vehicle and the insurance company
  does not acquire ownership of the motor vehicle, the insurance
  company shall:
               (1)  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 insurance company:
                     (A)  has paid a claim on the motor vehicle; and
                     (B)  has not acquired ownership of the motor
  vehicle; and
               (2)  provide notice to the owner of the motor vehicle
  of:
                     (A)  the report required under Subdivision (1);
  and
                     (B)  the requirements for operation or transfer of
  ownership of the motor vehicle under Subsection (b).
         SECTION 19.  Section 501.1002(b), Transportation Code, is
  amended to read as follows:
         (b)  The owner of a salvage or nonrepairable motor vehicle
  [to which this section applies] may not [operate or permit
  operation of the motor vehicle on a public highway or] transfer
  ownership of the motor vehicle by sale or otherwise unless the
  department has issued a salvage vehicle title, salvage record of
  title, nonrepairable vehicle title, or nonrepairable record of
  title for the motor vehicle or a comparable ownership document has
  been issued by another state or jurisdiction for the motor vehicle
  in the name of the owner.
         SECTION 20.  Section 501.109, Transportation Code, is
  amended by amending Subsections (d) and (e) and adding Subsections
  (g) and (h) to read as follows:
         (d)  Except as provided by Subsection (e), an offense under
  Subsection (a), (b), or (c) [this section] is a Class C misdemeanor.
         (e)  If it is shown on the trial of an offense under
  Subsection (a), (b), or (c) [this section] that the defendant has
  been previously convicted of:
               (1)  one offense under Subsection (a), (b), or (c)
  [this section], the offense is a Class B misdemeanor; or
               (2)  two or more offenses under Subsection (a), (b), or
  (c) [this section], the offense is a state jail felony.
         (g)  A person commits an offense if the person knowingly
  provides false or incorrect information or without legal authority
  signs the name of another person on:
               (1)  an application for a title to a nonrepairable
  motor vehicle or salvage motor vehicle;
               (2)  an application for a certified copy of an original
  title to a nonrepairable motor vehicle or salvage motor vehicle;
               (3)  an assignment of title for a nonrepairable motor
  vehicle or salvage motor vehicle;
               (4)  a discharge of a lien on a title for a
  nonrepairable motor vehicle or salvage motor vehicle; or
               (5)  any other document required by the department or
  necessary for the transfer of ownership of a nonrepairable motor
  vehicle or salvage motor vehicle.
         (h)  An offense under Subsection (g) is a felony of the third
  degree.
         SECTION 21.  Effective January 1, 2019, the heading to
  Section 501.134, Transportation Code, is amended to read as
  follows:
         Sec. 501.134.  CERTIFIED COPY OF LOST OR DESTROYED
  CERTIFICATE OF TITLE.
         SECTION 22.  Effective January 1, 2019, Sections 501.134(a),
  (b), (c), and (d), Transportation Code, are amended to read as
  follows:
         (a)  If a printed title is lost or destroyed, the owner or
  lienholder disclosed on the title may obtain, in the manner
  provided by this section and department rule, a certified copy of
  the lost or destroyed title directly from the department by
  applying in a manner prescribed by the department and paying a fee
  of $2. A fee collected under this subsection shall be deposited to
  the credit of the Texas Department of Motor Vehicles fund [and may
  be spent only as provided by Section 501.138].
         (b)  If a lien is disclosed on a title, the department may
  issue a certified copy of the [original] title only to the first
  lienholder or the lienholder's verified agent unless the owner has
  original proof from the lienholder of lien satisfaction.
         (c)  The department must plainly mark "certified copy" on the
  face of a certified copy issued under this section. [A subsequent
  purchaser or lienholder of the vehicle only acquires the rights,
  title, or interest in the vehicle held by the holder of the
  certified copy.]
         (d)  A certified copy of the title that is lawfully obtained
  under this section supersedes and invalidates any previously issued
  title or certified copy. If the certified copy of the title is
  later rescinded, canceled, or revoked under Section 501.051, the
  department may revalidate a previously superseded or invalidated
  title or certified copy of title [A purchaser or lienholder of a
  motor vehicle having a certified copy issued under this section may
  at the time of the purchase or establishment of the lien require
  that the seller or owner indemnify the purchaser or lienholder and
  all subsequent purchasers of the vehicle against any loss the
  person may suffer because of a claim presented on the original
  title].
         SECTION 23.  Section 541.201(5), Transportation Code, is
  amended to read as follows:
               (5)  "House trailer" means a trailer or semitrailer,
  other than a towable recreational vehicle, that:
                     (A)  is transportable on a highway in one or more
  sections;
                     (B)  is less than 45 [40] feet in length,
  excluding tow bar, while in the traveling mode;
                     (C)  is built on a permanent chassis;
                     (D)  is designed to be used as a dwelling or for
  commercial purposes if connected to required utilities; and
                     (E)  includes plumbing, heating,
  air-conditioning, and electrical systems.
         SECTION 24.  The following provisions of the Transportation
  Code are repealed:
               (1)  Sections 501.032(c) and (d); and
               (2)  Section 501.09113(b).
         SECTION 25.  Except as otherwise provided by this Act, this
  Act takes effect September 1, 2017.