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A BILL TO BE ENTITLED
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AN ACT
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relating to the issuance of title to a salvage pool operator for |
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certain motor vehicles. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 501.0935, Transportation |
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Code, is amended to read as follows: |
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Sec. 501.0935. ISSUANCE OF TITLE TO SALVAGE POOL OPERATOR; |
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INSURANCE COMPANIES. |
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SECTION 2. Subchapter E, Chapter 501, Transportation Code, |
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is amended by adding Section 501.094 to read as follows: |
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Sec. 501.094. ISSUANCE OF TITLE TO SALVAGE POOL OPERATOR; |
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NONPROFIT ORGANIZATIONS. (a) In this section: |
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(1) "Nonprofit organization" means an organization |
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exempt from federal income taxation under Section 501(c)(3), |
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Internal Revenue Code of 1986, as amended. |
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(2) "Salvage pool operator" has the meaning assigned |
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by Section 2302.001, Occupations Code. |
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(b) This section applies only to a salvage pool operator |
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who, on request of a nonprofit organization, takes possession of a |
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motor vehicle that was donated to the nonprofit and the nonprofit: |
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(1) does not possess title to the motor vehicle; and |
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(2) does not otherwise take ownership of the motor |
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vehicle. |
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(c) A nonprofit organization described by Subsection (b) |
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shall notify the salvage pool operator of the disposition of the |
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motor vehicle and must include in the notice the name and address |
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of: |
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(1) the person who donated the motor vehicle; |
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(2) the previous owner of the motor vehicle; and |
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(3) any lienholder, if known. |
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(d) Before the 15th day after receiving notice under |
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Subsection (c), a salvage pool operator shall notify the owner of |
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the motor vehicle and any lienholder that: |
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(1) the owner or lienholder must remove the motor |
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vehicle from the salvage pool operator's possession at the location |
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specified in the notice to the owner and any lienholder not later |
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than the 60th day after the date the notice is mailed; and |
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(2) if the motor vehicle is not removed within the time |
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specified in the notice, the salvage pool operator will sell the |
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motor vehicle and retain the proceeds of the sale. |
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(e) A salvage pool operator shall provide subsequent notice |
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described by Subsection (d) to the owner of the motor vehicle and |
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any lienholder not later than the 30th and 45th day after receiving |
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notice under Subsection (c) if the motor vehicle was not removed |
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after the preceding notice. |
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(f) The notice required of a salvage pool operator under |
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this section must be sent by registered or certified mail, return |
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receipt requested. |
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(g) If a motor vehicle is not removed from a salvage pool |
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operator's possession before the 61st day after the date notice is |
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mailed to the motor vehicle's owner and any lienholder under |
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Subsection (d), the salvage pool operator may obtain from the |
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department: |
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(1) a salvage vehicle title for a salvage motor |
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vehicle; or |
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(2) a nonrepairable vehicle title for a nonrepairable |
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motor vehicle. |
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(h) An application for a title under Subsection (g) must: |
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(1) be submitted to the department on a form |
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prescribed by the department; and |
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(2) include evidence that the notice was mailed as |
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required by Subsections (d) and (e), as applicable, to the motor |
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vehicle owner and any lienholder. |
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(i) A title issued under this section must be issued in the |
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name of the salvage pool operator. |
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(j) The department shall issue the appropriate title to a |
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person authorized to apply for the title under this section if the |
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department determines that the application is complete and complies |
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with applicable law. |
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(k) On receipt of a title under this section for a motor |
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vehicle described by Subsection (b), the salvage pool operator may |
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sell the motor vehicle and retain the proceeds of the sale. |
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SECTION 3. This Act takes effect September 1, 2023. |