88R3515 JAM-F
 
  By: Raney H.B. No. 4424
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to an exception to the titling requirement for certain
  motor vehicles; creating a criminal offense.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter E, Chapter 501, Transportation Code,
  is amended by adding Section 501.098 to read as follows:
         Sec. 501.098.  EXCEPTION TO TITLE REQUIREMENT FOR CERTAIN
  VEHICLES. (a) Notwithstanding any other law, a metal recycler or
  used automotive parts recycler may purchase a motor vehicle without
  obtaining a title to the vehicle if:
               (1)  the vehicle is at least 12 years old and is
  purchased solely for parts, dismantling, or scrap and:
                     (A)  the vehicle is not subject to a recorded
  security interest or lien; or
                     (B)  the vehicle is subject only to recorded
  security interests or liens:
                           (i) for which a release of each recorded
  security interest or lien on the vehicle is provided; or
                           (ii)  that were recorded on the certificate
  of title more than six years before the date of purchase under this
  section;
               (2)  the recycler does not dismantle, crush, or shred
  the vehicle before the close of business on the third business day
  after the date the recycler submitted to the department the
  information required under Subsection (c); and
               (3)  except as provided by Subsection (k), the recycler
  complies with Subsections (b) and (c).
         (b)  A metal recycler or used automotive parts recycler who
  purchases a motor vehicle under this section shall obtain the
  following information:
               (1)  the name, address, and National Motor Vehicle
  Title Information System identification number of the recycler;
               (2)  the name, initials, or other identification of the
  individual recording the information required by this subsection;
               (3)  the date of the transaction;
               (4)  a description of the vehicle, including the make
  and model to the extent practicable;
               (5)  the vehicle identification number of the vehicle;
               (6)  the license plate number of any vehicle
  transporting the vehicle being sold;
               (7)  the amount of consideration given for the vehicle;
               (8)  a written statement signed by the seller or an
  agent acting on behalf of the seller:
                     (A)  certifying that the seller or agent has the
  lawful right to sell the vehicle;
                     (B)  certifying that the vehicle complies with any
  security interest or lien requirements under Subsection (a)(1); and
                     (C)  acknowledging that a person who falsifies
  information contained in the written statement is subject to
  criminal penalties and restitution for losses incurred as a result
  of the sale of the vehicle based on falsified information contained
  in the statement;
               (9)  the name and address of the seller, and the
  seller's agent if applicable;
               (10)  a photocopy or electronic scan of:
                     (A)  a valid driver's license of the seller or the
  seller's agent; or
                     (B)  any other photographic identification card
  of the seller or the seller's agent issued by any state or federal
  agency; and
               (11)  proof demonstrating that the recycler has
  reported the vehicle to the department as provided by Subsection
  (c).
         (c)  A metal recycler or used automotive parts recycler who
  purchases a motor vehicle under this section shall submit to the
  department, in the manner prescribed by the department, and the
  National Motor Vehicle Title Information System information
  necessary to satisfy any applicable requirement for reporting
  information to the National Motor Vehicle Title Information System
  in accordance with rules adopted under 28 C.F.R. Section 25.56 not
  later than 24 hours, not counting weekends or official state
  holidays, after the close of business on the day the vehicle was
  received. The department may report information received under this
  subsection to the National Motor Vehicle Title Information System
  on behalf of the recycler.  A recycler is not required to report
  information to the National Motor Vehicle Title Information System
  if the department reports the information on behalf of the recycler
  under this subsection.
         (d)  Not later than 48 hours after receiving information from
  a recycler under Subsection (c) about a motor vehicle, the
  department shall notify the recycler whether the vehicle has been
  reported stolen.
         (e)  If the department notifies a recycler under Subsection
  (d) that a motor vehicle has been reported stolen, the recycler
  shall notify the appropriate local law enforcement agency of the
  current location of the vehicle and provide to the agency
  identifying information of the person who sold the vehicle.
         (f)  On receipt of information under Subsection (c)
  regarding a motor vehicle purchased under this section, the
  department shall:
               (1)  add a notation to the motor vehicle record of the
  vehicle indicating that the vehicle has been dismantled, scrapped,
  or destroyed; and
               (2)  cancel the title of the vehicle.
         (g)  A person who purchases a motor vehicle under this
  section that is later determined by the department or another
  governmental entity to have been reported stolen is not criminally
  or civilly liable unless the person had knowledge that the vehicle
  was a stolen vehicle or failed to comply with the requirements of
  Subsection (b) or (c).
         (h)  A court shall order a person who sells a motor vehicle
  under this section to make restitution, including attorney's fees,
  to the owner or lienholder of the vehicle, or to a metal recycler or
  used automotive parts recycler, for any damage or loss caused by an
  offense committed by the seller related to the vehicle.
         (i)  The records required to be maintained under this section
  must be open to inspection by a representative of the department or
  a law enforcement officer during reasonable business hours.
         (j)  A contract with a United States Department of Justice
  approved third-party data consolidator, pursuant to 28 C.F.R. Part
  25, may be used to satisfy: 
               (1)  the responsibilities of the department under this
  section; and 
               (2)  the reporting responsibilities of a recycler under
  Subsection (c).
         (k)  A metal recycler may purchase from a used automotive
  parts recycler a vehicle under this section without complying with
  Subsections (b) and (c) if:
               (1)  the vehicle has been flattened, crushed, baled, or
  logged such that the vehicle is less than 50 percent of its original
  volume;
               (2)  the vehicle is purchased for purposes of scrap
  metal only; and
               (3)  the seller or an agent acting on behalf of the
  seller of the vehicle certifies to the purchaser that all vehicles
  included in the sale were reported to the department or the National
  Motor Vehicle Title Information System.
         (l)  This section preempts all requirements that are
  inconsistent with specific provisions of this section relating to
  the purchase and dismantling, crushing, or shredding of a motor
  vehicle without obtaining the title to the vehicle.
         SECTION 2.  Section 501.109, Transportation Code, is amended
  by adding Subsections (c-1) and (i) and amending Subsections (d)
  and (e) to read as follows:
         (c-1)  A person commits an offense if the person knowingly:
               (1)  fails to obtain or falsifies information required
  under Section 501.098(c);
               (2)  falsifies the information required under Section
  501.098(b);
               (3)  falsifies the statement required under Section
  501.098(b)(8);
               (4)  sells a vehicle under Section 501.098 that is the
  subject of a security interest or lien other than a security
  interest or lien described by Section 501.098(a)(1)(B); or
               (5)  otherwise violates Section 501.098.
         (d)  Except as provided by Subsection (e), an offense under
  Subsection (a), (b), [or] (c), or (c-1) is a Class C misdemeanor.
         (e)  If it is shown on the trial of an offense under
  Subsection (a), (b), [or] (c), or (c-1) that the defendant has been
  previously convicted of:
               (1)  one offense under Subsection (a), (b), [or] (c),
  or (c-1), the offense is a Class B misdemeanor; or
               (2)  two or more offenses under Subsection (a), (b),
  [or] (c), or (c-1), the offense is a state jail felony.
         (i)  Money generated from penalties collected for offenses
  under Subsection (c-1) may be used only for enforcement,
  investigation, prosecution, and training activities related to
  motor vehicle related offenses.
         SECTION 3.  This Act takes effect September 1, 2023.