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