82R5128 MTB-F
By: Truitt H.B. No. 1422
A BILL TO BE ENTITLED
AN ACT
relating to the issuance of titles for certain motor vehicles that
are the subject of insurance claims.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 501.092(a), (c), and (d),
Transportation Code, are amended to read as follows:
(a) Except as provided by Section 502.0925, an [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 a properly
assigned title or manufacturer's certificate of origin to the
department, on a form prescribed by the department[, except that
not earlier than the 46th day after the date of payment of the claim
the insurance company may surrender a certificate of title, on a
form prescribed by the department, and receive a salvage
certificate of title or a nonrepairable certificate of title
without obtaining a properly assigned certificate of title if the
insurance company:
[(1) has obtained the release of all liens on the motor
vehicle;
[(2) is unable to locate one or more owners of the
motor vehicle; and
[(3) has provided notice to the last known address in
the department's records to each owner that has not been located:
[(A) by registered or certified mail, return
receipt requested; or
[(B) if a notice sent under Paragraph (A) is
returned unclaimed, by publication in a newspaper of general
circulation in the area where the unclaimed mail notice was sent].
(c) An insurance company may not sell a salvage motor
vehicle or nonrepairable motor vehicle [to which this section
applies] unless the department has issued a salvage vehicle title
or a nonrepairable vehicle title, as appropriate, for the motor
vehicle or a comparable ownership document has been issued by
another state or jurisdiction for the motor vehicle.
(d) An insurance company may sell a salvage motor vehicle or
nonrepairable motor vehicle [to which this section applies], or
assign a salvage vehicle title or a nonrepairable vehicle title for
a [the] motor vehicle, only to a salvage vehicle dealer, an
out-of-state buyer, a buyer in a casual sale at auction, a metal
recycler, or a used automotive parts recycler. If a [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 2. Subchapter E, Chapter 501, Transportation Code,
is amended by adding Sections 501.0925 and 501.0935 to read as
follows:
Sec. 501.0925. INSURANCE COMPANY NOT REQUIRED TO SURRENDER
CERTIFICATES OF TITLE IN CERTAIN SITUATIONS. (a) An insurance
company that acquires, through payment of a claim, ownership or
possession of a motor vehicle covered by a certificate of title that
the company is unable to obtain may obtain from the department not
earlier than the 30th day after the date of payment of the claim:
(1) a salvage vehicle title for a salvage motor
vehicle;
(2) a nonrepairable vehicle title for a nonrepairable
motor vehicle; or
(3) a regular certificate of title for a motor vehicle
other than a salvage motor vehicle or a nonrepairable motor
vehicle.
(b) An application for a title under Subsection (a) must be
submitted to the department on a form prescribed by the department
and include:
(1) a statement that the insurance company has
provided at least two written notices attempting to obtain the
certificate of title for the motor vehicle; and
(2) evidence acceptable to the department that the
insurance company has made payment of a claim involving the motor
vehicle.
(c) An insurance company that acquires, through payment of a
claim, ownership or possession of a motor vehicle covered by a
certificate of title for which the company is unable to obtain
proper assignment of the certificate may obtain from the department
not earlier than the 30th day after the date of payment of the
claim:
(1) a salvage vehicle title for a salvage motor
vehicle;
(2) a nonrepairable vehicle title for a nonrepairable
motor vehicle; or
(3) a regular certificate of title for a motor vehicle
other than a salvage motor vehicle or a nonrepairable motor
vehicle.
(d) An application for a title under Subsection (c) must be
submitted to the department on a form prescribed by the department
and include:
(1) a statement that the insurance company has
provided at least two written notices attempting to obtain a proper
assignment of the certificate of title; and
(2) the certificate of title.
(e) A title issued under Subsection (a) or (c) must be
issued in the name of the insurance company.
(f) An insurance company that acquires, through payment of a
claim, ownership or possession of a salvage motor vehicle or
nonrepairable motor vehicle covered by an out-of-state ownership
document may obtain from the department a salvage vehicle title or
nonrepairable vehicle title if:
(1) the motor vehicle was damaged or stolen in this
state;
(2) the motor vehicle owner from whom the company
acquired ownership resides in this state; or
(3) otherwise allowed by department rule.
(g) A title may be issued under Subsection (f) if the
insurance company:
(1) surrenders a properly assigned title on a form
prescribed by the department; or
(2) complies with the application process for a title
issued under Subsection (a) or (c).
(h) The department shall issue the appropriate title to a
person authorized to apply for the title under this section if the
department determines that the application is complete and complies
with applicable law.
(i) The department by rule may provide that a person
required by this section to provide notice may provide the notice
electronically, including through the use of e-mail or an
interactive website established by the department for that purpose.
(j) Sections 501.092(c), (d), and (e) apply to a motor
vehicle acquired by an insurance company as described in Subsection
(a), (c), or (f).
(k) The department may adopt rules to implement this
section.
Sec. 501.0935. ISSUANCE OF TITLE TO SALVAGE POOL OPERATOR.
(a) In this section, "salvage pool operator" has the meaning
assigned by Section 2302.001, Occupations Code.
(b) This section applies only to a salvage pool operator
who, on request of an insurance company, takes possession of a motor
vehicle that is the subject of an insurance claim and the insurance
company subsequently:
(1) denies coverage with respect to the motor vehicle;
or
(2) does not otherwise take ownership of the motor
vehicle.
(c) On receiving notice from the insurance company of the
denial of the claim regarding the motor vehicle or other
disposition of the motor vehicle, a salvage pool operator shall
notify the owner of the motor vehicle and any lienholder that the
owner or lienholder must remove the motor vehicle from the salvage
pool operator's possession at the location specified in the notice
to the owner and any lienholder:
(1) not later than the 30th day after the date the
notice is mailed; and
(2) on payment of any costs incurred by the salvage
pool operator in obtaining and disposing of the motor vehicle.
(d) The salvage pool operator may only include in the costs
described by Subsection (c)(2) costs incurred by the salvage pool
operator that have not been reimbursed by a third party or are not
subject to being reimbursed by a third party.
(e) The notice required of a salvage pool operator under
this section must be sent by registered or certified mail, return
receipt requested.
(f) If a motor vehicle is not removed from a salvage pool
operator's possession before the 31st day after the date notice is
mailed to the motor vehicle's owner and any lienholder under
Subsection (c), the salvage pool operator may obtain from the
department:
(1) a salvage vehicle title for a salvage motor
vehicle;
(2) a nonrepairable vehicle title for a nonrepairable
motor vehicle; or
(3) a regular certificate of title for a motor vehicle
other than a salvage motor vehicle or a nonrepairable motor
vehicle.
(g) An application for a title under Subsection (f) must:
(1) be submitted to the department on a form
prescribed by the department; and
(2) include evidence that the notice was mailed as
required by Subsection (c) to the motor vehicle owner and any
lienholder.
(h) On request of a salvage pool operator, the name and
address of the owner and any lienholder of a motor vehicle described
by Subsection (b) must be provided to the salvage pool operator by:
(1) the insurance company that received the claim
regarding the motor vehicle; and
(2) the department, if the motor vehicle is covered by
a certificate of title issued by this state.
(i) If both the department and the insurance company fail to
provide the requested information before the 31st day after the
date it is requested under Subsection (h), the salvage pool
operator:
(1) shall inform the department of the failure; and
(2) after informing the department of the failure
regarding a motor vehicle that is covered by a title issued by this
state, may, without providing evidence that the notice was mailed
as required by Subsection (c), obtain from the department a salvage
vehicle title for a salvage motor vehicle, a nonrepairable vehicle
title for a nonrepairable motor vehicle, or a regular certificate
of title for a vehicle other than a salvage motor vehicle or a
nonrepairable motor vehicle.
(j) A salvage pool operator may obtain a title under
Subsection (i) for a motor vehicle that is covered by a title issued
by another state or jurisdiction by submitting in a form prescribed
by the department:
(1) documentation of a good faith effort to obtain the
name and address of the motor vehicle owner and any lienholder from
a bona fide commercial provider of that type of information; and
(2) evidence that the salvage pool operator published
a notice as described by Subsection (k) in a newspaper of general
circulation that serves the area in which the salvage pool
operator's facility is located.
(k) The notice published under Subsection (j)(2) must state
that the motor vehicle owner or any lienholder must remove the motor
vehicle from the salvage pool operator's possession at a specified
location not later than the 30th day after the date the notice is
published.
(l) A title issued under this section must be issued in the
name of the salvage pool operator.
(m) The department shall issue the appropriate title to a
person authorized to apply for the title under this section if the
department determines that the application is complete and complies
with applicable law.
SECTION 3. Sections 501.097(a) and (b), Transportation
Code, are 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, 501.0925, 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; or
(v) is a motor vehicle subject to Section
501.0935; 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.
(b) Except as provided by Sections 501.0925 and 501.0935, on
[On] receipt of a complete application, the properly assigned title
or manufacturer's certificate of origin, and the application fee,
the department shall, before the sixth business day after the date
the department receives the application, issue the applicant the
appropriate title for the motor vehicle.
SECTION 4. Section 501.102, Transportation Code, is amended
by adding Subsection (f) to read as follows:
(f) Subsection (c) does not apply to an applicant for a
title under Section 501.0925 or 501.0935.
SECTION 5. The change in law made by this Act to Section
501.102, Transportation Code, applies only to an offense committed
on or after the effective date of this Act. An offense committed
before the effective date of this Act is governed by the law in
effect on the date the offense was committed, and the former law is
continued in effect for that purpose. For purposes of this section,
an offense was committed before the effective date of this Act if
any element of the offense occurred before that date.
SECTION 6. This Act takes effect September 1, 2011.