86R27763 BEE-F
By: Thompson of Brazoria H.B. No. 2112
Substitute the following for H.B. No. 2112:
By: King of Uvalde C.S.H.B. No. 2112
A BILL TO BE ENTITLED
AN ACT
relating to salvage motor vehicles, including flood vehicles, and
nonrepairable motor vehicles.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 501.091, Transportation Code, is amended
by adding Subdivision (4-a) and amending Subdivision (15) to read
as follows:
(4-a) "Flood vehicle":
(A) means a motor vehicle that was submerged in a
level of water higher than a doorsill of the vehicle or had water
enter the passenger, trunk, or engine compartment and:
(i) water came into contact with electrical
components of the vehicle;
(ii) because of the water, the vehicle
requires repair to, or replacement of, any mechanical component to
operate; or
(iii) an insurance company paid a claim as a
result of damage from the water; and
(B) does not include a motor vehicle designed for
and capable of water submersion for recreational or other purposes
unless the submersion results in damage to:
(i) electrical safety components; or
(ii) a major component part.
(15) "Salvage motor vehicle" means a motor vehicle
that:
(A) has damage to or is missing a major component
part to the extent that the cost of repairs, including parts and
labor other than the cost of materials and labor for repainting the
motor vehicle and excluding sales tax on the total cost of repairs,
exceeds the actual cash value of the motor vehicle immediately
before the damage; [or]
(B) comes into this state under an out-of-state
salvage motor vehicle title or similar out-of-state ownership
document; or
(C) is a flood vehicle.
SECTION 2. Sections 501.097(c) and (c-1), Transportation
Code, are amended to read as follows:
(c) A [printed] nonrepairable vehicle title must state on
its face that the motor vehicle:
(1) may not:
(A) be repaired, rebuilt, or reconstructed;
(B) be issued a title or registered in this
state;
(C) be operated on a public highway, in addition
to any other requirement of law; and
(2) may only be used as a source for used parts or
scrap metal.
(c-1) The department's titling system must include a remark
that clearly identifies the vehicle as a salvage motor vehicle or
nonrepairable motor vehicle.
SECTION 3. Section 501.1002, Transportation Code, is
amended to read as follows:
Sec. 501.1002. OWNER-RETAINED VEHICLES. (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
(C) has determined that the motor vehicle is a
salvage motor vehicle or a nonrepairable 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); and
(C) the insurance company's determination that
the motor vehicle is a salvage motor vehicle or a nonrepairable
motor vehicle.
(b) The owner of a salvage motor vehicle or nonrepairable
motor vehicle may not 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.
(c) Notwithstanding any other provision of this subchapter,
on receipt of a report required under Subsection (a) for a vehicle
described by that subsection, the department shall issue for the
vehicle in the name of the owner, as applicable:
(1) a salvage vehicle title or a salvage record of
title for a salvage motor vehicle; or
(2) a nonrepairable vehicle title or a nonrepairable
record of title for a nonrepairable motor vehicle.
(d) The department shall collect the fee authorized under
this subchapter for the issuance of a title or record of title under
Subsection (c). The department shall waive the fee if the report
required under Subsection (a)(1) is submitted through the
department's titling system.
SECTION 4. Subchapter E, Chapter 501, Transportation Code,
is amended by adding Section 501.1004 to read as follows:
Sec. 501.1004. FLOOD VEHICLES. (a) A salvage vehicle
title, salvage record of title, nonrepairable vehicle title, or
nonrepairable record of title issued by the department for a flood
vehicle or any title or record of title subsequently issued by the
department for a flood vehicle must bear a notation that the
department considers appropriate for a flood vehicle.
(b) An entity that takes possession of a flood vehicle
issued ownership documents without the notation required under
Subsection (a) shall:
(1) submit, on a form prescribed by the department, a
report to the department before the 31st day after the date the
entity takes possession of the flood vehicle, unless the entity:
(A) is an insurance company or salvage pool
operator as defined by Section 2302.001, Occupations Code; and
(B) obtains an ownership document for the vehicle
that bears the notation required by Subsection (a) before the
entity transfers the vehicle; and
(2) if the entity is a lienholder in possession of the
vehicle under Chapter 54, 59, or 70, Property Code, or Chapter 2303,
Occupations Code, apply to the department for the appropriate title
in accordance with Section 501.097 before offering the vehicle for
public sale.
SECTION 5. The following provisions are repealed:
(1) Section 2302.254(c), Occupations Code; and
(2) Section 501.09112, Transportation Code.
SECTION 6. This Act takes effect September 1, 2019.