Texas 2019 - 86th Regular

Texas House Bill HB2112 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 2112
	1	+	By: Thompson of Brazoria H.B. No. 2112
	2	+	(Senate Sponsor - Zaffirini)
	3	+	(In the Senate - Received from the House May 6, 2019;
	4	+	May 8, 2019, read first time and referred to Committee on
	5	+	Transportation; May 16, 2019, reported adversely, with favorable
	6	+	Committee Substitute by the following vote: Yeas 9, Nays 0;
	7	+	May 16, 2019, sent to printer.)
	8	+	Click here to see the committee vote
	9	+	COMMITTEE SUBSTITUTE FOR H.B. No. 2112 By: Hinojosa
2	10
3	11
	12	+	A BILL TO BE ENTITLED
4	13		AN ACT
5	14		relating to salvage motor vehicles, including flood vehicles, and
6	15		nonrepairable motor vehicles.
7	16		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	17		SECTION 1. Section 501.091, Transportation Code, is amended
9	18		by adding Subdivision (4-a) to read as follows:
10	19		(4-a) "Flood vehicle":
11	20		(A) means a motor vehicle that was submerged in a
12	21		level of water higher than a doorsill of the vehicle or had water
13	22		enter the passenger, trunk, or engine compartment and:
14	23		(i) water came into contact with
15	24		mechanical, electrical, or computerized components of the vehicle;
16	25		(ii) because of the water, the vehicle
17	26		requires repair to, or replacement of, any mechanical, electrical,
18	27		or computerized component to operate; and
19	28		(iii) an insurance company paid a claim as a
20	29		result of damage from the water; and
21	30		(B) does not include a motor vehicle designed for
22	31		and capable of water submersion for recreational or other purposes
23	32		unless the submersion results in damage to:
24	33		(i) electrical safety components; or
25	34		(ii) a major component part.
26	35		SECTION 2. Sections 501.097(c) and (c-1), Transportation
27	36		Code, are amended to read as follows:
28	37		(c) A [printed] nonrepairable vehicle title must state on
29	38		its face that the motor vehicle:
30	39		(1) may not:
31	40		(A) be repaired, rebuilt, or reconstructed;
32	41		(B) be issued a title or registered in this
33	42		state;
34	43		(C) be operated on a public highway, in addition
35	44		to any other requirement of law; and
36	45		(2) may only be used as a source for used parts or
37	46		scrap metal.
38	47		(c-1) The department's titling system must include a remark
39	48		that clearly identifies the vehicle as a salvage motor vehicle or
40	49		nonrepairable motor vehicle.
41	50		SECTION 3. Section 501.1002, Transportation Code, is
42	51		amended to read as follows:
43	52		Sec. 501.1002. OWNER-RETAINED VEHICLES. (a) If an
44	53		insurance company pays a claim on a nonrepairable motor vehicle or
45	54		salvage motor vehicle and the insurance company does not acquire
46	55		ownership of the motor vehicle, the insurance company shall:
47	56		(1) submit to the department, before the 31st day
48	57		after the date of the payment of the claim, on the form prescribed
49	58		by the department, a report stating that the insurance company:
50	59		(A) has paid a claim on the motor vehicle; [and]
51	60		(B) has not acquired ownership of the motor
52	61		vehicle; and
53	62		(C) has determined that the motor vehicle is a
54	63		salvage motor vehicle or a nonrepairable motor vehicle; and
55	64		(2) provide notice to the owner of the motor vehicle
56	65		of:
57	66		(A) the report required under Subdivision (1);
58	67		[and]
59	68		(B) the requirements for operation or transfer of
60	69		ownership of the motor vehicle under Subsection (b); and
61	70		(C) the insurance company's determination that
62	71		the motor vehicle is a salvage motor vehicle or a nonrepairable
63	72		motor vehicle.
64	73		(b) The owner of a salvage motor vehicle or nonrepairable
65	74		motor vehicle may not transfer ownership of the motor vehicle by
66	75		sale or otherwise unless the department has issued a salvage
67	76		vehicle title, salvage record of title, nonrepairable vehicle
68	77		title, or nonrepairable record of title for the motor vehicle or a
69	78		comparable ownership document has been issued by another state or
70	79		jurisdiction for the motor vehicle in the name of the owner.
71	80		(c) Notwithstanding any other provision of this subchapter,
72	81		on receipt of a report required under Subsection (a) for a vehicle
73	82		described by that subsection, the department shall issue for the
74	83		vehicle in the name of the owner, as applicable:
75	84		(1) a salvage vehicle title or a salvage record of
76	85		title for a salvage motor vehicle; or
77	86		(2) a nonrepairable vehicle title or a nonrepairable
78	87		record of title for a nonrepairable motor vehicle.
79	88		(d) The department shall collect the fee authorized under
80	89		this subchapter for the issuance of a title or record of title under
81	90		Subsection (c). The department shall waive the fee if the report
82	91		required under Subsection (a)(1) is submitted through the
83	92		department's titling system.
84	93		SECTION 4. Subchapter E, Chapter 501, Transportation Code,
85	94		is amended by adding Section 501.1004 to read as follows:
86	95		Sec. 501.1004. FLOOD VEHICLES. (a) A salvage vehicle
87	96		title, salvage record of title, nonrepairable vehicle title, or
88	97		nonrepairable record of title issued by the department for a flood
89	98		vehicle or any title or record of title subsequently issued by the
90	99		department for a flood vehicle must bear a notation that the
91	100		department considers appropriate for a flood vehicle.
92	101		(b) An entity that takes possession of a flood vehicle
93	102		issued ownership documents without the notation required under
94	103		Subsection (a) shall:
95	104		(1) submit, on a form prescribed by the department, a
96	105		report to the department before the 31st day after the date the
97	106		entity takes possession of the flood vehicle, unless the entity:
98	107		(A) is an insurance company or salvage pool
99	108		operator as defined by Section 2302.001, Occupations Code; and
100	109		(B) obtains an ownership document for the vehicle
101	110		that bears the notation required by Subsection (a) before the
102	111		entity transfers the vehicle; and
103	112		(2) if the entity is a lienholder in possession of the
104	113		vehicle under Chapter 54, 59, or 70, Property Code, or Chapter 2303,
105	114		Occupations Code, apply to the department for the appropriate title
106	115		in accordance with Section 501.097 before offering the vehicle for
107	116		public sale.
108	117		SECTION 5. The following provisions are repealed:
109	118		(1) Section 2302.254(c), Occupations Code; and
110	119		(2) Section 501.09112, Transportation Code.
111	120		SECTION 6. This Act takes effect September 1, 2019.
112		-	______________________________ ______________________________
113		-	President of the Senate Speaker of the House
114		-	I certify that H.B. No. 2112 was passed by the House on May 3,
115		-	2019, by the following vote: Yeas 137, Nays 3, 2 present, not
116		-	voting; and that the House concurred in Senate amendments to H.B.
117		-	No. 2112 on May 24, 2019, by the following vote: Yeas 138, Nays 2,
118		-	2 present, not voting.
119		-	______________________________
120		-	Chief Clerk of the House
121		-	I certify that H.B. No. 2112 was passed by the Senate, with
122		-	amendments, on May 22, 2019, by the following vote: Yeas 31, Nays
123		-	0.
124		-	______________________________
125		-	Secretary of the Senate
126		-	APPROVED: __________________
127		-	Date
128		-	__________________
129		-	Governor
	121	+	* * * * *