Texas 2019 - 86th Regular

Texas Senate Bill SB2240 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1		By: West S.B. No. 2240
2		-	(Kuempel)
3	2
4	3
5	4		A BILL TO BE ENTITLED
6	5		AN ACT
7	6		relating to an exception to the titling requirement for certain
8	7		vehicles; creating a criminal offense.
9	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	9		SECTION 1. Subchapter E, Chapter 501, Transportation Code,
11	10		is amended by adding Section 501.098 to read as follows:
12	11		Sec. 501.098. EXCEPTION TO TITLE REQUIREMENT FOR CERTAIN
13	12		VEHICLES. (a) Notwithstanding any other law, a metal recycler or
14	13		used automotive parts recycler may purchase a motor vehicle without
15	14		obtaining a title to the vehicle if:
16	15		(1) the vehicle is at least 12 years old and is
17	16		purchased solely for parts, dismantling, or scrap and:
18	17		(A) the vehicle is not subject to a recorded
19	18		security interest or lien; or
20	19		(B) the vehicle is subject only to recorded
21	20		security interests or liens:
22	21		(i) for which a release of each recorded
23	22		security interest or lien on the vehicle is provided; or
24	23		(ii) that were recorded on the certificate
25	24		of title more than four years before the date of purchase under this
26	25		section;
27	26		(2) the recycler does not dismantle, crush, or shred
28	27		the vehicle before the close of business on the second business day
29	28		after the date of purchase; and
30	29		(3) except as provided by Subsection (k), the recycler
31	30		complies with Subsections (b) and (c).
32	31		(b) A metal recycler or used automotive parts recycler who
33	32		purchases a motor vehicle under this section shall obtain the
34	33		following information:
35	34		(1) the name, address, and National Motor Vehicle
36	35		Title Information System identification number of the recycler;
37	36		(2) the name, initials, or other identification of the
38	37		individual recording the information required by this subsection;
39	38		(3) the date of the transaction;
40	39		(4) a description of the vehicle, including the make
41	40		and model to the extent practicable;
42	41		(5) the vehicle identification number of the vehicle;
43	42		(6) the license plate number of any vehicle
44	43		transporting the vehicle being sold;
45	44		(7) the amount of consideration given for the vehicle;
46	45		(8) a written statement signed by the seller or an
47	46		agent acting on behalf of the seller:
48	47		(A) certifying that the seller or agent has the
49	48		lawful right to sell the vehicle;
50	49		(B) certifying that the vehicle complies with any
51	50		security interest or lien requirements under Subsection (a)(1); and
52	51		(C) acknowledging that a person who falsifies
53	52		information contained in the written statement is subject to
54	53		criminal penalties and restitution for losses incurred as a result
55	54		of the sale of the vehicle based on falsified information contained
56	55		in the statement;
57	56		(9) the name and address of the seller, and the
58	57		seller's agent if applicable;
59	58		(10) a photocopy or electronic scan of:
60	59		(A) a valid driver's license of the seller or the
61	60		seller's agent; or
62	61		(B) any other photographic identification card
63	62		of the seller or the seller's agent issued by any state or federal
64	63		agency; and
65	64		(11) proof demonstrating that the recycler has
66	65		reported the vehicle to the department as provided by Subsection
67	66		(c).
68	67		(c) A metal recycler or used automotive parts recycler who
69	68		purchases a motor vehicle under this section shall submit to the
70	69		department, in the manner prescribed by the department, and the
71	70		National Motor Vehicle Title Information System information
72	71		necessary to satisfy any applicable requirement for reporting
73	72		information to the National Motor Vehicle Title Information System
74	73		in accordance with rules adopted under 28 C.F.R. Section 25.56 not
75	74		later than 24 hours, not counting weekends or official state
76	75		holidays, after the close of business on the day the vehicle was
77	76		received. The department may report information received under
78	77		this subsection to the National Motor Vehicle Title Information
79	78		System on behalf of the recycler. A recycler is not required to
80	79		report information to the National Motor Vehicle Title Information
81	80		System if the department reports the information on behalf of the
82	81		recycler under this subsection.
83	82		(d) Not later than 48 hours after receiving information from
84	83		a recycler under Subsection (c) about a motor vehicle, the
85	84		department shall notify the recycler whether the vehicle has been
86	85		reported stolen.
87	86		(e) If the department notifies a recycler under Subsection
88	87		(d) that a motor vehicle has been reported stolen, the recycler
89	88		shall notify the appropriate local law enforcement agency of the
90	89		current location of the vehicle and provide to the agency
91	90		identifying information of the person who sold the vehicle.
92	91		(f) On receipt of information under Subsection (c)
93	92		regarding a motor vehicle purchased under this section, the
94	93		department shall:
95	94		(1) add a notation to the motor vehicle record of the
96	95		vehicle indicating that the vehicle has been dismantled, scrapped,
97	96		or destroyed; and
98	97		(2) cancel the title of the vehicle.
99	98		(g) A person who purchases a motor vehicle under this
100	99		section that is later determined by the department or another
101	100		governmental entity to have been reported stolen is not criminally
102	101		or civilly liable unless the person had knowledge that the vehicle
103	102		was a stolen vehicle or failed to comply with the requirements of
104	103		Subsection (b) or (c).
105	104		(h) A court shall order a person who sells a motor vehicle
106	105		under this section to make restitution, including attorney's fees,
107	106		to the owner or lienholder of the vehicle, or to a metal recycler or
108	107		used automotive parts recycler, for any damage or loss caused by an
109	108		offense committed by the seller related to the vehicle.
110	109		(i) The records required to be maintained under this section
111	110		must be open to inspection by a representative of the department or
112	111		a law enforcement officer during reasonable business hours.
113	112		(j) A contract with a United States Department of Justice
114	113		approved third-party data consolidator, pursuant to 28 C.F.R. Part
115	114		25, may be used to satisfy:
116	115		(1) the responsibilities of the department under this
117	116		section; and
118	117		(2) the reporting responsibilities of a recycler under
119	118		Subsection (c).
120	119		(k) A metal recycler may purchase from a used automotive
121	120		parts recycler a vehicle under this section without complying with
122	121		Subsections (b) and (c) if:
123	122		(1) the vehicle has been flattened, crushed, baled, or
124	123		logged such that the vehicle is less than 50 percent of its original
125	124		volume;
126	125		(2) the vehicle is purchased for purposes of scrap
127	126		metal only; and
128	127		(3) the seller or an agent acting on behalf of the
129	128		seller of the vehicle certifies to the purchaser that all vehicles
130	129		included in the sale were reported to the department or the National
131	130		Motor Vehicle Title Information System.
132	131		(l) This section preempts all requirements that are
133	132		inconsistent with specific provisions of this section relating to
134	133		the purchase and dismantling, crushing, or shredding of a motor
135	134		vehicle without obtaining the title to the vehicle.
136	135		SECTION 2. Section 501.109, Transportation Code, is amended
137	136		by adding Subsections (c-1) and (i) and amending Subsections (d)
138	137		and (e) to read as follows:
139	138		(c-1) A person commits an offense if the person knowingly:
140	139		(1) fails to obtain or falsifies information required
141	140		under Section 501.098(c);
142	141		(2) falsifies the information required under Section
143	142		501.098(b);
144	143		(3) falsifies the statement required under Section
145	144		501.098(b)(8);
146	145		(4) sells a vehicle under Section 501.098 that is the
147	146		subject of a security interest or lien other than a security
148	147		interest or lien described by Section 501.098(a)(1)(B); or
149	148		(5) otherwise violates Section 501.098.
150	149		(d) Except as provided by Subsection (e), an offense under
151	150		Subsection (a), (b), [or] (c), or (c-1) is a Class C misdemeanor.
152	151		(e) If it is shown on the trial of an offense under
153	152		Subsection (a), (b), [or] (c), or (c-1) that the defendant has been
154	153		previously convicted of:
155	154		(1) one offense under Subsection (a), (b), [or] (c),
156	155		or (c-1), the offense is a Class B misdemeanor; or
157	156		(2) two or more offenses under Subsection (a), (b),
158	157		[or] (c), or (c-1), the offense is a state jail felony.
159	158		(i) Money generated from penalties collected for offenses
160	159		under Subsection (c-1) may be used only for enforcement,
161	160		investigation, prosecution, and training activities related to
162	161		motor vehicle related offenses.
163	162		SECTION 3. This Act takes effect September 1, 2019.