88R9295 JAM-D
By: Thompson of Brazoria H.B. No. 3577
A BILL TO BE ENTITLED
AN ACT
relating to the issuance of title to a salvage pool operator for
certain motor vehicles.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 501.0935, Transportation Code, is
amended by amending Subsections (a), (b), (b-1), (g), and (j) and
adding Subsections (b-2), (c-1), (c-2), (f-1), and (j-1) to read as
follows:
(a) In this section:
(1) "Nonprofit organization" means an organization
exempt from federal income taxation under Section 501(c)(3),
Internal Revenue Code of 1986, as amended.
(2) "Salvage [, "salvage] pool operator" has the
meaning assigned by Section 2302.001, Occupations Code.
(b) This section applies only to a salvage pool operator
who:
(1) [,] 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:
(A) [(1)] denies coverage with respect to the
motor vehicle; or
(B) [(2)] does not otherwise take ownership of
the motor vehicle; or
(2) on request of a nonprofit organization, takes
possession of a motor vehicle that was donated to the nonprofit and
the nonprofit:
(A) does not possess title to the vehicle; and
(B) does not otherwise take ownership of the
motor vehicle.
(b-1) An insurance company described by Subsection (b)(1)
[(b)] shall notify the salvage pool operator of the denial of the
claim regarding the motor vehicle or other disposition of the motor
vehicle. The insurance company must include in the notice the name
and address of the owner of the motor vehicle and the lienholder, if
any.
(b-2) A nonprofit organization described by Subsection
(b)(2) shall notify the salvage pool operator of the disposition of
the motor vehicle and must include in the notice the name and
address of:
(1) the person who donated the motor vehicle;
(2) the previous owner of the motor vehicle; and
(3) any lienholder, if known.
(c-1) Before the 15th day after receiving notice under
Subsection (b-2), a salvage pool operator shall notify the owner of
the motor vehicle and any lienholder that:
(1) 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 not later
than the 60th day after the date the notice is mailed; and
(2) if the motor vehicle is not removed within the time
specified in the notice, the salvage pool operator will sell the
motor vehicle and retain the proceeds of the sale.
(c-2) A salvage pool operator shall provide subsequent
notice described by Subsection (c-1) to the owner of the motor
vehicle and any lienholder not later than the 30th and 45th day
after receiving notice under Subsection (b-2) if the motor vehicle
was not removed after the preceding notice.
(f-1) If a motor vehicle is not removed from a salvage pool
operator's possession before the 61st day after the date notice is
mailed to the motor vehicle's owner and any lienholder under
Subsection (c-1), the salvage pool operator may obtain from the
department:
(1) a salvage vehicle title for a salvage motor
vehicle; or
(2) a nonrepairable vehicle title for a nonrepairable
motor vehicle.
(g) An application for a title under Subsection (f) or
(f-1), as applicable, 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 Subsections [Subsection] (c), (c-1), and (c-2), as
applicable, to the motor vehicle owner and any lienholder.
(j) On receipt of a title under this section for a motor
vehicle described by Subsection (b)(1), the salvage pool operator
shall:
(1) sell the motor vehicle and retain from the
proceeds of the sale the costs incurred by the salvage pool operator
as permitted by Subsection (d) along with the cost of titling and
selling the motor vehicle; and
(2) [. The salvage pool operator shall] pay any excess
proceeds from the sale to the previous owner of the motor vehicle
and the lienholder, if any, by mailing the [. The] excess proceeds
[must be mailed] to the lienholder.
(j-1) On receipt of a title under this section for a motor
vehicle described by Subsection (b)(2), the salvage pool operator
may sell the motor vehicle and retain the proceeds of the sale.
SECTION 2. This Act takes effect September 1, 2023.