| 1 | 1 | | By: Thompson of Brazoria H.B. No. 3577 |
|---|
| 2 | 2 | | |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | A BILL TO BE ENTITLED |
|---|
| 5 | 5 | | AN ACT |
|---|
| 6 | 6 | | relating to the issuance of title to a salvage pool operator for |
|---|
| 7 | 7 | | certain motor vehicles. |
|---|
| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 9 | 9 | | SECTION 1. The heading to Section 501.0935, Transportation |
|---|
| 10 | 10 | | Code, is amended to read as follows: |
|---|
| 11 | 11 | | Sec. 501.0935. ISSUANCE OF TITLE TO SALVAGE POOL OPERATOR; |
|---|
| 12 | 12 | | INSURANCE COMPANIES. |
|---|
| 13 | 13 | | SECTION 2. Subchapter E, Chapter 501, Transportation Code, |
|---|
| 14 | 14 | | is amended by adding Section 501.094 to read as follows: |
|---|
| 15 | 15 | | Sec. 501.094. ISSUANCE OF TITLE TO SALVAGE POOL OPERATOR; |
|---|
| 16 | 16 | | NONPROFIT ORGANIZATIONS. (a) In this section: |
|---|
| 17 | 17 | | (1) "Nonprofit organization" means an organization |
|---|
| 18 | 18 | | exempt from federal income taxation under Section 501(c)(3), |
|---|
| 19 | 19 | | Internal Revenue Code of 1986, as amended. |
|---|
| 20 | 20 | | (2) "Salvage pool operator" has the meaning assigned |
|---|
| 21 | 21 | | by Section 2302.001, Occupations Code. |
|---|
| 22 | 22 | | (b) This section applies only to a salvage pool operator |
|---|
| 23 | 23 | | who, on request of a nonprofit organization, takes possession of a |
|---|
| 24 | 24 | | motor vehicle that was donated to the nonprofit and the nonprofit: |
|---|
| 25 | 25 | | (1) does not possess title to the motor vehicle; and |
|---|
| 26 | 26 | | (2) does not otherwise take ownership of the motor |
|---|
| 27 | 27 | | vehicle. |
|---|
| 28 | 28 | | (c) A nonprofit organization described by Subsection (b) |
|---|
| 29 | 29 | | shall notify the salvage pool operator of the disposition of the |
|---|
| 30 | 30 | | motor vehicle and must include in the notice the name and address |
|---|
| 31 | 31 | | of: |
|---|
| 32 | 32 | | (1) the person who donated the motor vehicle; |
|---|
| 33 | 33 | | (2) the previous owner of the motor vehicle; and |
|---|
| 34 | 34 | | (3) any lienholder, if known. |
|---|
| 35 | 35 | | (d) Before the 15th day after receiving notice under |
|---|
| 36 | 36 | | Subsection (c), a salvage pool operator shall notify the owner of |
|---|
| 37 | 37 | | the motor vehicle and any lienholder that: |
|---|
| 38 | 38 | | (1) the owner or lienholder must remove the motor |
|---|
| 39 | 39 | | vehicle from the salvage pool operator's possession at the location |
|---|
| 40 | 40 | | specified in the notice to the owner and any lienholder not later |
|---|
| 41 | 41 | | than the 45th day after the date the notice is mailed; and |
|---|
| 42 | 42 | | (2) if the motor vehicle is not removed within the time |
|---|
| 43 | 43 | | specified in the notice, the salvage pool operator will sell the |
|---|
| 44 | 44 | | motor vehicle and retain the proceeds of the sale. |
|---|
| 45 | 45 | | (e) A salvage pool operator shall provide subsequent notice |
|---|
| 46 | 46 | | described by Subsection (d) to the owner of the motor vehicle and |
|---|
| 47 | 47 | | any lienholder not later than the 25th and 35th day after receiving |
|---|
| 48 | 48 | | notice under Subsection (c) if the motor vehicle was not removed |
|---|
| 49 | 49 | | after the preceding notice. |
|---|
| 50 | 50 | | (f) The notice required of a salvage pool operator under |
|---|
| 51 | 51 | | this section must be sent by registered or certified mail, return |
|---|
| 52 | 52 | | receipt requested. |
|---|
| 53 | 53 | | (g) If a motor vehicle is not removed from a salvage pool |
|---|
| 54 | 54 | | operator's possession before the 46th day after the date initial |
|---|
| 55 | 55 | | notice is mailed to the motor vehicle's owner and any lienholder |
|---|
| 56 | 56 | | under Subsection (d), the salvage pool operator may obtain from the |
|---|
| 57 | 57 | | department: |
|---|
| 58 | 58 | | (1) a salvage vehicle title for a salvage motor |
|---|
| 59 | 59 | | vehicle; or |
|---|
| 60 | 60 | | (2) a nonrepairable vehicle title for a nonrepairable |
|---|
| 61 | 61 | | motor vehicle. |
|---|
| 62 | 62 | | (h) An application for a title under Subsection (g) must: |
|---|
| 63 | 63 | | (1) be submitted to the department on a form |
|---|
| 64 | 64 | | prescribed by the department; and |
|---|
| 65 | 65 | | (2) include evidence that the notice was mailed as |
|---|
| 66 | 66 | | required by Subsections (d) and (e), as applicable, to the motor |
|---|
| 67 | 67 | | vehicle owner and any lienholder. |
|---|
| 68 | 68 | | (i) A title issued under this section must be issued in the |
|---|
| 69 | 69 | | name of the salvage pool operator. |
|---|
| 70 | 70 | | (j) The department shall issue the appropriate title to a |
|---|
| 71 | 71 | | person authorized to apply for the title under this section if the |
|---|
| 72 | 72 | | department determines that the application is complete and complies |
|---|
| 73 | 73 | | with applicable law. |
|---|
| 74 | 74 | | (k) On receipt of a title under this section for a motor |
|---|
| 75 | 75 | | vehicle described by Subsection (b), the salvage pool operator may |
|---|
| 76 | 76 | | sell the motor vehicle and retain the proceeds of the sale. |
|---|
| 77 | 77 | | SECTION 3. This Act takes effect September 1, 2023. |
|---|