Texas 2023 - 88th Regular

Texas House Bill HB4424 Compare Versions

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1	1	88R3515 JAM-F
2	2	By: Raney H.B. No. 4424
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to an exception to the titling requirement for certain
8	8	motor vehicles; creating a criminal offense.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter E, Chapter 501, Transportation Code,
11	11	is amended by adding Section 501.098 to read as follows:
12	12	Sec. 501.098. EXCEPTION TO TITLE REQUIREMENT FOR CERTAIN
13	13	VEHICLES. (a) Notwithstanding any other law, a metal recycler or
14	14	used automotive parts recycler may purchase a motor vehicle without
15	15	obtaining a title to the vehicle if:
16	16	(1) the vehicle is at least 12 years old and is
17	17	purchased solely for parts, dismantling, or scrap and:
18	18	(A) the vehicle is not subject to a recorded
19	19	security interest or lien; or
20	20	(B) the vehicle is subject only to recorded
21	21	security interests or liens:
22	22	(i) for which a release of each recorded
23	23	security interest or lien on the vehicle is provided; or
24	24	(ii) that were recorded on the certificate
25	25	of title more than six years before the date of purchase under this
26	26	section;
27	27	(2) the recycler does not dismantle, crush, or shred
28	28	the vehicle before the close of business on the third business day
29	29	after the date the recycler submitted to the department the
30	30	information required under Subsection (c); and
31	31	(3) except as provided by Subsection (k), the recycler
32	32	complies with Subsections (b) and (c).
33	33	(b) A metal recycler or used automotive parts recycler who
34	34	purchases a motor vehicle under this section shall obtain the
35	35	following information:
36	36	(1) the name, address, and National Motor Vehicle
37	37	Title Information System identification number of the recycler;
38	38	(2) the name, initials, or other identification of the
39	39	individual recording the information required by this subsection;
40	40	(3) the date of the transaction;
41	41	(4) a description of the vehicle, including the make
42	42	and model to the extent practicable;
43	43	(5) the vehicle identification number of the vehicle;
44	44	(6) the license plate number of any vehicle
45	45	transporting the vehicle being sold;
46	46	(7) the amount of consideration given for the vehicle;
47	47	(8) a written statement signed by the seller or an
48	48	agent acting on behalf of the seller:
49	49	(A) certifying that the seller or agent has the
50	50	lawful right to sell the vehicle;
51	51	(B) certifying that the vehicle complies with any
52	52	security interest or lien requirements under Subsection (a)(1); and
53	53	(C) acknowledging that a person who falsifies
54	54	information contained in the written statement is subject to
55	55	criminal penalties and restitution for losses incurred as a result
56	56	of the sale of the vehicle based on falsified information contained
57	57	in the statement;
58	58	(9) the name and address of the seller, and the
59	59	seller's agent if applicable;
60	60	(10) a photocopy or electronic scan of:
61	61	(A) a valid driver's license of the seller or the
62	62	seller's agent; or
63	63	(B) any other photographic identification card
64	64	of the seller or the seller's agent issued by any state or federal
65	65	agency; and
66	66	(11) proof demonstrating that the recycler has
67	67	reported the vehicle to the department as provided by Subsection
68	68	(c).
69	69	(c) A metal recycler or used automotive parts recycler who
70	70	purchases a motor vehicle under this section shall submit to the
71	71	department, in the manner prescribed by the department, and the
72	72	National Motor Vehicle Title Information System information
73	73	necessary to satisfy any applicable requirement for reporting
74	74	information to the National Motor Vehicle Title Information System
75	75	in accordance with rules adopted under 28 C.F.R. Section 25.56 not
76	76	later than 24 hours, not counting weekends or official state
77	77	holidays, after the close of business on the day the vehicle was
78	78	received. The department may report information received under this
79	79	subsection to the National Motor Vehicle Title Information System
80	80	on behalf of the recycler. A recycler is not required to report
81	81	information to the National Motor Vehicle Title Information System
82	82	if the department reports the information on behalf of the recycler
83	83	under this subsection.
84	84	(d) Not later than 48 hours after receiving information from
85	85	a recycler under Subsection (c) about a motor vehicle, the
86	86	department shall notify the recycler whether the vehicle has been
87	87	reported stolen.
88	88	(e) If the department notifies a recycler under Subsection
89	89	(d) that a motor vehicle has been reported stolen, the recycler
90	90	shall notify the appropriate local law enforcement agency of the
91	91	current location of the vehicle and provide to the agency
92	92	identifying information of the person who sold the vehicle.
93	93	(f) On receipt of information under Subsection (c)
94	94	regarding a motor vehicle purchased under this section, the
95	95	department shall:
96	96	(1) add a notation to the motor vehicle record of the
97	97	vehicle indicating that the vehicle has been dismantled, scrapped,
98	98	or destroyed; and
99	99	(2) cancel the title of the vehicle.
100	100	(g) A person who purchases a motor vehicle under this
101	101	section that is later determined by the department or another
102	102	governmental entity to have been reported stolen is not criminally
103	103	or civilly liable unless the person had knowledge that the vehicle
104	104	was a stolen vehicle or failed to comply with the requirements of
105	105	Subsection (b) or (c).
106	106	(h) A court shall order a person who sells a motor vehicle
107	107	under this section to make restitution, including attorney's fees,
108	108	to the owner or lienholder of the vehicle, or to a metal recycler or
109	109	used automotive parts recycler, for any damage or loss caused by an
110	110	offense committed by the seller related to the vehicle.
111	111	(i) The records required to be maintained under this section
112	112	must be open to inspection by a representative of the department or
113	113	a law enforcement officer during reasonable business hours.
114	114	(j) A contract with a United States Department of Justice
115	115	approved third-party data consolidator, pursuant to 28 C.F.R. Part
116	116	25, may be used to satisfy:
117	117	(1) the responsibilities of the department under this
118	118	section; and
119	119	(2) the reporting responsibilities of a recycler under
120	120	Subsection (c).
121	121	(k) A metal recycler may purchase from a used automotive
122	122	parts recycler a vehicle under this section without complying with
123	123	Subsections (b) and (c) if:
124	124	(1) the vehicle has been flattened, crushed, baled, or
125	125	logged such that the vehicle is less than 50 percent of its original
126	126	volume;
127	127	(2) the vehicle is purchased for purposes of scrap
128	128	metal only; and
129	129	(3) the seller or an agent acting on behalf of the
130	130	seller of the vehicle certifies to the purchaser that all vehicles
131	131	included in the sale were reported to the department or the National
132	132	Motor Vehicle Title Information System.
133	133	(l) This section preempts all requirements that are
134	134	inconsistent with specific provisions of this section relating to
135	135	the purchase and dismantling, crushing, or shredding of a motor
136	136	vehicle without obtaining the title to the vehicle.
137	137	SECTION 2. Section 501.109, Transportation Code, is amended
138	138	by adding Subsections (c-1) and (i) and amending Subsections (d)
139	139	and (e) to read as follows:
140	140	(c-1) A person commits an offense if the person knowingly:
141	141	(1) fails to obtain or falsifies information required
142	142	under Section 501.098(c);
143	143	(2) falsifies the information required under Section
144	144	501.098(b);
145	145	(3) falsifies the statement required under Section
146	146	501.098(b)(8);
147	147	(4) sells a vehicle under Section 501.098 that is the
148	148	subject of a security interest or lien other than a security
149	149	interest or lien described by Section 501.098(a)(1)(B); or
150	150	(5) otherwise violates Section 501.098.
151	151	(d) Except as provided by Subsection (e), an offense under
152	152	Subsection (a), (b), [or] (c), or (c-1) is a Class C misdemeanor.
153	153	(e) If it is shown on the trial of an offense under
154	154	Subsection (a), (b), [or] (c), or (c-1) that the defendant has been
155	155	previously convicted of:
156	156	(1) one offense under Subsection (a), (b), [or] (c),
157	157	or (c-1), the offense is a Class B misdemeanor; or
158	158	(2) two or more offenses under Subsection (a), (b),
159	159	[or] (c), or (c-1), the offense is a state jail felony.
160	160	(i) Money generated from penalties collected for offenses
161	161	under Subsection (c-1) may be used only for enforcement,
162	162	investigation, prosecution, and training activities related to
163	163	motor vehicle related offenses.
164	164	SECTION 3. This Act takes effect September 1, 2023.