88R11312 JAM-F
By: Kacal H.B. No. 4543
A BILL TO BE ENTITLED
AN ACT
relating to an exception to the titling requirement for certain
motor vehicles; creating a criminal offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter E, Chapter 501, Transportation Code,
is amended by adding Section 501.098 to read as follows:
Sec. 501.098. EXCEPTION TO TITLE REQUIREMENT FOR CERTAIN
VEHICLES. (a) Notwithstanding any other law, a metal recycler or
used automotive parts recycler may acquire through sale, donation,
or other means of transfer a motor vehicle without obtaining a title
to the vehicle if:
(1) the vehicle is at least 12 years old and is
acquired solely for parts, dismantling, or scrap and:
(A) the vehicle is not subject to a recorded
security interest or lien; or
(B) the vehicle is subject only to recorded
security interests or liens:
(i) for which a release of each recorded
security interest or lien on the vehicle is provided; or
(ii) that were recorded on the certificate
of title more than six years before the date of acquisition under
this section;
(2) the recycler does not dismantle, crush, or shred
the vehicle before the close of business on the third business day
after the date the recycler submitted to the department the
information required under Subsection (c); and
(3) except as provided by Subsection (k), the recycler
complies with Subsections (b) and (c).
(b) A metal recycler or used automotive parts recycler who
acquires a motor vehicle under this section shall obtain the
following information:
(1) the name, address, and National Motor Vehicle
Title Information System identification number of the recycler;
(2) the name, initials, or other identification of the
individual recording the information required by this subsection;
(3) the date of the transaction;
(4) a description of the vehicle, including the make
and model to the extent practicable;
(5) the vehicle identification number of the vehicle;
(6) the license plate number of any vehicle
transporting the vehicle being transferred;
(7) the amount of consideration given for the vehicle,
if any;
(8) a written statement signed by the transferor or an
agent acting on behalf of the transferor:
(A) certifying that the transferor or agent has
the lawful right to transfer the vehicle;
(B) certifying that the vehicle complies with any
security interest or lien requirements under Subsection (a)(1); and
(C) acknowledging that a person who falsifies
information contained in the written statement is subject to
criminal penalties and restitution for losses incurred as a result
of the transfer of the vehicle based on falsified information
contained in the statement;
(9) the name and address of the transferor, and the
transferor's agent if applicable;
(10) a photocopy or electronic scan of:
(A) a valid driver's license of the transferor or
the transferor's agent; or
(B) any other photographic identification card
of the transferor or the transferor's agent issued by any state or
federal agency; and
(11) proof demonstrating that the recycler has
reported the vehicle to the department as provided by Subsection
(c).
(c) A metal recycler or used automotive parts recycler who
acquires a motor vehicle under this section shall submit to the
department, in the manner prescribed by the department, and the
National Motor Vehicle Title Information System information
necessary to satisfy any applicable requirement for reporting
information to the National Motor Vehicle Title Information System
in accordance with rules adopted under 28 C.F.R. Section 25.56 not
later than 24 hours, not counting weekends or official state
holidays, after the close of business on the day the vehicle was
received. The department may report information received under this
subsection to the National Motor Vehicle Title Information System
on behalf of the recycler. A recycler is not required to report
information to the National Motor Vehicle Title Information System
if the department reports the information on behalf of the recycler
under this subsection.
(d) Not later than 48 hours after receiving information from
a recycler under Subsection (c) about a motor vehicle, the
department shall notify the recycler whether the vehicle has been
reported stolen.
(e) If the department notifies a recycler under Subsection
(d) that a motor vehicle has been reported stolen, the recycler
shall notify the appropriate local law enforcement agency of the
current location of the vehicle and provide to the agency
identifying information of the person who transferred the vehicle.
(f) On receipt of information under Subsection (c)
regarding a motor vehicle acquired under this section, the
department shall:
(1) add a notation to the motor vehicle record of the
vehicle indicating that the vehicle has been dismantled, scrapped,
or destroyed; and
(2) cancel the title of the vehicle.
(g) A person who acquires a motor vehicle under this section
that is later determined by the department or another governmental
entity to have been reported stolen is not criminally or civilly
liable unless the person had knowledge that the vehicle was a stolen
vehicle or failed to comply with the requirements of Subsection (b)
or (c).
(h) A court shall order a person who transfers a motor
vehicle under this section to make restitution, including
attorney's fees, to the owner or lienholder of the vehicle, or to a
metal recycler or used automotive parts recycler, for any damage or
loss caused by an offense committed by the transferor related to the
vehicle.
(i) The records required to be maintained under this section
must be open to inspection by a representative of the department or
a law enforcement officer during reasonable business hours.
(j) A contract with a United States Department of Justice
approved third-party data consolidator, pursuant to 28 C.F.R. Part
25, may be used to satisfy:
(1) the responsibilities of the department under this
section; and
(2) the reporting responsibilities of a recycler under
Subsection (c).
(k) A metal recycler may acquire from a used automotive
parts recycler a vehicle under this section without complying with
Subsections (b) and (c) if:
(1) the vehicle has been flattened, crushed, baled, or
logged such that the vehicle is less than 50 percent of its original
volume;
(2) the vehicle is acquired for purposes of scrap
metal only; and
(3) the transferor or an agent acting on behalf of the
transferor of the vehicle certifies to the metal recycler that all
vehicles included in the transfer were reported to the department
or the National Motor Vehicle Title Information System.
(l) This section preempts all requirements that are
inconsistent with specific provisions of this section relating to
the acquisition and dismantling, crushing, or shredding of a motor
vehicle without obtaining the title to the vehicle.
SECTION 2. Section 501.109, Transportation Code, is amended
by adding Subsections (c-1) and (i) and amending Subsections (d)
and (e) to read as follows:
(c-1) A person commits an offense if the person knowingly:
(1) fails to obtain or falsifies information required
under Section 501.098(c);
(2) falsifies the information required under Section
501.098(b);
(3) falsifies the statement required under Section
501.098(b)(8);
(4) transfers a vehicle under Section 501.098 that is
the subject of a security interest or lien other than a security
interest or lien described by Section 501.098(a)(1)(B); or
(5) otherwise violates Section 501.098.
(d) Except as provided by Subsection (e), an offense under
Subsection (a), (b), [or] (c), or (c-1) is a Class C misdemeanor.
(e) If it is shown on the trial of an offense under
Subsection (a), (b), [or] (c), or (c-1) that the defendant has been
previously convicted of:
(1) one offense under Subsection (a), (b), [or] (c),
or (c-1), the offense is a Class B misdemeanor; or
(2) two or more offenses under Subsection (a), (b),
[or] (c), or (c-1), the offense is a state jail felony.
(i) Money generated from penalties collected for offenses
under Subsection (c-1) may be used only for enforcement,
investigation, prosecution, and training activities related to
motor vehicle related offenses.
SECTION 3. This Act takes effect September 1, 2023.