Texas 2023 - 88th Regular

Texas House Bill HB5269 Compare Versions

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1	1	By: Bucy H.B. No. 5269
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to motor vehicle titles.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. The heading to Subchapter B, Chapter 501,
9	9	Transportation Code, is amended to read as follows:
10	10	SUBCHAPTER B. [CERTIFICATE OF] TITLE REQUIREMENTS
11	11	SECTION 2. Section 501.0234(b), Transportation Code, is
12	12	amended to read as follows:
13	13	(b) This section does not apply to a motor vehicle:
14	14	(1) that has been declared a total loss by an insurance
15	15	company in the settlement or adjustment of a claim;
16	16	(2) for which the title has been surrendered in
17	17	exchange for:
18	18	(A) a salvage vehicle title [or salvage record of
19	19	title] issued under this chapter;
20	20	(B) a nonrepairable vehicle title [or
21	21	nonrepairable vehicle record of title] issued under this chapter or
22	22	a certificate of authority issued under Subchapter D, Chapter 683;
23	23	or
24	24	(C) an ownership document issued by another state
25	25	that is comparable to a document described by Paragraph (A) or (B);
26	26	(3) with a gross weight in excess of 11,000 pounds; or
27	27	(4) purchased by a commercial fleet buyer who:
28	28	(A) is a deputy authorized by rules adopted under
29	29	Section 520.0071;
30	30	(B) utilizes the dealer title application
31	31	process developed to provide a method to submit title transactions
32	32	to the county in which the commercial fleet buyer is a deputy; and
33	33	(C) has authority to accept an application for
34	34	registration and application for title transfer that the county
35	35	assessor-collector may accept.
36	36	SECTION 3. Section 501.0276, Transportation Code, is
37	37	amended to read as follows:
38	38	Sec. 501.0276. DENIAL OF TITLE RECEIPT OR [,] TITLE [, OR
39	39	RECORD OF TITLE] FOR FAILURE TO PROVIDE PROOF OF EMISSIONS TESTING.
40	40	A county assessor-collector may not issue a title receipt and the
41	41	department may not issue a [certificate of] title for a vehicle
42	42	subject to Section 548.3011 unless proof that the vehicle has
43	43	passed a vehicle emissions test as required by that section, in a
44	44	manner authorized by that section, is presented to the county
45	45	assessor-collector with the application for a title.
46	46	SECTION 4. Section 501.0301(b), Transportation Code, is
47	47	amended to read as follows:
48	48	(b) A county assessor-collector may not issue a title
49	49	receipt and the department may not issue a [certificate of] title
50	50	for an off-highway vehicle purchased from a retailer located
51	51	outside this state and designated by the manufacturer as a model
52	52	year that is not more than one year before the year in which the
53	53	application for title is made unless the applicant for the title
54	54	delivers to the assessor-collector or the department, as
55	55	applicable, satisfactory evidence showing that the applicant:
56	56	(1) has paid to the comptroller the applicable use tax
57	57	imposed on the vehicle under Subchapter D, Chapter 151, Tax Code; or
58	58	(2) is not required to pay any taxes described by
59	59	Subdivision (1).
60	60	SECTION 5. The heading to Section 501.038, Transportation
61	61	Code, is amended to read as follows:
62	62	Sec. 501.038. [CERTIFICATE OF] TITLE FOR CUSTOM VEHICLE OR
63	63	STREET ROD.
64	64	SECTION 6. Section 501.038(b), Transportation Code, is
65	65	amended to read as follows:
66	66	(b) Notwithstanding any other provision of this chapter, if
67	67	the department issues a [certificate of] title for a custom vehicle
68	68	or street rod, the model year and make of the vehicle must be listed
69	69	on the [certificate of] title and must be the model year and make
70	70	that the body of the vehicle resembles. The [certificate of] title
71	71	must also include the word "replica."
72	72	SECTION 7. The heading to Subchapter C, Chapter 501,
73	73	Transportation Code, is amended to read as follows:
74	74	SUBCHAPTER C. REFUSAL TO ISSUE OR[,] REVOCATION, SUSPENSION, OR
75	75	ALTERATION OF TITLE [CERTIFICATE]
76	76	SECTION 8. Section 501.074(a), Transportation Code, is
77	77	amended to read as follows:
78	78	(a) The department shall issue a new title for a motor
79	79	vehicle registered in this state for which the ownership is
80	80	transferred by operation of law or other involuntary divestiture of
81	81	ownership after receiving:
82	82	(1) a certified copy of an order appointing a
83	83	temporary administrator or of the probate proceedings;
84	84	(2) letters testamentary or letters of
85	85	administration;
86	86	(3) if administration of an estate is not necessary,
87	87	an affidavit showing that administration is not necessary,
88	88	identifying all heirs, and including a statement by the heirs of the
89	89	name in which the title [certificate] shall be issued;
90	90	(4) a court order; or
91	91	(5) the bill of sale from an officer making a judicial
92	92	sale.
93	93	SECTION 9. Section 501.091, Transportation Code, is amended
94	94	by adding Subdivision (1-a) and amending Subdivisions (10) and (16)
95	95	to read as follows:
96	96	(1-a) "Auction sales receipt" means a document
97	97	certifying the sale of a motor vehicle at auction by a law
98	98	enforcement agency or public sale for a lien foreclosure.
99	99	(10) "Nonrepairable vehicle title" means a
100	100	nonrepairable record of title or printed document issued by the
101	101	department that evidences ownership of a nonrepairable motor
102	102	vehicle.
103	103	(16) "Salvage vehicle title" means a salvage record of
104	104	title or printed document issued by the department that evidences
105	105	ownership of a salvage motor vehicle.
106	106	SECTION 10. The heading to Section 501.09111,
107	107	Transportation Code, is amended to read as follows:
108	108	Sec. 501.09111. RIGHTS AND LIMITATIONS OF NONREPAIRABLE
109	109	VEHICLE TITLE OR [, NONREPAIRABLE RECORD OF TITLE,] SALVAGE VEHICLE
110	110	TITLE [, OR SALVAGE RECORD OF TITLE].
111	111	SECTION 11. Section 501.09111(b), Transportation Code, is
112	112	amended to read as follows:
113	113	(b) A person who holds a nonrepairable vehicle [certificate
114	114	of] title issued prior to September 1, 2003, is entitled to the same
115	115	rights listed in Subsection (a) and may repair, rebuild, or
116	116	reconstruct the motor vehicle.
117	117	SECTION 12. Sections 501.09112(b), (d), (e), and (f),
118	118	Transportation Code, are amended to read as follows:
119	119	(b) A nonrepairable vehicle title must clearly indicate
120	120	that the motor vehicle:
121	121	(1) may not be:
122	122	(A) issued a [regular] title;
123	123	(B) registered in this state; or
124	124	(C) repaired, rebuilt, or reconstructed; and
125	125	(2) may be used only as a source for used parts or
126	126	scrap metal.
127	127	(d) A salvage vehicle title [or a salvage record of title]
128	128	for a vehicle that is a salvage motor vehicle because of damage
129	129	caused exclusively by flood must bear a notation that the
130	130	department considers appropriate. If the title for a motor vehicle
131	131	reflects the notation required by this subsection, the owner may
132	132	sell, transfer, or release the motor vehicle only as provided by
133	133	this subchapter.
134	134	(e) An electronic application for a nonrepairable vehicle
135	135	title or [, nonrepairable record of title,] salvage vehicle title
136	136	[, or salvage record of title] must clearly advise the applicant of
137	137	the same provisions required on a printed title.
138	138	(f) A nonrepairable vehicle title or [, nonrepairable
139	139	record of title,] salvage vehicle title [, or salvage record of
140	140	title] in the department's electronic database must include
141	141	appropriate remarks so that the vehicle record clearly shows the
142	142	status of the vehicle.
143	143	SECTION 13. The heading to Section 501.0925, Transportation
144	144	Code, is amended to read as follows:
145	145	Sec. 501.0925. INSURANCE COMPANY NOT REQUIRED TO SURRENDER
146	146	EVIDENCE OF OWNERSHIP [CERTIFICATES OF TITLE] IN CERTAIN
147	147	SITUATIONS.
148	148	SECTION 14. Sections 501.0925(a), (b), (c), (d), and (f),
149	149	Transportation Code, are amended to read as follows:
150	150	(a) An insurance company that acquires, through payment of a
151	151	claim, ownership or possession of a motor vehicle covered by a
152	152	[certificate of] title or a manufacturer's certificate of origin
153	153	that the company is unable to obtain may obtain from the department
154	154	not earlier than the 30th day after the date of payment of the
155	155	claim:
156	156	(1) a salvage vehicle title for a salvage motor
157	157	vehicle;
158	158	(2) a nonrepairable vehicle title for a nonrepairable
159	159	motor vehicle; or
160	160	(3) a [regular certificate of] title for a motor
161	161	vehicle other than a salvage motor vehicle or a nonrepairable motor
162	162	vehicle.
163	163	(b) An application for a title under Subsection (a) must be
164	164	submitted to the department on a form prescribed by the department
165	165	and include:
166	166	(1) a statement that the insurance company has
167	167	provided at least two written notices attempting to obtain the
168	168	evidence of ownership [certificate of title] for the motor vehicle;
169	169	and
170	170	(2) evidence acceptable to the department that the
171	171	insurance company has made payment of a claim involving the motor
172	172	vehicle.
173	173	(c) An insurance company that acquires, through payment of a
174	174	claim, ownership or possession of a motor vehicle covered by a
175	175	[certificate of] title or a manufacturer's certificate of origin
176	176	for which the company is unable to obtain proper assignment of the
177	177	title or manufacturer's certificate of origin [certificate] may
178	178	obtain from the department not earlier than the 30th day after the
179	179	date of payment of the claim:
180	180	(1) a salvage vehicle title for a salvage motor
181	181	vehicle;
182	182	(2) a nonrepairable vehicle title for a nonrepairable
183	183	motor vehicle; or
184	184	(3) a [regular certificate of] title for a motor
185	185	vehicle other than a salvage motor vehicle or a nonrepairable motor
186	186	vehicle.
187	187	(d) An application for a title under Subsection (c) must be
188	188	submitted to the department on a form prescribed by the department
189	189	and include:
190	190	(1) a statement that the insurance company has
191	191	provided at least two written notices attempting to obtain a proper
192	192	assignment of the evidence of ownership [certificate of title]; and
193	193	(2) the evidence of ownership [certificate of title].
194	194	(f) An insurance company that acquires, through payment of a
195	195	claim, ownership or possession of a motor vehicle, salvage motor
196	196	vehicle, or nonrepairable motor vehicle covered by an out-of-state
197	197	title or out-of-state ownership document may obtain from the
198	198	department a title, salvage vehicle title, or nonrepairable vehicle
199	199	title, as appropriate, if:
200	200	(1) the motor vehicle was damaged, stolen, or
201	201	recovered in this state;
202	202	(2) the motor vehicle owner from whom the company
203	203	acquired ownership resides in this state; or
204	204	(3) otherwise allowed by department rule.
205	205	SECTION 15. Sections 501.097(a) and (c-1), Transportation
206	206	Code, are amended to read as follows:
207	207	(a) An application for a nonrepairable vehicle title or [,
208	208	nonrepairable record of title,] salvage vehicle title [, or salvage
209	209	record of title] must:
210	210	(1) be made in a manner prescribed by the department
211	211	and accompanied by a $8 application fee;
212	212	(2) include, in addition to any other information
213	213	required by the department:
214	214	(A) the name and current address of the owner;
215	215	and
216	216	(B) a description of the motor vehicle, including
217	217	the make, style of body, model year, and vehicle identification
218	218	number; and
219	219	(3) include the name and address of:
220	220	(A) any currently recorded lienholder, if the
221	221	motor vehicle is a nonrepairable motor vehicle; or
222	222	(B) any currently recorded lienholder or a new
223	223	lienholder, if the motor vehicle is a salvage motor vehicle.
224	224	(c-1) The department's titling system must include a remark
225	225	that clearly identifies the vehicle as a salvage motor vehicle or
226	226	nonrepairable motor vehicle.
227	227	SECTION 16. The heading to Section 501.100, Transportation
228	228	Code, is amended to read as follows:
229	229	Sec. 501.100. APPLICATION FOR [REGULAR CERTIFICATE OF]
230	230	TITLE FOR SALVAGE VEHICLE.
231	231	SECTION 17. Sections 501.100(a) and (f), Transportation
232	232	Code, are amended to read as follows:
233	233	(a) The owner of a motor vehicle for which a nonrepairable
234	234	vehicle title was issued prior to September 1, 2003, [or] for which
235	235	a salvage vehicle title [or salvage record of title] has been
236	236	issued, or for which a comparable out-of-state ownership document
237	237	for a salvage motor vehicle has been issued may apply for a title
238	238	under Section 501.023 after the motor vehicle has been repaired,
239	239	rebuilt, or reconstructed and, in addition to any other requirement
240	240	of law, only if the application:
241	241	(1) describes each major component part used to
242	242	repair, rebuild, or reconstruct the motor vehicle;
243	243	(2) states the name of each person from whom the parts
244	244	used in repairing, rebuilding, or reconstructing [assembling] the
245	245	vehicle were obtained; and
246	246	(3) shows the identification number required by
247	247	federal law to be affixed to or inscribed on the part.
248	248	(f) The department may not issue a [regular] title for a
249	249	motor vehicle based on a:
250	250	(1) nonrepairable vehicle title issued on or after
251	251	September 1, 2003, or comparable out-of-state ownership document or
252	252	record, or evidence of a notation described by Section
253	253	501.09113(a)(2) on an out-of-state ownership document or record in
254	254	the National Motor Vehicle Title Information System;
255	255	(2) receipt issued under Section 501.1003(b); or
256	256	(3) certificate of authority issued under Chapter 683.
257	257	SECTION 18. Sections 501.1001(b), (c), and (d),
258	258	Transportation Code, are amended to read as follows:
259	259	(b) For a salvage motor vehicle, the insurance company shall
260	260	apply for a salvage vehicle title [or salvage record of title]. For
261	261	a nonrepairable motor vehicle, the insurance company shall apply
262	262	for a nonrepairable vehicle title [or nonrepairable record of
263	263	title].
264	264	(c) An insurance company or other person who acquires
265	265	ownership of a motor vehicle other than a nonrepairable motor
266	266	vehicle or salvage motor vehicle may voluntarily and on proper
267	267	application obtain a salvage vehicle title or [, salvage record of
268	268	title,] nonrepairable vehicle title [, or nonrepairable record of
269	269	title] for the vehicle.
270	270	(d) This subsection applies only to a motor vehicle in this
271	271	state that is a self-insured motor vehicle and that is damaged to
272	272	the extent it becomes a nonrepairable motor vehicle or salvage
273	273	motor vehicle. The owner of a motor vehicle to which this
274	274	subsection applies shall submit to the department before the 31st
275	275	business day after the date of the damage, in a manner prescribed by
276	276	the department, a statement that the motor vehicle was self-insured
277	277	and damaged. When the owner submits a report, the owner shall
278	278	surrender the ownership document and apply for a nonrepairable
279	279	vehicle title or [, nonrepairable record of title,] salvage vehicle
280	280	title [, or salvage record of title].
281	281	SECTION 19. Section 501.1002(b), Transportation Code, is
282	282	amended to read as follows:
283	283	(b) The owner of a salvage motor vehicle or nonrepairable
284	284	motor vehicle may not transfer ownership of the motor vehicle by
285	285	sale or otherwise unless the department has issued a salvage
286	286	vehicle title or [, salvage record of title,] nonrepairable vehicle
287	287	title [, or nonrepairable record of title] for the motor vehicle or
288	288	a comparable ownership document has been issued by another state or
289	289	jurisdiction for the motor vehicle in the name of the owner.
290	290	SECTION 20. Section 501.1003, Transportation Code, is
291	291	amended to read as follows:
292	292	Sec. 501.1003. SALVAGE VEHICLE DEALER RESPONSIBILITIES.
293	293	(a) If a salvage vehicle dealer acquires ownership of a
294	294	nonrepairable motor vehicle or salvage motor vehicle for the
295	295	purpose of dismantling, scrapping, or destroying the motor vehicle,
296	296	the dealer shall, before the 31st day after the date the dealer
297	297	acquires the motor vehicle, submit to the department a report
298	298	stating that the motor vehicle will be dismantled, scrapped, or
299	299	destroyed. The dealer shall:
300	300	(1) make the report in a manner prescribed by the
301	301	department; and
302	302	(2) submit with the report a properly assigned
303	303	manufacturer's certificate of origin, [regular certificate of]
304	304	title, nonrepairable vehicle title, salvage vehicle title, auction
305	305	sales receipt, or comparable out-of-state ownership document for
306	306	the motor vehicle.
307	307	(b) After receiving the report and title, manufacturer's
308	308	certificate of origin, auction sales receipt, or document, the
309	309	department shall issue the salvage vehicle dealer a receipt for the
310	310	manufacturer's certificate of origin, [regular certificate of]
311	311	title, nonrepairable vehicle title, salvage vehicle title, auction
312	312	sales receipt, or comparable out-of-state ownership document.
313	313	(c) The department shall adopt rules to notify the salvage
314	314	vehicle dealer if the vehicle was not issued a printed title, but
315	315	has a record of title in the department's titling system.
316	316	SECTION 21. Section 501.107(b), Transportation Code, is
317	317	amended to read as follows:
318	318	(b) A metal recycler shall submit to the department the
319	319	properly assigned manufacturer's certificate of origin, [regular
320	320	certificate of] title, nonrepairable vehicle title, salvage
321	321	vehicle title, or comparable out-of-state ownership document that
322	322	the person receives in conjunction with the purchase of a motor
323	323	vehicle not later than the 60th day after the date the metal
324	324	recycler receives the title or out-of-state ownership document.
325	325	SECTION 22. Section 501.109(c), Transportation Code, is
326	326	amended to read as follows:
327	327	(c) A person commits an offense if the person knowingly
328	328	fails or refuses to surrender a [regular certificate of] title
329	329	after the person:
330	330	(1) receives a notice from an insurance company that
331	331	the motor vehicle is a nonrepairable motor vehicle or salvage motor
332	332	vehicle; or
333	333	(2) knows the vehicle has become a nonrepairable motor
334	334	vehicle or salvage motor vehicle under Section 501.1001.
335	335	SECTION 23. Section 501.110(b), Transportation Code, is
336	336	amended to read as follows:
337	337	(b) The department, an agent, officer, or employee of the
338	338	department, or another person enforcing this subchapter is not
339	339	liable to a person damaged or injured by an act or omission relating
340	340	to the issuance or revocation of a title, nonrepairable vehicle
341	341	title, or [nonrepairable record of title,] salvage vehicle title [,
342	342	or salvage record of title] under this subchapter.
343	343	SECTION 24. Section 501.152(a), Transportation Code, is
344	344	amended to read as follows:
345	345	(a) Except as provided by this section, a person commits an
346	346	offense if the person:
347	347	(1) sells, offers to sell, or offers as security for an
348	348	obligation a motor vehicle registered in this state; and
349	349	(2) does not possess or have electronic access to the
350	350	title receipt or [certificate of] title for the vehicle.
351	351	SECTION 25. Section 1956.0321(a), Occupations Code, is
352	352	amended to read as follows:
353	353	(a) In addition to the requirements of Section 1956.032, a
354	354	person attempting to sell a catalytic converter to a metal
355	355	recycling entity shall provide to the metal recycling entity:
356	356	(1) the year, make, model, and vehicle identification
357	357	number for the vehicle from which the catalytic converter was
358	358	removed; and
359	359	(2) a copy of the [certificate of] title or other
360	360	documentation indicating that the person has an ownership interest
361	361	in the vehicle described by Subdivision (1).
362	362	SECTION 26. This Act takes effect September 1, 2023.