Texas 2023 - 88th Regular

Texas Senate Bill SB1263 Compare Versions

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1	1	88R9295 JAM-D
2	2	By: Parker S.B. No. 1263
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the issuance of title to a salvage pool operator for
8	8	certain motor vehicles.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 501.0935, Transportation Code, is
11	11	amended by amending Subsections (a), (b), (b-1), (g), and (j) and
12	12	adding Subsections (b-2), (c-1), (c-2), (f-1), and (j-1) to read as
13	13	follows:
14	14	(a) In this section:
15	15	(1) "Nonprofit organization" means an organization
16	16	exempt from federal income taxation under Section 501(c)(3),
17	17	Internal Revenue Code of 1986, as amended.
18	18	(2) "Salvage [, "salvage] pool operator" has the
19	19	meaning assigned by Section 2302.001, Occupations Code.
20	20	(b) This section applies only to a salvage pool operator
21	21	who:
22	22	(1) [,] on request of an insurance company, takes
23	23	possession of a motor vehicle that is the subject of an insurance
24	24	claim and the insurance company subsequently:
25	25	(A) [(1)] denies coverage with respect to the
26	26	motor vehicle; or
27	27	(B) [(2)] does not otherwise take ownership of
28	28	the motor vehicle; or
29	29	(2) on request of a nonprofit organization, takes
30	30	possession of a motor vehicle that was donated to the nonprofit and
31	31	the nonprofit:
32	32	(A) does not possess title to the vehicle; and
33	33	(B) does not otherwise take ownership of the
34	34	motor vehicle.
35	35	(b-1) An insurance company described by Subsection (b)(1)
36	36	[(b)] shall notify the salvage pool operator of the denial of the
37	37	claim regarding the motor vehicle or other disposition of the motor
38	38	vehicle. The insurance company must include in the notice the name
39	39	and address of the owner of the motor vehicle and the lienholder, if
40	40	any.
41	41	(b-2) A nonprofit organization described by Subsection
42	42	(b)(2) shall notify the salvage pool operator of the disposition of
43	43	the motor vehicle and must include in the notice the name and
44	44	address of:
45	45	(1) the person who donated the motor vehicle;
46	46	(2) the previous owner of the motor vehicle; and
47	47	(3) any lienholder, if known.
48	48	(c-1) Before the 15th day after receiving notice under
49	49	Subsection (b-2), a salvage pool operator shall notify the owner of
50	50	the motor vehicle and any lienholder that:
51	51	(1) the owner or lienholder must remove the motor
52	52	vehicle from the salvage pool operator's possession at the location
53	53	specified in the notice to the owner and any lienholder not later
54	54	than the 60th day after the date the notice is mailed; and
55	55	(2) if the motor vehicle is not removed within the time
56	56	specified in the notice, the salvage pool operator will sell the
57	57	motor vehicle and retain the proceeds of the sale.
58	58	(c-2) A salvage pool operator shall provide subsequent
59	59	notice described by Subsection (c-1) to the owner of the motor
60	60	vehicle and any lienholder not later than the 30th and 45th day
61	61	after receiving notice under Subsection (b-2) if the motor vehicle
62	62	was not removed after the preceding notice.
63	63	(f-1) If a motor vehicle is not removed from a salvage pool
64	64	operator's possession before the 61st day after the date notice is
65	65	mailed to the motor vehicle's owner and any lienholder under
66	66	Subsection (c-1), the salvage pool operator may obtain from the
67	67	department:
68	68	(1) a salvage vehicle title for a salvage motor
69	69	vehicle; or
70	70	(2) a nonrepairable vehicle title for a nonrepairable
71	71	motor vehicle.
72	72	(g) An application for a title under Subsection (f) or
73	73	(f-1), as applicable, must:
74	74	(1) be submitted to the department on a form
75	75	prescribed by the department; and
76	76	(2) include evidence that the notice was mailed as
77	77	required by Subsections [Subsection] (c), (c-1), and (c-2), as
78	78	applicable, to the motor vehicle owner and any lienholder.
79	79	(j) On receipt of a title under this section for a motor
80	80	vehicle described by Subsection (b)(1), the salvage pool operator
81	81	shall:
82	82	(1) sell the motor vehicle and retain from the
83	83	proceeds of the sale the costs incurred by the salvage pool operator
84	84	as permitted by Subsection (d) along with the cost of titling and
85	85	selling the motor vehicle; and
86	86	(2) [. The salvage pool operator shall] pay any excess
87	87	proceeds from the sale to the previous owner of the motor vehicle
88	88	and the lienholder, if any, by mailing the [. The] excess proceeds
89	89	[must be mailed] to the lienholder.
90	90	(j-1) On receipt of a title under this section for a motor
91	91	vehicle described by Subsection (b)(2), the salvage pool operator
92	92	may sell the motor vehicle and retain the proceeds of the sale.
93	93	SECTION 2. This Act takes effect September 1, 2023.