Texas 2025 - 89th Regular

Texas House Bill HB4368 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R8973 GP-D
2	2	By: Paul H.B. No. 4368
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to title requirements, identification number inspections,
10	10	and evidence of ownership for certain vehicles.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 501.032, Transportation Code, is amended
13	13	by amending Subsection (a) and adding Subsection (a-1) to read as
14	14	follows:
15	15	(a) A [In addition to any requirement established by
16	16	department rule, a] motor vehicle, trailer, or semitrailer must
17	17	have an identification number inspection under Section 501.0321 if:
18	18	(1) the department does not have a motor vehicle
19	19	record for the motor vehicle, trailer, or semitrailer in the
20	20	department's registration and title system, and the owner of the
21	21	motor vehicle, trailer, or semitrailer is filing a bond with the
22	22	department under Section 501.053;
23	23	(2) the motor vehicle, trailer, or semitrailer was
24	24	last titled or registered outside of the United States and imported
25	25	into the United States; or
26	26	(3) the owner or person claiming ownership requires an
27	27	assigned or reassigned identification number under Section
28	28	501.033.
29	29	(a-1) The department by rule may establish additional
30	30	categories of motor vehicles, trailers, or semitrailers not
31	31	specified in Subsection (a) that are required to have vehicle
32	32	identification number inspections under Section 501.0321.
33	33	SECTION 2. Section 501.0321(a), Transportation Code, is
34	34	amended to read as follows:
35	35	(a) An inspection required under Section 501.032 or a rule
36	36	adopted under that section must verify, as applicable, the identity
37	37	of:
38	38	(1) a motor vehicle;
39	39	(2) a trailer or semitrailer;
40	40	(3) a frame, body, or motor of a motor vehicle; or
41	41	(4) an item of equipment not required to be titled but
42	42	that may be registered under Chapter 502 or issued licensed plates
43	43	under Chapter 504.
44	44	SECTION 3. Section 501.053, Transportation Code, is amended
45	45	by amending Subsections (a) and (c) and adding Subsections (b-1)
46	46	and (b-2) to read as follows:
47	47	(a) As an alternative to the procedure provided by Section
48	48	501.052, the person may obtain a title by filing a bond with the
49	49	department if the vehicle is in the possession of the applicant and:
50	50	(1) there is no security interest on the vehicle;
51	51	(2) any lien on the vehicle is at least 10 years old;
52	52	[or]
53	53	(3) the person provides a release of all liens less
54	54	than 10 years old; or
55	55	(4) the lienholder of any lien less than 10 years old
56	56	has gone out of business, the security interest on the vehicle was
57	57	not transferred to or otherwise acquired by another person, and the
58	58	applicant provides sufficient evidence of those facts in the form
59	59	and manner prescribed by department rule [with bond].
60	60	(b-1) On receipt of a bond filing under this section, the
61	61	department shall notify any recorded owner or lienholder of the
62	62	vehicle of the bond filing.
63	63	(b-2) If a person who files a bond under this section does
64	64	not hold a general distinguishing number issued under Subchapter B,
65	65	Chapter 503, the department:
66	66	(1) may only issue title on or after the 30th day after
67	67	the date on which the person submits an application for title under
68	68	Section 501.023; and
69	69	(2) may not issue title if any recorded owner or
70	70	lienholder with an interest in the vehicle objects to the issuance
71	71	of the title.
72	72	(c) An interested person has a right of action to recover on
73	73	the bond for a breach of the bond's condition. The aggregate
74	74	liability of the surety to all persons may not exceed the amount of
75	75	the bond. Failure to object to the issuance of title under
76	76	Subsection (b-2)(2) does not waive the right of an interested
77	77	person to bring an action to recover on the bond filed under this
78	78	section.
79	79	SECTION 4. Section 501.091, Transportation Code, is amended
80	80	by adding Subdivision (1-a) to read as follows:
81	81	(1-a) "Auction sales receipt" means a document
82	82	certifying the sale of a motor vehicle at auction by a law
83	83	enforcement agency or public sale for a lien foreclosure.
84	84	SECTION 5. The heading to Section 501.0925, Transportation
85	85	Code, is amended to read as follows:
86	86	Sec. 501.0925. INSURANCE COMPANY NOT REQUIRED TO SURRENDER
87	87	EVIDENCE OF OWNERSHIP [CERTIFICATES OF TITLE] IN CERTAIN
88	88	SITUATIONS.
89	89	SECTION 6. Sections 501.0925(a), (b), (c), (d), and (f),
90	90	Transportation Code, are amended to read as follows:
91	91	(a) An insurance company that acquires, through payment of a
92	92	claim, ownership or possession of a motor vehicle covered by a
93	93	[certificate of] title or a manufacturer's certificate of origin
94	94	that the company is unable to obtain may obtain from the department
95	95	not earlier than the 30th day after the date of payment of the
96	96	claim:
97	97	(1) a salvage vehicle title for a salvage motor
98	98	vehicle;
99	99	(2) a nonrepairable vehicle title for a nonrepairable
100	100	motor vehicle; or
101	101	(3) a [regular certificate of] title for a motor
102	102	vehicle other than a salvage motor vehicle or a nonrepairable motor
103	103	vehicle.
104	104	(b) An application for a title under Subsection (a) must be
105	105	submitted to the department on a form prescribed by the department
106	106	and include:
107	107	(1) a statement that the insurance company has
108	108	provided at least two written notices attempting to obtain the
109	109	evidence of ownership [certificate of title] for the motor vehicle;
110	110	and
111	111	(2) evidence acceptable to the department that the
112	112	insurance company has made payment of a claim involving the motor
113	113	vehicle.
114	114	(c) An insurance company that acquires, through payment of a
115	115	claim, ownership or possession of a motor vehicle covered by a
116	116	[certificate of] title or a manufacturer's certificate of origin
117	117	for which the company is unable to obtain proper assignment of the
118	118	title or manufacturer's certificate of origin [certificate] may
119	119	obtain from the department not earlier than the 30th day after the
120	120	date of payment of the claim:
121	121	(1) a salvage vehicle title for a salvage motor
122	122	vehicle;
123	123	(2) a nonrepairable vehicle title for a nonrepairable
124	124	motor vehicle; or
125	125	(3) a [regular certificate of] title for a motor
126	126	vehicle other than a salvage motor vehicle or a nonrepairable motor
127	127	vehicle.
128	128	(d) An application for a title under Subsection (c) must be
129	129	submitted to the department on a form prescribed by the department
130	130	and include:
131	131	(1) a statement that the insurance company has
132	132	provided at least two written notices attempting to obtain a proper
133	133	assignment of the evidence of ownership [certificate of title]; and
134	134	(2) the evidence of ownership [certificate of title].
135	135	(f) An insurance company that acquires, through payment of a
136	136	claim, ownership or possession of a motor vehicle, salvage motor
137	137	vehicle, or nonrepairable motor vehicle covered by an out-of-state
138	138	title or out-of-state ownership document may obtain from the
139	139	department a title, salvage vehicle title, or nonrepairable vehicle
140	140	title, as appropriate, if:
141	141	(1) the motor vehicle was damaged, stolen, or
142	142	recovered in this state;
143	143	(2) the motor vehicle owner from whom the company
144	144	acquired ownership resides in this state; or
145	145	(3) otherwise allowed by department rule.
146	146	SECTION 7. The heading to Section 501.100, Transportation
147	147	Code, is amended to read as follows:
148	148	Sec. 501.100. APPLICATION FOR [REGULAR CERTIFICATE OF]
149	149	TITLE FOR SALVAGE VEHICLE.
150	150	SECTION 8. Sections 501.100(a) and (f), Transportation
151	151	Code, are amended to read as follows:
152	152	(a) The owner of a motor vehicle for which a nonrepairable
153	153	vehicle title was issued prior to September 1, 2003, [or] for which
154	154	a salvage vehicle title or salvage record of title has been issued,
155	155	or for which a comparable out-of-state ownership document for a
156	156	salvage motor vehicle has been issued, may apply for a title under
157	157	Section 501.023 after the motor vehicle has been repaired, rebuilt,
158	158	or reconstructed and, in addition to any other requirement of law,
159	159	only if the application:
160	160	(1) describes each major component part used to
161	161	repair, rebuild, or reconstruct the motor vehicle;
162	162	(2) states the name of each person from whom the parts
163	163	used in repairing, rebuilding, or reconstructing [assembling] the
164	164	vehicle were obtained; and
165	165	(3) shows the identification number required by
166	166	federal law to be affixed to or inscribed on the part.
167	167	(f) The department may not issue a [regular] title for a
168	168	motor vehicle based on a:
169	169	(1) nonrepairable vehicle title issued on or after
170	170	September 1, 2003, or comparable out-of-state ownership document or
171	171	record, or evidence of a notation described by Section
172	172	501.09113(a)(2) on an out-of-state ownership document or record in
173	173	the National Motor Vehicle Title Information System;
174	174	(2) receipt issued under Section 501.1003(b); or
175	175	(3) certificate of authority issued under Chapter 683.
176	176	SECTION 9. Section 501.1003, Transportation Code, is
177	177	amended to read as follows:
178	178	Sec. 501.1003. SALVAGE VEHICLE DEALER RESPONSIBILITIES.
179	179	(a) If a salvage vehicle dealer acquires ownership of a
180	180	nonrepairable motor vehicle or salvage motor vehicle for the
181	181	purpose of dismantling, scrapping, or destroying the motor vehicle,
182	182	the dealer shall, before the 31st day after the date the dealer
183	183	acquires the motor vehicle, submit to the department a report
184	184	stating that the motor vehicle will be dismantled, scrapped, or
185	185	destroyed. The dealer shall:
186	186	(1) make the report in a manner prescribed by the
187	187	department; and
188	188	(2) submit with the report a properly assigned
189	189	manufacturer's certificate of origin, [regular certificate of]
190	190	title, nonrepairable vehicle title, salvage vehicle title, auction
191	191	sales receipt, or comparable out-of-state ownership document for
192	192	the motor vehicle.
193	193	(b) After receiving the report and title, manufacturer's
194	194	certificate of origin, auction sales receipt, or document, the
195	195	department shall issue the salvage vehicle dealer a receipt for the
196	196	manufacturer's certificate of origin, [regular certificate of]
197	197	title, nonrepairable vehicle title, salvage vehicle title, auction
198	198	sales receipt, or comparable out-of-state ownership document.
199	199	(c) The department shall adopt rules to notify the salvage
200	200	vehicle dealer if the vehicle was not issued a printed title, but
201	201	has a record of title in the department's titling system.
202	202	SECTION 10. Section 501.053, Transportation Code, as
203	203	amended by this Act, applies only to a bond for a motor vehicle
204	204	title that is filed on or after the effective date of this Act.
205	205	SECTION 11. This Act takes effect September 1, 2025.