Texas 2025 - 89th Regular

Texas House Bill HB5436 Compare Versions

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1	1	89R17939 AND-D
2	2	By: Bell of Kaufman H.B. No. 5436
3	3
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5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to an exception to the titling requirement for certain
10	10	motor vehicles; creating a criminal offense; providing for a fee.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter E, Chapter 501, Transportation Code,
13	13	is amended by adding Section 501.098 to read as follows:
14	14	Sec. 501.098. EXCEPTION TO TITLE REQUIREMENT FOR CERTAIN
15	15	VEHICLES. (a) Notwithstanding any other law, a used automotive
16	16	parts recycler may purchase a motor vehicle without obtaining a
17	17	title to the vehicle if:
18	18	(1) the vehicle is at least 13 years old and is
19	19	purchased solely for parts, dismantling, or scrap;
20	20	(2) the vehicle has not been registered for at least
21	21	seven years;
22	22	(3) the recycler complies with Subsections (b), (c),
23	23	and (g); and
24	24	(4) either:
25	25	(A) the recycler does not dismantle, crush, or
26	26	shred the vehicle before the close of business on the third business
27	27	day after the date the recycler submitted to the department the
28	28	information required under Subsection (c), if the vehicle is:
29	29	(i) not subject to a recorded security
30	30	interest or lien; or
31	31	(ii) subject only to recorded security
32	32	interests or liens:
33	33	(a) for which a release of each
34	34	recorded security interest or lien on the vehicle is provided; or
35	35	(b) that were recorded on the
36	36	certificate of title more than six years before the date of purchase
37	37	under this section; or
38	38	(B) the recycler does not dismantle, crush, or
39	39	shred the vehicle before the date stated in the written statement
40	40	required by Subsection (h)(4), if the recycler determined under
41	41	Subsection (g) that the vehicle is subject to a recorded security
42	42	interest or lien, other than a security interest or lien described
43	43	by Paragraph (A)(ii).
44	44	(b) A used automotive parts recycler who purchases a motor
45	45	vehicle under this section shall compile the following information
46	46	in the manner prescribed by the department:
47	47	(1) the name, address, and National Motor Vehicle
48	48	Title Information System identification number of the recycler;
49	49	(2) the name, initials, or other identification of the
50	50	individual recording the information required by this subsection;
51	51	(3) the date of the transaction;
52	52	(4) a description of the vehicle, including the make
53	53	and model to the extent practicable;
54	54	(5) the vehicle identification number of the vehicle;
55	55	(6) the license plate number of any vehicle
56	56	transporting the vehicle being sold;
57	57	(7) the amount of consideration given for the vehicle;
58	58	(8) a written statement signed by the seller or an
59	59	agent acting on behalf of the seller:
60	60	(A) certifying that the seller or agent has the
61	61	lawful right to sell the vehicle; and
62	62	(B) acknowledging that a person who falsifies
63	63	information contained in the written statement is subject to
64	64	criminal penalties and restitution for losses incurred as a result
65	65	of the sale of the vehicle based on falsified information contained
66	66	in the statement;
67	67	(9) the name and address of the seller, and the
68	68	seller's agent if applicable;
69	69	(10) a photocopy or electronic scan of:
70	70	(A) a valid driver's license of the seller or the
71	71	seller's agent; or
72	72	(B) any other photographic identification card
73	73	of the seller or the seller's agent issued by any state or federal
74	74	agency; and
75	75	(11) proof demonstrating that the recycler has
76	76	reported the vehicle to the department as provided by Subsection
77	77	(c).
78	78	(c) A used automotive parts recycler who purchases a motor
79	79	vehicle under this section shall submit to the department, in the
80	80	manner prescribed by the department, and to the National Motor
81	81	Vehicle Title Information System information necessary to satisfy
82	82	any applicable requirement for reporting information to the
83	83	National Motor Vehicle Title Information System in accordance with
84	84	rules adopted under 28 C.F.R. Section 25.56. The information must
85	85	be submitted not later than 24 hours, not counting weekends or
86	86	official state holidays, after the close of business on the day the
87	87	vehicle is received. The department may report information
88	88	received under this subsection to the National Motor Vehicle Title
89	89	Information System on the recycler's behalf. A used automotive
90	90	parts recycler is not required to report information to the
91	91	National Motor Vehicle Title Information System if the department
92	92	reports the information on behalf of the recycler under this
93	93	subsection.
94	94	(d) Not later than 48 hours after receiving motor vehicle
95	95	information from a used automotive parts recycler under Subsection
96	96	(c), the department shall notify the recycler whether the vehicle
97	97	has been reported stolen.
98	98	(e) If the department notifies a used automotive parts
99	99	recycler under Subsection (d) that a motor vehicle has been
100	100	reported stolen, the recycler shall notify the appropriate local
101	101	law enforcement agency of the vehicle's current location and
102	102	provide to the agency identifying information of the person who
103	103	sold the vehicle to the recycler.
104	104	(f) On receipt of motor vehicle information under
105	105	Subsection (c), the department shall:
106	106	(1) add a notation to the motor vehicle record of the
107	107	vehicle indicating that the vehicle has been dismantled, scrapped,
108	108	or destroyed; and
109	109	(2) cancel the title of the vehicle.
110	110	(g) Not later than 48 hours after a used automotive parts
111	111	recycler purchases a motor vehicle under this section, the recycler
112	112	shall, in the manner prescribed by the department, verify whether
113	113	the vehicle is subject to any recorded security interest or lien.
114	114	If the recycler determines that the vehicle is subject to a recorded
115	115	security interest or lien, other than a security interest or lien
116	116	described by Subsection (a)(4)(A)(ii), the recycler shall provide
117	117	notice, in accordance with Subsection (h), to the county
118	118	assessor-collector of the county in which the recycler is located
119	119	of the recycler's purchase of the vehicle.
120	120	(h) Notice provided to the county assessor-collector under
121	121	Subsection (g) must include:
122	122	(1) the information described by Subsections
123	123	(b)(1)-(5);
124	124	(2) the contact information of the lienholder
125	125	identified by the used automotive parts recycler under Subsection
126	126	(g);
127	127	(3) the date on which the notice is provided to the
128	128	county assessor-collector;
129	129	(4) a written statement signed by the recycler or the
130	130	recycler's agent that the vehicle will not be dismantled or
131	131	scrapped on or before the 21st day after the date described by
132	132	Subdivision (3); and
133	133	(5) a $25 administrative fee.
134	134	(i) Not later than the fifth day after the date a used
135	135	automotive parts recycler provides notice to a county
136	136	assessor-collector under Subsection (g), the county
137	137	assessor-collector shall notify the lienholder and the last
138	138	registered owner of the vehicle, if the recycler did not purchase
139	139	the vehicle from the last registered owner, of the recycler's
140	140	purchase of the motor vehicle, which must include the contact
141	141	information of the recycler provided under Subsection (h)(1) and a
142	142	copy of the written statement provided under Subsection (h)(4).
143	143	(j) Not later than the 14th day after the date a county
144	144	assessor-collector provides notice to a lienholder or a last
145	145	registered owner under Subsection (i), the lienholder or last
146	146	registered owner may retrieve the vehicle from the recycler at no
147	147	cost.
148	148	(k) A person who purchases a motor vehicle under this
149	149	section that is later determined by the department or another
150	150	governmental entity to have been reported stolen is not criminally
151	151	or civilly liable unless the person had knowledge that the vehicle
152	152	was a stolen vehicle or failed to comply with the requirements of
153	153	Subsection (b) or (c).
154	154	(l) A court shall order a person who sells a motor vehicle
155	155	under this section to pay restitution, including attorney's fees,
156	156	to the owner or lienholder of the vehicle or to a used automotive
157	157	parts recycler in an amount equal to the amount of any damage or
158	158	loss caused by an offense committed by the seller related to the
159	159	vehicle.
160	160	(m) Records required to be maintained under this section
161	161	must be open to inspection by a representative of the department or
162	162	a law enforcement officer during reasonable business hours.
163	163	(n) A contract with a United States Department of Justice
164	164	approved third-party data consolidator, pursuant to 28 C.F.R. Part
165	165	25, may be used to satisfy:
166	166	(1) the responsibilities of the department under this
167	167	section; and
168	168	(2) the reporting responsibilities of a used
169	169	automotive parts recycler under Subsection (c).
170	170	(o) This section preempts all requirements that are
171	171	inconsistent with specific provisions of this section relating to
172	172	the purchase and dismantling, crushing, or shredding of a motor
173	173	vehicle without obtaining the title to the vehicle.
174	174	SECTION 2. Section 501.109, Transportation Code, is amended
175	175	by adding Subsections (c-1) and (i) and amending Subsections (d)
176	176	and (e) to read as follows:
177	177	(c-1) A person commits an offense if the person knowingly:
178	178	(1) fails to obtain or falsifies information required
179	179	under Section 501.098(c);
180	180	(2) falsifies the information required under Section
181	181	501.098(b) or (h);
182	182	(3) falsifies the statement required under Section
183	183	501.098(b)(8) or (h)(4);
184	184	(4) sells a vehicle under Section 501.098 that is the
185	185	subject of a security interest or lien other than a security
186	186	interest or lien described by Section 501.098(a)(4)(A)(ii); or
187	187	(5) otherwise violates Section 501.098.
188	188	(d) Except as provided by Subsection (e), an offense under
189	189	Subsection (a), (b), [or] (c), or (c-1) is a Class C misdemeanor.
190	190	(e) If it is shown on the trial of an offense under
191	191	Subsection (a), (b), [or] (c), or (c-1) that the defendant has been
192	192	previously convicted of:
193	193	(1) one offense under Subsection (a), (b), [or] (c),
194	194	or (c-1), the offense is a Class B misdemeanor; or
195	195	(2) two or more offenses under Subsection (a), (b),
196	196	[or] (c), or (c-1), the offense is a state jail felony.
197	197	(i) Money generated from penalties collected for offenses
198	198	under Subsection (c-1) may be used only for enforcement,
199	199	investigation, prosecution, and training activities related to
200	200	motor vehicle related offenses.
201	201	SECTION 3. This Act takes effect September 1, 2025.