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AN ACT
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relating to the issuance of titles for certain motor vehicles that |
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are the subject of insurance claims. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 501.092(a), (c), and (d), |
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Transportation Code, are amended to read as follows: |
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(a) Except as provided by Section 501.0925, an [An] |
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insurance company that is licensed to conduct business in this |
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state and that acquires, through payment of a claim, ownership or |
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possession of a salvage motor vehicle or nonrepairable motor |
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vehicle covered by a certificate of title issued by this state or a |
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manufacturer's certificate of origin shall surrender a properly |
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assigned title or manufacturer's certificate of origin to the |
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department, on a form prescribed by the department[, except that
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not earlier than the 46th day after the date of payment of the claim
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the insurance company may surrender a certificate of title, on a
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form prescribed by the department, and receive a salvage
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certificate of title or a nonrepairable certificate of title
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without obtaining a properly assigned certificate of title if the
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insurance company:
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[(1)
has obtained the release of all liens on the motor
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vehicle;
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[(2)
is unable to locate one or more owners of the
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motor vehicle; and
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[(3)
has provided notice to the last known address in
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the department's records to each owner that has not been located:
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[(A)
by registered or certified mail, return
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receipt requested; or
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[(B)
if a notice sent under Paragraph (A) is
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returned unclaimed, by publication in a newspaper of general
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circulation in the area where the unclaimed mail notice was sent]. |
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(c) An insurance company may not sell a salvage motor |
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vehicle or nonrepairable motor vehicle [to which this section
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applies] unless the department has issued a salvage vehicle title |
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or a nonrepairable vehicle title, as appropriate, for the motor |
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vehicle or a comparable ownership document has been issued by |
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another state or jurisdiction for the motor vehicle. |
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(d) An insurance company may sell a salvage motor vehicle or |
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nonrepairable motor vehicle [to which this section applies], or |
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assign a salvage vehicle title or a nonrepairable vehicle title for |
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a [the] motor vehicle, only to a salvage vehicle dealer, an |
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out-of-state buyer, a buyer in a casual sale at auction, a metal |
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recycler, or a used automotive parts recycler. If a [the] motor |
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vehicle is not a salvage motor vehicle or a nonrepairable motor |
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vehicle, the insurance company is not required to surrender the |
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regular certificate of title for the vehicle or to be issued a |
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salvage vehicle title or a nonrepairable vehicle title for the |
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motor vehicle. |
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SECTION 2. Subchapter E, Chapter 501, Transportation Code, |
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is amended by adding Sections 501.0925 and 501.0935 to read as |
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follows: |
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Sec. 501.0925. INSURANCE COMPANY NOT REQUIRED TO SURRENDER |
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CERTIFICATES OF TITLE IN CERTAIN SITUATIONS. (a) An insurance |
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company that acquires, through payment of a claim, ownership or |
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possession of a motor vehicle covered by a certificate of title that |
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the company is unable to obtain may obtain from the department not |
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earlier than the 30th day after the date of payment of the claim: |
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(1) a salvage vehicle title for a salvage motor |
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vehicle; |
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(2) a nonrepairable vehicle title for a nonrepairable |
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motor vehicle; or |
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(3) a regular certificate of title for a motor vehicle |
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other than a salvage motor vehicle or a nonrepairable motor |
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vehicle. |
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(b) An application for a title under Subsection (a) must be |
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submitted to the department on a form prescribed by the department |
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and include: |
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(1) a statement that the insurance company has |
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provided at least two written notices attempting to obtain the |
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certificate of title for the motor vehicle; and |
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(2) evidence acceptable to the department that the |
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insurance company has made payment of a claim involving the motor |
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vehicle. |
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(c) An insurance company that acquires, through payment of a |
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claim, ownership or possession of a motor vehicle covered by a |
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certificate of title for which the company is unable to obtain |
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proper assignment of the certificate may obtain from the department |
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not earlier than the 30th day after the date of payment of the |
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claim: |
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(1) a salvage vehicle title for a salvage motor |
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vehicle; |
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(2) a nonrepairable vehicle title for a nonrepairable |
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motor vehicle; or |
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(3) a regular certificate of title for a motor vehicle |
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other than a salvage motor vehicle or a nonrepairable motor |
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vehicle. |
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(d) An application for a title under Subsection (c) must be |
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submitted to the department on a form prescribed by the department |
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and include: |
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(1) a statement that the insurance company has |
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provided at least two written notices attempting to obtain a proper |
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assignment of the certificate of title; and |
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(2) the certificate of title. |
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(e) A title issued under Subsection (a) or (c) must be |
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issued in the name of the insurance company. |
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(f) An insurance company that acquires, through payment of a |
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claim, ownership or possession of a salvage motor vehicle or |
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nonrepairable motor vehicle covered by an out-of-state ownership |
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document may obtain from the department a salvage vehicle title or |
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nonrepairable vehicle title if: |
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(1) the motor vehicle was damaged, stolen, or |
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recovered in this state; |
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(2) the motor vehicle owner from whom the company |
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acquired ownership resides in this state; or |
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(3) otherwise allowed by department rule. |
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(g) A title may be issued under Subsection (f) if the |
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insurance company: |
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(1) surrenders a properly assigned title on a form |
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prescribed by the department; or |
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(2) complies with the application process for a title |
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issued under Subsection (a) or (c). |
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(h) The department shall issue the appropriate title to a |
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person authorized to apply for the title under this section if the |
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department determines that the application is complete and complies |
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with applicable law. |
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(i) The department by rule may provide that a person |
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required by this section to provide notice may provide the notice |
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electronically, including through the use of e-mail or an |
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interactive website established by the department for that purpose. |
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(j) Sections 501.092(c), (d), and (e) apply to a motor |
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vehicle acquired by an insurance company as described in Subsection |
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(a), (c), or (f). |
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(k) The department may adopt rules to implement this |
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section. |
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Sec. 501.0935. ISSUANCE OF TITLE TO SALVAGE POOL OPERATOR. |
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(a) In this section, "salvage pool operator" has the meaning |
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assigned by Section 2302.001, Occupations Code. |
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(b) This section applies only to a salvage pool operator |
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who, on request of an insurance company, takes possession of a motor |
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vehicle that is the subject of an insurance claim and the insurance |
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company subsequently: |
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(1) denies coverage with respect to the motor vehicle; |
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or |
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(2) does not otherwise take ownership of the motor |
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vehicle. |
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(b-1) An insurance company described by Subsection (b) |
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shall notify the salvage pool operator of the denial of the claim |
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regarding the motor vehicle or other disposition of the motor |
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vehicle. The insurance company must include in the notice the name |
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and address of the owner of the motor vehicle and the lienholder, if |
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any. |
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(c) Before the 31st day after receiving notice under |
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Subsection (b-1), a salvage pool operator shall notify the owner of |
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the motor vehicle and any lienholder that: |
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(1) the owner or lienholder must remove the motor |
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vehicle from the salvage pool operator's possession at the location |
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specified in the notice to the owner and any lienholder not later |
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than the 30th day after the date the notice is mailed; and |
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(2) if the motor vehicle is not removed within the time |
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specified in the notice, the salvage pool operator will sell the |
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motor vehicle and retain from the proceeds any costs actually |
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incurred by the operator in obtaining, handling, and disposing of |
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the motor vehicle as described by Subsection (d). |
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(d) The salvage pool operator may include in the costs |
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described by Subsection (c)(2) only costs actually incurred by the |
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salvage pool operator that have not been reimbursed by a third party |
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or are not subject to being reimbursed by a third party, such as |
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costs of notices, title searches, and towing and other costs |
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incurred with respect to the motor vehicle. The costs described by |
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Subsection (c)(2): |
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(1) may not include charges for storage or impoundment |
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of the motor vehicle; and |
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(2) may be deducted only from the proceeds of a sale of |
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the motor vehicle. |
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(e) The notice required of a salvage pool operator under |
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this section must be sent by registered or certified mail, return |
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receipt requested. |
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(f) If a motor vehicle is not removed from a salvage pool |
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operator's possession before the 31st day after the date notice is |
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mailed to the motor vehicle's owner and any lienholder under |
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Subsection (c), the salvage pool operator may obtain from the |
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department: |
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(1) a salvage vehicle title for a salvage motor |
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vehicle; or |
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(2) a nonrepairable vehicle title for a nonrepairable |
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motor vehicle. |
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(g) An application for a title under Subsection (f) must: |
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(1) be submitted to the department on a form |
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prescribed by the department; and |
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(2) include evidence that the notice was mailed as |
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required by Subsection (c) to the motor vehicle owner and any |
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lienholder. |
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(h) A title issued under this section must be issued in the |
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name of the salvage pool operator. |
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(i) The department shall issue the appropriate title to a |
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person authorized to apply for the title under this section if the |
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department determines that the application is complete and complies |
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with applicable law. |
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(j) On receipt of a title under this section, the salvage |
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pool operator shall sell the motor vehicle and retain from the |
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proceeds of the sale the costs incurred by the salvage pool operator |
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as permitted by Subsection (d) along with the cost of titling and |
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selling the motor vehicle. The salvage pool operator shall pay any |
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excess proceeds from the sale to the previous owner of the motor |
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vehicle and the lienholder, if any. The excess proceeds must be |
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mailed to the lienholder. |
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(k) If the previous owner of the motor vehicle and the |
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lienholder, if any, cannot be identified or located, any excess |
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proceeds from the sale of the motor vehicle under Subsection (j) |
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shall escheat to the State of Texas. The proceeds shall be |
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administered by the comptroller and shall be disposed of in the |
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manner provided by Chapter 74, Property Code. |
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SECTION 3. |
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Section 501.093(a), Transportation Code, is |
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amended to read as follows: |
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(a) If an insurance company pays a claim on a nonrepairable |
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motor vehicle or salvage motor vehicle and the insurance company |
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does not acquire ownership of the motor vehicle, the insurance |
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company shall: |
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(1) submit to the department, before the 31st day |
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after the date of the payment of the claim, on the form prescribed |
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by the department, a report stating that the insurance company: |
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(A) [(1)] has paid a claim on the motor vehicle; |
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and |
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(B) [(2)] has not acquired ownership of the motor |
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vehicle; and |
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(2) provide notice to the owner of the motor vehicle |
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of: |
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(A) the report required under Subdivision (1); |
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and |
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(B) the requirements for operation or transfer of |
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ownership of the motor vehicle under Subsection (b). |
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SECTION 4. Sections 501.097(a) and (b), Transportation |
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Code, are amended to read as follows: |
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(a) An application for a nonrepairable vehicle title or |
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salvage vehicle title must: |
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(1) be made on a form prescribed by the department and |
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accompanied by a $8 application fee; |
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(2) include, in addition to any other information |
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required by the department: |
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(A) the name and current address of the owner; |
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(B) a description of the motor vehicle, including |
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the make, style of body, model year, and vehicle identification |
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number; and |
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(C) a statement describing whether the motor |
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vehicle: |
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(i) was the subject of a total loss claim |
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paid by an insurance company under Section 501.092, 501.0925, or |
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501.093; |
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(ii) is a self-insured motor vehicle under |
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Section 501.094; |
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(iii) is an export-only motor vehicle under |
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Section 501.099; [or] |
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(iv) was sold, transferred, or released to |
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the owner or former owner of the motor vehicle or a buyer at a casual |
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sale; or |
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(v) is a motor vehicle for which an |
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insurance company does not take ownership under Section 501.0935; |
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and |
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(3) include the name and address of: |
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(A) any currently recorded lienholder, if the |
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motor vehicle is a nonrepairable motor vehicle; or |
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(B) any currently recorded lienholder or a new |
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lienholder, if the motor vehicle is a salvage motor vehicle. |
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(b) Except as provided by Sections 501.0925 and 501.0935, on |
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[On] receipt of a complete application, the properly assigned title |
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or manufacturer's certificate of origin, and the application fee, |
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the department shall, before the sixth business day after the date |
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the department receives the application, issue the applicant the |
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appropriate title for the motor vehicle. |
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SECTION 5. Section 501.102, Transportation Code, is amended |
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by adding Subsection (f) to read as follows: |
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(f) Subsection (c) does not apply to an applicant for a |
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title under Sections 501.0925 and 501.0935. |
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SECTION 6. Section 2302.201(a), Occupations Code, is |
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amended to read as follows: |
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(a) Except as provided by Section 501.0935, Transportation |
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Code, a [A] salvage vehicle dealer who acquires ownership of a |
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salvage motor vehicle from an owner must receive from the owner a |
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properly assigned title. |
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SECTION 7. The change in law made by this Act to Section |
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501.102, Transportation Code, applies only to an offense committed |
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on or after the effective date of this Act. An offense committed |
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before the effective date of this Act is governed by the law in |
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effect on the date the offense was committed, and the former law is |
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continued in effect for that purpose. For purposes of this section, |
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an offense was committed before the effective date of this Act if |
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any element of the offense occurred before that date. |
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SECTION 8. This Act takes effect September 1, 2011. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 1422 was passed by the House on April |
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12, 2011, by the following vote: Yeas 147, Nays 0, 1 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 1422 on May 23, 2011, by the following vote: Yeas 144, Nays 0, |
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3 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 1422 was passed by the Senate, with |
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amendments, on May 21, 2011, by the following vote: Yeas 31, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |