Bill Text: TX HB2112 | 2019-2020 | 86th Legislature | Enrolled
Bill Title: Relating to salvage motor vehicles, including flood vehicles, and nonrepairable motor vehicles.
Spectrum: Bipartisan Bill
Status: (Vetoed) 2019-06-15 - Vetoed by the Governor [HB2112 Detail]
Download: Texas-2019-HB2112-Enrolled.html
H.B. No. 2112 |
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relating to salvage motor vehicles, including flood vehicles, and | ||
nonrepairable motor vehicles. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 501.091, Transportation Code, is amended | ||
by adding Subdivision (4-a) to read as follows: | ||
(4-a) "Flood vehicle": | ||
(A) means a motor vehicle that was submerged in a | ||
level of water higher than a doorsill of the vehicle or had water | ||
enter the passenger, trunk, or engine compartment and: | ||
(i) water came into contact with | ||
mechanical, electrical, or computerized components of the vehicle; | ||
(ii) because of the water, the vehicle | ||
requires repair to, or replacement of, any mechanical, electrical, | ||
or computerized component to operate; and | ||
(iii) an insurance company paid a claim as a | ||
result of damage from the water; and | ||
(B) does not include a motor vehicle designed for | ||
and capable of water submersion for recreational or other purposes | ||
unless the submersion results in damage to: | ||
(i) electrical safety components; or | ||
(ii) a major component part. | ||
SECTION 2. Sections 501.097(c) and (c-1), Transportation | ||
Code, are amended to read as follows: | ||
(c) A [ |
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its face that the motor vehicle: | ||
(1) may not: | ||
(A) be repaired, rebuilt, or reconstructed; | ||
(B) be issued a title or registered in this | ||
state; | ||
(C) be operated on a public highway, in addition | ||
to any other requirement of law; and | ||
(2) may only be used as a source for used parts or | ||
scrap metal. | ||
(c-1) The department's titling system must include a remark | ||
that clearly identifies the vehicle as a salvage motor vehicle or | ||
nonrepairable motor vehicle. | ||
SECTION 3. Section 501.1002, Transportation Code, is | ||
amended to read as follows: | ||
Sec. 501.1002. OWNER-RETAINED VEHICLES. (a) If an | ||
insurance company pays a claim on a nonrepairable motor vehicle or | ||
salvage motor vehicle and the insurance company does not acquire | ||
ownership of the motor vehicle, the insurance company shall: | ||
(1) submit to the department, before the 31st day | ||
after the date of the payment of the claim, on the form prescribed | ||
by the department, a report stating that the insurance company: | ||
(A) has paid a claim on the motor vehicle; [ |
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(B) has not acquired ownership of the motor | ||
vehicle; and | ||
(C) has determined that the motor vehicle is a | ||
salvage motor vehicle or a nonrepairable motor vehicle; and | ||
(2) provide notice to the owner of the motor vehicle | ||
of: | ||
(A) the report required under Subdivision (1); | ||
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(B) the requirements for operation or transfer of | ||
ownership of the motor vehicle under Subsection (b); and | ||
(C) the insurance company's determination that | ||
the motor vehicle is a salvage motor vehicle or a nonrepairable | ||
motor vehicle. | ||
(b) The owner of a salvage motor vehicle or nonrepairable | ||
motor vehicle may not transfer ownership of the motor vehicle by | ||
sale or otherwise unless the department has issued a salvage | ||
vehicle title, salvage record of title, nonrepairable vehicle | ||
title, or nonrepairable record of title for the motor vehicle or a | ||
comparable ownership document has been issued by another state or | ||
jurisdiction for the motor vehicle in the name of the owner. | ||
(c) Notwithstanding any other provision of this subchapter, | ||
on receipt of a report required under Subsection (a) for a vehicle | ||
described by that subsection, the department shall issue for the | ||
vehicle in the name of the owner, as applicable: | ||
(1) a salvage vehicle title or a salvage record of | ||
title for a salvage motor vehicle; or | ||
(2) a nonrepairable vehicle title or a nonrepairable | ||
record of title for a nonrepairable motor vehicle. | ||
(d) The department shall collect the fee authorized under | ||
this subchapter for the issuance of a title or record of title under | ||
Subsection (c). The department shall waive the fee if the report | ||
required under Subsection (a)(1) is submitted through the | ||
department's titling system. | ||
SECTION 4. Subchapter E, Chapter 501, Transportation Code, | ||
is amended by adding Section 501.1004 to read as follows: | ||
Sec. 501.1004. FLOOD VEHICLES. (a) A salvage vehicle | ||
title, salvage record of title, nonrepairable vehicle title, or | ||
nonrepairable record of title issued by the department for a flood | ||
vehicle or any title or record of title subsequently issued by the | ||
department for a flood vehicle must bear a notation that the | ||
department considers appropriate for a flood vehicle. | ||
(b) An entity that takes possession of a flood vehicle | ||
issued ownership documents without the notation required under | ||
Subsection (a) shall: | ||
(1) submit, on a form prescribed by the department, a | ||
report to the department before the 31st day after the date the | ||
entity takes possession of the flood vehicle, unless the entity: | ||
(A) is an insurance company or salvage pool | ||
operator as defined by Section 2302.001, Occupations Code; and | ||
(B) obtains an ownership document for the vehicle | ||
that bears the notation required by Subsection (a) before the | ||
entity transfers the vehicle; and | ||
(2) if the entity is a lienholder in possession of the | ||
vehicle under Chapter 54, 59, or 70, Property Code, or Chapter 2303, | ||
Occupations Code, apply to the department for the appropriate title | ||
in accordance with Section 501.097 before offering the vehicle for | ||
public sale. | ||
SECTION 5. The following provisions are repealed: | ||
(1) Section 2302.254(c), Occupations Code; and | ||
(2) Section 501.09112, Transportation Code. | ||
SECTION 6. This Act takes effect September 1, 2019. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 2112 was passed by the House on May 3, | ||
2019, by the following vote: Yeas 137, Nays 3, 2 present, not | ||
voting; and that the House concurred in Senate amendments to H.B. | ||
No. 2112 on May 24, 2019, by the following vote: Yeas 138, Nays 2, | ||
2 present, not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 2112 was passed by the Senate, with | ||
amendments, on May 22, 2019, by the following vote: Yeas 31, Nays | ||
0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: __________________ | ||
Date | ||
__________________ | ||
Governor |