Bill Text: TX HB3531 | 2021-2022 | 87th Legislature | Comm Sub

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Bill Title: Relating to motor vehicle titles, registration, and license plates.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2021-05-27 - Returned from the House for further action [HB3531 Detail]

Download: Texas-2021-HB3531-Comm_Sub.html

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By: Martinez (Senate Sponsor - Seliger) H.B. No. 3531
(In the Senate - Received from the House May 17, 2021;
May 17, 2021, read first time and referred to Committee on
Transportation; May 21, 2021, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 9, Nays 0;
May 21, 2021, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 3531 By: Seliger

A BILL TO BE ENTITLED
AN ACT
relating to motor vehicle titles, registration, and license plates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter B, Chapter 501,
Transportation Code, is amended to read as follows:
SUBCHAPTER B. [CERTIFICATE OF] TITLE REQUIREMENTS
SECTION 2. Section 501.0234(b), Transportation Code, is
amended to read as follows:
(b) This section does not apply to a motor vehicle:
(1) that has been declared a total loss by an insurance
company in the settlement or adjustment of a claim;
(2) for which the title has been surrendered in
exchange for:
(A) a salvage vehicle title [or salvage record of
title] issued under this chapter;
(B) a nonrepairable vehicle title [or
nonrepairable vehicle record of title] issued under this chapter or
a certificate of authority issued under Subchapter D, Chapter 683;
or
(C) an ownership document issued by another state
that is comparable to a document described by Paragraph (A) or (B);
(3) with a gross weight in excess of 11,000 pounds; or
(4) purchased by a commercial fleet buyer who:
(A) is a deputy authorized by rules adopted under
Section 520.0071;
(B) utilizes the dealer title application
process developed to provide a method to submit title transactions
to the county in which the commercial fleet buyer is a deputy; and
(C) has authority to accept an application for
registration and application for title transfer that the county
assessor-collector may accept.
SECTION 3. Section 501.0276, Transportation Code, is
amended to read as follows:
Sec. 501.0276. DENIAL OF TITLE RECEIPT OR [,] TITLE [, OR
RECORD OF TITLE] FOR FAILURE TO PROVIDE PROOF OF EMISSIONS
TESTING. A county assessor-collector may not issue a title receipt
and the department may not issue a [certificate of] title for a
vehicle subject to Section 548.3011 unless proof that the vehicle
has passed a vehicle emissions test as required by that section, in
a manner authorized by that section, is presented to the county
assessor-collector with the application for a title.
SECTION 4. Section 501.0301(b), Transportation Code, is
amended to read as follows:
(b) A county assessor-collector may not issue a title
receipt and the department may not issue a [certificate of] title
for an off-highway vehicle purchased from a retailer located
outside this state and designated by the manufacturer as a model
year that is not more than one year before the year in which the
application for title is made unless the applicant for the title
delivers to the assessor-collector or the department, as
applicable, satisfactory evidence showing that the applicant:
(1) has paid to the comptroller the applicable use tax
imposed on the vehicle under Subchapter D, Chapter 151, Tax Code; or
(2) is not required to pay any taxes described by
Subdivision (1).
SECTION 5. The heading to Section 501.038, Transportation
Code, is amended to read as follows:
Sec. 501.038. [CERTIFICATE OF] TITLE FOR CUSTOM VEHICLE OR
STREET ROD.
SECTION 6. Section 501.038(b), Transportation Code, is
amended to read as follows:
(b) Notwithstanding any other provision of this chapter, if
the department issues a [certificate of] title for a custom vehicle
or street rod, the model year and make of the vehicle must be listed
on the [certificate of] title and must be the model year and make
that the body of the vehicle resembles. The [certificate of] title
must also include the word "replica."
SECTION 7. The heading to Subchapter C, Chapter 501,
Transportation Code, is amended to read as follows:
SUBCHAPTER C. REFUSAL TO ISSUE, REVOCATION, SUSPENSION, OR
ALTERATION OF TITLE [CERTIFICATE]
SECTION 8. Section 501.051, Transportation Code, is amended
by adding Subsection (d) to read as follows:
(d) The department shall place a hold on processing a title
application for a motor vehicle if the department receives a
request for a hold accompanied by evidence of a legal action
regarding ownership of or a lien interest in the motor vehicle. The
hold shall continue until a final, nonappealable judgment is
entered in the action or the party requesting the hold requests that
the hold be removed.
SECTION 9. Section 501.052, Transportation Code, is amended
by amending Subsection (e) and adding Subsection (f) to read as
follows:
(e) An applicant aggrieved by the determination under
Subsection (d) may appeal only to the county or district court of
the county of the applicant's residence. An applicant must file an
appeal not later than the fifth day after receipt [the date] of the
assessor-collector's determination. The judge shall try the
appeal in the manner of other civil cases. All rights and
immunities granted in the trial of a civil case are available to the
interested parties. If the department's action is not sustained,
the department shall promptly issue a title for the vehicle.
(f) A person may not apply for a hearing under this section
if the department's decision under Section 501.051 is related to a
title for a salvage motor vehicle or a nonrepairable motor vehicle,
as defined by Section 501.091.
SECTION 10. Section 501.053, Transportation Code, is
amended by adding Subsection (f) to read as follows:
(f) A person may not obtain a title under this section for a
salvage motor vehicle or a nonrepairable motor vehicle, as defined
by Section 501.091.
SECTION 11. Section 501.074(a), Transportation Code, is
amended to read as follows:
(a) The department shall issue a new title for a motor
vehicle registered in this state for which the ownership is
transferred by operation of law or other involuntary divestiture of
ownership after receiving:
(1) a certified copy of an order appointing a
temporary administrator or of the probate proceedings;
(2) letters testamentary or letters of
administration;
(3) if administration of an estate is not necessary,
an affidavit showing that administration is not necessary,
identifying all heirs, and including a statement by the heirs of the
name in which the title [certificate] shall be issued;
(4) a court order; or
(5) the bill of sale from an officer making a judicial
sale.
SECTION 12. Section 501.091, Transportation Code, is
amended by adding Subdivision (1-a) and amending Subdivisions (10)
and (16) to read as follows:
(1-a) "Auction sales receipt" means a document
certifying the sale of a motor vehicle at auction by a law
enforcement agency or public sale for a lien foreclosure.
(10) "Nonrepairable vehicle title" means a
nonrepairable record of title or printed document issued by the
department that evidences ownership of a nonrepairable motor
vehicle.
(16) "Salvage vehicle title" means a salvage record of
title or printed document issued by the department that evidences
ownership of a salvage motor vehicle.
SECTION 13. The heading to Section 501.09111,
Transportation Code, is amended to read as follows:
Sec. 501.09111. RIGHTS AND LIMITATIONS OF NONREPAIRABLE
VEHICLE TITLE OR [, NONREPAIRABLE RECORD OF TITLE,] SALVAGE VEHICLE
TITLE [, OR SALVAGE RECORD OF TITLE].
SECTION 14. Section 501.09111(b), Transportation Code, is
amended to read as follows:
(b) A person who holds a nonrepairable vehicle [certificate
of] title issued prior to September 1, 2003, is entitled to the
same rights listed in Subsection (a) and may repair, rebuild, or
reconstruct the motor vehicle.
SECTION 15. Sections 501.09112(b), (d), (e), and (f),
Transportation Code, are amended to read as follows:
(b) A nonrepairable vehicle title must clearly indicate
that the motor vehicle:
(1) may not be:
(A) issued a [regular] title;
(B) registered in this state; or
(C) repaired, rebuilt, or reconstructed; and
(2) may be used only as a source for used parts or
scrap metal.
(d) A salvage vehicle title [or a salvage record of title]
for a vehicle that is a salvage motor vehicle because of damage
caused exclusively by flood must bear a notation that the
department considers appropriate. If the title for a motor vehicle
reflects the notation required by this subsection, the owner may
sell, transfer, or release the motor vehicle only as provided by
this subchapter.
(e) An electronic application for a nonrepairable vehicle
title or [, nonrepairable record of title,] salvage vehicle title
[, or salvage record of title] must clearly advise the applicant of
the same provisions required on a printed title.
(f) A nonrepairable vehicle title or [, nonrepairable
record of title,] salvage vehicle title [, or salvage record of
title] in the department's electronic database must include
appropriate remarks so that the vehicle record clearly shows the
status of the vehicle.
SECTION 16. The heading to Section 501.0925, Transportation
Code, is amended to read as follows:
Sec. 501.0925. INSURANCE COMPANY NOT REQUIRED TO SURRENDER
EVIDENCE OF OWNERSHIP [CERTIFICATES OF TITLE] IN CERTAIN
SITUATIONS.
SECTION 17. Sections 501.0925(a), (b), (c), (d), and (f),
Transportation Code, are amended to read as follows:
(a) An insurance company that acquires, through payment of a
claim, ownership or possession of a motor vehicle covered by a
[certificate of] title or a manufacturer's certificate of origin
that the company is unable to obtain may obtain from the department
not earlier than the 30th day after the date of payment of the
claim:
(1) a salvage vehicle title for a salvage motor
vehicle;
(2) a nonrepairable vehicle title for a nonrepairable
motor vehicle; or
(3) a [regular certificate of] title for a motor
vehicle other than a salvage motor vehicle or a nonrepairable motor
vehicle.
(b) An application for a title under Subsection (a) must be
[submitted to the department] on a form prescribed by the
department and include:
(1) a statement that the insurance company has
provided at least two written notices attempting to obtain the
evidence of ownership [certificate of title] for the motor vehicle;
and
(2) evidence acceptable to the department that the
insurance company has made payment of a claim involving the motor
vehicle.
(c) An insurance company that acquires, through payment of a
claim, ownership or possession of a motor vehicle covered by a
[certificate of] title or a manufacturer's certificate of origin
for which the company is unable to obtain proper assignment of the
title or manufacturer's certificate of origin [certificate] may
obtain from the department not earlier than the 30th day after the
date of payment of the claim:
(1) a salvage vehicle title for a salvage motor
vehicle;
(2) a nonrepairable vehicle title for a nonrepairable
motor vehicle; or
(3) a [regular certificate of] title for a motor
vehicle other than a salvage motor vehicle or a nonrepairable motor
vehicle.
(d) An application for a title under Subsection (c) must be
[submitted to the department] on a form prescribed by the
department and include:
(1) a statement that the insurance company has
provided at least two written notices attempting to obtain a proper
assignment of the evidence of ownership [certificate of title]; and
(2) the evidence of ownership [certificate of title].
(f) An insurance company that acquires, through payment of a
claim, ownership or possession of a motor vehicle, salvage motor
vehicle, or nonrepairable motor vehicle covered by an out-of-state
title or out-of-state ownership document may obtain from the
department a title, salvage vehicle title, or nonrepairable vehicle
title, as appropriate, if:
(1) the motor vehicle was damaged, stolen, or
recovered in this state;
(2) the motor vehicle owner from whom the company
acquired ownership resides in this state; or
(3) otherwise allowed by department rule.
SECTION 18. Sections 501.097(a) and (c-1), Transportation
Code, are amended to read as follows:
(a) An application for a nonrepairable vehicle title or [,
nonrepairable record of title,] salvage vehicle title [, or salvage
record of title] must:
(1) be made in a manner prescribed by the department
and accompanied by a $8 application fee;
(2) include, in addition to any other information
required by the department:
(A) the name and current address of the owner;
and
(B) a description of the motor vehicle, including
the make, style of body, model year, and vehicle identification
number; and
(3) include the name and address of:
(A) any currently recorded lienholder, if the
motor vehicle is a nonrepairable motor vehicle; or
(B) any currently recorded lienholder or a new
lienholder, if the motor vehicle is a salvage motor vehicle.
(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 19. The heading to Section 501.100, Transportation
Code, is amended to read as follows:
Sec. 501.100. APPLICATION FOR [REGULAR CERTIFICATE OF]
TITLE FOR SALVAGE VEHICLE.
SECTION 20. Sections 501.100(a) and (f), Transportation
Code, are amended to read as follows:
(a) The owner of a motor vehicle for which a nonrepairable
vehicle title issued prior to September 1, 2003, [or] for which a
salvage vehicle title [or salvage record of title] has been issued,
or for which a comparable out-of-state ownership document for a
salvage motor vehicle has been issued may apply for a title under
Section 501.023 after the motor vehicle has been repaired, rebuilt,
or reconstructed and, in addition to any other requirement of law,
only if the application:
(1) describes each major component part used to
repair, rebuild, or reconstruct the motor vehicle;
(2) states the name of each person from whom the parts
used in repairing, rebuilding, or reconstructing [assembling] the
vehicle were obtained; and
(3) shows the identification number required by
federal law to be affixed to or inscribed on the part.
(f) The department may not issue a [regular] title for a
motor vehicle based on a:
(1) nonrepairable vehicle title issued on or after
September 1, 2003, or comparable out-of-state ownership document or
record, or evidence of a notation described by Section
501.09113(a)(2) on an out-of-state ownership document or record in
the National Motor Vehicle Title Information System;
(2) receipt issued under Section 501.1003(b); or
(3) certificate of authority issued under Chapter 683.
SECTION 21. Sections 501.1001(b), (c), and (d),
Transportation Code, are amended to read as follows:
(b) For a salvage motor vehicle, the insurance company shall
apply for a salvage vehicle title [or salvage record of
title]. For a nonrepairable motor vehicle, the insurance company
shall apply for a nonrepairable vehicle title [or nonrepairable
record of title].
(c) An insurance company or other person who acquires
ownership of a motor vehicle other than a nonrepairable motor
vehicle or salvage motor vehicle may voluntarily and on proper
application obtain a salvage vehicle title or [, salvage record of
title,] nonrepairable vehicle title [, or nonrepairable record of
title] for the vehicle.
(d) This subsection applies only to a motor vehicle in this
state that is a self-insured motor vehicle and that is damaged to
the extent it becomes a nonrepairable motor vehicle or salvage
motor vehicle. The owner of a motor vehicle to which this
subsection applies shall submit to the department before the 31st
business day after the date of the damage, in a manner prescribed by
the department, a statement that the motor vehicle was self-insured
and damaged. When the owner submits a report, the owner shall
surrender the ownership document and apply for a nonrepairable
vehicle title or [, nonrepairable record of title,] salvage vehicle
title [, or salvage record of title].
SECTION 22. Section 501.1002(b), Transportation Code, is
amended to read as follows:
(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 or [, 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.
SECTION 23. Section 501.1003, Transportation Code, is
amended to read as follows:
Sec. 501.1003. SALVAGE VEHICLE DEALER RESPONSIBILITIES.
(a) If a salvage vehicle dealer acquires ownership of a
nonrepairable motor vehicle or salvage motor vehicle for the
purpose of dismantling, scrapping, or destroying the motor vehicle,
the dealer shall, before the 31st day after the date the dealer
acquires the motor vehicle, submit to the department a report
stating that the motor vehicle will be dismantled, scrapped, or
destroyed. The dealer shall:
(1) make the report in a manner prescribed by the
department; and
(2) submit with the report a properly assigned
manufacturer's certificate of origin, [regular certificate of]
title, nonrepairable vehicle title, salvage vehicle title, auction
sales receipt, or comparable out-of-state ownership document for
the motor vehicle.
(b) After receiving the report and title, manufacturer's
certificate of origin, auction sales receipt, or document, the
department shall issue the salvage vehicle dealer a receipt for the
manufacturer's certificate of origin, [regular certificate of]
title, nonrepairable vehicle title, salvage vehicle title, auction
sales receipt, or comparable out-of-state ownership document.
(c) The department shall adopt rules to notify the salvage
vehicle dealer if the vehicle was not issued a printed title, but
has a record of title in the department's titling system.
SECTION 24. Section 501.107(b), Transportation Code, is
amended to read as follows:
(b) A metal recycler shall submit to the department the
properly assigned manufacturer's certificate of origin, [regular
certificate of] title, nonrepairable vehicle title, salvage
vehicle title, or comparable out-of-state ownership document that
the person receives in conjunction with the purchase of a motor
vehicle not later than the 60th day after the date the metal
recycler receives the title or out-of-state ownership document.
SECTION 25. Section 501.109(c), Transportation Code, is
amended to read as follows:
(c) A person commits an offense if the person knowingly
fails or refuses to surrender a [regular] certificate of title
after the person:
(1) receives a notice from an insurance company that
the motor vehicle is a nonrepairable motor vehicle or salvage motor
vehicle; or
(2) knows the vehicle has become a nonrepairable motor
vehicle or salvage motor vehicle under Section 501.1001.
SECTION 26. Section 501.110(b), Transportation Code, is
amended to read as follows:
(b) The department, an agent, officer, or employee of the
department, or another person enforcing this subchapter is not
liable to a person damaged or injured by an act or omission relating
to the issuance or revocation of a title, nonrepairable vehicle
title, or [nonrepairable record of title,] salvage vehicle title [,
or salvage record of title] under this subchapter.
SECTION 27. Section 501.152(a), Transportation Code, is
amended to read as follows:
(a) Except as provided by this section, a person commits an
offense if the person:
(1) sells, offers to sell, or offers as security for an
obligation a motor vehicle registered in this state; and
(2) does not possess or have electronic access to the
title receipt or [certificate of] title for the vehicle.
SECTION 28. Section 502.094, Transportation Code, is
amended by adding Subsection (i) to read as follows:
(i) A permit issued under this section must be carried in
the vehicle, or, if the vehicle is a trailer or semitrailer, in the
motor vehicle pulling the trailer or semitrailer, at all times
during the period in which the permit is valid, including when the
vehicle is being operated.
SECTION 29. Section 502.095(f), Transportation Code, is
amended to read as follows:
(f) A registration receipt shall be carried in the vehicle
at all times during the period in which it is valid. The permit
[temporary tag] must contain all pertinent information required by
this section and must be attached to the vehicle in the license
plate display area located at the rear of the vehicle, so that the
entire permit is visible and legible at all times, including when
the vehicle is being operated. If the vehicle does not have a
license plate display area at the rear of the vehicle, the permit
[displayed in the rear window of the vehicle so that the tag is
clearly visible and legible when viewed from the rear of the
vehicle. If the vehicle does not have a rear window, the temporary
tag] must be attached to [on or carried in] the vehicle to allow
ready inspection. The registration receipt must be carried, in a
manner prescribed by the department, in the vehicle at all times
during the period in which it is valid.
SECTION 30. Sections 502.454(a), (b), and (f),
Transportation Code, are amended to read as follows:
(a) The owner of a commercial motor vehicle, trailer, or
semitrailer may apply for registration under Section 502.451 and is
exempt from the payment of the registration fee that would
otherwise be required by this chapter if the vehicle is:
(1) owned [and used exclusively for emergencies] by a
nonprofit disaster relief organization; and
(2) used by the organization exclusively for
emergencies, training, equipment maintenance, transportation of
disaster relief supplies, or other activities related to disaster
relief.
(b) An application for registration under this section must
include:
(1) a statement by the owner of the vehicle that the
vehicle is used exclusively as described by Subsection (a) [for
emergencies] and has not been used for any other purpose;
(2) a statement signed by an officer of the nonprofit
disaster relief organization that the vehicle has [not] been used
exclusively as described by Subsection (a) [for any purpose other
than emergencies] and qualifies for registration under this
section; and
(3) a reasonable description of the vehicle and the
emergency equipment included in the vehicle.
(f) A vehicle registered under this section that is used
[for any purpose] other than as described by Subsection (a) [an
emergency] may not again be registered under this section.
SECTION 31. Section 502.474, Transportation Code, is
amended to read as follows:
Sec. 502.474. OPERATION OF ONE-TRIP PERMIT VEHICLE. A
person commits an offense if the person operates a vehicle for which
a one-trip permit is required without the registration receipt and
properly displayed permit [temporary tag].
SECTION 32. Section 504.202(e-1), Transportation Code, is
amended to read as follows:
(e-1) Other than license plates issued under Subsection
(h), license plates issued under this section may include, on
request, [:
[(1) the emblem of the veteran's branch of service; or
[(2)] one emblem or design from another license plate
to which the person is entitled under Subchapter D [Section
504.308, 504.309, 504.310(b), 504.311, 504.312, 504.313, 504.3135,
504.314, 504.315, 504.316, 504.3161, 504.318, 504.319, 504.320,
504.323, as added by Chapter 1085 (H.B. 3567), Acts of the 85th
Legislature, Regular Session, 2017, or 504.325].
SECTION 33. Section 504.3015(a), Transportation Code, is
amended to read as follows:
(a) A person applying for a set of license plates under this
subchapter shall pay the registration fee required under Chapter
502 and the applicable special plate fee required under this
section, except that one set of license plates shall be issued
without the payment of the registration fee under:
(1) Section 504.308;
(2) Section 504.310(b);
(3) Section 504.315, other than Subsections (c) and
(q) of that section; [and]
(4) Section 504.316; and
(5) Section 504.319.
SECTION 34. Section 504.403, Transportation Code, as
amended by Chapter 1296 (H.B. 2357), Acts of the 82nd Legislature,
Regular Session, 2011, and repealed by Chapter 1290 (H.B. 2017),
Acts of the 82nd Legislature, Regular Session, 2011, is reenacted
and amended to read as follows:
Sec. 504.403. STATE AND FEDERAL JUDGES. (a) The department
shall issue specialty license plates for a current or visiting
state or federal judge. Except as provided by Subsection (b), the
[The] license plates must include the words "State Judge" or "U.S.
Judge," as appropriate.
(b) A person entitled to license plates under this section
may elect to receive license plates that do not include the words
"State Judge" or "U.S. Judge."
(c) [(d)] In this section, "state[:
[(2) "State] judge" means:
(1) [(A)] a justice of the supreme court;
(2) [(B)] a judge of the court of criminal appeals;
(3) [(C)] a judge of a court of appeals of this state;
(4) [(D)] a district court judge;
(5) [(E)] a presiding judge of an administrative
judicial district; or
(6) [(F)] a statutory county court judge.
SECTION 35. Section 504.943(b), Transportation Code, is
amended to read as follows:
(b) A person commits an offense if the person operates on a
public highway during a registration period a road tractor, truck
tractor, motorcycle, trailer, or semitrailer that does not display
a license plate that:
(1) has been assigned by the department for the
period; and
(2) complies with department rules regarding the
placement of license plates.
SECTION 36. Sections 504.654, 504.660, and 504.664,
Transportation Code, are repealed.
SECTION 37. To the extent of any conflict, this Act prevails
over another Act of the 87th Legislature, Regular Session, 2021,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 38. This Act takes effect September 1, 2021.
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