Bill Text: TX SB1136 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to the issuance of titles for certain motor vehicles that are the subject of insurance claims.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-03-16 - Referred to Transportation & Homeland Sec. [SB1136 Detail]
Download: Texas-2011-SB1136-Introduced.html
82R5128 MTB-F | ||
By: Watson | S.B. No. 1136 |
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relating to the issuance of titles for certain motor vehicles that | ||
are the subject of insurance claims. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sections 501.092(a), (c), and (d), | ||
Transportation Code, are amended to read as follows: | ||
(a) Except as provided by Section 502.0925, an [ |
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insurance company that is licensed to conduct business in this | ||
state and that acquires, through payment of a claim, ownership or | ||
possession of a salvage motor vehicle or nonrepairable motor | ||
vehicle covered by a certificate of title issued by this state or a | ||
manufacturer's certificate of origin shall surrender a properly | ||
assigned title or manufacturer's certificate of origin to the | ||
department, on a form prescribed by the department[ |
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(c) An insurance company may not sell a salvage motor | ||
vehicle or nonrepairable motor vehicle [ |
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or a nonrepairable vehicle title, as appropriate, for the motor | ||
vehicle or a comparable ownership document has been issued by | ||
another state or jurisdiction for the motor vehicle. | ||
(d) An insurance company may sell a salvage motor vehicle or | ||
nonrepairable motor vehicle [ |
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assign a salvage vehicle title or a nonrepairable vehicle title for | ||
a [ |
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out-of-state buyer, a buyer in a casual sale at auction, a metal | ||
recycler, or a used automotive parts recycler. If a [ |
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vehicle is not a salvage motor vehicle or a nonrepairable motor | ||
vehicle, the insurance company is not required to surrender the | ||
regular certificate of title for the vehicle or to be issued a | ||
salvage vehicle title or a nonrepairable vehicle title for the | ||
motor vehicle. | ||
SECTION 2. Subchapter E, Chapter 501, Transportation Code, | ||
is amended by adding Sections 501.0925 and 501.0935 to read as | ||
follows: | ||
Sec. 501.0925. INSURANCE COMPANY NOT REQUIRED TO SURRENDER | ||
CERTIFICATES OF TITLE IN CERTAIN SITUATIONS. (a) An insurance | ||
company that acquires, through payment of a claim, ownership or | ||
possession of a motor vehicle covered by a certificate of title 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 | ||
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 for which the company is unable to obtain | ||
proper assignment of the 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 certificate of title; and | ||
(2) the certificate of title. | ||
(e) A title issued under Subsection (a) or (c) must be | ||
issued in the name of the insurance company. | ||
(f) An insurance company that acquires, through payment of a | ||
claim, ownership or possession of a salvage motor vehicle or | ||
nonrepairable motor vehicle covered by an out-of-state ownership | ||
document may obtain from the department a salvage vehicle title or | ||
nonrepairable vehicle title if: | ||
(1) the motor vehicle was damaged or stolen 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. | ||
(g) A title may be issued under Subsection (f) if the | ||
insurance company: | ||
(1) surrenders a properly assigned title on a form | ||
prescribed by the department; or | ||
(2) complies with the application process for a title | ||
issued under Subsection (a) or (c). | ||
(h) The department shall issue the appropriate title to a | ||
person authorized to apply for the title under this section if the | ||
department determines that the application is complete and complies | ||
with applicable law. | ||
(i) The department by rule may provide that a person | ||
required by this section to provide notice may provide the notice | ||
electronically, including through the use of e-mail or an | ||
interactive website established by the department for that purpose. | ||
(j) Sections 501.092(c), (d), and (e) apply to a motor | ||
vehicle acquired by an insurance company as described in Subsection | ||
(a), (c), or (f). | ||
(k) The department may adopt rules to implement this | ||
section. | ||
Sec. 501.0935. ISSUANCE OF TITLE TO SALVAGE POOL OPERATOR. | ||
(a) In this section, "salvage pool operator" has the meaning | ||
assigned by Section 2302.001, Occupations Code. | ||
(b) This section applies only to a salvage pool operator | ||
who, on request of an insurance company, takes possession of a motor | ||
vehicle that is the subject of an insurance claim and the insurance | ||
company subsequently: | ||
(1) denies coverage with respect to the motor vehicle; | ||
or | ||
(2) does not otherwise take ownership of the motor | ||
vehicle. | ||
(c) On receiving notice from the insurance company of the | ||
denial of the claim regarding the motor vehicle or other | ||
disposition of the motor vehicle, a salvage pool operator shall | ||
notify the owner of the motor vehicle and any lienholder that the | ||
owner or lienholder must remove the motor vehicle from the salvage | ||
pool operator's possession at the location specified in the notice | ||
to the owner and any lienholder: | ||
(1) not later than the 30th day after the date the | ||
notice is mailed; and | ||
(2) on payment of any costs incurred by the salvage | ||
pool operator in obtaining and disposing of the motor vehicle. | ||
(d) The salvage pool operator may only include in the costs | ||
described by Subsection (c)(2) costs incurred by the salvage pool | ||
operator that have not been reimbursed by a third party or are not | ||
subject to being reimbursed by a third party. | ||
(e) The notice required of a salvage pool operator under | ||
this section must be sent by registered or certified mail, return | ||
receipt requested. | ||
(f) If a motor vehicle is not removed from a salvage pool | ||
operator's possession before the 31st day after the date notice is | ||
mailed to the motor vehicle's owner and any lienholder under | ||
Subsection (c), the salvage pool operator may obtain from the | ||
department: | ||
(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. | ||
(g) An application for a title under Subsection (f) must: | ||
(1) be submitted to the department on a form | ||
prescribed by the department; and | ||
(2) include evidence that the notice was mailed as | ||
required by Subsection (c) to the motor vehicle owner and any | ||
lienholder. | ||
(h) On request of a salvage pool operator, the name and | ||
address of the owner and any lienholder of a motor vehicle described | ||
by Subsection (b) must be provided to the salvage pool operator by: | ||
(1) the insurance company that received the claim | ||
regarding the motor vehicle; and | ||
(2) the department, if the motor vehicle is covered by | ||
a certificate of title issued by this state. | ||
(i) If both the department and the insurance company fail to | ||
provide the requested information before the 31st day after the | ||
date it is requested under Subsection (h), the salvage pool | ||
operator: | ||
(1) shall inform the department of the failure; and | ||
(2) after informing the department of the failure | ||
regarding a motor vehicle that is covered by a title issued by this | ||
state, may, without providing evidence that the notice was mailed | ||
as required by Subsection (c), obtain from the department a salvage | ||
vehicle title for a salvage motor vehicle, a nonrepairable vehicle | ||
title for a nonrepairable motor vehicle, or a regular certificate | ||
of title for a vehicle other than a salvage motor vehicle or a | ||
nonrepairable motor vehicle. | ||
(j) A salvage pool operator may obtain a title under | ||
Subsection (i) for a motor vehicle that is covered by a title issued | ||
by another state or jurisdiction by submitting in a form prescribed | ||
by the department: | ||
(1) documentation of a good faith effort to obtain the | ||
name and address of the motor vehicle owner and any lienholder from | ||
a bona fide commercial provider of that type of information; and | ||
(2) evidence that the salvage pool operator published | ||
a notice as described by Subsection (k) in a newspaper of general | ||
circulation that serves the area in which the salvage pool | ||
operator's facility is located. | ||
(k) The notice published under Subsection (j)(2) must state | ||
that the motor vehicle owner or any lienholder must remove the motor | ||
vehicle from the salvage pool operator's possession at a specified | ||
location not later than the 30th day after the date the notice is | ||
published. | ||
(l) A title issued under this section must be issued in the | ||
name of the salvage pool operator. | ||
(m) The department shall issue the appropriate title to a | ||
person authorized to apply for the title under this section if the | ||
department determines that the application is complete and complies | ||
with applicable law. | ||
SECTION 3. Sections 501.097(a) and (b), Transportation | ||
Code, are amended to read as follows: | ||
(a) An application for a nonrepairable vehicle title or | ||
salvage vehicle title must: | ||
(1) be made on a form 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; | ||
(B) a description of the motor vehicle, including | ||
the make, style of body, model year, and vehicle identification | ||
number; and | ||
(C) a statement describing whether the motor | ||
vehicle: | ||
(i) was the subject of a total loss claim | ||
paid by an insurance company under Section 501.092, 501.0925, or | ||
501.093; | ||
(ii) is a self-insured motor vehicle under | ||
Section 501.094; | ||
(iii) is an export-only motor vehicle under | ||
Section 501.099; [ |
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(iv) was sold, transferred, or released to | ||
the owner or former owner of the motor vehicle or a buyer at a casual | ||
sale; or | ||
(v) is a motor vehicle subject to Section | ||
501.0935; 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. | ||
(b) Except as provided by Sections 501.0925 and 501.0935, on | ||
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or manufacturer's certificate of origin, and the application fee, | ||
the department shall, before the sixth business day after the date | ||
the department receives the application, issue the applicant the | ||
appropriate title for the motor vehicle. | ||
SECTION 4. Section 501.102, Transportation Code, is amended | ||
by adding Subsection (f) to read as follows: | ||
(f) Subsection (c) does not apply to an applicant for a | ||
title under Section 501.0925 or 501.0935. | ||
SECTION 5. The change in law made by this Act to Section | ||
501.102, Transportation Code, applies only to an offense committed | ||
on or after the effective date of this Act. An offense committed | ||
before the effective date of this Act is governed by the law in | ||
effect on the date the offense was committed, and the former law is | ||
continued in effect for that purpose. For purposes of this section, | ||
an offense was committed before the effective date of this Act if | ||
any element of the offense occurred before that date. | ||
SECTION 6. This Act takes effect September 1, 2011. |