85R6671 JAM-D     By: Pickett H.B. No. 2462       A BILL TO BE ENTITLED   AN ACT   relating to the titling of motor vehicles; creating a criminal   offense and authorizing fees.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 501.002(30), Transportation Code, is   amended to read as follows:                (30)  "Travel trailer" means a house trailer-type   vehicle or a camper trailer:                      (A)  that is a recreational vehicle defined under   24 C.F.R. Section 3282.8(g); or                      (B)  that:                            (i)  is less than eight feet six inches in   width or 45 [40] feet in length, exclusive of any hitch installed on   the vehicle;                            (ii)  is designed primarily for use as   temporary living quarters in connection with recreational,   camping, travel, or seasonal use;                            (iii)  is not used as a permanent dwelling;   and                            (iv)  is not a utility trailer, enclosed   trailer, or other trailer that does not have human habitation as its   primary function.          SECTION 2.  Section 501.004(b), Transportation Code, is   amended to read as follows:          (b)  This chapter does not apply to:                (1)  a farm trailer or farm semitrailer with a gross   vehicle weight of not more than 34,000 pounds used only for the   transportation of farm products if the products are not transported   for hire;                (2)  the filing or recording of a lien that is created   only on an automobile accessory, including a tire, radio, or   heater;                (3)  a motor vehicle while it is owned or operated by   the United States; or                (4)  a new motor vehicle on loan to a political   subdivision of the state for use only in a driver education course   conducted by an entity exempt from licensure under Section   1001.002, Education Code.          SECTION 3.  Section 501.021(a), Transportation Code, is   amended to read as follows:          (a)  A motor vehicle title issued by the department must   include:                (1)  the legal name and address of each purchaser [and   seller at the first sale or a subsequent sale];                (2)  the legal name of each seller and the municipality   and state in which each seller is located or resides [make of the   motor vehicle];                (3)  the year, make, and body style [type] of the   vehicle;                (4)  the [manufacturer's permanent] vehicle   identification number of the vehicle [or the vehicle's motor number   if the vehicle was manufactured before the date that stamping a   permanent identification number on a motor vehicle was universally   adopted];                (5)  if the vehicle is subject to odometer disclosure   under Section 501.072, the odometer reading and odometer brand as   recorded on the last title assignment [serial number] for the   vehicle;                (6)  the name and address of each lienholder and the   date of each lien on the vehicle, listed in the chronological order   in which the lien was recorded;                (7)  a statement indicating rights of survivorship   under Section 501.031; and                (8)  [if the vehicle has an odometer, the odometer   reading at the time of application for the title; and                [(9)]  any other information required by the   department.          SECTION 4.  Section 501.023(a), Transportation Code, is   amended to read as follows:          (a)  The owner of a motor vehicle must present identification   and apply for a title as prescribed by the department, unless   otherwise exempted by law. To obtain a title, the owner must apply:                (1)  to the county assessor-collector in the county in   which:                      (A)  the owner is domiciled; or                      (B)  the motor vehicle is purchased or encumbered;   or                (2)  [if the county in which the owner resides has been   declared by the governor as a disaster area, to the county   assessor-collector in one of the closest unaffected counties to a   county that asks for assistance and:                      [(A)     continues to be declared by the governor as   a disaster area because the county has been rendered inoperable by   the disaster; and                      [(B)     is inoperable for a protracted period of   time; or                [(3)     if the county assessor-collector's office of the   county in which the owner resides is closed for a protracted period   of time as defined by the department,] to the county   assessor-collector of a county [that borders the county in which   the owner resides] who is willing [agrees] to accept the   application if the county assessor-collector's office of the county   in which the owner resides is closed or may be closed for a   protracted period of time as defined by the department.          SECTION 5.  Section 501.030(a), Transportation Code, is   amended to read as follows:          (a)  Before a motor vehicle that was last registered or   titled in another state or country may be titled in this state, the   county assessor-collector shall verify that the vehicle has passed   the inspections required by Chapter 548, as indicated in the   Department of Public Safety's inspection database under Section   548.251, or that the owner has obtained an identification number   inspection in accordance with department rule.          SECTION 6.  The heading to Section 501.032, Transportation   Code, is amended to read as follows:          Sec. 501.032.  [ASSIGNMENT OF VEHICLE] IDENTIFICATION   NUMBER INSPECTION REQUIRED [BY DEPARTMENT].          SECTION 7.  Sections 501.032(a) and (b), Transportation   Code, are amended to read as follows:          (a)  In addition to any requirement established by   department rule, a motor vehicle, trailer, or semitrailer must have   an identification number inspection under Section 501.0321 if:                (1)  the department does not have a record of title for   the vehicle, trailer, or semitrailer in the department's   registration and title system, and the owner of the vehicle,   trailer, or semitrailer is filing a bond with the department under   Section 501.053;                (2)  the vehicle, trailer, or semitrailer was last   titled or registered outside of the United States and imported into   the United States; or                (3)  the owner or person claiming ownership requires an   assigned or reassigned identification number under Section 501.033   [On proper application, the department shall assign a vehicle   identification number to a travel trailer, a trailer or   semitrailer, a frame, or an item of equipment, including a tractor,   farm implement, unit of special mobile equipment, or unit of   off-road construction equipment:                [(1)     on which a vehicle identification number was not   die-stamped by the manufacturer;                [(2)     on which a vehicle identification number   die-stamped by the manufacturer has been lost, removed, or   obliterated; or                [(3)     for which a vehicle identification number was   never assigned].          (b)  An active duty member of a branch of the United States   armed forces, or an immediate family member of such a member,   returning to Texas with acceptable proof of the active duty status   is exempt from an identification number inspection required under   Subsection (a)(2) [The applicant shall die-stamp the assigned   vehicle identification number at the place designated by the   department on the travel trailer, trailer, semitrailer, frame, or   equipment].          SECTION 8.  Subchapter B, Chapter 501, Transportation Code,   is amended by adding Sections 501.0321 and 501.0322 to read as   follows:          Sec. 501.0321.  IDENTIFICATION NUMBER INSPECTION. (a) An   inspection required under Section 501.032 must verify, as   applicable, the identity of:                (1)  a motor vehicle;                (2)  a trailer or semitrailer;                (3)  a frame, body, or motor of a motor vehicle; or                (4)  an item of equipment not required to be titled but   that may be registered under Chapter 502 or issued licensed plates   under Chapter 504.          (b)  An inspection under this section may not rely solely on   the public identification number to verify the identity.          (c)  An inspection under this section may be performed only   by a person who has successfully completed an appropriate training   program as determined by department rule and is:                (1)  an auto theft investigator who is a law   enforcement officer of this state or a political subdivision of   this state;                (2)  a person working under the direct supervision of a   person described by Subdivision (1); or                (3)  an employee of the department authorized by the   department to perform an inspection under this section.          (d)  The department shall prescribe a form on which the   identification number inspection is to be recorded.  The department   may provide the form only to a person described by Subsection (c).          (e)  The department or another entity that provides an   inspection under this section may impose a fee of not more than $40   for the inspection. The county or municipal treasurer of a county   or municipal entity that provides an inspection under this section   shall credit the fee to the general fund of the county or   municipality, as applicable, to defray the entity's cost associated   with the inspection. If the department provides an inspection   under this section, the fee shall be deposited to the credit of the   Texas Department of Motor Vehicles fund.          (f)  The department may not impose a fee for an inspection   requested by the department. The department shall include a   notification of the waiver to the owner at the time the department   requests the identification number inspection.          Sec. 501.0322.  ALTERNATIVE IDENTIFICATION NUMBER   INSPECTION. The department by rule may establish a process for   verifying the identity of an item listed in Section 501.0321(a) as   an alternative to an identification number inspection under Section   501.0321. The rules may include the persons authorized to perform   the inspection, when an alternative inspection under this section   is required, and any fees that may be assessed. Any fee authorized   must comply with Sections 501.0321(e) and (f).          SECTION 9.  Section 501.033, Transportation Code, is amended   to read as follows:          Sec. 501.033.  ASSIGNMENT AND REASSIGNMENT OF   IDENTIFICATION NUMBER BY DEPARTMENT. (a)  If the permanent   identification number affixed by the manufacturer has been removed,   altered, or obliterated, or a permanent identification number was   never assigned, the department shall assign an identification   number to [A person determined by law enforcement or a court to be   the owner of] a motor vehicle, [travel trailer,] semitrailer, [or]   trailer, engine [a part of a motor vehicle], [travel trailer,   semitrailer, or trailer, a] frame, or body of a motor vehicle, or an   item of equipment not required to be titled but that may be   registered or issued license plates under Chapter 502 on inspection   under Section 501.0321 and application to the department [including   a tractor, farm implement, unit of special mobile equipment, or   unit of off-road construction equipment may apply to the department   for an assigned vehicle identification number that has been   removed, altered, obliterated, or has never been assigned].          (b)  An application under this section must be in a manner   prescribed by the department and accompanied by valid evidence of   ownership in the name of, or properly assigned to, the applicant as   required by the department.          (c)  A fee of $2 must accompany each application under this   section to be deposited in the Texas Department of Motor Vehicles   fund.          (d)  The assigned [vehicle] identification number shall be   die-stamped or otherwise affixed in the manner and location   designated by the department.          (e)  The department shall reassign an original   manufacturer's identification number only if the person who   conducts the inspection under Section 501.0321 determines that the   permanent identification number affixed by the manufacturer has   been removed, altered, or obliterated [If the auto theft unit of a   county or municipal law enforcement agency conducts an inspection   required by the department under this section, the agency may   impose a fee of $40.   The county or municipal treasurer shall credit   the fee to the general fund of the county or municipality, as   applicable, to defray the agency's cost associated with the   inspection.   The fee shall be waived by the department or agency   imposing the fee if the person applying under this section is the   current registered owner].          (f)  If the department reassigns a manufacturer's   identification number, a representative of the department shall   affix the number in a manner and location designated by the   department.          (g)  On affixing an assigned identification number or   witnessing the affixing of a reassigned identification number, the   owner shall certify on a form prescribed by the department that the   identification number has been affixed in the manner and location   designated by the department and shall submit the form in a manner   prescribed by the department.          (h)  Only the department may issue an identification number   to a motor vehicle, trailer, semitrailer, engine, frame, or body of   a motor vehicle, or an item of equipment not required to be titled   but that may be registered or issued license plates under Chapter   502. The department may not recognize an identification number   assigned by any other agency or political subdivision of this   state.          SECTION 10.  Section 501.036, Transportation Code, is   amended to read as follows:          Sec. 501.036.  TITLE FOR FARM TRAILER OR FARM SEMITRAILER.   (a)  Notwithstanding any other provision of this chapter, the   department may issue a title for a farm trailer or farm semitrailer   with a gross vehicle weight of not more than 34,000 [4,000] pounds   if[:                [(1)     the farm semitrailer is eligible for registration   under Section 502.146; and                [(2)]  all [other] requirements for issuance of a title   are met.          (b)  To obtain a title under this section, the owner [of the   farm semitrailer] must:                (1)  apply for the title in the manner required by   Section 501.023; and                (2)  pay the fee required by Section 501.138.          (c)  A subsequent purchaser of a farm trailer or farm   semitrailer titled previously under this section or in another   jurisdiction must obtain a title under [The department shall adopt   rules to implement and administer] this section.          SECTION 11.  Section 501.037, Transportation Code, is   amended to read as follows:          Sec. 501.037.  TITLE FOR TRAILERS OR SEMITRAILERS. (a)     Notwithstanding any other provision of this chapter, the department   may issue a title for a trailer or semitrailer that has a gross   vehicle weight of 4,000 pounds or less if all other requirements for   issuance of a title are met.          (b)  To obtain a title under this section, the owner of the   trailer or semitrailer must:                (1)  apply for the title in the manner required by   Section 501.023; and                (2)  pay the fee required by Section 501.138.          (c)  A subsequent purchaser of a trailer or semitrailer   titled previously under this section or in another jurisdiction   must obtain a title under this section.          SECTION 12.  Section 501.071(a), Transportation Code, is   amended to read as follows:          (a)  Except as provided by Sections 503.036 and [in Section]   503.039, a motor vehicle may not be the subject of a subsequent sale   unless the owner designated on the title submits a transfer of   ownership of the title.          SECTION 13.  Section 501.072, Transportation Code, is   amended to read as follows:          Sec. 501.072.  ODOMETER DISCLOSURE STATEMENT. (a) Except   as provided by Subsection (c), the transferor [seller] of a motor   vehicle transferred [sold] in this state shall provide to the   transferee [buyer, on a form prescribed by the department,] a   [written] disclosure of the vehicle's odometer reading at the time   of the transfer in compliance with 49 C.F.R. Part 580 [sale. The   form must include space for the signature and printed name of both   the seller and buyer].          (b)  When application for a [certificate of] title is made,   the transferee [owner] shall record the [current] odometer reading   on the application. The [written] disclosure required by   Subsection (a) must accompany the application.          (c)  An odometer disclosure statement is not required for the   transfer [sale] of a motor vehicle that is exempt from odometer   disclosure requirements under 49 C.F.R. Section 580.17 [:                [(1)     has a manufacturer's rated carrying capacity of   more than two tons;                [(2)  is not self-propelled;                [(3)  is 10 or more years old;                [(4)     is sold directly by the manufacturer to an agency   of the United States government in conformity with contractual   specifications; or                [(5)  is a new motor vehicle].          (d)  The department shall provide for use consistent with 49   C.F.R. Part 580:                (1)  a secure power of attorney form; and                 (2)  a secure reassignment form for licensed motor   vehicle dealers.          (e)  In this section, "transferee" and "transferor" have the   meanings assigned by 49 C.F.R. Section 580.3.          SECTION 14.  Section 501.091(9), Transportation Code, is   amended to read as follows:                (9)  "Nonrepairable motor vehicle" means a motor   vehicle [that]:                      (A)  that is damaged, wrecked, or burned to the   extent that the only residual value of the vehicle is as a source of   parts or scrap metal; [or]                      (B)  that comes into this state under a comparable   ownership document that indicates that the vehicle is   nonrepairable;                      (C)  that a salvage vehicle dealer has reported to   the department under Section 501.1003;                      (D)  for which an owner has surrendered evidence   of ownership for the purpose of dismantling, scrapping, or   destroying the motor vehicle;                      (E)  that is sold for export only by a salvage   motor vehicle dealer under Section 501.099; or                      (F)  that is sold and the sale is reported as an   export-only sale to the National Motor Vehicle Title Information   System by any state, jurisdiction, or entity required to report to   the National Motor Vehicle Title Information System.          SECTION 15.  Section 501.09113(a), Transportation Code, is   amended to read as follows:          (a)  On receipt of a proper application from the owner of a   motor vehicle, the department shall issue the applicant the   appropriate title with any notations determined by the department   as necessary to describe or disclose the motor vehicle's current or   former condition if the [This section applies only to a] motor   vehicle was brought into this state from another state or   jurisdiction and [that] has on any title or comparable out-of-state   ownership document issued by the other state or jurisdiction or   record in the National Motor Vehicle Title Information System   reported by another state or jurisdiction:                (1)  a "rebuilt," "repaired," "reconstructed," "flood   damage," "fire damage," "owner retained," "salvage," or similar   notation; or                (2)  a "nonrepairable," "dismantle only," "parts   only," "junked," "scrapped," "crushed," "totaled," or similar   notation.          SECTION 16.  Section 501.097(a), Transportation Code, as   amended by Chapters 1136 (H.B. 1422) and 1296 (H.B. 2357), Acts of   the 82nd Legislature, Regular Session, 2011, is reenacted to read   as follows:          (a)  An application for a nonrepairable vehicle title,   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.          SECTION 17.  Section 501.1001(a), Transportation Code, as   amended by Chapters 1136 (H.B. 1422) and 1296 (H.B. 2357), Acts of   the 82nd Legislature, Regular Session, 2011, is reenacted and   amended to read as follows:          (a)  Except as provided by Section 501.0925, an 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 the [a] properly assigned   evidence of ownership and apply for the appropriate title under   Section 501.097 [title or manufacturer's certificate of origin to   the department, on a form prescribed by the department].          SECTION 18.  Section 501.1002(a), Transportation Code, as   amended by Chapters 1136 (H.B. 1422) and 1296 (H.B. 2357), Acts of   the 82nd Legislature, Regular Session, 2011, is reenacted to read   as follows:          (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; and                      (B)  has not acquired ownership of the motor   vehicle; and                (2)  provide notice to the owner of the motor vehicle   of:                      (A)  the report required under Subdivision (1);   and                      (B)  the requirements for operation or transfer of   ownership of the motor vehicle under Subsection (b).          SECTION 19.  Section 501.1002(b), Transportation Code, is   amended to read as follows:          (b)  The owner of a salvage or nonrepairable motor vehicle   [to which this section applies] may not [operate or permit   operation of the motor vehicle on a public highway or] 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.          SECTION 20.  Section 501.109, Transportation Code, is   amended by amending Subsections (d) and (e) and adding Subsections   (g) and (h) to read as follows:          (d)  Except as provided by Subsection (e), an offense under   Subsection (a), (b), or (c) [this section] is a Class C misdemeanor.          (e)  If it is shown on the trial of an offense under   Subsection (a), (b), or (c) [this section] that the defendant has   been previously convicted of:                (1)  one offense under Subsection (a), (b), or (c)   [this section], the offense is a Class B misdemeanor; or                (2)  two or more offenses under Subsection (a), (b), or   (c) [this section], the offense is a state jail felony.          (g)  A person commits an offense if the person knowingly   provides false or incorrect information or without legal authority   signs the name of another person on:                (1)  an application for a title to a nonrepairable   motor vehicle or salvage motor vehicle;                (2)  an application for a certified copy of an original   title to a nonrepairable motor vehicle or salvage motor vehicle;                (3)  an assignment of title for a nonrepairable motor   vehicle or salvage motor vehicle;                (4)  a discharge of a lien on a title for a   nonrepairable motor vehicle or salvage motor vehicle; or                (5)  any other document required by the department or   necessary for the transfer of ownership of a nonrepairable motor   vehicle or salvage motor vehicle.          (h)  An offense under Subsection (g) is a felony of the third   degree.          SECTION 21.  Effective January 1, 2019, the heading to   Section 501.134, Transportation Code, is amended to read as   follows:          Sec. 501.134.  CERTIFIED COPY OF LOST OR DESTROYED   CERTIFICATE OF TITLE.          SECTION 22.  Effective January 1, 2019, Sections 501.134(a),   (b), (c), and (d), Transportation Code, are amended to read as   follows:          (a)  If a printed title is lost or destroyed, the owner or   lienholder disclosed on the title may obtain, in the manner   provided by this section and department rule, a certified copy of   the lost or destroyed title directly from the department by   applying in a manner prescribed by the department and paying a fee   of $2. A fee collected under this subsection shall be deposited to   the credit of the Texas Department of Motor Vehicles fund [and may   be spent only as provided by Section 501.138].          (b)  If a lien is disclosed on a title, the department may   issue a certified copy of the [original] title only to the first   lienholder or the lienholder's verified agent unless the owner has   original proof from the lienholder of lien satisfaction.          (c)  The department must plainly mark "certified copy" on the   face of a certified copy issued under this section. [A subsequent   purchaser or lienholder of the vehicle only acquires the rights,   title, or interest in the vehicle held by the holder of the   certified copy.]          (d)  A certified copy of the title that is lawfully obtained   under this section supersedes and invalidates any previously issued   title or certified copy. If the certified copy of the title is   later rescinded, canceled, or revoked under Section 501.051, the   department may revalidate a previously superseded or invalidated   title or certified copy of title [A purchaser or lienholder of a   motor vehicle having a certified copy issued under this section may   at the time of the purchase or establishment of the lien require   that the seller or owner indemnify the purchaser or lienholder and   all subsequent purchasers of the vehicle against any loss the   person may suffer because of a claim presented on the original   title].          SECTION 23.  Section 541.201(5), Transportation Code, is   amended to read as follows:                (5)  "House trailer" means a trailer or semitrailer,   other than a towable recreational vehicle, that:                      (A)  is transportable on a highway in one or more   sections;                      (B)  is less than 45 [40] feet in length,   excluding tow bar, while in the traveling mode;                      (C)  is built on a permanent chassis;                      (D)  is designed to be used as a dwelling or for   commercial purposes if connected to required utilities; and                      (E)  includes plumbing, heating,   air-conditioning, and electrical systems.          SECTION 24.  The following provisions of the Transportation   Code are repealed:                (1)  Sections 501.032(c) and (d); and                (2)  Section 501.09113(b).          SECTION 25.  Except as otherwise provided by this Act, this   Act takes effect September 1, 2017.