88R9295 JAM-D     By: Thompson of Brazoria H.B. No. 3577       A BILL TO BE ENTITLED   AN ACT   relating to the issuance of title to a salvage pool operator for   certain motor vehicles.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 501.0935, Transportation Code, is   amended by amending Subsections (a), (b), (b-1), (g), and (j) and   adding Subsections (b-2), (c-1), (c-2), (f-1), and (j-1) to read as   follows:          (a)  In this section:                (1)  "Nonprofit organization" means an organization   exempt from federal income taxation under Section 501(c)(3),   Internal Revenue Code of 1986, as amended.                (2)  "Salvage [, "salvage] pool operator" has the   meaning assigned by Section 2302.001, Occupations Code.          (b)  This section applies only to a salvage pool operator   who:                (1)  [,] 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:                      (A) [(1)]  denies coverage with respect to the   motor vehicle; or                      (B) [(2)]  does not otherwise take ownership of   the motor vehicle; or                (2)  on request of a nonprofit organization, takes   possession of a motor vehicle that was donated to the nonprofit and   the nonprofit:                      (A)  does not possess title to the vehicle; and                       (B)  does not otherwise take ownership of the   motor vehicle.          (b-1)  An insurance company described by Subsection (b)(1)   [(b)] shall notify the salvage pool operator of the denial of the   claim regarding the motor vehicle or other disposition of the motor   vehicle. The insurance company must include in the notice the name   and address of the owner of the motor vehicle and the lienholder, if   any.          (b-2)  A nonprofit organization described by Subsection   (b)(2) shall notify the salvage pool operator of the disposition of   the motor vehicle and must include in the notice the name and   address of:                (1)  the person who donated the motor vehicle;                 (2)  the previous owner of the motor vehicle; and                (3)  any lienholder, if known.          (c-1)  Before the 15th day after receiving notice under   Subsection (b-2), a salvage pool operator shall notify the owner of   the motor vehicle and any lienholder that:                (1)  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 not later   than the 60th day after the date the notice is mailed; and                (2)  if the motor vehicle is not removed within the time   specified in the notice, the salvage pool operator will sell the   motor vehicle and retain the proceeds of the sale.          (c-2)  A salvage pool operator shall provide subsequent   notice described by Subsection (c-1) to the owner of the motor   vehicle and any lienholder not later than the 30th and 45th day   after receiving notice under Subsection (b-2) if the motor vehicle   was not removed after the preceding notice.           (f-1)  If a motor vehicle is not removed from a salvage pool   operator's possession before the 61st day after the date notice is   mailed to the motor vehicle's owner and any lienholder under   Subsection (c-1), the salvage pool operator may obtain from the   department:                (1)  a salvage vehicle title for a salvage motor   vehicle; or                (2)  a nonrepairable vehicle title for a nonrepairable   motor vehicle.          (g)  An application for a title under Subsection (f) or   (f-1), as applicable, 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 Subsections [Subsection] (c), (c-1), and (c-2), as   applicable, to the motor vehicle owner and any lienholder.          (j)  On receipt of a title under this section for a motor   vehicle described by Subsection (b)(1), the salvage pool operator   shall:                (1)  sell the motor vehicle and retain from the   proceeds of the sale the costs incurred by the salvage pool operator   as permitted by Subsection (d) along with the cost of titling and   selling the motor vehicle; and                 (2)  [. The salvage pool operator shall] pay any excess   proceeds from the sale to the previous owner of the motor vehicle   and the lienholder, if any, by mailing the [. The] excess proceeds   [must be mailed] to the lienholder.          (j-1)  On receipt of a title under this section for a motor   vehicle described by Subsection (b)(2), the salvage pool operator   may sell the motor vehicle and retain the proceeds of the sale.          SECTION 2.  This Act takes effect September 1, 2023.