88R11312 JAM-F     By: Kacal H.B. No. 4543       A BILL TO BE ENTITLED   AN ACT   relating to an exception to the titling requirement for certain   motor vehicles; creating a criminal offense.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter E, Chapter 501, Transportation Code,   is amended by adding Section 501.098 to read as follows:          Sec. 501.098.  EXCEPTION TO TITLE REQUIREMENT FOR CERTAIN   VEHICLES. (a) Notwithstanding any other law, a metal recycler or   used automotive parts recycler may acquire through sale, donation,   or other means of transfer a motor vehicle without obtaining a title   to the vehicle if:                (1)  the vehicle is at least 12 years old and is   acquired solely for parts, dismantling, or scrap and:                      (A)  the vehicle is not subject to a recorded   security interest or lien; or                      (B)  the vehicle is subject only to recorded   security interests or liens:                            (i) for which a release of each recorded   security interest or lien on the vehicle is provided; or                            (ii)  that were recorded on the certificate   of title more than six years before the date of acquisition under   this section;                (2)  the recycler does not dismantle, crush, or shred   the vehicle before the close of business on the third business day   after the date the recycler submitted to the department the   information required under Subsection (c); and                (3)  except as provided by Subsection (k), the recycler   complies with Subsections (b) and (c).          (b)  A metal recycler or used automotive parts recycler who   acquires a motor vehicle under this section shall obtain the   following information:                (1)  the name, address, and National Motor Vehicle   Title Information System identification number of the recycler;                (2)  the name, initials, or other identification of the   individual recording the information required by this subsection;                (3)  the date of the transaction;                (4)  a description of the vehicle, including the make   and model to the extent practicable;                (5)  the vehicle identification number of the vehicle;                (6)  the license plate number of any vehicle   transporting the vehicle being transferred;                (7)  the amount of consideration given for the vehicle,   if any;                (8)  a written statement signed by the transferor or an   agent acting on behalf of the transferor:                      (A)  certifying that the transferor or agent has   the lawful right to transfer the vehicle;                      (B)  certifying that the vehicle complies with any   security interest or lien requirements under Subsection (a)(1); and                      (C)  acknowledging that a person who falsifies   information contained in the written statement is subject to   criminal penalties and restitution for losses incurred as a result   of the transfer of the vehicle based on falsified information   contained in the statement;                (9)  the name and address of the transferor, and the   transferor's agent if applicable;                (10)  a photocopy or electronic scan of:                      (A)  a valid driver's license of the transferor or   the transferor's agent; or                      (B)  any other photographic identification card   of the transferor or the transferor's agent issued by any state or   federal agency; and                (11)  proof demonstrating that the recycler has   reported the vehicle to the department as provided by Subsection   (c).          (c)  A metal recycler or used automotive parts recycler who   acquires a motor vehicle under this section shall submit to the   department, in the manner prescribed by the department, and the   National Motor Vehicle Title Information System information   necessary to satisfy any applicable requirement for reporting   information to the National Motor Vehicle Title Information System   in accordance with rules adopted under 28 C.F.R. Section 25.56 not   later than 24 hours, not counting weekends or official state   holidays, after the close of business on the day the vehicle was   received. The department may report information received under this   subsection to the National Motor Vehicle Title Information System   on behalf of the recycler.  A recycler is not required to report   information to the National Motor Vehicle Title Information System   if the department reports the information on behalf of the recycler   under this subsection.          (d)  Not later than 48 hours after receiving information from   a recycler under Subsection (c) about a motor vehicle, the   department shall notify the recycler whether the vehicle has been   reported stolen.          (e)  If the department notifies a recycler under Subsection   (d) that a motor vehicle has been reported stolen, the recycler   shall notify the appropriate local law enforcement agency of the   current location of the vehicle and provide to the agency   identifying information of the person who transferred the vehicle.          (f)  On receipt of information under Subsection (c)   regarding a motor vehicle acquired under this section, the   department shall:                (1)  add a notation to the motor vehicle record of the   vehicle indicating that the vehicle has been dismantled, scrapped,   or destroyed; and                (2)  cancel the title of the vehicle.          (g)  A person who acquires a motor vehicle under this section   that is later determined by the department or another governmental   entity to have been reported stolen is not criminally or civilly   liable unless the person had knowledge that the vehicle was a stolen   vehicle or failed to comply with the requirements of Subsection (b)   or (c).          (h)  A court shall order a person who transfers a motor   vehicle under this section to make restitution, including   attorney's fees, to the owner or lienholder of the vehicle, or to a   metal recycler or used automotive parts recycler, for any damage or   loss caused by an offense committed by the transferor related to the   vehicle.          (i)  The records required to be maintained under this section   must be open to inspection by a representative of the department or   a law enforcement officer during reasonable business hours.          (j)  A contract with a United States Department of Justice   approved third-party data consolidator, pursuant to 28 C.F.R. Part   25, may be used to satisfy:                 (1)  the responsibilities of the department under this   section; and                 (2)  the reporting responsibilities of a recycler under   Subsection (c).          (k)  A metal recycler may acquire from a used automotive   parts recycler a vehicle under this section without complying with   Subsections (b) and (c) if:                (1)  the vehicle has been flattened, crushed, baled, or   logged such that the vehicle is less than 50 percent of its original   volume;                (2)  the vehicle is acquired for purposes of scrap   metal only; and                (3)  the transferor or an agent acting on behalf of the   transferor of the vehicle certifies to the metal recycler that all   vehicles included in the transfer were reported to the department   or the National Motor Vehicle Title Information System.          (l)  This section preempts all requirements that are   inconsistent with specific provisions of this section relating to   the acquisition and dismantling, crushing, or shredding of a motor   vehicle without obtaining the title to the vehicle.          SECTION 2.  Section 501.109, Transportation Code, is amended   by adding Subsections (c-1) and (i) and amending Subsections (d)   and (e) to read as follows:          (c-1)  A person commits an offense if the person knowingly:                (1)  fails to obtain or falsifies information required   under Section 501.098(c);                (2)  falsifies the information required under Section   501.098(b);                (3)  falsifies the statement required under Section   501.098(b)(8);                (4)  transfers a vehicle under Section 501.098 that is   the subject of a security interest or lien other than a security   interest or lien described by Section 501.098(a)(1)(B); or                (5)  otherwise violates Section 501.098.          (d)  Except as provided by Subsection (e), an offense under   Subsection (a), (b), [or] (c), or (c-1) is a Class C misdemeanor.          (e)  If it is shown on the trial of an offense under   Subsection (a), (b), [or] (c), or (c-1) that the defendant has been   previously convicted of:                (1)  one offense under Subsection (a), (b), [or] (c),   or (c-1), the offense is a Class B misdemeanor; or                (2)  two or more offenses under Subsection (a), (b),   [or] (c), or (c-1), the offense is a state jail felony.          (i)  Money generated from penalties collected for offenses   under Subsection (c-1) may be used only for enforcement,   investigation, prosecution, and training activities related to   motor vehicle related offenses.          SECTION 3.  This Act takes effect September 1, 2023.