89R17939 AND-D     By: Bell of Kaufman, Harless H.B. No. 5436       A BILL TO BE ENTITLED   AN ACT   relating to an exception to the titling requirement for certain   motor vehicles; creating a criminal offense; providing for a fee.          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 used automotive   parts recycler may purchase a motor vehicle without obtaining a   title to the vehicle if:                (1)  the vehicle is at least 13 years old and is   purchased solely for parts, dismantling, or scrap;                (2)  the vehicle has not been registered for at least   seven years;                (3)  the recycler complies with Subsections (b), (c),   and (g); and                (4)  either:                      (A)  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), if the vehicle is:                            (i)  not subject to a recorded security   interest or lien; or                            (ii)  subject only to recorded security   interests or liens:                                  (a)  for which a release of each   recorded security interest or lien on the vehicle is provided; or                                  (b)  that were recorded on the   certificate of title more than six years before the date of purchase   under this section; or                      (B)  the recycler does not dismantle, crush, or   shred the vehicle before the date stated in the written statement   required by Subsection (h)(4), if the recycler determined under   Subsection (g) that the vehicle is subject to a recorded security   interest or lien, other than a security interest or lien described   by Paragraph (A)(ii).          (b)  A used automotive parts recycler who purchases a motor   vehicle under this section shall compile the following information   in the manner prescribed by the department:                (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 sold;                (7)  the amount of consideration given for the vehicle;                (8)  a written statement signed by the seller or an   agent acting on behalf of the seller:                      (A)  certifying that the seller or agent has the   lawful right to sell the vehicle; and                      (B)  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 sale of the vehicle based on falsified information contained   in the statement;                (9)  the name and address of the seller, and the   seller's agent if applicable;                (10)  a photocopy or electronic scan of:                      (A)  a valid driver's license of the seller or the   seller's agent; or                      (B)  any other photographic identification card   of the seller or the seller'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 used automotive parts recycler who purchases a motor   vehicle under this section shall submit to the department, in the   manner prescribed by the department, and to 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.  The information must   be submitted not later than 24 hours, not counting weekends or   official state holidays, after the close of business on the day the   vehicle is received.  The department may report information   received under this subsection to the National Motor Vehicle Title   Information System on the recycler's behalf.  A used automotive   parts 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 motor vehicle   information from a used automotive parts recycler under Subsection   (c), the department shall notify the recycler whether the vehicle   has been reported stolen.          (e)  If the department notifies a used automotive parts   recycler under Subsection (d) that a motor vehicle has been   reported stolen, the recycler shall notify the appropriate local   law enforcement agency of the vehicle's current location and   provide to the agency identifying information of the person who   sold the vehicle to the recycler.          (f)  On receipt of motor vehicle information under   Subsection (c), 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)  Not later than 48 hours after a used automotive parts   recycler purchases a motor vehicle under this section, the recycler   shall, in the manner prescribed by the department, verify whether   the vehicle is subject to any recorded security interest or lien.     If the recycler determines that the vehicle is subject to a recorded   security interest or lien, other than a security interest or lien   described by Subsection (a)(4)(A)(ii), the recycler shall provide   notice, in accordance with Subsection (h), to the county   assessor-collector of the county in which the recycler is located   of the recycler's purchase of the vehicle.          (h)  Notice provided to the county assessor-collector under   Subsection (g) must include:                (1)  the information described by Subsections   (b)(1)-(5);                (2)  the contact information of the lienholder   identified by the used automotive parts recycler under Subsection   (g);                (3)  the date on which the notice is provided to the   county assessor-collector;                (4)  a written statement signed by the recycler or the   recycler's agent that the vehicle will not be dismantled or   scrapped on or before the 21st day after the date described by   Subdivision (3); and                (5)  a $25 administrative fee.          (i)  Not later than the fifth day after the date a used   automotive parts recycler provides notice to a county   assessor-collector under Subsection (g), the county   assessor-collector shall notify the lienholder and the last   registered owner of the vehicle, if the recycler did not purchase   the vehicle from the last registered owner, of the recycler's   purchase of the motor vehicle, which must include the contact   information of the recycler provided under Subsection (h)(1) and a   copy of the written statement provided under Subsection (h)(4).          (j)  Not later than the 14th day after the date a county   assessor-collector provides notice to a lienholder or a last   registered owner under Subsection (i), the lienholder or last   registered owner may retrieve the vehicle from the recycler at no   cost.          (k)  A person who purchases 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).          (l)  A court shall order a person who sells a motor vehicle   under this section to pay restitution, including attorney's fees,   to the owner or lienholder of the vehicle or to a used automotive   parts recycler in an amount equal to the amount of any damage or   loss caused by an offense committed by the seller related to the   vehicle.          (m)  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.          (n)  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 used   automotive parts recycler under Subsection (c).          (o)  This section preempts all requirements that are   inconsistent with specific provisions of this section relating to   the purchase 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) or (h);                (3)  falsifies the statement required under Section   501.098(b)(8) or (h)(4);                (4)  sells 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)(4)(A)(ii); 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, 2025.