HBA-CMT H.B. 1678 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1678
By: Bosse
Transportation
7/26/2001
Enrolled



BACKGROUND AND PURPOSE 

Prior to legislation passed during the 75th Legislature, salvage and
nonrepairable vehicles could be purchased at auction by persons who desired
the vehicle solely for the Vehicle Identification Numbers (VIN) and the
titles that accompanied these vehicles.  In some instances, the VIN and
title would then be transferred to stolen vehicles of the same make, model
and year and sold to unsuspecting buyers.  Although much of this problem
was addressed by the previous legislation, there still is a need to correct
or clarify the statutes.  House Bill 1678 deletes the exceptions to
nonrepairable vehicle titles so that an unsafe vehicle cannot be rebuilt,
and clarifies certain definitions and requirements within the
Transportation Code pertaining to out-of-state buyers and salvage vehicle
agents.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1678 amends the Transportation Code to prohibit an out-of-state
buyer from purchasing  a salvage  motor vehicle or a nonrepairable motor
vehicle in this state unless the person holds an out-of-state buyer's
license issued by the Texas Department of Transportation.  The bill sets
forth procedures and fees required for obtaining an out-of-state buyer's
license and provides expiration dates for the license.   

The bill prohibits the holder of a nonrepairable motor vehicle certificate
of title from rebuilding the nonrepairable motor vehicle.  The bill
requires a nonrepairable motor vehicle certificate of title to state on its
face that the vehicle may not be issued a regular certificate of title or
registered in this state, may be used only for parts or scrap metal, and
may  not be rebuilt.  
 
The bill authorizes a licensed salvage dealer to sell a late model salvage
motor vehicle to an individual and sets forth additional information that
must be included on the certificate of title.  The bill removes provisions
that allow an insurance company or a person to sell a late model salvage
vehicle to a buyer in a casual sale at auction.  The bill also removes the
provision of the Transportation Code that defines a casual sale, and the
section on application for certificate of title by a rebuilder of
nonrepairable motor vehicles.   

EFFECTIVE DATE

Vetoed.