88R20079 JAM-D
	By: Thompson of Brazoria	H.B. No. 3577
	Substitute the following for H.B. No. 3577:
	By:  Canales	C.S.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.  The heading to Section 501.0935, Transportation
	Code, is amended to read as follows:
	Sec. 501.0935.  ISSUANCE OF TITLE TO SALVAGE POOL OPERATOR;
	INSURANCE COMPANIES.
	SECTION 2.  Subchapter E, Chapter 501, Transportation Code,
	is amended by adding Section 501.094 to read as follows:
	Sec. 501.094.  ISSUANCE OF TITLE TO SALVAGE POOL OPERATOR;
	NONPROFIT ORGANIZATIONS.  (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 pool operator" has the meaning assigned
	by Section 2302.001, Occupations Code.
	(b)  This section applies only to a salvage pool operator
	who, on request of a nonprofit organization, takes possession of a
	motor vehicle that was donated to the nonprofit and the nonprofit:
	(1)  does not possess title to the motor vehicle; and
	(2)  does not otherwise take ownership of the motor
	vehicle.
	(c)  A nonprofit organization described by Subsection (b)
	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.
	(d)  Before the 15th day after receiving notice under
	Subsection (c), 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.
	(e)  A salvage pool operator shall provide subsequent notice
	described by Subsection (d) to the owner of the motor vehicle and
	any lienholder not later than the 30th and 45th day after receiving
	notice under Subsection (c) if the motor vehicle was not removed
	after the preceding notice.
	(f)  The notice required of a salvage pool operator under
	this section must be sent by registered or certified mail, return
	receipt requested.
	(g)  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 (d), 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.
	(h)  An application for a title under Subsection (g) 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 (d) and (e), as applicable, to the motor
	vehicle owner and any lienholder.
	(i)  A title issued under this section must be issued in the
	name of the salvage pool operator.
	(j)  The department shall issue the appropriate title to a
	person authorized to apply for the title under this section if the
	department determines that the application is complete and complies
	with applicable law.
	(k)  On receipt of a title under this section for a motor
	vehicle described by Subsection (b), the salvage pool operator may
	sell the motor vehicle and retain the proceeds of the sale.
	SECTION 3.  This Act takes effect September 1, 2023.