The department must label certain nonrepairable and salvage vehicle titles and related electronic records with clear status information, and a flood-damage notation can restrict how the owner may sell or transfer the vehicle.
Sec. 501.09112. APPEARANCE OF NONREPAIRABLE VEHICLE TITLE OR SALVAGE VEHICLE TITLE. (a) The department's printed nonrepairable vehicle title must clearly indicate that it is the negotiable ownership document for a nonrepairable motor vehicle. (b) A nonrepairable vehicle title must clearly indicate that the motor vehicle: (1) may not be: (A) issued a regular title; (B) registered in this state; or (C) repaired, rebuilt, or reconstructed; and (2) may be used only as a source for used parts or scrap metal. (c) The department's printed salvage vehicle title must clearly show that it is the ownership document for a salvage motor vehicle. (d) A salvage vehicle title or a salvage record of title for a vehicle that is a salvage motor vehicle because of damage caused exclusively by flood must bear a notation that the department considers appropriate. If the title for a motor vehicle reflects the notation required by this subsection, the owner may sell, transfer, or release the motor vehicle only as provided by this subchapter. (d-1) The department and the Texas Division of Emergency Management shall coordinate with the Federal Emergency Management Agency to ensure that the department has information, including a vehicle identification number, necessary to apply the notation under Subsection (d) to the title of a vehicle: (1) to which that subsection applies; and (2) that has been repaired or salvaged using financial assistance designated for that purpose and administered by the Federal Emergency Management Agency. (e) An electronic application for a nonrepairable vehicle title, nonrepairable record of title, salvage vehicle title, or salvage record of title must clearly advise the applicant of the same provisions required on a printed title. (f) A nonrepairable vehicle title, nonrepairable record of title, salvage vehicle title, or salvage record of title in the department's electronic database must include appropriate remarks so that the vehicle record clearly shows the status of the vehicle. Redesignated and amended from Transportation Code, Section 501.103 by Acts 2011, 82nd Leg., R.S., Ch. 1296 (H.B. 2357), Sec. 38, eff. January 1, 2012. Amended by: Acts 2019, 86th Leg., R.S., Ch. 99 (H.B. 2310), Sec. 1, eff. September 1, 2019.