Committee hears bill to let licensed recyclers buy older untitled vehicles, with safeguards

The Senate Committee on Transportation heard testimony on House Bill 54 36, which would let licensed automotive recyclers purchase certain non-title vehicles for parts or scrap and impose reporting and notification safeguards.

Senator West, sponsor of the bill, told the committee the measure addresses a market of untitled vehicles that current law allows only unregulated actors to buy. Chad Terramian, legislative director for the Texas Automotive Recyclers Association, said the bill would allow licensed recyclers to purchase vehicles that are at least 13 years old and have not been registered for seven years. Terramian said the bill requires recyclers to report the purchase to the Texas Department of Motor Vehicles and the National Motor Vehicle Title Information System and to wait four days before dismantling to allow the department to check for liens or theft records.

Earl Cook of the Texas Independent Auto Dealers Association said the bill added two important safeguards after negotiations with sponsors: the seven-year registration gap and a notice to owners and lienholders that gives them an opportunity to retrieve a vehicle at no charge if an active lien exists.

Committee members asked about the scale of affected vehicles; Terramian estimated that three large salvage facilities dismantle roughly 600 vehicles per week to illustrate scale but said a statewide total was not available in committee. The Texas DMV was present and offered to provide technical input.

No final committee vote was taken; the bill was left pending for further review and possible amendment. Proponents characterized the bill as targeting illegal markets that aren’t captured by existing titling and enforcement, while opponents and committee members sought data on the statewide population of eligible vehicles and on enforcement resources.