TARA-Supported Salvage Bill Passes Legislature
78th Texas Legislative Session in Review

The 78th Legislature concluded on Monday, June 2 as lawmakers wrote a controversial state budget, took aim at spiraling insurance rates, rewrote the rules for lawsuits and passed hundreds of other measures.

Gov. Rick Perry called several special sessions over the summer to deal with government reorganization and congressional redistricting. During the First Called Special Session, only 1 House Bill out of 126 filed bills passed and was signed by the Governor, and none of the 55 filed Senate Bills passed. During the Second Called Special Session, none of the 51 filed House Bills or 8 filed Senate Bills passed. Several joint and concurrent resolutions passed in both the House and Senate during both Special Sessions. Governor Perry said he will probably call lawmakers back for a special session sometime later this year or early next year — to rewrite the school finance system.

TARA actively monitored legislation on the behalf of member’s interests this session. The following legislation affecting automotive dismantlers passed during the regular session and were signed by the Governor:

Salvage Vehicle Legislation

TARA actively supported HB 3588, effective September 1, 2003, which modifies the definition of nonrepairable and salvage vehicles and makes other changes to the regulation of salvage dealers.

Nonrepairable and Salvage Vehicles. The definition used to determine whether a motor vehicle is a nonrepairable or salvage motor vehicle is changed. The percentage of damage and year model of the motor vehicle is no longer used. The new definitions are:

"Salvage Motor Vehicle" means a motor vehicle that is:

• damaged to the extent that the cost of the repair exceeds the actual cash value of the motor vehicle immediately before the damage; or,
• damaged and comes into Texas under an out-of-state salvage motor vehicle certificate of title or similar out-of-state ownership document that states on its face "accident damage," "flood damage," "inoperable," "rebuildable," "salvageable," or similar notation; and,
• does not include an out-of-state motor vehicle with a "rebuilt," "prior salvage," "salvaged," or similar notation, a nonrepairable motor vehicle, or a motor vehicle for which an insurance company has paid a claim for the cost of repairing hail damage or theft, unless the vehicle was damaged during the theft and before recovery to the extent described above in the first point.

"Nonrepairable Motor Vehicle" is a motor vehicle that is:

• Damaged, wrecked, or burned to the extent that the only residual value of the vehicle is as a source of parts or scrap metal; or,
• Comes into this state under a title or other ownership document indicating that the vehicle in nonrepairable, junked, or for parts or dismantling only.

The names of the documents that will be issue by TxDOT on or after September 1, 2003 will change. "Salvage Certificate of Titles" changes to "Salvage Vehicle Title" and "Nonrepairable Certificate of Title" changes to "Nonrepairable Vehicle Title."

Fees. The application fee for a Nonrepairable or Salvage title is increased to $8, effective September 1, 2003. Applications with a postmark date prior to September 1, 2003 will be processed if submitted with the current $3 fee. An application with a postmark on or after September 1, 2003 will be rejected for the proper fee.

Salvage Certificates. A salvage (green) certificate will no longer be issued. A Salvage Certificate issued prior to September 1, 2003 will be treated as a Salvage Vehicle Title. A Salvage Vehicle Title will be issued instead of a Salvage Certificate for all Salvage Certificate applications processed on or after September 1, 2003.

Transferring a Nonrepairable or Salvage Vehicle. A person who acquires a nonrepairable or salvage motor vehicle, with certain exceptions, must apply for the appropriate document prior to selling or otherwise transferring the motor vehicle.

• Self-Insured Vehicle. The owner of a self-insured vehicle that is damaged to the extent that it becomes a nonrepairable or salvage motor vehicle and the owner has taken the vehicle out of normal operation, is required to apply for the appropriate title; i.e., either a Nonrepairable Vehicle Title or Salvage Vehicle Title, before selling or transferring the vehicle.
• Export Only Sales. A person who resides outside the U.S. may only buy a Texas nonrepairable or salvage motor vehicle from a salvage vehicle dealer or a governmental entity. A Nonrepairable or Salvage Vehicle Title must have been issued for the vehicle before it may be sold for export-only.
• Voluntary Applications. A person may voluntarily apply for a Nonrepairable or Salvage Vehicle Title. Once a Nonrepairable or Salvage Vehicle Title is issued, all restrictions and requirements, such as re-titling and sales restrictions, apply.
• Recording Liens. A lien may now be recorded on initial application for a Salvage Vehicle Title. The lien may be a new lien or an existing recorded lien may be carried forward to the Salvage Vehicle Title. Only an existing lien may be carried forward to a Nonrepairable Vehicle Title. A new lien may not be recorded.

DPS Inspection. A Department of Public Safety Salvage Inspection will no longer be required for rebuilt salvage vehicles.

Rebuilt Salvage Vehicle. An applicant for a "blue" Rebuilt Salvage Title is required to pay a $65 Rebuilt Salvage Fee in addition to the title application fee and other required fees. A vehicle on a Nonrepairable Vehicle Title issued on or after September 1, 2003 may not be rebuilt, retitled or operated on the public highways. At the time of application for a Rebuilt Salvage title, a completed Form VTR-61, Rebuilt Affidavit, is required instead of Form MVT-9, DPS Certification of Inspection.

Sale Restrictions.

• A licensed salvage vehicle dealer, including a salvage pool operator, and insurance companies, may sell up to 5 nonrepairable or salvage motor vehicles for which a Nonrepairable Vehicle Title, a Salvage Vehicle Title, or a comparable out-of-state salvage ownership document has been issued to an unlicensed buyer in a "casual sale."
• An insurance company or salvage pool operator may only conduct casual sales at auction.
• If the casual buyer repairs, rebuilds, reconstructs, or sells three or more nonrepairable or salvage motor vehicles in a calendar year, the buyer must be licensed as a salvage vehicle dealer.

Salvage Vehicle Dealer is a person engaged in this state in the business of acquiring, selling, dismantling, repairing, rebuilding, reconstructing, or otherwise dealing in nonrepairable motor vehicles, salvage motor vehicles, or used parts. The term does not include a person who casually repairs, rebuilds, or reconstructs fewer than 3 salvage motor vehicles in the same calendar year.

Tort Reform

HB 4, adds to and amends the Civil Practice and Remedies Code and other statutes effective September 1, 2003 (certain amendments effective June 11, 2003).

Class Actions

• Gives jurisdiction to the Texas Supreme Court to hear an appeal from a trial court order certifying or refusing to certify a class
• Stays all proceedings in the trial court pending that appeal
• Requires the Texas Supreme Court to promulgate rules to be used by trial courts in calculating the fees to be awarded to class counsel, including rules requiring that:
  • the fee be calculated using the lodestar method, which requires a reasonable fee based on the hours actually worked by class counsel
  • if part of the recovery by the class is non-cash, the fee paid to class counsel must be in cash and non-cash in the same percentage as the recovery by the class
• Requires that before a class is certified, the trial court must rule on any plea to the jurisdiction in which it is asserted that the plaintiff’s claims are within the jurisdiction of a state agency

Offer of Settlement

• Provides incentives for parties to make and accept reasonable settlement offers early in lawsuits by shifting litigation-related costs when a party refuses a pre-trial settlement offer that turns out to be as good as or better than what that party ultimately wins
  • This cost-shifting mechanism is available in most civil cases, and comes into play only upon the defendant filing an election to have the mechanism in play in that case
  • The defendant’s litigation costs are shifted to the plaintiff if the plaintiff’s judgment is less than 80% of the defendant’s settlement offer
  • The plaintiff’s litigation costs are shifted to the defendant if the plaintiff’s judgment is more than 120% of the plaintiff’s settlement offer
  • Even if costs are shifted against the plaintiff, the plaintiff still recovers at least 50% of his or her economic damages plus the amount of any statutory liens against the plaintiff’s recovery

Multidistrict Litigation

• Creates the five-member Judicial Panel on Multidistrict Litigation, appointed by the Chief Justice of the Texas Supreme Court, that is empowered to transfer factually related cases pending in multiple counties to a single court for consolidated or coordinated pretrial proceedings
• The cases must be returned to the county in which the case was filed for trial
• This procedure, which is modeled on federal law, provides for more consistent outcomes and reduces the overall cost of large-scale litigation by creating a procedure for consolidating cases with common fact questions

Venue

• Fixes an anomaly in the current law by allowing an immediate appeal of a trial court’s decision that a plaintiff in a multi-plaintiff case has independently established venue in the county of suit

Forum Non Conveniens

• Creates a single standard--based on federal law--for determining whether a case should be dismissed so that it may be pursued in a more appropriate state or country
• The court will be able to dismiss a case that has no connection to Texas and should have been brought in another state or country if dismissal is in the interest of justice and for the convenience of the parties

Proportionate Responsibility

• Ensures that named defendants will be responsible only for the portion of fault attributable to them by allowing the jury or factfinder to consider the conduct of all potentially responsible persons when allocating fault for a plaintiff’s injury
  • The jury may allocate fault to any responsible person, including a bankrupt, criminal, person beyond the court’s jurisdiction, or employer with workman’s compensation immunity
  • Does not impose additional liability or cost on businesses that carry workers’ compensation insurance or others who are not parties to the case or are immune from liability
• Provides that the credit for the pre-trial settlement by another defendant in cases other than healthcare liability claims is based on the percentage of responsibility allocated to the settling defendant rather than being based on the amount of the settlement
• Provides that the credit for the pre-trial settlement by another defendant with respect to healthcare liability claims is based on the total dollar amount of the settlements unless all nonsettling defendants agree to a credit based on the percentage of responsibility allocated to the settling defendant
• Corrects a problem with the definition of "claimant" that was identified by the Texas Supreme Court

Products Liability Reform

• Establishes a 15-year statute of repose for product liability claims, except in "latent disease" cases, in which the disease does not manifest for many years after use of the product
• Creates an "innocent retailer defense" under which a retailer cannot be held liable for a product defect unless the retailer has some actual responsibility for the defect
  • Numerous exceptions to the defense are provided, including an exception that prevents use of the defense if the responsible manufacturer is outside the court’s jurisdiction or insolvent
• Provides protection from liability, through the use of a rebuttable presumption, to manufacturers, distributors, or prescribers of pharmaceutical products in cases in which it is alleged that the defendant failed to provide an adequate warning about the product’s risk
  • Defense is available if the defendant provided government approved warnings with the product
  • Several exceptions are provided, including one making the defense inapplicable if the manufacturer misrepresented or withheld required information from the government
• Provides additional protection from liability, through the use of a rebuttable presumption, for manufacturers who comply with federal standards or regulatory requirements applicable to a product
  • Protection is available only if the standard was (1) mandatory, (2) applicable to the aspect of the product that allegedly caused harm, and (3) adequate to protect the public from the risk
• Requires the Texas Supreme Court to revise the Texas Rules of Evidence to conform them to the Federal Rules of Evidence in regard to the admissibility of "subsequent remedial measures" in a products liability action

Judgment Interest

• Prohibits the assessment of pre-judgment interest on an award of future damages
• Establishes a post-judgment interest rate that is based on the prime rate and, therefore, more closely reflects market conditions
• Adjusts the current floor and ceiling for the post-judgment interest rate from 10%-20% to 5%-15%

Appeal Bonds

• Modifies the rules relating to appeal bonds so that the cost of the bond alone will not make the appeal of a trial court judgment prohibitive
• Limits the bond requirement to compensatory damages awarded to the plaintiff and places reasonable limits on the total amount of a bond

Evidence Regarding the Use of Seat Belts

• Allows the jury or fact-finder to know whether a plaintiff was wearing a seat belt at the time of an accident for the purpose of allocating fault and determining the cause of damages.

Damages

• Requires jury awards of punitive damage to based on a unanimous jury verdict
• Limits recovery of health care expenses to expenses actually incurred by the plaintiff
• Allows the jury to consider a plaintiff’s income taxes when awarding lost future income

Migration of Particles in the Air

• Allows trespass action for migration or transport of an air contaminant only on a showing of actual and substantial damage to the plaintiff.

Indemnification

• Chapter not to be construed as affecting any rights of indemnity granted by any statute, by contract, or by common law.

HB 1131 adds Chapter 2306, Occupations Code, effective September 1, 2003. Generally, an insurer may not own or acquire an interest in a "repair facility." (1)

• An insurer that owns an interest in a "tied repair facility" (2) and was open for business or on which construction had commenced on April 15, 2003, may maintain that ownership interest and may operate or relocate that facility. An insurer that owns an interest in a repair facility may use only one "favored facility agreement." (3)
• The terms under which an insurer enters into a favored facility agreement must be identical for all repair facilities, including a "tied repair facility."
• An insurer may not cancel a favored facility agreement until the expiration of the 30th day after the date on which the insurer provides notice to the repair facility of the insurer's intent to cancel. An explanation for the cancellation shall be included with the notice.
• If an insurer has reasonable grounds to believe that the repair facility has committed fraud, then an insurer may summarily cancel its favored facility agreement.
  
  Notes
  (1) "Repair Facility" engages in the business of repairing or replacing the nonmechanical exterior or interior body parts of a damaged motor vehicle.
  (2) "Tied Repair Facility" is a repair facility in which an insurer owns an interest.
  (3) "Favored Facility Agreement" is an agreement between an insurer and a repair facility under which the insurer agrees to recommend, directly or indirectly, to its policyholders or other beneficiaries under the insurer's policies, that the policyholder or other beneficiary obtain repairs at that repair facility or in any other way agrees to influence its policyholders or other beneficiaries under the insurer's policies to obtain repairs at that repair facility.

Notice. A notice shall be prominently posted in a repair facility in which the insurer owns an interest stating: "This repair facility is owned in whole or in part by (name of insurer), you are hereby notified that you are entitled to seek repairs at any repair facility of your choice."

Prohibitions. An insurer may not:

1. Condition the provision of a produce, service, insurance policy renewal, pricing, or other benefit on the purchase of any good or service from a tied repair facility.
2. Share information with a tied repair facility that is not available on identical terms and conditions to other repair facilities with which the insurer has entered into a favored facility agreement.
3. Engage in a joint marketing program with a tied repair facility.
4. Provide a tied repair facility a recommendation, referral, description, advantage, or access to its policyholders or other beneficiaries under its insurance policies that is not provided on identical terms to other repair facilities with which the insurer has entered into a favored facility agreement.
5. Provide a tied repair facility access to the insurer's products or services on terms and conditions different from those under which the insurer provides access to the same products or services to another repair facility with which the insurer has entered into a favored facility agreement;
6. Allow a tied repair facility to use the insurer's name, trademark, tradename, brand, or logo in a manner different than that allowed for any other favored facility;
7. Subsidize the business activities or operating expenses of a tied repair facility;
8. Directly or indirectly require an insurer's policyholder or other beneficiary under the insurer's policy to obtain a damage estimate on a vehicle covered by the insurance policy at a tied repair facility;
9. Authorize or allow a person representing the insurer to recommend to a policyholder or other beneficiary that either obtain repairs at a tied repair facility, except to the same extent that the person recommends other repair facilities with whom the insurer has entered into a favored facility agreement;
10. Require a policyholder or beneficiary to use a claims center located on the premises of a tied repair facility.
11. Enter into a favored facility agreement exclusively with its tied repair facilities;
12. Retaliate or discriminate against a person who:
    

    A. Files an action as provided; or,
    B. Assists or participates in any manner in an investigation, judicial proceeding, or other action brought or maintained as provided; or,

13. Include earnings or losses of a tied repair facility in a rate filing.

An insurer may provide support services to its tied repair facility if those services are priced at a level that is fair and reasonable to both the insurer and the tied repair facility; and do no confer a competitive advantage to the tied repair facility.

Penalties

A person, including a repair facility, who is aggrieved by an insurer's violation of the above requirements, may bring an action for an injunction or other relief to compel the insurer to comply. In addition to other appropriate relief, the court may impose a civil penalty of between $1,000 and $5,000 per violation. The civil penalty shall be deposited in the state's general revenue fund.

HB 1365, amends the Tax Code effective June 23, 2003. Title Application Fees increased to $33 or $28.

1. Title fee of $33 if applicant’s residence is in a county located within a nonattainment area, or is an affected county.

• Transportation Code §501.023 is still applicable (the vehicle can be titled in the purchaser’s county of residence, the county where purchased, or the county in which the lienholder resides). Therefore, the county in which the title application is filed determines the amount of title fees collected.
• According to the Texas Commission on Environmental Quality (TCEQ), the following counties are subject to the $33 Title Application Fee:
• Bastrop, Bexar, Brazoria, Caldwell, Chambers, Collin, Comal, Dallas, Denton, Ellis, El Paso, Fort Bend, Galveston, Gregg, Guadalupe, Hardin, Harris, Harrison, Hays, Henderson, Hood, Hunt, Jefferson, Johnson, Kaufman, Liberty, Montgomery, Nueces, Orange, Parker, Rockwall, Rusk, San Patricio, Smith, Tarrant, Travis, Upshur, Victoria, Waller, Williamson, and Wilson.
• $20 of the fee is sent by the County Tax Assessor-Collector to the comptroller to credit of the Texas Emissions Reduction Plan (TERP).

2. Title fee of $28 if applicant’s residence is any other county in the state.

• $15 of the fee is sent by the tax office to the comptroller to credit of the TERP.
• Beginning September 1, 2008, title fee of $28 for the entire state with $15 of the fee to credit of Texas Mobility Fund.

3. Effective July 1, 2003, a 2.5% or 1% Sales Tax Emissions Surcharge is collected for Diesel Vehicles over 14,000 pounds registered gross weight.

• 2.5% sales tax surcharge for every on-road diesel vehicle, over 14,000 pounds registered gross weight, of a model year 1996 or older, including all vehicles titled in this state.
• 1% sales tax surcharge for every on-road diesel vehicle, over 14,000 pounds registered gross weight of a model year 1997 and newer, titled in this state.
• Previously, vehicles purchased out-of-state and titled in Texas were not subject to the sales tax emissions surcharge. Now all applicable vehicles will be charged the sales tax emissions surcharge (2.5% or 1%), no matter where purchased. Either surcharge is in addition to the 6.25% sales tax.
  

Tow Trucks

HB 849 amends Occupations Code, Chapter 2303; amends Transportation Code and adds Chapter 643, Transportation Code, effective September 1, 2003.

An impoundment fee is increased from $10 to $20 by the operator of a vehicle storage facility or governmental vehicle storage facility. The annual vehicle fee for tow trucks increases to $25.

Non-Consent Tow. A "non-consent tow" is the towing of a vehicle without the consent of the owner or operator of the vehicle.

• TxDOT requests each tow truck carrier to inform the Motor Carrier Division if they perform any non-consent tows by completing a Supplemental Motor Carrier Application.
• If a tow truck operator performs a "non-consent tow," the tow truck owner must maintain on-hook cargo insurance of at least $50,000 per truck.
• The governing body of a political subdivision may regulate the fees that are charged or collected in connection with a non-consent tow that originates in the territory of the political subdivision. In an area in which no political subdivision regulates the fees charged or collected for a non-consent tow from private property, a towing company may charge and collect an amount not to exceed 150% of the fee that the towing company would have been authorized to charge for a non-consent tow made at the request of a peace officer of the political subdivision where the private property is located.
• If the vehicle to be towed for a non-consent tow is in excess of 26,000 pounds GVW and is towed from private property, the towing company may charge and collect an amount not to exceed 125% of the fee that the towing company would have been authorized to charge for a non-consent tow made at the request of a peace officer of the political subdivision where the private property is located.
• Before January 31 of each year, a towing company shall file with the Texas Department of Transportation, Motor Carrier Division, a schedule showing each towing fee charged or collected on a non-consent tow. If a political subdivision begins regulating non-consent tows or changes its fee schedule, it must be reported by the towing company before the 30th day after the regulation is effective or amended.
• Towing and storage fees shall be clearly posted at a licensed vehicle storage facility which accepts a "non-consent tow."
• New definition of "abandoned nuisance vehicle" is added to mean a motor vehicle at least 10 years old and is of a condition only to be junked, crushed or dismantled.

SB 1063 amends Transportation Code effective September 1, 2003. The Texas Department of Transportation (TxDOT) shall notify the DPS and other law enforcement agencies of each motor carrier whose certificate of registration is revoked for failing to maintain liability insurance coverage. A law enforcement officer may detain or impound any commercial vehicle that operates without liability insurance until the coverage is filed with TxDOT. A "Motor Carrier" is an individual or other legal entity that controls, operates, or directs the operation of one or more vehicles that transport persons or cargo over a road or highway in this state.

Renditions and Appraisal For Ad Valorem Tax Purposes

• SB 340 requires that all owners of tangible personal property used for the production of income, or all managers who have a fiduciary responsibility to the property, must file a rendition.
• A rendition must include five specifics: (1) the property owner’s name and address; (2) a description of the property by type of category; (3) a listing of all inventory, if applicable, described by type with an estimate of quantity; (4) the property’s physical location or taxable situs; and (5) the owner’s good faith estimate of value, or a listing of the property’s historical cost new and the year of acquisition.
• SB 340 does not define what a good faith estimate is.
• SB 340 allows districts to request additional information about the rendered value. This supporting data must identify the property and summarize the physical and economic characteristics of the rendered value. Beyond these general guidelines it does not specify the nature of that information.
• Both renditions and supporting data are confidential.
• Failure to file a rendition or to respond to a district’s request for additional data can result in a 10% penalty of the total amount of tax imposed on the property for the applicable tax year. The same penalty applies for late filings and late responses. The chief appraiser imposes and collects the penalty, and can also waive the penalty upon written request accompanied by supporting documents. The chief appraiser is under no obligation to waive the penalty, but his denial to do so is subject to appeal. An important incentive to note is that the chief appraiser, if he imposes a penalty and denies its waivers, can keep up to 20% of the penalty to defray collection costs.
• If a property owner fails to file a timely rendition or supporting data, resulting in a penalty, and files a protest under Sec. 41.41 (the protest provision in the Property Tax Code), the burden of proof rests on the owner’s shoulders at the protest hearing.
• Failure to file or to file timely may result in a 10% penalty, but if a court determines that a property owner attempted to evade taxation or filed a fraudulent rendition, as well as altering, destroying, or concealing records, the court can impose a 50% penalty on the total amount of tax imposed on the property for the tax year in question.
• The filing deadline did not change from January 1 through April 15. But SB 340 does allow for an extension to May 15, which may be granted upon written request. If the taxpayer needs additional time, the chief appraiser may grant an additional 15 days upon written request showing good cause.
• The requirement to file renditions and supporting data is unchanged. Documents can either be hand delivered or mailed through the United States Postal Service on or before the deadline. SB 340 does allow for electronic filing. The rules for electronic filing, as well as the forms for paper filing, are under the control of the comptroller’s office.
  

Other legislation that passed includes:

State budget: Lawmakers approved a $117.4 billion proposal that cuts many services, but not as deeply as once predicted, largely because of unexpected federal money.

Public education: Despite promises to kill the system known by critics as Robin Hood, lawmakers agreed to study the cost of education and return for a special session, perhaps this fall. Lt. Gov. David Dewhurst’s plan to cut property tax rates and increase sales tax revenues was killed by the House.

Higher education: Universities will be allowed, starting with spring semester, to decide how much to charge for tuition.

Social services: Texas’ health and human services departments will be consolidated into three agencies under a new commission to save money. Eligibility requirements will be changed for health insurance for children and pregnant women.

Insurance: Insurers who write homeowners policies will be required to file their rates with state regulators, who will have the power to decide whether consumers are being overcharged. Lawmakers also gave their blessing to the controversial use of credit information to set rates. But insurers will not be able use credit information as the sole criterion.

Ethics: A bill passed that stiffens identification requirements for campaign contributors, requires disclosure of legal referral fees for lawyer-legislators and requires public officers to report their cash on hand.

  [return to top]

• District 1 Director, Cody Lindman, Dulaney Auto Parts, Plainview
• District 6 Director, Brad Williams, A-1 Auto Wrecking, Inc., Nacogdoches
• District 7 Director, Johnny Patke, Parts Locators Unlimited, Pearland
• District 9 Director, Peter Nguyn, Airline Auto Parts, Houston
• District 14 Director, Bobby Triesch, EZ Part Smart, LLC, San Antonio

The following remain on the board:

• President, Debbie Lambing
• Vice-President, Bruce Ormand
• Secretary-Treasurer, Linda Pitman
• Past President, James Cooley, Jr.
• District 2 Director, Karen Shirley
• District 3 Director, Rick Sage
• District 4 Director, Barry Rubin
• District 5 Director, Hugh Pettigrew
• District 8 Director, Kyle Wheeler
• District 10 Director, Dan Snyder
• District 11 Director, Doug Gonzalez
• District 12 Director, Carol Morton
• District 13 Director, Jannette Patke Tucker
• District 15 Director, Don Anderson, Jr.

TARA extends a huge THANK YOU to the Arkansas Automotive Dismantlers & Recyclers Association for hosting and sponsoring the 2003 Four States Recyclers Expo in  Little Rock, Arkansas. It was an enormous success!

Mark your calendars for the 2004 Four States Recyclers Expo, June 24-26 at the Moody Gardens Hotel in Galveston, Texas.

  [return to top]

  [return to top]

Nine additional counties will become "affected counties" or counties with an I/M program established under the Texas Transportation Code, §548.301.

Current counties are:

• Collin
• Dallas
• Denton
• El Paso
• Harris
• Tarrant

On May 1, 2003 the following counties will be affected as well:

• Brazoria
• Ellis
• Fort Bend
• Galveston
• Kaufman
• Johnson
• Montgomery
• Parker
• Rockwall

According to the Texas Department of Public Safety (DPS), the test-on-resale provisions of HB 2134, 77th Legislature, do not apply to vehicles currently registered or titled in an affected county and subject to a retail sale.

If a vehicle is subject to a retail sale and is currently titled or registered in one of these counties (even if the county just became an affected county), the vehicle is not required to be emissions tested before a retail sale and subsequent title application.

If you have any questions concerning this information, please contact your local Vehicle Titles and Registration Division Regional Office.

  [return to top]

  [return to top]

"Dismantler dropped trouble light near dismantled gas tank"
Result: $60,000 in equipment and building damage incurred

"Employee siphoning gas: – Fumes ignited by pilot light from water heater"
Result: $118,000 Building beyond repair and torn down, new autos total loss

"Spilled fuel from gas tank ignited by pilot light on water heater"
Result: $404,522 Vehicles, building and contents destroyed

The vapors given off by gasoline are highly volatile and extreme care should be used when conducting work on gasoline tanks. Following our recommended guidelines when working on tanks:

Recommended Guidelines

• The work should only be performed by employees with sufficient skill and training to carry out the operation in a safe manner.
• Prior to the start of work on gasoline tanks, the contents should be drained from the tank.
• The preferred location for draining gasoline tanks is outside of the building. If this is not feasible, an Underwriters' Laboratory listed or Factory Mutual approved portable pump equipped with a storage tank should be used. Non-approved pumps should never be used. Siphoning by mouth should also be strictly prohibited.
• Gasoline drained from vehicle tanks should be stored in approved storage containers or returned to standard underground storage tanks.
• O.S.H.A. approved gas caddies are available from Western Manufacturing Corporation. Contact them at 800-247-7594 or fax at 575-752-1205.
• If gasoline is to be disposed of, it should be stored in drums or tanks suitable for such purpose. Keep the storage containers outside of the building until they are removed by a registered disposal company.
• Ignition source control in the vicinity of tank work should include:

  - "NO SMOKING" signs posted and enforced.
  - Ordinary or conventional trouble lights should be replaced with the enclosed fluorescent type.
  - Approved and operable multi-purpose fire extinguishers available in the immediate work area.
  - The prohibition of welding or other hot work within 20 feet of tank repair/service area.

• If hot work (welding or cutting) must be completed on a tank, proper containment or cleaning and testing procedures should be followed. Consult with tank manufacturers for proper procedure recommendations.

One supplier of Factory Mutual approved equipment for safely draining automotive gasoline tanks is Handy Industries. If you mention Universal Underwriters, you will receive a discount on the purchase. Handy Industries can be contacted by phone at 800-247-7594, by fax at 641-752-1205, or on the internet at www.handyindustries.com.

Significant employee injuries or property damage can have an impact on the overall profitability of a business. By implementing our recommended guidelines, you can reduce the potential for losses resulting from welding, cutting torches, or fuel-related parts. This will help ensure the safety of your employees, and safeguard your business.

For more information about how Universal Underwriters Group, Special Account Services can help meet the special needs of your automotive recycling business, call Universal at 1-800-840-8842, ext. 4845, visit the website at www.uuic.com and click on Automotive Recycling Business, or send an e-mail to uuis.specaccts@zurichna.com.

  [return to top]

  [return to top]

  [return to top]

• ARA 60th Annual Convention & Expo
  October 1-4, 2003
  Ft. Lauderdale, FL
  
• 2004 Four States
  Recyclers Expo
  June 24-26, 2004
  Moody Gardens Hotel
  Galveston, Texas

  [return to top]

• Membership Committee
  Bobby Triesch, Chair
  Craig Barker
  James Cooley, Jr.
• Environmental Committee
  Carol Morton
  Bruce Ormand
• Nominating Committee
  James Cooley, Jr., Chair
  Walter Williams
  Barry Rubin
• Legislative & Government Affairs Committee
  Hugh Pettigrew, Jr.
  Barry Rubin
  Bruce Ormand
  Lin Barker
• Convention & Education Committee
  Jannette Patke Tucker
  Rivers Lambing Carr
  Karen Shirley
  Linda Pitman
• Mid Year Meeting Committee
  Debbie Lambing
  Bruce Ormand
  Linda Pitman
  James Cooley, Jr.