TX HB5436

Used automotive parts recyclers may purchase motor vehicles without obtaining a title if the vehicle is at least 13 years old, has not been registered for at least 7 years, and is purchased solely for parts, dismantling, or scrap

Recyclers must compile detailed documentation including seller identification, vehicle information, signed certification of lawful right to sell, and submit information to the department and National Motor Vehicle Title Information System within 24 hours of receiving the vehicle

Vehicles with recorded security interests or liens (unless recorded more than 6 years prior) require the recycler to notify the county assessor-collector with a $25 administrative fee; lienholders and last registered owners have 14 days to retrieve the vehicle at no cost

Creates criminal offenses for knowingly failing to obtain or falsifying required information, selling a vehicle subject to a lien, or otherwise violating the section's requirements—penalties range from Class C misdemeanor to state jail felony for repeat offenders

Takes effect September 1, 2025; penalty revenues must be used for enforcement, investigation, prosecution, and training related to motor vehicle offenses