85R6673 AAF-F
By: Martinez H.B. No. 3131
A BILL TO BE ENTITLED
AN ACT
relating to the disposal of certain motor vehicles to a motor
vehicle demolisher; increasing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter D, Chapter 683,
Transportation Code, is amended to read as follows:
SUBCHAPTER D. DEMOLITION OF [ABANDONED] MOTOR VEHICLES
SECTION 2. Sections 683.051, 683.052, 683.053, and 683.054,
Transportation Code, are amended to read as follows:
Sec. 683.051. APPLICATION FOR AUTHORIZATION TO DISPOSE OF
CERTAIN MOTOR VEHICLES. A person may apply to the department for
authority:
(1) to sell, give away, or dispose of a motor vehicle
to a motor vehicle demolisher for demolition, wrecking, or
dismantling if:
(A) the person is the recorded owner or has been
transferred ownership of [owns] the motor vehicle [and the
certificate of title to the vehicle is lost, destroyed, or faulty];
or
(B) the vehicle is an abandoned motor vehicle and
is:
(i) in the possession of the person; or
(ii) located on property owned by the
person; or
(2) to dispose of a motor vehicle to a motor vehicle
demolisher for demolition, wrecking, or dismantling if:
(A) the [abandoned] motor vehicle is in the
possession of a lienholder under:
(i) Chapter 54, 59, or 70, Property Code [is
in the possession of the person]; or
(ii) Chapter 2303, Occupations Code [is
more than eight years old];
[(iii) either has no motor or is otherwise
totally inoperable or does not comply with all applicable air
pollution emissions control related requirements included in the
vehicle emissions inspection and maintenance requirements
contained in the Public Safety Commission's motor vehicle emissions
inspection and maintenance program under Subchapter F, Chapter 548,
or the state's air quality state implementation plan; and
[(iv) was authorized to be towed by a law
enforcement agency; and]
(B) the lienholder has complied with all
notification requirements of the applicable chapter to foreclose on
the lien; and
(C) the lienholder determines:
(i) the motor vehicle's only residual value
is as a source of parts or scrap metal; or
(ii) it is not economical to dispose of the
vehicle at a public sale [the law enforcement agency approves the
application].
Sec. 683.052. CONTENTS OF APPLICATION; APPLICATION FEE.
(a) An application under Section 683.051 must be made in a manner
prescribed by the department and include:
(1) [contain] the name and address of the applicant;
(2) [state] the year, make, model, body style, and
vehicle identification number of the vehicle, if ascertainable[,
and any other identifying feature of the vehicle]; [and]
(3) a certification by the applicant that the facts
stated in the application are true and that the applicant
[include]:
(A) is the recorded owner or has been transferred
ownership of the vehicle [a concise statement of facts about the
abandonment]; or
(B) is a lienholder listed in Section
683.051(2)(A) that has complied with all applicable notification
requirements [a statement that the certificate of title is lost or
destroyed]; [or]
(4) any proof required by the department to verify
compliance with notification requirements described by Section
683.051(2)(B); and
(5) the physical location of the motor vehicle [(C) a
statement of the reasons for the defect in the owner's certificate
of title for the vehicle].
(b) The department is not required to obtain an ownership
document or any other verification of ownership in the name of an
applicant under Section 683.051(1)(A) if the department is able to
verify that the applicant is the recorded owner in the department's
automated registration and titling system [An application under
Section 683.051(2) must also include an affidavit containing a
statement of the facts that make that subdivision applicable].
(c) [The applicant shall make an affidavit stating that:
[(1) the facts stated in the application are true; and
[(2) no material fact has been withheld.
[(d)] The application must be accompanied by a fee of $10
[$2, unless the application is made by a unit of government]. Fees
collected under this subsection shall be deposited to the credit of
the Texas Department of Motor Vehicles fund.
Sec. 683.053. DEPARTMENT TO PROVIDE NOTICE. (a) If an
application is submitted to sell, give away, or dispose of an
abandoned motor vehicle under Section 683.051(1)(B), the
department shall:
(1) send notice to any owners and lienholders of the
abandoned motor vehicle identified in the department's automated
registration and titling system; or
(2) if the department has no record of owners or
lienholders for the abandoned motor vehicle, publish notice of
abandonment on the department's website.
(b) The notice required by Subsection (a) must include:
(1) the year, make, model, body style, and vehicle
identification number of the motor vehicle;
(2) the physical location of the motor vehicle;
(3) a statement:
(A) that an application has been submitted to the
department for authorization to dispose of the motor vehicle to a
motor vehicle demolisher;
(B) informing the motor vehicle's owners or
lienholders of the right to claim the motor vehicle not later than
the 20th day after the date the notice is sent or published; and
(C) that failure to claim the motor vehicle and
notify the department that the vehicle has been claimed before the
21st day after the date the notice is sent or published:
(i) waives a person's rights, title, and
interest in the motor vehicle; and
(ii) is considered consent for the
department to issue to the applicant a certificate of authority
under Section 683.054 to dispose of the motor vehicle to a motor
vehicle demolisher; and
(4) the date the notice was sent or published.
(c) The department is not required to send or publish notice
for an application submitted for a motor vehicle described by
Section 683.051(1)(A) or (2).
(d) Notice sent under Subsection (a)(1) must be sent by
first class mail [Except as provided by Section 683.054(b), the
department shall give notice as provided by Section 683.012 if it
determines that an application under Section 683.051 is:
[(1) executed in proper form; and
[(2) shows that:
[(A) the abandoned motor vehicle is in the
possession of the applicant or has been abandoned on the
applicant's property; or
[(B) the vehicle is not an abandoned motor
vehicle and the applicant appears to be the owner of the vehicle].
Sec. 683.054. CERTIFICATE OF AUTHORITY TO DISPOSE OF
VEHICLE. (a) The department shall issue the applicant a
certificate of authority to dispose of the vehicle to a motor
vehicle demolisher for demolition, wrecking, or dismantling if the
application submitted under Section 683.051:
(1) is properly executed;
(2) is accompanied by the required fee under Section
683.052; and
(3) contains any proof of notification or ownership
required by the department to enforce this subchapter [notice under
Section 683.053 was given and the vehicle was not claimed as
provided by the notice].
(b) [Without giving the notice required by Section 683.053,
the department may issue to an applicant under Section 683.051(2) a
certificate of authority to dispose of the motor vehicle to a
demolisher if the vehicle meets the requirements of Sections
683.051(2)(A)(ii) and (iii).
[(c)] A motor vehicle demolisher shall accept the
certificate of authority in lieu of a certificate of title for the
vehicle.
SECTION 3. Chapter 54, Property Code, is amended by adding
Subchapter Z to read as follows:
SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
Sec. 54.901. DISPOSAL OF CERTAIN MOTOR VEHICLES SUBJECT TO
LIEN. (a) Notwithstanding any other law, a person authorized to
dispose of property for which a lien under this chapter is attached
may dispose of the property in accordance with Subchapter D,
Chapter 683, Transportation Code, if:
(1) the property is a motor vehicle; and
(2) the person determines that:
(A) the vehicle's only residual value is as a
source of parts or scrap metal; or
(B) it is not economical to dispose of the
vehicle at a public sale.
(b) If a person disposes of the property under Subsection
(a), the person shall apply the fair market value of the motor
vehicle to the charges due to the person.
SECTION 4. Section 59.0445, Property Code, is amended by
amending Subsection (g) and adding Subsection (g-1) to read as
follows:
(g) If the charges are not paid before the 31st day after the
date the notice is mailed or published, as applicable, the lessor
may:
(1) sell the motor vehicle, motorboat, vessel, or
outboard motor at a public sale and apply the proceeds to the
charges; or
(2) if the property that is the subject of the notice
is a motor vehicle, dispose of the motor vehicle in accordance with
Subchapter D, Chapter 683, Transportation Code, if the lessor
determines that:
(A) the vehicle's only residual value is as a
source of parts or scrap metal; or
(B) it is not economical to dispose of the
vehicle at a public sale.
(g-1) If the lessor disposes of the property under
Subsection (g)(2), the lessor shall apply the fair market value of
the motor vehicle to the charges due to the lessor.
SECTION 5. The heading to Section 70.006, Property Code, is
amended to read as follows:
Sec. 70.006. SALE OR DISPOSAL OF MOTOR VEHICLE, MOTORBOAT,
VESSEL, OR OUTBOARD MOTOR.
SECTION 6. Section 70.006, Property Code, is amended by
adding Subsections (f-1) and (f-2) to read as follows:
(f-1) If the charges are not paid before the 31st day after
the date that a copy of the notice required by Subsection (a) is
filed with the county tax assessor-collector's office and the
property that is the subject of the notice is a motor vehicle, the
lienholder may, in lieu of selling the vehicle under Subsection
(f), dispose of the vehicle in accordance with Subchapter D,
Chapter 683, Transportation Code, if the lienholder determines
that:
(1) the vehicle's only residual value is as a source of
parts or scrap metal; or
(2) it is not economical to dispose of the vehicle at a
public sale.
(f-2) If the lienholder disposes of the property under
Subsection (f-1), the lienholder shall apply the fair market value
of the motor vehicle to the charges due to the lienholder.
SECTION 7. The changes in law made by this Act to Subchapter
D, Chapter 683, Transportation Code, apply only to an application
to dispose of a motor vehicle to a motor vehicle demolisher filed on
or after the effective date of this Act. An application to dispose
of a motor vehicle to a motor vehicle demolisher filed before the
effective date of this Act is governed by the law in effect on the
date the application was filed, and the former law is continued in
effect for that purpose.
SECTION 8. This Act takes effect September 1, 2017.