H.B. No. 3131

	AN ACT
	relating to the disposal of certain motor vehicles to a motor
	vehicle demolisher.
	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 if the application is submitted under
	Section 683.051(1)(A) [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 if the application is submitted under Section
	683.051(2) [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 $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.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 3131 was passed by the House on May 6,
	2017, by the following vote:  Yeas 130, Nays 7, 3 present, not
	voting; and that the House concurred in Senate amendments to H.B.
	No. 3131 on May 26, 2017, by the following vote:  Yeas 140, Nays 4,
	2 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 3131 was passed by the Senate, with
	amendments, on May 24, 2017, by the following vote:  Yeas 31, Nays
	0.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor