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  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