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Curbstoning

Curbstoning

Revised 06-09-2014

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WHAT IS CURBSTONING?WHAT IS CURBSTONING?

• The unlawful sale of motor vehicles. Curbstoning commonly occurs on public roadsides, right of ways and parking lots.

• Curbstoners may be:– Licensed dealers operating off their licensed premises– Unlicensed persons engaged in business as a dealer– Anyone unlawfully selling motor vehicles

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WHY SHOULD YOU CARE?WHY SHOULD YOU CARE?• Curbstoning is against the law (Tex. Trans. Code

503.021)

• Seller cannot be located if problems arise after the sale

• Seller may not own the vehicle or have a valid title to it

• Curbstoning can create traffic hazards• Vehicle may be stolen• Vehicle may subject to a lien• Vehicle odometer may be rolled back• Vehicle may be flood damaged or salvaged

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WHY YOU SHOULD CARE?(CONT.)

WHY YOU SHOULD CARE?(CONT.)

• Vehicle may have been designated for export and cannot be titled or registered

• Vehicle may not pass inspection

• Taxes: Licensed dealers pay federal, state and local taxes in operating their businesses. CURBSTONERS DO NOT!

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CURBSTONING COMPLAINTSProcessed by the

TxDMV Enforcement Division

FY 2011 - 284 casesFY 2012 - 347 casesFY 2013 - 204 cases

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What CAN YOU DO? What CAN YOU DO?

• If the curbstoner is a licensed dealer file a complaint with the TxDMV Enforcement Division

• If the curbstoner is not licensed contact the local law enforcement agency and/or TxDMV Enforcement Division

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• Encourage criminal prosecution under Chapter 503 of Transportation Code

• Provide training to law enforcement agencies on curbstoning

• Participate in joint operations with local law enforcement agencies to address curbstoning

• Advise local prosecutors on curbstoning laws

What does the TxDMV DO?What does the TxDMV DO?

NEW LAW: CURBSTONED VEHICLES MAY BE ORDERED TOWED

NEW LAW: CURBSTONED VEHICLES MAY BE ORDERED TOWED

Under the provisions of Tx. Trans. Code Section 503.096, if a peace officer has probable cause to believe a vehicle is being offered for sale (curbstoned) by person in violation of TX. Trans. Code 503.021, after proper notice has been given, the vehicle may be towed to a vehicle storage facility.

ESTABLISHING PROBABLE CAUSEESTABLISHING PROBABLE CAUSE

• Check the VIN/title/registration to determine if the seller is the owner or authorized by the owner to sell the vehicle.

• Record and check the contact phone number on the vehicle. Have you seen it on other vehicles?

• Call the number and tell seller to come to site with title or title receipt and personal ID to prove it is the same person or authorized by the owner.

• If the seller is a licensed dealer ask them to show you their license.

WHAT IS REQUIRED NOTICE?

WHAT IS REQUIRED NOTICE?

• Must be attached to the vehicle at least two hours before being towed.

• May be affixed by peace officer, appropriate local government employee, or TxDMV investigator.

• Notice must state: (1) make, model, plate, and VIN; (2) date and time notice affixed; (3) that vehicle is being offered for sale in violation of Transp. Code 503.021; (4) that vehicle and contents will be towed in two hours; and (5) name, address, and phone of the vehicle storage facility where the vehicle is towed.

• (The DMV has a sample Notice available for reference)

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SUGGESTIONS TO LAW ENFORCEMENT AND OTHER CONCERNED PARTIES

SUGGESTIONS TO LAW ENFORCEMENT AND OTHER CONCERNED PARTIES

• Watch problem areas – grocery store parking lots, flea markets, mechanic/body shops, vacant lots, roadsides.

• Look for:– Advertising similar to a dealership publication or

internet advertisement– “For Sale” signs with the same phone number– Body/Repair shops to see if they have a valid

mechanic’s lien on vehicle. If not, they should have a dealer license

– Dealer plates or temporary tags displayed on the vehicle

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DEALING WITH CURBSTONINGDEALING WITH CURBSTONING

–Educate your community• License dealer list is available• Go to the DMV webpage for complaint

form: http://www.TxDMV.gov/reports-and-data/doc_download/1032-motor-vehicle-dealer-complaint-form

– If not already in existence, recommend new or stronger curbstoning ordinances

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DEALING WITH CURBSTONING (CONT.)

DEALING WITH CURBSTONING (CONT.)

Check and see if other local ordinances apply to curbstoning. – Parking ordinances– Public nuisance ordinances

• Invite the TxDMV Enforcement Division to speak with local groups interested in stopping curbstoners • Encourage use of criminal penalties under TEX. TRANS.

CODE Section 503.094; ($50 to $5,000 fine and up to a state jail felony) for violating the provisions of Chapter 503

QUESTIONS?QUESTIONS?

Enforcement Division1-888-368-4689

Complaint forms found at http://www.TxDMV.gov/reports-and-data/doc_down

load/1032-motor-vehicle-dealer-complaint-form