1. 1 Curbstoning Revised 06-09-2014

2. 2 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

3. 3 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

4. 4 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!

5. 5 CURBSTONING COMPLAINTS Processed by the TxDMV Enforcement Division FY 2011 - 284 cases FY 2012 - 347 cases FY 2013 - 204 cases

6. 6 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

7. 7 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?

8. 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.

9. ESTABLISHING 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.

10. 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)

11. 11 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

12. 12 DEALING 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

13. 13 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

14. QUESTIONS? Enforcement Division 1-888-368-4689 Complaint forms found at http://www.TxDMV.gov/reports-and- data/doc_download/1032-motor-vehicle-dealer- complaint-form