BILL ANALYSIS

H.B. 2863

By: Villalobos

Transportation

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Under current law, the Texas Department of Motor Vehicles (TxDMV) may refuse, rescind, cancel, suspend, or revoke a vehicle title under various circumstances, such as fraud, improper documentation, or legal disputes. The bill author has informed the committee that an avenue created for individuals who believe they have been wrongfully denied a vehicle title or had their title revoked, an administrative hearing to challenge TxDMV's decision, is being abused. H.B. 2863 seeks to address these issues by prohibiting a person from applying for a hearing related to a title for a vehicle in specified circumstances.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 2863 amends the Transportation Code to prohibit a person from applying for a hearing on a vehicle title refusal, rescission, cancellation, suspension, or revocation if the determination by the Texas Department of Motor Vehicles (TxDMV) to take such an action is related to a title for a vehicle:

· that is the subject of any pending litigation or court proceedings;

· for which a court has awarded ownership or possession to another person; or

· that is held as evidence in a criminal investigation.

The bill requires a county assessor-collector who receives an application for a hearing submitted in violation of this prohibition, or in violation of the prohibition against a person applying for such a hearing for which the determination by TxDMV to take such an action is related to a title for a salvage motor vehicle or a nonrepairable motor vehicle, to deny the application. The bill establishes that a county assessor-collector who receives either application is not required to send the requisite notice to TxDMV or hold a hearing. The bill requires a person who applies for a hearing on a vehicle title refusal, rescission, cancellation, suspension, or revocation to submit with the application an affidavit stating that the person is not disqualified from receiving a hearing under either prohibition.

EFFECTIVE DATE

September 1, 2025.