HOUSE BILL 775

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

William "Bill" R. Rehm

AN ACT

RELATING TO MOTOR VEHICLES; PROVIDING FOR A CERTIFICATE OF TITLE TO TRANSFER-ON-DEATH; IMPOSING A FEE; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. A new section of Chapter 66, Article 3 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] TRANSFER-ON-DEATH--CERTIFICATE OF TITLE.--

          A. A motor vehicle may be titled in transfer-on- death form by including in the certificate of title a designation of a beneficiary to whom the motor vehicle shall be transferred upon death of the owner or the last survivor of the joint tenant with right of survivorship owners, subject to the rights of all lien holders.

          B. The transfer-on-death beneficiary shall have no

interest in the motor vehicle until the death of the owner or the last survivor of the joint tenant with right of survivorship owners. During the time a beneficiary has no interest in the vehicle, the beneficiary shall not be liable for any damages resulting from negligent operation of the vehicle by another. A beneficiary designation may be changed at any time by the owner or all of the joint tenant with right of survivorship owners then surviving without the consent of the beneficiary by filing an application for a subsequent certificate of title.

          C. Ownership of a motor vehicle titled in transfer-on-death form, for which an application for a subsequent certificate of title has not been filed, shall vest in the designated beneficiary on the death of the owner or the last of the joint tenant with right of survivorship owners, subject to the rights of all lien holders. A certificate of title in transfer-on-death form shall not be considered a testamentary disposition.

          D. The fee to title a motor vehicle with a certificate of title in transfer-on-death form is twenty dollars ($20.00), which shall be collected by the department and shall be in addition to other fees and penalties provided by law. The fees collected pursuant to this section are appropriated to the motor vehicle division of the taxation and revenue department to defray the costs of upgrading and maintaining computer systems and equipment."

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