BILL ANALYSIS



H.B. 2516
By: Bosse
04-26-95
Committee Report (Unamended)


BACKGROUND

Under current law, (Vernon's Texas Revised Civil Statutes, Article
6687) operators of vehicle storage facilities often have a
difficult time recovering unpaid amount owed them for the towing
and storage of a vehicle that has been involved in a total loss. 
In such cases where the vehicle is without value, the insurance
company or lienholder abandons such vehicle at the vehicle storage
facility and the facility operator is left to his own resources to
collect the costs incurred.  Continuing to hold a vehicle in a
vehicle storage facility is costly and results in increased storage
fees for all other vehicles.

PURPOSE

H.B. 2516 would insure that operators of vehicle storage facilities
are compensated for towing and storage fees by holding a lienholder
who repossess a vehicle or insurance companies that pay a claim of
total loss responsible for such fees.

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.

SECTION BY SECTION ANALYSIS

SECTION 1: Amends the Vehicle Storage Facility Act (Article 6687-9a, Revised Statutes) by adding Section 14A which holds a
lienholder who repossesses a vehicle or an insurance company that
pays a claim of total loss involving an owner of a vehicle in a
vehicle storage facility liable to the storage facility operator
for all unpaid towing and storage fees provided that the facility
operator complies with all notice requirements under the law.

SECTION 2: Provides that the Act applies only to an amount accruing
on or after the effective date of the Act.

SECTION 3: Effective date: September 1, 1995.

SECTION 4: Emergency clause.


SUMMARY OF COMMITTEE ACTION

Pursuant to a public notice posted on March 30, 1995 at 6:02 p.m.,
the House Committee on Transportation met in a public hearing on
Wednesday, April 5, 1995 at 2:00 p.m. or upon adjournment, in room
E1.014 of the Capitol Extension and was called to order at 6:30
p.m. by the Chair, Representative Clyde Alexander after the House
recessed.  The Chair laid out H.B. 2516 and recognized
Representative Bosse to explain H.B. 2516.  The Chair recognized
the following persons who testified in support of H.B. 2516.  Larry
Cernosek, Texas Towing and Storage Association.   Jeanette Rash,
Zone One Auto Storage.  W.P. Caudle, Wrecker and Storage Company. 
The Chair recognized the following person who testified in
opposition to H.B. 2516.  Allen Ray, Texas Independent Automobile
Dealers Association.  The Chair left H.B. 2516 pending before the
Committee.  Pursuant to a public notice posted on April 21, 1995,
at 4:04 p.m., the House Committee on Transportation met in a public
hearing on Wednesday, April 26, 1995, at 2:00 p.m., or upon
adjournment, in Room E1.014 of the Capitol Extension and was called
to order at 6:13 p.m. by the Chair, Representative Clyde Alexander. 
The Chair laid out H.B. 2516 by Bosse, which was pending before the
Committee.  Representative Price moved that the Committee report
H.B. 2516, without amendments, to the full House with the
recommendation that it do pass.  The motion prevailed by the
following vote: Ayes (8), Nayes (0), Absent (1), Present not voting
(0).