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).