BILL ANALYSIS H.B. 2516 By: Bosse (Patterson, J.) Jurisprudence 05-23-95 Senate Committee Report (Unamended) BACKGROUND Operators of vehicle storage facilities often have a difficult time recovering unpaid amounts owed to 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 the operator's 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 As proposed, H.B. 2516 provides that a lienholder who repossesses a vehicle or an insurance company that pays a claim of total loss is responsible for fees owed to the operator of a vehicle storage facility. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Article 6687-9a, V.T.C.S. (Vehicle Storage Facility Act), by adding Section 14A, as follows: Sec. 14A. PAYMENT BY LIENHOLDER OR INSURANCE COMPANY. Provides that a lienholder who repossesses a vehicle, or an insurance company that pays a claim of total loss involving the owner of a vehicle in a storage facility (facility), is liable to the operator of the facility for all unpaid amounts owed the operator in relation to the delivery or storage of the vehicle in the facility regardless of whether an amount accrued before the lienholder repossessed the vehicle or the insurance company paid the claim. SECTION 2. Makes application of this Act prospective. SECTION 3. Effective date: September 1, 1995. SECTION 4. Emergency clause.