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.