BILL ANALYSIS



S.B. 549
By: Leedom (Reyna)
03-22-95
Committee Report (Unamended)


BACKGROUND

The Texas Department of Transportation requires vehicle storage
facilities to obtain a release of lien for charges due.  This is
not a requirement for vehicle repair shops.  However, storage
owners are in a situation where outdated liens against a vehicle
are never released and records are not updated.

PURPOSE

As proposed, S.B. 549 provides that the possessory lienholder is
not required as a condition of sale to obtain a release of any lien
held by a person to whom notice was sent and sets forth
requirements for notification of the person responsible for a lien
if excess money may be claimed from the sale.

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 Section 70.006(a), Property Code, to provide that
a holder of a lien under this subchapter is not required as a
condition of sale to obtain the release of a lien held by a person
to whom the holder of the lien has given notice.

SECTION 2. Amends Section 70.007, Property Code, to require a
person holding excess proceeds from a sale, if the person entitled
to the excess proceeds is unknown or has moved, to send a notice to
the last known address of the person stating the sale date, the
proceeds from the sale, the amount of the proceeds applied to
charges, and that excess proceeds may be claimed from the county
treasurer of the specified county.  Makes conforming changes.

SECTION 3. Effective date: September 1, 1995.

SECTION 4. Emergency clause.



SUMMARY OF COMMITTEE ACTION

Pursuant to a public notice posted on February 23, 1995, at 5:22
p.m., the House Committee on Transportation met in a public hearing
on Wednesday, March 1, 1995 at 2:00 p.m. in Room E1.014 of the
Capitol Extension and was called to order at 2:05 p.m. by the
Chair, Representative Clyde Alexander.  The Chair laid out H.B. 111
and recognized Representative Reyna to explain H.B.111.  The Chair
recognized the following persons who testified in support of H.B.
111:  Jeanette Rash, Texas Towing and Storage Association; Donald
Dawson, Mesquite Towing Service; Donald McClure, Texas Towing and
Storage Association.  The Chair recognized the following person who
testified in opposition to H.B. 111: Charles A. Pitts, Texas
Independent Automobile Dealers Assoc.  The Chair left H.B. 111
pending before the Committee.  Pursuant to a public notice posted
on March 16, 1995, at 5:53 p.m., the House Committee on
Transportation met in a public hearing on Wednesday, March 22, 1995
at 2:00 p.m. in Room E1.014 of the Capitol Extension and was called
to order at 6:54 p.m. after the rules were suspended on the House
floor to meet in public hearing after the posted time, by the
Chair, Representative Clyde Alexander.  The Chair laid out H.B. 111
by Reyna which was pending before the Committee.  Representative
Bosse moved to substitute H.B. 111 with S.B. 549, and without
objection, S.B. 549 was laid out in place of H.B. 111. 
Representative Bosse moved that the Committee report S.B. 549 to
the full House with the recommendation that it do pass.  The motion
prevailed by the following vote: Ayes (7), Nayes (0), Absent (2),
Present not voting (0).