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 However, storage owners are in a situation where outdated liens against a vehicle are never released and records are not updated.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).