By Gutierrez                                    H.B. No. 3452

      75R7633 JD-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the impoundment of the motor vehicle of a person who

 1-3     fails to provide evidence of financial responsibility following a

 1-4     motor vehicle accident.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Subchapter J, Chapter 601, Transportation Code,

 1-7     is amended to read as follows:

 1-8            SUBCHAPTER J.  IMPOUNDMENT OF MOTOR VEHICLE FOLLOWING

 1-9                   ACCIDENT [NOT REGISTERED IN THIS STATE]

1-10           Sec. 601.291.  Applicability of Subchapter.  This subchapter

1-11     applies only to the owner or operator of a motor vehicle that[:]

1-12                 [(1)  is not registered in this state; and]

1-13                 [(2)]  is involved in a motor vehicle accident in this

1-14     state that results in bodily injury, death, or damage to the

1-15     property of one person to an apparent extent of at least $1,000

1-16     [$500].

1-17           Sec. 601.292.  Duty to Provide Evidence of Financial

1-18     Responsibility to Investigating Officer.  A person to whom this

1-19     subchapter applies shall provide evidence of financial

1-20     responsibility to a law enforcement officer of this state or a

1-21     political subdivision of this state who is conducting an

1-22     investigation of the accident.

1-23           Sec. 601.293.  FAILURE TO PROVIDE EVIDENCE OF FINANCIAL

1-24     RESPONSIBILITY; [MAGISTRATE'S INQUIRY AND ORDER.  (a)  A person to

 2-1     whom this subchapter applies who fails to provide evidence under

 2-2     Section 601.292 shall be taken before a magistrate as soon as

 2-3     practicable.]

 2-4           [(b)  The magistrate shall conduct an inquiry on the issues

 2-5     of negligence and liability for bodily injury, death, or property

 2-6     damage sustained in the accident.]

 2-7           [(c)  If the magistrate determines that there is a reasonable

 2-8     possibility that a judgment will be rendered against the person for

 2-9     bodily injury, death, or property damage sustained in the accident,

2-10     the magistrate shall order the person to provide:]

2-11                 [(1)  evidence of financial responsibility for the

2-12     bodily injury, death, or property damage; or]

2-13                 [(2)  evidence that the person is exempt from the

2-14     requirement of Section 601.051.]

2-15           [(d)  A determination of negligence or liability under

2-16     Subsection (c) does not act as collateral estoppel on an issue in a

2-17     criminal or civil adjudication arising from the accident.]

2-18           [Sec. 601.294.]  Impoundment of Motor Vehicle.  If the [a]

2-19     person fails or refuses to [whom this subchapter applies does not]

2-20     provide evidence of financial responsibility as required by [under]

2-21     Section 601.053(a) [601.293(c)], the officer investigating the

2-22     accident [magistrate] shall direct that [enter an order directing

2-23     the sheriff of the county or the chief of police of the

2-24     municipality to impound] the motor vehicle owned or operated by the

2-25     person that was involved in the accident be impounded.

2-26           Sec. 601.294 [601.295].  DURATION OF IMPOUNDMENT[; RELEASE].

2-27     (a)  A motor vehicle impounded under Section 601.293 [601.294]

 3-1     remains impounded until the owner, operator, or person authorized

 3-2     by the owner applies [presents] to a justice of the peace in the

 3-3     county in which the accident involving the vehicle occurred for

 3-4     [the person authorized to] release of the vehicle[:]

 3-5                 [(1)  a certificate of release obtained from the

 3-6     department; and]

 3-7                 [(2)  payment for the cost of impoundment].

 3-8           (b)  The justice shall conduct an inquiry on the issues of

 3-9     negligence and liability for bodily injury, death, or property

3-10     damage sustained in the accident [On presentation of the items

3-11     described by Subsection (a), the person authorized to release an

3-12     impounded motor vehicle shall release the vehicle].

3-13           (c)  If the justice determines that there is a reasonable

3-14     possibility that a judgment will be rendered against the person for

3-15     bodily injury, death, or property damage sustained in the accident,

3-16     the justice may not order the release of the vehicle unless the

3-17     person provides:

3-18                 (1)  evidence of financial responsibility under Section

3-19     601.053 that shows that at the time of the accident the vehicle was

3-20     in compliance with Section 601.051 or was exempt from the

3-21     requirement of Section 601.051;

3-22                 (2)  a release executed by each person damaged in the

3-23     accident other than the operator of the vehicle for which the

3-24     release is requested; or

3-25                 (3)  security in a form and amount determined by the

3-26     justice to secure the payment of damages for which the operator may

3-27     be liable.

 4-1           (d)  If the justice determines that the reasonable

 4-2     possibility described by Subsection (c) does not exist, the justice

 4-3     shall order that the vehicle be released.

 4-4           (e)  A determination of negligence or liability under

 4-5     Subsection (c) or (d) does not act as collateral estoppel on an

 4-6     issue in a criminal or civil adjudication arising from the

 4-7     accident.

 4-8           (f)  A person may satisfy the requirement of Subsection

 4-9     (c)(1) or (2) by submitting a photocopy of the item required.

4-10           (g)  Security provided under Subsection (c)(3) is subject to

4-11     Sections 601.163 to 601.167.

4-12           Sec. 601.295. [601.296.  CERTIFICATE OF RELEASE.  (a)  The

4-13     department shall issue a certificate of release of an impounded

4-14     motor vehicle to the owner, operator, or person authorized by the

4-15     owner on submission to the department of:]

4-16                 [(1)  evidence of financial responsibility under

4-17     Section 601.053 that shows that at the time of the accident the

4-18     vehicle was in compliance with Section 601.051 or was exempt from

4-19     the requirement of Section 601.051;]

4-20                 [(2)  a release executed by each person damaged in the

4-21     accident other than the operator of the vehicle for which the

4-22     certificate of release is requested; or]

4-23                 [(3)  security in a form and amount determined by the

4-24     department to secure the payment of damages for which the operator

4-25     may be liable.]

4-26           [(b)  A person may satisfy the requirement of Subsection

4-27     (a)(1) or (2) by submitting a photocopy of the item required.]

 5-1           [(c)  The department shall adopt the form, content, and

 5-2     procedures for issuance of a certificate of release.]

 5-3           [(d)  Security provided under this section is subject to

 5-4     Sections 601.163 to 601.167.]

 5-5           [Sec. 601.297.]  LIABILITY FOR COST OF IMPOUNDMENT.  The

 5-6     owner of an impounded vehicle is liable for the costs of the

 5-7     impoundment.

 5-8           Sec. 601.296.  TRANSFER OF TITLE OF IMPOUNDED MOTOR VEHICLE.

 5-9     (a)  To transfer title to a motor vehicle impounded under Section

5-10     601.293, the owner must apply to a justice of the peace in the

5-11     county in which the accident involving the motor vehicle occurred

5-12     for permission.

5-13           (b)  If the justice finds that the transfer is being made in

5-14     good faith and is not being made to circumvent this chapter, the

5-15     justice shall approve the transfer.

5-16           Sec. 601.297.  RELEASE ON INVOLUNTARY TRANSFER OF TITLE OF

5-17     IMPOUNDED MOTOR VEHICLE.  Notwithstanding Section 601.294, a

5-18     justice of the peace in the county in which the accident involving

5-19     the motor vehicle occurred shall order the release of a motor

5-20     vehicle impounded under Section 601.293 if, while the vehicle is

5-21     impounded, title to the vehicle is transferred by:

5-22                 (1)  foreclosure;

5-23                 (2)  sale on execution;

5-24                 (3)  cancellation of a conditional sales contract; or

5-25                 (4)  judicial order.

5-26           Sec. 601.298.  RELEASE OF IMPOUNDED MOTOR VEHICLE.  A person

5-27     authorized to release a motor vehicle impounded under Section

 6-1     601.293 shall release the vehicle to the person, or the authorized

 6-2     agent of the person named in an order of release from a justice of

 6-3     the peace, on presentation of the order and payment of the fee for

 6-4     the impoundment.

 6-5           SECTION 2.  This Act takes effect September 1, 1997.

 6-6           SECTION 3.  The importance of this legislation and the

 6-7     crowded condition of the calendars in both houses create an

 6-8     emergency and an imperative public necessity that the

 6-9     constitutional rule requiring bills to be read on three several

6-10     days in each house be suspended, and this rule is hereby suspended.