HBA-ALS H.B. 1356 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1356 By: Bosse Business & Industry 2/23/1999 Introduced BACKGROUND AND PURPOSE Currently, a holder of a lien on a motor vehicle, motorboat, vessel, or outboard motor (vehicle) who obtains possession of that vehicle is required to notify the last known registered owner and each lienholder by certified mail. However, problems arise when a holder of a lien is unable to obtain the necessary information to give proper notice by certified mail. Additionally, current law does not address the notification process for vehicles that are not registered in Texas. The purpose of this bill is to provide an alternate means of notifying an owner or lienholder that a vehicle is in the possession of a repair facility and that the vehicle may be sold if the repair charges are not paid. Under H.B. 1356, if a vehicle is registered in this state, a holder of a lien on a vehicle is required to notify the last known registered owner and each lienholder of record by certified mail no later than the fifth day after the day that possession is obtained, or if a vehicle is registered in another state, by the 14th day after the day that possession is obtained. H.B. 1356 allows a holder of a lien to publish notice in a newspaper of general circulation in the county where the vehicle is stored in certain circumstances in which the holder of the lien has been unsuccessful in obtaining the names or addresses of the last known registered owner or lienholders of record. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 70.004, Property Code, as follows: Sec. 70.004. POSSESSION OF MOTOR VEHICLE, MOTORBOAT, VESSEL, OR OUTBOARD MOTOR. (a) Requires a holder of a lien under Section 70.003, Property Code (Stable Keeper's, Garageman's, and Pasturer's Liens), of a motor vehicle, motorboat, vessel, or outboard motor who obtains possession under state law or city ordinance, to give notice for a motor vehicle, motorboat, vessel, or outboard motor to the last known registered owner and each lienholder of record no later than the fifth day, rather than the tenth, after possession is obtained. Requires that notice be given to the last known registered owner and each lienholder of record no later than the 14th day after possession is obtained if the motor vehicle, motorboat, vessel, or outboard motor is registered outside this state. (b) Provides an exception to the requirement that notice be sent by certified mail with return receipt requested. Makes a nonsubstantive change. (c) Authorizes publishing the notice in a newspaper of general circulation in the county where the motor vehicle, motorboat, vessel, or outboard motor is stored if: (1) the holder of a lien has made an unsuccessful written attempt to obtain information on the last known registered owner and each lienholder of record from the government entity with which the motor vehicle, motorboat, vessel, or outboard motor is registered; (2) the last known registered owner's identity cannot be determined; (3) the registration does not contain the last known registered owner's address; or (4) the holder of a lien cannot determine the identities and addresses of the lienholders of record with reasonable certainty. (d) Provides that the holder of a lien is not required to publish notice under Subsection (c) if a notice that is sent by certified mail under Subsection (b) is returned for any reason. (e) Entitles a person to fees for towing and impoundment, rather than for preservation. Creates this subsection from existing Subsection (c). Makes conforming and nonsubstantive changes. (f) Creates this subsection from existing Subsection (d). Makes conforming changes. SECTION 2. Amends Section 70.006, Property Code, as follows: Sec. 70.006. SALE OF MOTOR VEHICLE, MOTORBOAT, VESSEL, OR OUTBOARD MOTOR. (a) Requires the holder of a lien of a motor vehicle, motorboat, vessel, or outboard motor that is registered outside this state, to give notice to the last known registered owner and each lienholder of record. Provides an exception to the notice requirement. Redesignates existing Subsection (b) to Subsection (e). Makes conforming and nonsubstantive changes. SECTION 3.Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 4.Emergency clause.