SRC-DBM S.B. 652 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 652
76R5045  WP-FBy: Carona
Economic Development
3/19/1999
As Filed


DIGEST 

Currently, the Vehicle Storage Facility Act requires a vehicle storage
facility operator who receives a vehicle that has been towed to the
facility for storage to send a written notice to the registered owner and
the primary lienholder of the vehicle in a timely manner in order to
continue charging a daily storage fee.  Complying with the timely notice
requirement is difficult when the stored vehicle is not registered in
Texas, because information must be attained from other states.  Some states
have refused to furnish any information to vehicle storage facilities.
S.B. 652 would require vehicle storage facility operators to provide notice
to an owner of a vehicle which has been towed to a vehicle storage
facility, including notice by publication if attempts to contact a vehicle
owner by mail were unsuccessful. 

PURPOSE

As proposed, S.B. 652 requires notice to be provided to an owner of a
vehicle which is towed to a vehicle storage facility. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 13, Article 6687-9a, V.T.C.S., as follows:

Sec. 13.  NOTIFICATION OF OWNER.  (a)  Requires the operator of a vehicle
storage facility who receives a vehicle that is registered in this state
and has been towed to the facility for storage, not later than the fifth
day but not before 24 hours after the date the operator receives the
vehicle, to send a written notice to the registered owner and the primary
lienholder of the vehicle.   

(b)  Requires the operator of a vehicle storage facility who receives a
vehicle that is registered outside this state or the United States to send
a written notice to the vehicle's last registered owner and all recorded
lienholders not later than the 14th day but not before 24 hours after the
date the operator receives the vehicle.   

(c)  Provides that it is a defense to an action initiated by the Texas
Department of Transportation (department) for a violation of this section
that the facility has attempted in writing to obtain information from the
governmental entity in which the vehicle is registered but was
unsuccessful.   

(d)  Redesignated from existing Subsection (b).

(e)  Authorizes notice by publication in a newspaper with general
circulation in the area from where the vehicle was towed to be used if the
identity of the last registered owner cannot be determined; the
registration does not contain an address for the last registered owner; or
it is impossible to determine with reasonable certainty the identity and
address of each lienholder.  
(f)  Provides that notice by publication under Subsection (e) of this
section is not required if a notice given under Subsection (a) or (b) of
this section is returned because it was unclaimed or refused, or the
addressee moved without leaving a forwarding address.   

 (g)  Requires notice by publication to contain all of the information
required by this section. Authorizes the publication to contain a list of
more than one vehicle, watercraft, or outboard motor.   

(h)  Provides that notice under Subsection (a) or (b) of this section is
considered to have been given on the date indicated on the postmark and,
rather than a notice, is considered to be timely filed if the postmark
shows that it was mailed with the period provided by Subsection (a) or (b)
of this section, as applicable, or if publication was made as authorized by
Subsection (e), rather than five day, of this section.   

(i)  Authorizes the owner of the storage facility to charge the owner of
the vehicle a reasonable fee for giving the notice required under this
section.  

(j)  Requires the operator of the vehicle storage facility to send a second
notice to the registered owner and primary lienholder if a vehicle for
which notice was given, rather than sent,  has not, before the 31st, rather
than 61st, day after the date the notice was mailed or published, been
claimed by a person permitted to claim the vehicle or been taken into
custody by a law enforcement agency under Chapter 683, Transportation Code.
Makes conforming changes. 

SECTION 2.  Amends Section 14B(a), Article 6687-9a, V.T.C.S., to authorize
the operator of a vehicle for which notice was given under Section 13(j),
rather than 13(d), of this article as provided by this section if, before
the 30th day after the date the notice was mailed, the vehicle has not been
claimed by a person entitled to claim the vehicle or taken into custody by
a law enforcement agency under Chapter 683, Transportation Code. 

SECTION 3.  Amends Section 14(d), Article 6687-9a, V.T.C.S., to make
conforming changes. 

SECTION 4.Effective date: September 1, 1999.
  Makes application of this Act prospective.

SECTION 5.  Emergency clause.