1-1                                   AN ACT
 1-2     relating to possessory liens on certain motor vehicles, motorboats,
 1-3     vessels, or outboard motors.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter C, Chapter 59, Property Code, is
 1-6     amended by adding Section 59.047 to read as follows:
 1-7           Sec. 59.047.  ADDITIONAL PROCEDURES FOR SALE OF CERTAIN
 1-8     PROPERTY.   A holder of a lien under this chapter on a motor
 1-9     vehicle subject to Chapter 501, Transportation Code, or on a
1-10     motorboat, vessel, or outboard motor for which a certificate of
1-11     title is required under Subchapter B, Chapter 31, Parks and
1-12     Wildlife Code, may follow the procedures prescribed by Section
1-13     70.006 in addition to the procedures prescribed by this chapter.
1-14           SECTION 2.  Section 70.004, Property Code, is amended to read
1-15     as follows:
1-16           Sec. 70.004.  POSSESSION OF MOTOR VEHICLE, MOTORBOAT, VESSEL,
1-17     OR OUTBOARD MOTOR.  (a)  A holder of a lien under Section 70.003 on
1-18     a motor vehicle, motorboat, vessel, or outboard motor who obtains
1-19     possession of the motor vehicle, motorboat, vessel, or outboard
1-20     motor under a state law or city ordinance shall give notice for a
1-21     motor vehicle, motorboat, vessel, or outboard motor registered in
1-22     this state to the last known registered owner and each lienholder
1-23     of record not later than the fifth [10th] day after the day
1-24     possession is obtained.  If the motor vehicle, motorboat, vessel,
 2-1     or outboard motor is registered outside this state, the notice
 2-2     shall be given to the last known registered owner and each
 2-3     lienholder of record not later than the 14th day after the day
 2-4     possession is obtained.
 2-5           (b)  Except as provided by Subsection (c), the [The] notice
 2-6     must be sent by certified mail with return receipt requested and
 2-7     must contain:
 2-8                 (1)  a request to remove the motor vehicle, motorboat,
 2-9     vessel, or outboard motor;
2-10                 (2)  a request for payment;
2-11                 (3)  the location of the motor vehicle, motorboat,
2-12     vessel, or outboard motor; and
2-13                 (4)  the amount of accrued charges.
2-14           (c)  The notice may be given by publishing the notice once in
2-15     a newspaper of general circulation in the county in which the motor
2-16     vehicle, motorboat, vessel, or outboard motor is stored if:
2-17                 (1)  the motor vehicle, motorboat, vessel, or outboard
2-18     motor is registered in another state;
2-19                 (2)  the holder of the lien submits a written request
2-20     by certified mail, return receipt requested, to the governmental
2-21     entity with which the motor vehicle, motorboat, vessel, or outboard
2-22     motor is registered requesting information relating to the identity
2-23     of the last known registered owner and any lienholder of record;
2-24                 (3)  the holder of the lien:
2-25                       (A)  is advised in writing by the governmental
2-26     entity with which the motor vehicle, motorboat, vessel, or outboard
2-27     motor is registered that the entity is unwilling or unable to
 3-1     provide information on the last known registered owner or any
 3-2     lienholder of record; or
 3-3                       (B)  does not receive a response from the
 3-4     governmental entity with which the motor vehicle, motorboat,
 3-5     vessel, or outboard motor is registered on or before the 21st day
 3-6     after the date the holder of the lien submits a request under
 3-7     Subdivision (2);
 3-8                 (4)  the identity of the last known registered owner
 3-9     cannot be determined;
3-10                 (5)  the registration does not contain an address for
3-11     the last known registered owner; and
3-12                 (6)  the holder of the lien cannot determine the
3-13     identities and addresses of the lienholders of record.
3-14           (d)  The holder of the lien is not required to publish notice
3-15     under Subsection (c) if a correctly addressed notice is sent with
3-16     sufficient postage under Subsection (b) and is returned as
3-17     unclaimed or refused or with a notation that the addressee is
3-18     unknown or has moved without leaving a forwarding address.
3-19           (e) [(c)]  A person is entitled to fees for towing,
3-20     impoundment, preservation, and notification and to reasonable
3-21     storage fees for up to five [5] days before the day that the notice
3-22     is mailed or published, as applicable.  After the day that the
3-23     notice is mailed or published, the person is entitled to reasonable
3-24     storage, impoundment, and preservation fees until the motor
3-25     vehicle, motorboat, vessel, or outboard motor is removed and
3-26     accrued charges are paid.
3-27           (f) [(d)]  A person charging fees under Subsection (e) [(c)]
 4-1     commits an offense if the person charges a storage fee for a period
 4-2     of time not authorized by that subsection.  An offense under this
 4-3     subsection is punishable by a fine of not less than $200 nor more
 4-4     than $1,000.
 4-5           SECTION 3.  Section 70.006, Property Code, is amended to read
 4-6     as follows:
 4-7           Sec. 70.006.  SALE OF MOTOR VEHICLE, MOTORBOAT, VESSEL, OR
 4-8     OUTBOARD MOTOR.  (a)  A holder of a lien under this subchapter or
 4-9     Chapter 59 on a motor vehicle subject to Chapter 501,
4-10     Transportation Code, or on a motorboat, vessel, or outboard motor
4-11     for which a certificate of title is required under Subchapter B,
4-12     Chapter 31, Parks and Wildlife Code, as amended, who retains
4-13     possession of the motor vehicle, motorboat, vessel, or outboard
4-14     motor for 30 days after the day that the charges accrue shall give
4-15     written notice to the owner and each holder of a lien recorded on
4-16     the certificate of title.  If the motor vehicle, motorboat, vessel,
4-17     or outboard motor is registered outside this state, the holder of a
4-18     lien under this subchapter who retains possession during that
4-19     period shall give notice to the last known registered owner and
4-20     each lienholder of record.
4-21           (b)  Except as provided by Subsection (c), the [The] notice
4-22     must be sent by certified mail with return receipt requested and
4-23     must include the amount of the charges and a request for payment.
4-24           (c)  The notice may be given by publishing the notice once in
4-25     a newspaper of general circulation in the county in which the motor
4-26     vehicle, motorboat, vessel, or outboard motor is stored if:
4-27                 (1)  the holder of the lien submits a written request
 5-1     by certified mail, return receipt requested, to the governmental
 5-2     entity with which the motor vehicle, motorboat, vessel, or outboard
 5-3     motor is registered requesting information relating to the identity
 5-4     of the last known registered owner and any lienholder of record;
 5-5                 (2)  the holder of the lien:
 5-6                       (A)  is advised in writing by the governmental
 5-7     entity with which the motor vehicle, motorboat, vessel, or outboard
 5-8     motor is registered that the entity is unwilling or unable to
 5-9     provide information on the last known registered owner or any
5-10     lienholder of record; or
5-11                       (B)  does not receive a response from the
5-12     governmental entity with which the motor vehicle, motorboat,
5-13     vessel, or outboard motor is registered on or before the 21st day
5-14     after the date the holder of the lien submits a request under
5-15     Subdivision (1);
5-16                 (3)  the identity of the last known registered owner
5-17     cannot be determined;
5-18                 (4)  the registration does not contain an address for
5-19     the last known registered owner; and
5-20                 (5)  the holder of the lien cannot determine the
5-21     identities and addresses of the lienholders of record.
5-22           (d)  The holder of the lien is not required to publish notice
5-23     under Subsection (c) if a correctly addressed notice is sent with
5-24     sufficient postage under Subsection (b) and is returned as
5-25     unclaimed or refused or with a notation that the addressee is
5-26     unknown or has moved without leaving a forwarding address.
5-27           (e)  After notice is given under this section to the owner of
 6-1     or the holder of a lien on the motor vehicle, motorboat, vessel, or
 6-2     outboard motor, the owner or holder of the lien may obtain
 6-3     possession of the motor vehicle, motorboat, vessel, or outboard
 6-4     motor by paying all charges due to the holder of a lien under this
 6-5     subchapter and Chapter 59 before the 31st day after the date the
 6-6     notice is mailed or published as provided by this section.
 6-7           (f) [(b)]  If the charges are not paid before the 31st day
 6-8     after the day that the notice is mailed or published, as
 6-9     applicable, the lienholder may sell the motor vehicle, motorboat,
6-10     vessel, or outboard motor at a public sale and apply the proceeds
6-11     to the charges.  The lienholder shall pay excess proceeds to the
6-12     person entitled to them.
6-13           SECTION 4.  (a)  This Act takes effect September 1, 1999.
6-14           (b)  This Act applies only to a lien on a motor vehicle,
6-15     motorboat, vessel, or outboard motor the possession of which is
6-16     obtained on or after the effective date of this Act.  A lien on a
6-17     motor vehicle, motorboat, vessel, or outboard motor the possession
6-18     of which was obtained before that date is governed by the law in
6-19     effect at the time possession was obtained, and the former law is
6-20     continued in effect for that purpose.
6-21           SECTION 5.  The importance of this legislation and the
6-22     crowded condition of the calendars in both houses create an
6-23     emergency and an imperative public necessity that the
6-24     constitutional rule requiring bills to be read on three several
6-25     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1356 was passed by the House on March
         25, 1999, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 1356 on April 27, 1999, by a
         non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1356 was passed by the Senate, with
         amendments, on April 23, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor