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