By Bosse                                              H.B. No. 1356
         76R5054 MLS-F                           
                                A BILL TO BE ENTITLED
 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.  Section 70.004, Property Code, is amended to read
 1-6     as follows:
 1-7           Sec. 70.004.  POSSESSION OF MOTOR VEHICLE, MOTORBOAT, VESSEL,
 1-8     OR OUTBOARD MOTOR.  (a)  A holder of a lien under Section 70.003 on
 1-9     a motor vehicle, motorboat, vessel, or outboard motor who obtains
1-10     possession of the motor vehicle, motorboat, vessel, or outboard
1-11     motor under a state law or city ordinance shall give notice for a
1-12     motor vehicle, motorboat, vessel, or outboard motor registered in
1-13     this state to the last known registered owner and each lienholder
1-14     of record not later than the fifth [10th] day after the day
1-15     possession is obtained.  If the motor vehicle, motorboat, vessel,
1-16     or outboard motor is registered outside this state, the notice
1-17     shall be given to the last known registered owner and each
1-18     lienholder of record not later than the 14th day after the day
1-19     possession is obtained.
1-20           (b)  Except as provided by Subsection (c), the [The] notice
1-21     must be sent by certified mail with return receipt requested and
1-22     must contain:
1-23                 (1)  a request to remove the motor vehicle, motorboat,
1-24     vessel, or outboard motor;
 2-1                 (2)  a request for payment;
 2-2                 (3)  the location of the motor vehicle, motorboat,
 2-3     vessel, or outboard motor; and
 2-4                 (4)  the amount of accrued charges.
 2-5           (c)  The notice may be given by publishing the notice once in
 2-6     a newspaper of general circulation in the county in which the motor
 2-7     vehicle, motorboat, vessel, or outboard motor is stored if:
 2-8                 (1)  the holder of the lien is unsuccessful after
 2-9     attempting in writing to obtain information on the last known
2-10     registered owner and each lienholder of record from the
2-11     governmental entity with which the motor vehicle, motorboat,
2-12     vessel, or outboard motor is registered;
2-13                 (2)  the identity of the last known registered owner
2-14     cannot be determined;
2-15                 (3)  the registration does not contain an address for
2-16     the last known registered owner; or
2-17                 (4)  the holder of the lien cannot determine with
2-18     reasonable certainty the identities and addresses of the
2-19     lienholders of record.
2-20           (d)  The holder of the lien is not required to publish notice
2-21     under Subsection (c) if a notice sent under Subsection (b) is
2-22     returned as unclaimed, refused, or for any other reason.
2-23           (e) [(c)]  A person is entitled to fees for towing,
2-24     impoundment [preservation], and notification and to reasonable
2-25     storage fees for up to five [5] days before the day that the notice
2-26     is mailed or published, as applicable.  After the day that the
2-27     notice is mailed or published, the person is entitled to reasonable
 3-1     storage and impoundment [preservation] fees until the motor
 3-2     vehicle, motorboat, vessel, or outboard motor is removed and
 3-3     accrued charges are paid.
 3-4           (f) [(d)]  A person charging fees under Subsection (e) [(c)]
 3-5     commits an offense if the person charges a storage fee for a period
 3-6     of time not authorized by that subsection.  An offense under this
 3-7     subsection is punishable by a fine of not less than $200 nor more
 3-8     than $1,000.
 3-9           SECTION 2.  Section 70.006, Property Code, is amended to read
3-10     as follows:
3-11           Sec. 70.006.  SALE OF MOTOR VEHICLE, MOTORBOAT, VESSEL, OR
3-12     OUTBOARD MOTOR.  (a)  A holder of a lien under this subchapter on a
3-13     motor vehicle subject to Chapter 501, Transportation Code, or on a
3-14     motorboat, vessel, or outboard motor for which a certificate of
3-15     title is required under Subchapter B, Chapter 31, Parks and
3-16     Wildlife Code, as amended, who retains possession of the motor
3-17     vehicle, motorboat, vessel, or outboard motor for 30 days after the
3-18     day that the charges accrue shall give written notice to the owner
3-19     and each holder of a lien recorded on the certificate of title.  If
3-20     the motor vehicle, motorboat, vessel, or outboard motor is
3-21     registered outside this state, the holder of a lien under this
3-22     subchapter who retains possession during that period shall give
3-23     notice to the last known registered owner and each lienholder of
3-24     record.
3-25           (b)  Except as provided by Subsection (c), the [The] notice
3-26     must be sent by certified mail with return receipt requested and
3-27     must include the amount of the charges and a request for payment.
 4-1           (c)  The notice may be given by publishing the notice once in
 4-2     a newspaper of general circulation in the county in which the motor
 4-3     vehicle, motorboat, vessel, or outboard motor is stored if:
 4-4                 (1)  the holder of the lien is unsuccessful after
 4-5     attempting in writing to obtain information on the last known
 4-6     registered owner and each lienholder of record from the
 4-7     governmental entity with which the motor vehicle, motorboat,
 4-8     vessel, or outboard motor is registered;
 4-9                 (2)  the identity of the last known registered owner
4-10     cannot be determined;
4-11                 (3)  the registration does not contain an address for
4-12     the last known registered owner; or
4-13                 (4)  the holder of the lien cannot determine with
4-14     reasonable certainty the identities and addresses of the
4-15     lienholders of record.
4-16           (d)  The holder of the lien is not required to publish notice
4-17     under Subsection (c) if a notice sent under Subsection (b) is
4-18     returned as unclaimed, refused, or for any other reason.
4-19           (e) [(b)]  If the charges are not paid before the 31st day
4-20     after the day that the notice is mailed or published, as
4-21     applicable, the lienholder may sell the motor vehicle, motorboat,
4-22     vessel, or outboard motor at a public sale and apply the proceeds
4-23     to the charges.  The lienholder shall pay excess proceeds to the
4-24     person entitled to them.
4-25           SECTION 3.  (a)  This Act takes effect September 1, 1999.
4-26           (b)  This Act applies only to a lien on a motor vehicle,
4-27     motorboat, vessel, or outboard motor the possession of which is
 5-1     obtained on or after the effective date of this Act.  A lien on a
 5-2     motor vehicle, motorboat, vessel, or outboard motor the possession
 5-3     of which was obtained before that date is governed by the law in
 5-4     effect at the time possession was obtained, and the former law is
 5-5     continued in effect for that purpose.
 5-6           SECTION 4.  The importance of this legislation and the
 5-7     crowded condition of the calendars in both houses create an
 5-8     emergency and an imperative public necessity that the
 5-9     constitutional rule requiring bills to be read on three several
5-10     days in each house be suspended, and this rule is hereby suspended.