1-1 By: Bosse (Senate Sponsor - Carona) H.B. No. 1356
1-2 (In the Senate - Received from the House March 29, 1999;
1-3 March 30, 1999, read first time and referred to Committee on
1-4 Jurisprudence; April 20, 1999, reported favorably by the following
1-5 vote: Yeas 4, Nays 0; April 20, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to possessory liens on certain motor vehicles, motorboats,
1-9 vessels, or outboard motors.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 70.004, Property Code, is amended to read
1-12 as follows:
1-13 Sec. 70.004. POSSESSION OF MOTOR VEHICLE, MOTORBOAT, VESSEL,
1-14 OR OUTBOARD MOTOR. (a) A holder of a lien under Section 70.003 on
1-15 a motor vehicle, motorboat, vessel, or outboard motor who obtains
1-16 possession of the motor vehicle, motorboat, vessel, or outboard
1-17 motor under a state law or city ordinance shall give notice for a
1-18 motor vehicle, motorboat, vessel, or outboard motor registered in
1-19 this state to the last known registered owner and each lienholder
1-20 of record not later than the fifth [10th] day after the day
1-21 possession is obtained. If the motor vehicle, motorboat, vessel,
1-22 or outboard motor is registered outside this state, the notice
1-23 shall be given to the last known registered owner and each
1-24 lienholder of record not later than the 14th day after the day
1-25 possession is obtained.
1-26 (b) Except as provided by Subsection (c), the [The] notice
1-27 must be sent by certified mail with return receipt requested and
1-28 must contain:
1-29 (1) a request to remove the motor vehicle, motorboat,
1-30 vessel, or outboard motor;
1-31 (2) a request for payment;
1-32 (3) the location of the motor vehicle, motorboat,
1-33 vessel, or outboard motor; and
1-34 (4) the amount of accrued charges.
1-35 (c) The notice may be given by publishing the notice once in
1-36 a newspaper of general circulation in the county in which the motor
1-37 vehicle, motorboat, vessel, or outboard motor is stored if:
1-38 (1) the holder of the lien is unsuccessful after
1-39 attempting in writing to obtain information on the last known
1-40 registered owner and each lienholder of record from the
1-41 governmental entity with which the motor vehicle, motorboat,
1-42 vessel, or outboard motor is registered;
1-43 (2) the identity of the last known registered owner
1-44 cannot be determined;
1-45 (3) the registration does not contain an address for
1-46 the last known registered owner; or
1-47 (4) the holder of the lien cannot determine with
1-48 reasonable certainty the identities and addresses of the
1-49 lienholders of record.
1-50 (d) The holder of the lien is not required to publish notice
1-51 under Subsection (c) if a notice sent under Subsection (b) is
1-52 returned as unclaimed, refused, or for any other reason.
1-53 (e) [(c)] A person is entitled to fees for towing,
1-54 impoundment [preservation], and notification and to reasonable
1-55 storage fees for up to five [5] days before the day that the notice
1-56 is mailed or published, as applicable. After the day that the
1-57 notice is mailed or published, the person is entitled to reasonable
1-58 storage and impoundment [preservation] fees until the motor
1-59 vehicle, motorboat, vessel, or outboard motor is removed and
1-60 accrued charges are paid.
1-61 (f) [(d)] A person charging fees under Subsection (e) [(c)]
1-62 commits an offense if the person charges a storage fee for a period
1-63 of time not authorized by that subsection. An offense under this
1-64 subsection is punishable by a fine of not less than $200 nor more
2-1 than $1,000.
2-2 SECTION 2. Section 70.006, Property Code, is amended to read
2-3 as follows:
2-4 Sec. 70.006. SALE OF MOTOR VEHICLE, MOTORBOAT, VESSEL, OR
2-5 OUTBOARD MOTOR. (a) A holder of a lien under this subchapter on a
2-6 motor vehicle subject to Chapter 501, Transportation Code, or on a
2-7 motorboat, vessel, or outboard motor for which a certificate of
2-8 title is required under Subchapter B, Chapter 31, Parks and
2-9 Wildlife Code, as amended, who retains possession of the motor
2-10 vehicle, motorboat, vessel, or outboard motor for 30 days after the
2-11 day that the charges accrue shall give written notice to the owner
2-12 and each holder of a lien recorded on the certificate of title. If
2-13 the motor vehicle, motorboat, vessel, or outboard motor is
2-14 registered outside this state, the holder of a lien under this
2-15 subchapter who retains possession during that period shall give
2-16 notice to the last known registered owner and each lienholder of
2-17 record.
2-18 (b) Except as provided by Subsection (c), the [The] notice
2-19 must be sent by certified mail with return receipt requested and
2-20 must include the amount of the charges and a request for payment.
2-21 (c) The notice may be given by publishing the notice once in
2-22 a newspaper of general circulation in the county in which the motor
2-23 vehicle, motorboat, vessel, or outboard motor is stored if:
2-24 (1) the holder of the lien is unsuccessful after
2-25 attempting in writing to obtain information on the last known
2-26 registered owner and each lienholder of record from the
2-27 governmental entity with which the motor vehicle, motorboat,
2-28 vessel, or outboard motor is registered;
2-29 (2) the identity of the last known registered owner
2-30 cannot be determined;
2-31 (3) the registration does not contain an address for
2-32 the last known registered owner; or
2-33 (4) the holder of the lien cannot determine with
2-34 reasonable certainty the identities and addresses of the
2-35 lienholders of record.
2-36 (d) The holder of the lien is not required to publish notice
2-37 under Subsection (c) if a notice sent under Subsection (b) is
2-38 returned as unclaimed, refused, or for any other reason.
2-39 (e) [(b)] If the charges are not paid before the 31st day
2-40 after the day that the notice is mailed or published, as
2-41 applicable, the lienholder may sell the motor vehicle, motorboat,
2-42 vessel, or outboard motor at a public sale and apply the proceeds
2-43 to the charges. The lienholder shall pay excess proceeds to the
2-44 person entitled to them.
2-45 SECTION 3. (a) This Act takes effect September 1, 1999.
2-46 (b) This Act applies only to a lien on a motor vehicle,
2-47 motorboat, vessel, or outboard motor the possession of which is
2-48 obtained on or after the effective date of this Act. A lien on a
2-49 motor vehicle, motorboat, vessel, or outboard motor the possession
2-50 of which was obtained before that date is governed by the law in
2-51 effect at the time possession was obtained, and the former law is
2-52 continued in effect for that purpose.
2-53 SECTION 4. The importance of this legislation and the
2-54 crowded condition of the calendars in both houses create an
2-55 emergency and an imperative public necessity that the
2-56 constitutional rule requiring bills to be read on three several
2-57 days in each house be suspended, and this rule is hereby suspended.
2-58 * * * * *