By Bosse H.B. No. 2243
77R8534 T
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to motor vehicle storage facilities.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2, Vehicle Storage Facility Act (Article
1-5 6687-9a, Revised Statutes), is amended to read as follows:
1-6 Sec. 2. In this article:
1-7 (1) "Commission" means the Texas Transportation
1-8 Commission.
1-9 (2) "Department" means the Texas Department of
1-10 Transportation.
1-11 (3) "Director" means the executive director of the
1-12 department or a person designated by the executive director who is
1-13 not below the rank of division or special office director.
1-14 (4) "Vehicle storage facility" means a garage, parking
1-15 lot, or any type of facility owned by a person other than a
1-16 governmental entity, except as provided by Section 14(f) of this
1-17 article[, for storing or parking 10 or more vehicles a year].
1-18 (5) "Vehicle" means a motor vehicle subject to
1-19 registration under Chapter 501, Transportation Code, or any other
1-20 device designed to be self-propelled or transported on a public
1-21 highway.
1-22 (6) "Abandoned Nuisance Vehicle" means a vehicle that
1-23 is 8 years old or older and is of a condition for demolition,
1-24 wrecking or dismantling only.
2-1 [(6)] (7) "Owner of a vehicle" means:
2-2 (A) a person in whose name the vehicle is
2-3 registered under Chapter 501, Transportation Code;
2-4 (B) a person in whose name the vehicle is
2-5 registered under Chapter 502, Transportation Code, or a member of
2-6 the person's immediate family;
2-7 (C) a person who holds the vehicle through a
2-8 valid lease agreement; or
2-9 (D) an unrecorded lien holder whose right to
2-10 possess the vehicle exists through a chattel mortgage.
2-11 (E) a lien holder who presents an affidavit of
2-12 repossession and has the right to repossess.
2-13 [(7)] (8) "Person" means an individual, corporation,
2-14 organization, business trust, estate, trust, partnership,
2-15 association, or other legal entity.
2-16 [(8)] (9) "Principal" means an individual who:
2-17 (A) holds personally or as a beneficiary of a
2-18 trust or by other constructive method:
2-19 (i) 10 percent of a corporation's
2-20 outstanding stock; or
2-21 (ii) more than $25,000 of the fair market
2-22 value of a business;
2-23 (B) has the controlling interest in a business;
2-24 (C) has a participating interest of more than 10
2-25 percent in the profits, proceeds, or capital gains of a business,
2-26 regardless of whether the interest is direct or indirect, is
2-27 through shares, stock, or any other manner, or includes voting
3-1 rights;
3-2 (D) is a member of the board of directors or
3-3 other governing body of a business; or
3-4 (E) serves as an elected officer of a business.
3-5 [(9)] (10) "Impoundment" means an action taken by or
3-6 at the direction of the owner or operator of a vehicle storage
3-7 facility that is necessary to preserve, protect, or service a
3-8 vehicle stored or parked at the facility.
3-9 SECTION 2. Sections 13, 14, and 14B, Vehicle Storage
3-10 Facility Act (Article 6687-9a, Revised Statutes), are amended to
3-11 read as follows:
3-12 Sec. 13. NOTIFICATION OF OWNER (a) The operator of a
3-13 vehicle storage facility who receives a vehicle that is registered
3-14 in this state and has been towed to the facility for storage shall,
3-15 not later than the fifth day but not before 24 hours after the date
3-16 the operator receives the vehicle, send a written notice to the
3-17 registered owner and the primary lien holder of the vehicle.
3-18 (b) The operator of a vehicle storage facility who receives
3-19 a vehicle that is registered outside this state or the United
3-20 States shall send a written notice to the vehicle's last registered
3-21 owner and all recorded lien holders not later than the 14th day but
3-22 not before 24 hours after the date the operator receives the
3-23 vehicle.
3-24 (c) It is a defense to an action initiated by the department
3-25 for a violation of this section that the facility has attempted in
3-26 writing to obtain information from the governmental entity in which
3-27 the vehicle is registered but was unsuccessful.
4-1 (d) The notice must be correctly addressed, with sufficient
4-2 postage, sent by certified mail, return receipt requested, and must
4-3 contain:
4-4 (1) the date the vehicle was accepted for storage;
4-5 (2) the first day for which a storage fee is assessed;
4-6 (3) the daily storage rate;
4-7 (4) the type and amount of all other charges to be
4-8 paid when the vehicle is claimed;
4-9 (5) the full name, street address, and telephone
4-10 number of the facility;
4-11 (6) the hours during which the owner may claim the
4-12 vehicle; and
4-13 (7) the facility license number preceded by "Texas
4-14 Department of Transportation Vehicle Storage Facility License
4-15 Number."
4-16 (e) Notice by publication in a newspaper of general
4-17 circulation in the county in which the vehicle is stored may be
4-18 used if:
4-19 (1) the vehicle is registered in another state;
4-20 (2) the operator of the storage facility submits a
4-21 written request that is correctly addressed, with sufficient
4-22 postage, and is sent by certified mail, return receipt requested,
4-23 to the governmental entity in which the vehicle is registered
4-24 requesting information relating to the identity of the last known
4-25 registered owner and any lien holder of record;
4-26 (3) the identity of the last known registered owner
4-27 cannot be determined;
5-1 (4) the registration does not contain an address for
5-2 the last known registered owner; and
5-3 (5) the operator of the storage facility cannot
5-4 reasonably determine the identity and address of each lien holder.
5-5 (f) Notice by publication under Subsection (e) of this
5-6 section is not required if all correctly addressed notices sent
5-7 with sufficient postage under Subsection (a) or (b) of this
5-8 section are returned because:
5-9 (1) the notices were unclaimed or refused; or
5-10 (2) the addressees moved without leaving a forwarding
5-11 address.
5-12 (g) Notice by publication must contain [all of the
5-13 information required by this section]. the vehicle description,
5-14 the total charges, the full name, street address, phone number of
5-15 the facility and the Texas Department of Transportation
5-16 registration number. No other information need be published. Only
5-17 one publication is required for an abandoned nuisance vehicle under
5-18 this act. The publication may contain a list of more than one
5-19 vehicle, watercraft, or outboard motor.
5-20 (h) Notice under Subsection (a) or (b) of this section is
5-21 considered to have been given on the date indicated on the postmark
5-22 and is considered to be timely filed if the postmark shows that it
5-23 was mailed within the period provided by Subsection (a) or (b) of
5-24 this section, as applicable, or if publication was made as
5-25 authorized by Subsection (e) of this section.
5-26 (i) The operator of the storage facility may charge the
5-27 owner of the vehicle a reasonable fee for giving the notice
6-1 required by this section and an additional reasonable fee if the
6-2 notice is required under Section 13(j) of this Act.
6-3 (j) If a vehicle for which notice was given under this
6-4 section has not, before the 41st day after the date notice was
6-5 mailed or published, been claimed by a person permitted to claim
6-6 the vehicle or been taken into custody by a law enforcement agency
6-7 under Chapter 683, Transportation Code, the operator of the vehicle
6-8 storage facility shall send a second notice to the registered owner
6-9 and primary lien holder. The second notice must contain:
6-10 (1) the information required under Subsection (d) of
6-11 this section;
6-12 (2) a statement of the right of the facility to
6-13 dispose of the vehicle under Section 14B of this article; and
6-14 (3) a statement that the failure of the owner or lien
6-15 holder to claim the vehicle before the 30th day after the date the
6-16 second notice was mailed is:
6-17 (A) a waiver by that person of all right, title,
6-18 and interest in the vehicle; and
6-19 (B) a consent to the sale of the vehicle at a
6-20 public sale.
6-21 (k) If publication is required for the second notice, the
6-22 publication must contain the vehicle description, the total
6-23 charges, the full name, street address, phone number of the
6-24 facility and the Texas Department of Transportation registration
6-25 number along with a statement that failure of the owner or lien
6-26 holder to claim the vehicle before the date of the sell shall waive
6-27 all right, title and interest in the vehicle and consent to the
7-1 sale of the vehicle at a public sale.
7-2 (k) A vehicle storage facility who holds an abandoned
7-3 nuisance vehicle shall not be required to send or publish a second
7-4 notice on said vehicle and shall be entitled to disposal of said
7-5 vehicle 30 days from the date the first letter is mailed or notice
7-6 is published. The vehicle storage facility may notify the
7-7 Department that notices under Chapter 683 of the Transportation
7-8 Code have been made and shall submit a $10 fee or the vehicle
7-9 storage facility may notify law enforcement who may sign a document
7-10 issued by the Department and submit $10 fee to law enforcement in
7-11 lieu of the Department.
7-12 Sec. 14. FEES; CHARGES (a) The operator of a vehicle
7-13 storage facility may not charge an owner more than [$25] $30 for
7-14 notification under Section 13 of this article. In addition to, if
7-15 notice by publication is required and said notice by publication
7-16 costs exceed 50% of the notification fee, the vehicle storage
7-17 facility may recoup any additional cost publication from the
7-18 vehicle owner or agent.
7-19 (b) The operator of a vehicle storage facility is entitled
7-20 to charge an owner $10 for any action taken by or at the direction
7-21 of the operator of the vehicle storage facility necessary to
7-22 preserve, protect, or service a vehicle stored or parked at the
7-23 facility.
7-24 (c) The operator of a vehicle storage facility may not
7-25 charge less than [$5] $10 or more than [$15] $25 for each day or
7-26 part of a day for storage of a vehicle. A vehicle over the length
7-27 of 25' shall be $30. per day. A daily storage fee may be charged
8-1 for a day regardless of whether the vehicle is stored for 24 hours
8-2 of the day, except that a daily storage fee may not be charged for
8-3 more than one day if the vehicle remains at the vehicle storage
8-4 facility less than 12 hours. For the purposes of this subsection,
8-5 a day is considered to begin and end at midnight.
8-6 (d) The operator of a vehicle storage facility may charge a
8-7 fee under Subsection (c):
8-8 (1) for not more than five days before the date notice
8-9 described by Section 13 of this article is mailed or published; and
8-10 (2) after the date notice is mailed or published, for
8-11 each day the vehicle is in storage until the vehicle is removed and
8-12 all accrued charges are paid.
8-13 (e) an operator may charge a one time fee of $10.00 to
8-14 release a vehicle from the hours of 9pm until 7am. Release must be
8-15 within one hour of notice by the vehicle owner or agent.
8-16 (f) The operator of a vehicle storage facility may not
8-17 charge any additional fees that are similar to notification,
8-18 impoundment, or administrative fees.
8-19 (g) This section controls over any conflicting municipal
8-20 ordinance or charter provision.
8-21 (h) For the purposes of this section, "vehicle storage
8-22 facility" includes a garage, parking lot, or any type of facility
8-23 owned by a governmental entity for storing or parking 10 or more
8-24 vehicles.
8-25 (i) Any fee that is required to be submitted to a police
8-26 agency or it's authorized agent or government entity may be
8-27 collected by the operator of a vehicle storage facility or
9-1 authorized agent in addition to the other fees allowed under this
9-2 section.
9-3 Sec. 14B. DISPOSAL OF CERTAIN ABANDONED VEHICLES (a) The
9-4 operator of a vehicle storage facility may dispose of a vehicle for
9-5 which notice was given under Section 13(j) of this article as
9-6 provided by this section if, before the 30th day after the date the
9-7 notice was mailed, the vehicle has not been:
9-8 (1) claimed by a person entitled to claim the vehicle;
9-9 or
9-10 (2) taken into custody by a law enforcement agency
9-11 under Chapter 683, Transportation Code.
9-12 (3) or the vehicle storage facility has submitted
9-13 application for disposal to the Department of the vehicle as an
9-14 abandoned nuisance vehicle or to law enforcement.
9-15 (b) An operator entitled to dispose of a vehicle under this
9-16 section may sell the vehicle at a public sale without being
9-17 required to obtain a release or discharge of any lien on the
9-18 vehicle whether notice was by mail or by publication in accordance
9-19 with this chapter. The proceeds from the sale of the vehicle shall
9-20 be applied to the charges incurred for the vehicle under Section 14
9-21 of this article. The operator shall pay excess proceeds, if any,
9-22 to the person entitled to them.