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79R1810 JD-D
By: Nelson S.B. No. 1332
A BILL TO BE ENTITLED
AN ACT
relating to the impoundment and forfeiture of certain motor
vehicles operated without financial responsibility.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 601, Transportation Code,
is amended by adding Section 601.0535 to read as follows:
Sec. 601.0535. IMPOUNDMENT AND FORFEITURE OF CERTAIN MOTOR
VEHICLES. (a) This section applies only to a motor vehicle
operated in violation of Section 601.051 by a person who at the time
is in violation of Section 521.021 or 521.457.
(b) The peace officer who takes a person into custody for
the violations described in Subsection (a) shall require that the
vehicle being operated by the person be impounded.
(c) A peace officer who requires the impoundment of a motor
vehicle under this section shall issue the person a written
explanation, on a form designed by the law enforcement agency that
employs the peace officer, informing the person:
(1) that if the person is convicted of both violations
for which the person was taken into custody, the motor vehicle will
be subject to forfeiture;
(2) that if the person is not convicted of both
violations, the owner of the vehicle may recover the vehicle from
the law enforcement agency; and
(3) as to how an eligible owner of the vehicle may
recover the motor vehicle from the law enforcement agency.
(d) The law enforcement agency that impounds a motor vehicle
under this section shall also send notice of the impoundment to the
registered owner of the vehicle and the primary lienholder of the
vehicle, if any, as shown in the motor vehicle registration records
of the Texas Department of Transportation or, if the vehicle is
registered in another state, the analogous agency of that state.
(e) Notice under Subsection (d) must:
(1) be in writing on a form designed by the law
enforcement agency that impounded the vehicle;
(2) explain how and where the owner or lienholder of
the vehicle may recover the vehicle from the law enforcement
agency; and
(3) be mailed to the registered owner and any primary
lienholder of the vehicle at the addresses shown in the applicable
motor vehicle registration records not later than the 14th day
after the date the vehicle is impounded.
(f) The law enforcement agency that impounds a motor vehicle
under this section may release the vehicle to the owner of the
vehicle only if the owner:
(1) provides to the law enforcement agency proof that
the person described by Subsection (a) was not convicted of at least
one of the violations that required the vehicle's impoundment;
(2) provides evidence consistent with:
(A) Section 601.053, showing that the vehicle is
in compliance with Section 601.051; or
(B) Section 601.052, showing that the vehicle is
exempt from the requirements of Section 601.051; and
(3) pays for the costs of the impoundment and the
storage of the vehicle, at the rate of $15 per day.
(g) The law enforcement agency that impounds a motor vehicle
under this section shall release the vehicle to the primary
lienholder of the vehicle if the lienholder or an agent of the
lienholder:
(1) submits to the agency an affidavit stating that
the lienholder is entitled to:
(A) repossess the vehicle from the debtor; and
(B) take possession of the vehicle from the law
enforcement agency; and
(2) pays for the cost of the impoundment.
(h) If a person described by Subsection (a) is convicted of
both offenses and the vehicle was not previously released to a
primary lienholder under Subsection (g), an attorney for the law
enforcement agency that impounded the motor vehicle shall commence
proceedings in a district court to forfeit the vehicle to the law
enforcement agency.
(i) After notice to the registered owner and any primary
lienholder of the motor vehicle, if it is shown by a preponderance
of the evidence in a hearing before the court that the vehicle is
subject to forfeiture under this section, the court shall forfeit
the vehicle to the law enforcement agency, except as provided by
Subsection (j).
(j) If a primary lienholder shows by a preponderance of the
evidence that the lienholder holds a security interest in the
vehicle that is greater than or equal to the present value of the
vehicle and pays all costs associated with the vehicle's
impoundment, including storage charges at a rate of $15 per day,
plus the court costs in the forfeiture proceedings, the court shall
order the vehicle released to the primary lienholder.
(k) A motor vehicle forfeited under this section may be sold
at a public auction by the law enforcement agency. Proceeds of the
sale shall be paid to any primary lienholder to the extent of the
lienholder's security interest in the vehicle. The balance, if
any, shall be deposited in the municipal treasury and may be spent
only for law enforcement purposes. The Texas Department of
Transportation shall issue a certificate of title to a person who
purchases a vehicle under this subsection and who complies with
Chapter 501.
SECTION 2. Section 601.0535, Transportation Code, as added
by this Act, applies only to a motor vehicle that is operated in
violation of Section 601.051 of that code on or after September 1,
2005.
SECTION 3. This Act takes effect September 1, 2005.