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A BILL TO BE ENTITLED
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AN ACT
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relating to certain possessory liens. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (c), Section 70.003, Property Code, |
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is amended to read as follows: |
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(c) A garageman with whom a motor vehicle, motorboat, |
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vessel, or outboard motor is left for care has a lien on the motor |
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vehicle, motorboat, vessel, or outboard motor for the amount of the |
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charges for the care, including reasonable charges for towing the |
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motor vehicle, motorboat, vessel, or outboard motor to the |
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garageman's place of business and excluding charges for repairs. |
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SECTION 2. Section 70.006, Property Code, is amended by |
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amending Subsection (a) and adding Subsection (b-1) to read as |
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follows: |
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(a) Except as provided by Section 70.0061, a [A] holder of a |
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lien under this subchapter or Chapter 59 on a motor vehicle subject |
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to Chapter 501, Transportation Code, or on a motorboat, vessel, or |
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outboard motor for which a certificate of title is required under |
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Subchapter B, Chapter 31, Parks and Wildlife Code, as amended, who |
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retains possession of the motor vehicle, motorboat, vessel, or |
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outboard motor for 30 days after the day that the charges accrue |
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shall give written notice to the owner and each holder of a lien |
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recorded on the certificate of title. Except as provided by Section |
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70.0061, if [If] the motor vehicle, motorboat, vessel, or outboard |
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motor is registered outside this state, the holder of a lien under |
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this subchapter who retains possession during that period shall |
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give notice to the last known registered owner and each lienholder |
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of record. |
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(b-1) A holder of a possessory lien under Section 70.001 who |
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is required to give notice to the owner or a lienholder of record |
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under this section must include in the notice a signed copy of the |
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work order authorizing the repairs on the motor vehicle, motorboat, |
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vessel, or outboard motor. |
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SECTION 3. Subchapter A, Chapter 70, Property Code, is |
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amended by adding Sections 70.0061 and 70.0062 to read as follows: |
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Sec. 70.0061. SALE OF MOTOR VEHICLE BY CERTAIN LIENHOLDERS. |
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(a) In this section, "franchised dealer" has the meaning assigned |
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by Section 2301.002, Occupations Code. |
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(b) A person, other than a franchised dealer, who holds a |
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worker's lien under Section 70.001 on a motor vehicle subject to |
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Chapter 501, Transportation Code, who retains possession of the |
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motor vehicle for 20 days after the day that the charges accrue |
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shall: |
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(1) give written notice of the worker's lien, |
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including the amount of the charges and a signed copy of the work |
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order authorizing the repairs on the motor vehicle, to the county |
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assessor-collector of the county in which the motor vehicle is |
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located; and |
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(2) pay to the county assessor-collector a fee of $50 |
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for the administrative costs incurred by the county |
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assessor-collector under this section. |
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(c) Not later than the 20th day after the date on which the |
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county assessor-collector receives notice of a worker's lien under |
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this section, the county assessor-collector shall notify the owner |
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of the motor vehicle, each holder of a lien recorded on the |
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certificate of title of the motor vehicle, and the person who claims |
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the worker's lien of the worker's lien claimed on the motor vehicle |
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and the amount of the charges. A notice provided by a county |
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assessor-collector under this subsection must: |
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(1) include a copy of the signed copy of the work order |
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provided by the lien claimant under Subsection (b)(1) in the notice |
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to the motor vehicle's owner and each lienholder of record; and |
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(2) be sent by certified mail, return receipt |
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requested. |
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(d) If the county assessor-collector is unable to locate the |
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last known registered owner or any lienholder of record, the notice |
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required by Subsection (c) may be given by publishing the notice |
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once in a newspaper of general circulation in the county in which |
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the motor vehicle is located. |
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(e) A county assessor-collector is not required to publish |
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notice under Subsection (d) if a correctly addressed notice is sent |
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under Subsection (c) with sufficient postage and is returned as |
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unclaimed or refused or with a notation that the addressee is |
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unknown or has moved without leaving a forwarding address. |
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(f) After notice is given to an owner or lienholder of |
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record under this section, the owner or lienholder may obtain |
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possession of the motor vehicle by paying all charges due to the |
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person claiming the worker's lien under Section 70.001 before the |
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21st day after the date the notice is mailed or published by the |
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county assessor-collector as provided by this section. |
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(g) If the charges are not paid before the 21st day after the |
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date the notice is mailed or published by the county |
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assessor-collector and an objection to the worker's lien has not |
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been filed during that period under Section 70.0062, the person |
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claiming the worker's lien under Section 70.001 may sell the motor |
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vehicle in the manner provided by Section 70.006. |
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(h) If an objection to the worker's lien has been filed |
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under Section 70.0062, the person claiming the worker's lien under |
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Section 70.001 may sell the motor vehicle in the manner provided by |
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Section 70.006, only on or after: |
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(1) the 21st day after the date the objection was |
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filed, if no court case has been filed by any interested party |
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regarding the validity of the worker's lien; or |
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(2) the date a judgment is issued in which the worker's |
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lien claimed is found to be valid. |
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Sec. 70.0062. OBJECTION TO WORKER'S LIEN ON MOTOR VEHICLE. |
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(a) An owner or holder of a lien recorded on the certificate of |
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title of a motor vehicle who is notified under Section 70.0061 of a |
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worker's lien claimed on the motor vehicle may file an objection |
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with the county assessor-collector in the county in which the motor |
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vehicle is located asserting that the worker's lien claimed is |
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invalid. The objection must be filed in writing not later than the |
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20th day after the date the notice is provided and must state the |
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reason the owner or lienholder believes the worker's lien is |
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invalid. |
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(b) The county assessor-collector may charge a reasonable |
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fee, not to exceed $25, for the administrative costs of processing |
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the objection. |
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(c) On receipt of an objection from an owner or lienholder |
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under this section, the county assessor-collector shall notify the |
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Texas Department of Transportation of the objection, and the Texas |
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Department of Transportation shall place a hold on the motor |
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vehicle record relating to the certificate of title for the motor |
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vehicle on which the worker's lien is held. |
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(d) The Texas Department of Transportation shall continue a |
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hold under this section until the 20th day after the date on which |
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the county assessor-collector received the objection, unless an |
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owner or lienholder of record provides written notice to the county |
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assessor-collector and the department, before that date, of a |
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pending case regarding the validity of the worker's lien claimed |
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under Section 70.001, including the name of the court and the docket |
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number of the case. If the department receives notice of a pending |
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case under this section, the department may not release the hold on |
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the motor vehicle record relating to the certificate of title until |
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the date on which the owner, lienholder of record, or person |
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claiming a worker's lien under Section 70.001 provides a copy of a |
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judgment issued in the case to the department. |
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(e) The Texas Transportation Commission shall adopt rules |
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necessary to carry out the Texas Department of Transportation's |
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duties under this section. |
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SECTION 4. Section 501.074, Transportation Code, is amended |
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by amending Subsection (c) and adding Subsection (c-1) to read as |
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follows: |
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(c) If a constitutional or statutory lien is foreclosed, the |
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department may issue a new certificate of title in the name of the |
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purchaser at the foreclosure sale on receiving: |
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(1) the affidavit of the lienholder of the fact of the |
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creation of the lien and of the divestiture of title according to |
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law; and |
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(2) proof of notice as required by Sections 70.004, |
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[and] 70.006, and 70.0061, Property Code. |
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(c-1) Notwithstanding Subsection (c), if Sections 70.0061 |
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and 70.0062, Property Code, apply to the lien, the department may |
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not issue a new certificate of title unless: |
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(1) the time for filing an objection under Section |
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70.0062 has expired and an objection is not filed; or |
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(2) if an objection is filed, the time for a hold on |
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the title under Section 70.0062 has expired in accordance with that |
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section. |
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SECTION 5. The changes in law made by this Act apply only to |
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a possessory lien on a motor vehicle, motorboat, vessel, or |
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outboard motor the possession of which is obtained on or after the |
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effective date of this Act. A possessory lien on a motor vehicle, |
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motorboat, vessel, or outboard motor the possession of which was |
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obtained before that date is governed by the law in effect at the |
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time possession was obtained, and the former law is continued in |
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effect for that purpose. |
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SECTION 6. This Act takes effect September 1, 2009. |
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