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A BILL TO BE ENTITLED
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AN ACT
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relating to the enforcement of a self-service storage facility |
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lien; providing a penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 59.001, Property Code, is amended by |
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adding Subdivisions (1-a) and (5) to read as follows: |
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(1-a) "Military service" has the meaning assigned by |
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Section 101, Servicemembers Civil Relief Act (50 U.S.C. App. |
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Section 511). |
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(5) "Verified mail" means any method of mailing that |
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provides evidence of mailing. |
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SECTION 2. Section 59.003(a), Property Code, is amended to |
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read as follows: |
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(a) Subchapter B, Chapter 54, and Chapter 70 do [does] not |
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apply to a self-service storage facility. |
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SECTION 3. Sections 59.042(b) and (c), Property Code, are |
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amended to read as follows: |
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(b) If the tenant fails to satisfy the claim on or before the |
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14th [15th] day after the date [day that] the notice is delivered, |
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the lessor must publish or post notices advertising the sale as |
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provided by this subchapter. |
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(c) If notice is by publication, the lessor may not sell the |
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property until the 15th day after the date [day that] the notice is |
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first [notice is] published. If notice is by posting, the lessor |
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may sell the property after the 10th day after the day that the |
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notices are posted. |
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SECTION 4. Section 59.043, Property Code, is amended to |
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read as follows: |
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Sec. 59.043. CONTENTS AND DELIVERY OF NOTICE OF CLAIM; |
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INFORMATION REGARDING TENANT'S MILITARY SERVICE. (a) The lessor's |
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notice to the tenant of the claim must contain: |
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(1) an itemized account of the claim; |
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(2) the name, address, and telephone number of the |
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lessor or the lessor's agent; |
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(3) a statement that the contents of the self-service |
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storage facility have been seized under the contractual landlord's |
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lien; [and] |
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(4) a statement that if the tenant fails to satisfy the |
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claim [is not satisfied] on or before the 14th [15th] day after the |
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date [day that] the notice is delivered, the property may be sold at |
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public auction; and |
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(5) a statement underlined or printed in conspicuous |
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bold print requesting a tenant who is in military service to notify |
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the lessor of the status of the tenant's current military service |
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immediately. |
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(b) A lessor may require written proof of a tenant's |
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military service in the form of documentation from the United |
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States Department of Defense or other documentation reasonably |
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acceptable to the lessor. |
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(c) The lessor must deliver the notice in person or by |
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electronic mail or verified [by certified] mail to the tenant's |
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last known electronic mail or postal address as stated in the rental |
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agreement or in a written notice from the tenant to the lessor |
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furnished after the execution of the rental agreement. Notice by |
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verified mail is considered delivered when the notice, properly |
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addressed with postage prepaid, is deposited with the United States |
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Postal Service or a common carrier. Notice by electronic mail is |
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considered delivered when transmitted to the last known electronic |
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mail address of the tenant. |
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SECTION 5. Section 59.044(b), Property Code, is amended to |
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read as follows: |
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(b) The lessor must publish the notice: |
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(1) at least once in each of two consecutive weeks in |
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the print or electronic version of a newspaper of general |
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circulation in the county in which the self-service storage |
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facility is located. If there is not a newspaper of general |
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circulation in the county, the lessor may instead post a copy of the |
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notice at the self-service storage facility and at least five other |
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conspicuous locations near the facility; or |
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(2) for at least 10 consecutive days on an Internet |
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website accessible at no cost to the general public. |
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SECTION 6. Subchapter C, Chapter 59, Property Code, is |
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amended by adding Section 59.0445 to read as follows: |
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Sec. 59.0445. NOTICE TO OWNER AND LIENHOLDERS. (a) This |
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section applies to the enforcement of a lien under this chapter on: |
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(1) a motor vehicle subject to Chapter 501, |
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Transportation Code; |
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(2) a motorboat, vessel, or outboard motor for which a |
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certificate of title is required under Subchapter B, Chapter 31, |
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Parks and Wildlife Code; or |
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(3) a motor vehicle, motorboat, vessel, or outboard |
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motor registered outside this state. |
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(b) In addition to the notices required by Sections 59.042 |
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and 59.044, not later than the 30th day after the date the lessor |
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takes possession of the motor vehicle, motorboat, vessel, or |
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outboard motor to enforce a lien under this chapter, the lessor |
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shall give written notice of sale to the last known owner and each |
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holder of a lien recorded on the registration or certificate of |
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title of the motor vehicle, motorboat, vessel, or outboard motor |
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or, if the registration or title is outside this state, the owner |
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and each lienholder of record in the location in which the motor |
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vehicle, motorboat, vessel, or outboard motor is registered or |
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titled. |
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(c) Except as provided by Subsection (d), the notice |
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required by this section must be sent by verified mail. Notice by |
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verified mail is considered mailed when the notice, properly |
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addressed with postage prepaid, is deposited with the United States |
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Postal Service or a common carrier. The notice must include: |
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(1) the amount of the charges secured by the lien; |
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(2) a request for payment; and |
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(3) a statement that if the charges are not paid in |
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full before the 31st day after the date the notice is mailed or |
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published, as applicable, the property may be sold at public |
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auction. |
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(d) The notice required by this section may be given by |
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publishing the notice once in a print or electronic version of a |
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newspaper of general circulation in the county in which the motor |
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vehicle, motorboat, vessel, or outboard motor is stored if: |
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(1) the lessor submits a written request by verified |
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mail to the governmental entity with which the motor vehicle, |
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motorboat, vessel, or outboard motor is registered or titled |
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requesting information relating to the identity of the last known |
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owner of record and any lienholder of record; |
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(2) the lessor: |
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(A) is advised in writing by the governmental |
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entity with which the motor vehicle, motorboat, vessel, or outboard |
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motor is registered or titled that the entity is unwilling or unable |
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to provide information on the last known owner of record or any |
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lienholder of record; or |
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(B) does not receive a response from the |
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governmental entity with which the motor vehicle, motorboat, |
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vessel, or outboard motor is registered or titled on or before the |
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21st day after the date the lessor submits the request; |
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(3) the identity of the last known owner of record |
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cannot be determined; |
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(4) the registration or title does not contain an |
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address for the last known owner of record; and |
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(5) the lessor cannot determine the identities and |
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addresses of the lienholders of record. |
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(e) The lessor is not required to publish notice under |
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Subsection (d) if a correctly addressed notice is sent with |
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sufficient postage in accordance with Subsections (b) and (c) and |
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is returned as unclaimed or refused or with a notation that the |
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addressee is unknown or has moved without leaving a forwarding |
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address or the forwarding order has expired. |
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(f) After notice is given under this section to the owner of |
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or the holder of a lien on the motor vehicle, motorboat, vessel, or |
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outboard motor, the owner or lienholder may take possession of the |
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motor vehicle, motorboat, vessel, or outboard motor by paying all |
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charges due to the lessor before the 31st day after the date the |
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notice is mailed or published as provided by this section. |
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(g) If the charges are not paid before the 31st day after the |
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date the notice is mailed or published, as applicable, the lessor |
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may sell the motor vehicle, motorboat, vessel, or outboard motor at |
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a public sale and apply the proceeds to the charges. |
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(h) A person commits an offense if the person knowingly |
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provides false or misleading information in a notice required by |
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this section. An offense under this subsection is a Class B |
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misdemeanor. |
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SECTION 7. Sections 70.006(a) and (e), Property Code, are |
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amended to read as follows: |
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(a) A holder of a lien under this subchapter [or Chapter 59] |
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on a motor vehicle subject to Chapter 501, Transportation Code, or |
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on a motorboat, vessel, or outboard motor for which a certificate of |
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title is required under Subchapter B, Chapter 31, Parks and |
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Wildlife Code, as amended, who retains possession of the motor |
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vehicle, motorboat, vessel, or outboard motor shall, not later than |
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the 30th day after the date on which the charges accrue, give |
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written notice to the owner and each holder of a lien recorded on |
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the certificate of title. A holder of a possessory lien on a motor |
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vehicle under Section 70.001, other than a person licensed as a |
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franchised dealer under Chapter 2301, Occupations Code, shall file |
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a copy of the notice and all information required by this section |
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with the county tax assessor-collector's office in the county in |
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which the repairs were made with an administrative fee of $25 |
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payable to the county tax assessor-collector. If the motor |
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vehicle, motorboat, vessel, or outboard motor is registered outside |
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this state, the holder of a lien under this subchapter who retains |
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possession during that period shall give notice to the last known |
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registered owner and each lienholder of record. |
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(e) After notice is given under this section to the owner of |
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or the holder of a lien on the motor vehicle, motorboat, vessel, or |
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outboard motor, the owner or holder of the lien may obtain |
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possession of the motor vehicle, motorboat, vessel, or outboard |
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motor by paying all charges due to the holder of a lien under this |
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subchapter [and Chapter 59] before the 31st day after the date the |
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notice is mailed or published as provided by this section. |
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SECTION 8. Section 501.074(c), Transportation Code, is |
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amended to read as 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 and |
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70.006, Property Code, or by Section 59.0445, Property Code. |
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SECTION 9. Section 59.047, Property Code, is repealed. |
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SECTION 10. The changes in law made by this Act to Chapter |
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59, Property Code, apply only to a self-service storage facility |
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rental agreement entered into, extended, or renewed on or after the |
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effective date of this Act. A self-service storage facility rental |
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agreement entered into, extended, or renewed before the effective |
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date of this Act is governed by the law in effect immediately before |
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the effective date of this Act, and the former law is continued in |
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effect for that purpose. |
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SECTION 11. This Act takes effect January 1, 2012. |