HBA-ALS H.B. 1356 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1356
By: Bosse
Business & Industry
2/23/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, a holder of a lien on a motor vehicle, motorboat, vessel, or
outboard motor (vehicle) who obtains possession of that vehicle is required
to notify the last known registered owner and each lienholder by certified
mail.  However, problems arise when a holder of a lien is unable to obtain
the necessary information to give proper notice by certified mail.
Additionally, current law does not address the notification process for
vehicles that are not registered in Texas.  The purpose of this bill is to
provide an alternate means of notifying an owner or lienholder that a
vehicle is in the possession of a repair facility and that the vehicle may
be sold if the repair charges are not paid. 

Under H.B. 1356, if a vehicle is registered in this state, a holder of a
lien on a vehicle is required to notify the last known registered owner and
each lienholder of record by certified mail no later than the fifth day
after the day that possession is obtained, or if a vehicle is registered in
another state, by the 14th day after the day that possession is obtained.
H.B. 1356 allows a holder of a lien to publish notice in a newspaper of
general circulation in the county where the vehicle is stored in certain
circumstances in which the holder of the lien has been unsuccessful in
obtaining the names or addresses of the last known registered owner or
lienholders of record. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 70.004, Property Code, as follows:

Sec. 70.004. POSSESSION OF MOTOR VEHICLE, MOTORBOAT, VESSEL, OR OUTBOARD
MOTOR.  (a) Requires a holder of a lien under Section 70.003, Property Code
(Stable Keeper's, Garageman's, and Pasturer's Liens), of a motor vehicle,
motorboat, vessel, or outboard motor who obtains possession under state law
or city ordinance, to give notice for a motor vehicle, motorboat, vessel,
or outboard motor to the last known registered owner and each lienholder of
record no later than the fifth day, rather than the tenth, after possession
is obtained.  Requires that notice be given to the last known registered
owner and each lienholder of record no later than the 14th day after
possession is obtained if the motor vehicle, motorboat, vessel, or outboard
motor is registered outside this state.   

(b) Provides an exception to the requirement that notice be sent by
certified mail with return receipt requested.  Makes a nonsubstantive
change. 

(c) Authorizes publishing the notice in a newspaper of general circulation
in the county where the motor vehicle, motorboat, vessel, or outboard motor
is stored if: 

(1) the holder of a lien has made an unsuccessful written attempt to obtain
information on the last known registered owner and each lienholder of
record from the government entity with which the motor vehicle, motorboat,
vessel, or outboard motor is registered; 

(2) the last known registered owner's identity cannot be determined;
 
(3) the registration does not contain the last known registered owner's
address; or 

(4) the holder of a lien cannot determine the identities and addresses of
the lienholders of record with reasonable certainty.  

(d) Provides that the holder of a lien is not required to publish notice
under Subsection (c) if a notice that is sent by certified mail under
Subsection (b) is returned for any reason.  

(e) Entitles a person to fees for towing and impoundment, rather than for
preservation. Creates this subsection from existing Subsection (c). Makes
conforming and nonsubstantive changes. 

(f) Creates this subsection from existing Subsection (d).  Makes conforming
changes. 

SECTION 2.  Amends Section 70.006, Property Code, as follows:

Sec. 70.006.  SALE OF MOTOR VEHICLE, MOTORBOAT, VESSEL, OR OUTBOARD MOTOR.
(a) Requires the holder of a lien of a motor vehicle, motorboat, vessel, or
outboard motor that is registered outside this state, to give notice to the
last known registered owner and each lienholder of record.  Provides an
exception to the notice requirement. Redesignates existing Subsection (b)
to Subsection (e). Makes conforming and nonsubstantive changes. 

SECTION 3.Effective date: September 1, 1999.
  Makes application of this Act prospective.

SECTION 4.Emergency clause.