HBA-ALS, ATS H.B. 1356 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1356 By: Bosse Business & Industry 6/2/1999 Enrolled BACKGROUND AND PURPOSE Prior to the 76th Legislature, a holder of a lien on a motor vehicle, motorboat, vessel, or outboard motor (vehicle) who obtained possession of that vehicle was required to notify the last known registered owner and each lienholder by certified mail. However, problems arose when a holder of a lien was unable to obtain the necessary information to give proper notice by certified mail. Additionally, the law did not address the notification process for vehicles that were not registered in Texas. 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. In addition, this bill also provides 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. To this end, 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 Subchapter C, Chapter 59, Property Code, by adding Section 59.047, as follows: Sec. 59.047. ADDITIONAL PROCEDURES FOR SALE OF CERTAIN PROPERTY. Authorizes a holder of a lien under this chapter (Self-service Storage Facility Liens) on a motor vehicle subject to Chapter 501 (Certificate of Title Act), Transportation Code, or on a motorboat, vessel, or outboard motor for which a certificate of title is required under Subchapter B (Identification of Vessels; Required Numbering), Chapter 31 (Water Safety), Parks and Wildlife Code, to follow the procedures prescribed by Section 70.006 (Sale of Motor Vehicle, Motorboat, Vessel, or Outboard Motor) in addition to the procedures prescribed by this chapter. SECTION 2. 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 (Stable Keeper's, Garageman's, Pasturer's and Cotton Ginner's Liens) Property Code, 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 motor vehicle, motorboat, vessel, or outboard motor is registered in another state; (2) the holder of the lien submits a written request by certified mail, return receipt requested, to the governmental entity (entity) with which the motor vehicle, motorboat, vessel, or outboard motor is registered requesting information relating to the identity of the last known registered owner and any lienholder of record; (3) the holder of the lien is advised in writing by the entity with which the motor vehicle, motorboat, vessel, or outboard motor is registered that the entity is unwilling or unable to provide information on the last known registered owner or any lienholder of record, or does not receive a response from the entity with which the motor vehicle, motorboat, vessel, or outboard motor is registered on or before the 21st day after the date the holder of the lien submits a request under Subdivision (2); (4) the identity of the last known registered owner cannot be determined; (5) the registration does not contain an address for the last known registered owner; and (6) the holder of the lien cannot determine the identities and addresses of the lienholders of record. (d) Provides that the holder of a lien is not required to publish notice under Subsection (c) if a correctly addressed notice is sent with sufficient postage under Subsection (b) and is returned as unclaimed or refused or with a notation that the addressee is unknown or has moved without leaving a forwarding address. (e) Includes impoundment as an action for which a person is entitled to fees. Creates this subsection from existing Subsection (c). Makes conforming and nonsubstantive changes. (f) Creates this subsection from existing Subsection (d). Makes conforming changes. SECTION 3. Amends Section 70.006, Property Code, as follows: Sec. 70.006. SALE OF MOTOR VEHICLE, MOTORBOAT, VESSEL, OR OUTBOARD MOTOR. Includes Chapter 59, Property Code, in addition, to Subchapter A (Possessory Liens, Chapter 70 (Miscellaneous Liens), Property Code, as the provisions under which a holder of lien is subject to this section. 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 4. (a) Effective date: September 1, 1999. (b) Makes application of this Act prospective. SECTION 5.Emergency clause.