HBA-MPM, MPA H.B. 1376 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1376
By: Bosse
Transportation
8/11/1999
Enrolled


BACKGROUND AND PURPOSE 

State law does not address owner and lienholder notification for
out-of-state vehicles or vehicles with no registration record that have
been towed to a vehicle storage facility (VSF).  For out-of-state
notifications the operator of a VSF must send notice in a timely manner in
order to collect a daily storage fee.  Since this information must be
received from another state, and there is no uniform requirement to share
information across state lines, some states may refuse to give the operator
of a VSF any information.  Also, when the operator of a VSF is dealing with
vehicles that have no registration, there is no possible way to recoup the
cost of storage.  H.B. 1376 changes the  Vehicle Storage Facility Act to
allow storage facilities to continue to charge after public notification,
provided that due diligence was completed before notification. 

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 13, Article 6687-9a, V.T.C.S. (Vehicle Storage
Facility Act), as follows: 

Sec. 13. NOTIFICATION OF OWNER. (a) Adds the provision that a vehicle be
registered in this state to the requirement that the operator of a vehicle
storage facility (operator) who receives a vehicle that has been towed to
the facility for storage send a written notice, no later than the fifth day
but not before 24 hours after receiving the vehicle, to the registered
owner and the primary lienholder of the vehicle.  Deletes provision
concerning charge for sending notice, and moves it to new Subsection (i). 

(b) Requires the operator who receives a vehicle registered outside this
state or the United States that has been towed to the facility for storage
to send a written notice, no later than the 14th day but not before 24
hours after receiving the vehicle, to the registered owner and the primary
lienholder of the vehicle. 

(c) Provides that it is a defense to an action initiated by the Texas
Department of Transportation for violation of this section that the
operator has attempted in writing to obtain information from the
governmental entity in which the vehicle is registered but was
unsuccessful. 

(d) Redesignates existing Subsection (b).  Specifies that the notice in
this subsection must be correctly addressed, with sufficient postage. 

(e) Authorizes notice by publication in a newspaper of general circulation
in the county in which the vehicle is stored if the vehicle is registered
in another state, the operator of the storage facility follows a certain
procedure to request information relating to the vehicle's owner, the
identity of the last registered owner cannot be determined, the
registration does not contain an address for the owner, and the operator of
the storage facility cannot reasonably determine the identity and address
of each lienholder. 

 (f) Provides that notice by publication under Subsection (e) is not
required if all correctly addressed notices sent with sufficient postage
under Subsection (a) or (b) are returned because they were unclaimed or
refused, or the addressees moved without leaving a forwarding address. 

(g) Provides that the publication must contain all the information required
by this section, and may contain a list of more than one vehicle,
watercraft, or outboard motor. 

(h) Redesignates existing Subsection (c), and makes conforming and
nonsubstantive changes. 

(i) Authorizes the operator to charge the vehicle's owner a reasonable fee
for the cost of providing notice.   

(j) Requires the operator to send a second notice to the registered owner
and primary lienholder before the 41st, rather than the 61st, day after the
date of the first notice.  Redesignated from existing Subsection (d). Makes
conforming and nonsubstantive changes.   

SECTION 2.  Amends Section 14B(a), Article 6687-9a, V.T.C.S. (Vehicle
Storage Facility Act), to make conforming and nonsubstantive changes. 

SECTION 3.  Amends Section 14(d), Article 6687-9a, V.T.C.S. (Vehicle
Storage Facility Act), to make conforming changes. 

SECTION 4.Effective date: September 1, 1999.
  Makes application of this Act prospective.

SECTION 5.Emergency clause.