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.