HLS 12RS-995 ORIGINAL
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Regular Session, 2012
HOUSE BILL NO. 596
BY REPRESENTATIVE ST. GERMAIN AND SENATOR WARD
BOATS/SHIPS/VESSELS: Creates the Towed and Stored Vessel Act
AN ACT1
To amend and reenact R.S. 9:4784(D) and to enact Part XVII of Chapter 1 of Title 9 of the2
Louisiana Revised Statutes of 1950, to be comprised of R.S. 9:4791 through 4798,3
relative to towed and stored vessels; to provide for sales of certain boats; to provide4
for definitions; to provide for a privilege on towed and stored vessels; to provide for5
notice and advertisement; to provide for the disposition of proceeds; to provide for6
the authority to promulgate rules and regulations; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 9:4784(D) is hereby amended and reenacted and Part XVII of9
Chapter 1 of Title 9 of the Louisiana Revised Statutes of 1950, comprised of R.S. 9:479110
through 4798, is hereby enacted to read as follows:11
§4784. Enforcement of privilege12
* * *13
D. Purchasers. A purchaser of property sold at a commercially reasonable14
sale pursuant to this Part takes the property free and clear of any rights of persons15
against whom the privilege was valid and all other lienholders of record. The16
purchase of a boat sold pursuant to this Part shall require a notarized bill of sale17
signed by both parties with two witnesses, shall clearly identify the marina as the18
seller, and shall state that the boat was sold pursuant to the Marina and Boatyard19 HLS 12RS-995 ORIGINAL
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Storage Act. The marina shall attach to the bill of sale the proof of notice and sale1
requirements, including proof of all publications.2
* * *3
PART XVII. TOWED AND STORED VESSEL ACT4
§4791. Short Title5
This Act shall be known as the "Towed and Stored Vessel Act".6
§4792. Definitions7
For the purposes of this Part, the following terms shall have the following8
meanings:9
(1) "Department" means the Department of Wildlife and Fisheries.10
(2) "Licensed storage facility" means a lot, yard, or other storage, parking,11
or repair facility licensed by the Department of Public Safety and Corrections, office12
of state police, to store towed vehicles and vessels under the provisions of this Act.13
(3) "Tow truck" means any motor vehicle equipped with a boom or booms,14
winches, slings, tilt beds, or similar equipment designed for the towing or recovery15
of vehicles and other objects which cannot operate under their own power or for16
some reason must be transported by means of towing licensed by the Department of17
Public Safety and Corrections pursuant to R.S. 32:1711 et seq.18
(4) "Towed vessel" means any vessel titled under the Vessel and Motor19
Titling Act, R.S. 34:852.1 et seq., or required to be registered pursuant to R.S.20
34:851.1 et seq., towed by a tow truck and being held at a licensed storage facility.21
Towed vessel does not include any vessel with a valid or expired registration number22
awarded pursuant to federal law or a federally approved numbering system of23
another state, unless subsequently registered in Louisiana.24
§4793. Privilege25
A licensed storage facility has a privilege on a vessel, including any inboard26
or outboard motor attached to the vessel, towed and stored at that facility for the27
towing charges, storage fees, and for expenses reasonably incurred in the sale of the28
towed vessel under the provisions of this Part; however, this Part does not create a29 HLS 12RS-995 ORIGINAL
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privilege on a documented vessel subject to a preferred ship mortgage or other1
preferred maritime privilege pursuant to 46 U.S.C. Chapter 131.2
§4794. Vessel owner information3
The licensed storage facility must provide the department or its authorized4
agent the vessel's registration numbers, hull identification number (HIN), motor5
serial number, and any other identifyin g factors requested by the department. The6
department or its authorized agent shall provide to a licensed storage facility holding7
a towed vessel the name and address of the last registered owner of the vessel and8
lienholders as listed in the official records of agency.9
§4795. Notice of privilege and default10
A. The towed vessel owner and any lienholders must be notified of the11
privilege created by this Part before enforcement of the privilege by the licensed12
storage facility. Notification of the privilege created by this Part shall be satisfied13
by the following:14
(1) For owners and lienholders identified by the department pursuant to R.S.15
9:4794, written notification of the privilege sent by the licensed storage facility,16
certificate of mailing.17
(2) After compliance with R.S. 9:4794 and for which no records exist in the18
official records of the department, publishing notification of the privilege in the19
official newspaper of the parish in which the towed vessel was towed on two20
separate occasions.21
B. Notification shall include the following:22
(1) As applicable, registration numbers, a general description of the towed23
vessel, including the make, length, type of vessel, whether inboard or outboard24
motors, and make and horse power, registration numbers, motor serial number, and25
hull identification number (HIN).26
(2) The date and location where the vessel was found, the present location,27
charges due on the date of the notice, and name, street address, and telephone28 HLS 12RS-995 ORIGINAL
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number of the licensed storage facility, which the owner may contact to respond to1
the notice.2
(3) A statement the vessel is subject to the privilege held by the licensed3
storage facility and that the vessel owner is in default.4
(4) A statement that unless the claim is paid within the time stated the5
property will be sold at a commercially reasonably public sale, and the location and6
date of the sale, which shall not be earlier than thirty days after the date notice is7
mailed to the owner or thirty days after the last date of notification as provided in8
this Section. As used in this Part, "commercially reasonably" has the same meaning9
as in the Commercial Laws, R.S. 10:1-101 through 9-710.10
§4796. Advertisement: Enforcement of Privilege11
After the expiration of the thirty-day period set forth in R.S. 9:4795(B)(4),12
the licensed storage facility shall publish an advertisement of the sale once a week13
for two consecutive weeks in the official newspaper of the parish where the sale is14
to be held. The date of the sale must be more than fifteen days after the date of the15
first advertisement of the sale is published. The advertisement shall include the16
following:17
(1) The name of the last registered owner of the vessel, if known.18
(2) The date and location where the vessel was found.19
(3) As applicable, the registration numbers, a general description of the20
towed vessel, including the make, length, type of vessel, whether inboard or outboard21
motors, and make and horse power, outboard motor serial number, and hull22
identification number (HIN).23
§4798. Sale and purchasers24
A. A sale under this Part shall be held at the location of the licensed storage25
facility or at the nearest suitable location.26
B. The vessel shall be sold to the highest bidder and shall require a notarized27
bill of sale signed by both parties with two witnesses, shall clearly identify the28
licensed storage facility as the seller, and shall state the boat was sold pursuant to the29 HLS 12RS-995 ORIGINAL
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Towed and Stored Vessel Act. The licensed storage facility shall attach to the bill1
of sale the proof of notice and sale requirements, including proof of all publications.2
C. The proceeds of the sale shall be applied in the following order:3
(1) To the satisfaction of the privilege created by this Part.4
(2) To the reasonable expenses of the sale including, to the extent not5
prohibited by law, reasonable attorney fees and legal expenses.6
(3) To the satisfaction of all superior mortgages on the vessel held by holders7
of record to be paid in order of priority.8
(4) To the satisfaction of all other mortgages and privileges on the vessel9
held by all lienholders of record to be paid in the order of priority.10
(5) To the extent the proceeds of the sale exceed the sum of the foregoing,11
the surplus must be paid to the owner of the vessel; however, if the funds so credited12
are not claimed by the owner within six months from the date of the sale, the funds13
shall be deemed forfeited to the person making the sale, who may credit such funds14
to his own account free and clear of all claims.15
(6) If proceeds of the sale are not sufficient to satisfy the vessel owner's16
outstanding obligations to the licensed storage facility or any lienholder of record,17
the vessel owner remains liable to the licensed storage facility for the deficiency.18
D. A purchaser of the vessel sold at a commercially reasonable sale pursuant19
to this Part takes the vessel free and clear of any rights of persons against whom the20
privilege was valid and all other lienholders of record.21
E. The vessel owner shall be entitled access to the licensed storage facility22
during normal business hours for the purpose of satisfying the privilege or viewing23
and verifying the condition of the vessel.24
F. Except as otherwise provided, all notices required by this Part shall be25
sent by certificate of mailing. Notices sent to the licensed storage facility shall be26
sent to the business address or to the address of the designated representative.27
Notices to the vessel owner must be sent to the vessel owner's address as identified28
in the official records of the department. Notices to a lienholder of record must be29 HLS 12RS-995 ORIGINAL
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sent to the address of the lienholder as provided in the public record that serves to1
perfect the lienholder's interest in the vessel.2
§4798. Regulations3
The department may promulgate rules and regulations to implement the4
provisions of this Part.5
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
St. Germain HB No. 596
Abstract: Creates the Towed and Stored Vessel Act.
Proposed law provides for definitions.
Proposed law creates a privilege on a towed and stored vessel, including the motor, for
towing and storage fees and for costs of selling the vessel in accordance with proposed law;
however, a privilege is not created on a documented vessel subject to a preferred ship
mortgage or other maritime privilege pursuant to federal law.
Proposed law requires the storage facility to provide the Dept. of Wildlife and Fisheries the
vessel's registration, hull identification, and motor serial numbers and any other identifying
information requested. The department shall provide the name and address of the last
registered owner and lienholders to the storage facility.
Proposed law provides the storage facility must notify the owner and lienholders before the
privilege can be enforced. If the owner and lienholder can be identified, the storage facility
will send written notification by certified mail. If they cannot be identified, notification shall
be published on two separate occasions in the official newspaper of the parish in which the
vessel was towed.
Proposed law provides the contents of the notification shall include a description of the
vessel, the date it was found, its present location, the vessel is subject to privilege, and
subject to sale unless the claim is paid.
Proposed law provides that after holding the vessel for 30 days, the storage facility may sell
the vessel 15 days after publishing a notice of the sale once a week for two weeks.
Proposed law requires the sale to be at or the nearest suitable location to the storage facility.
Proposed law requires the sale to the highest bidder and requires the bill of sale to be
notarized, signed by both parties and two witnesses, identify the storage facility as the seller,
and state the vessel was sold pursuant to the Towed and Stored Vessel Act.
Proposed law provides for the distribution of the proceeds in the following order:
(1)To the satisfaction of the privilege.
(2)To the reasonable expenses of the sale including, to the extent not prohibited by law,
reasonable attorney fees and legal expenses. HLS 12RS-995 ORIGINAL
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(3)To the satisfaction of all superior mortgages.
(4)To the satisfaction of all other mortgages and privileges.
Proposed law provides that any surplus must be paid to the owner of the vessel. If the
money is not claimed by the owner within six months from the date of the sale, the funds
shall be deemed forfeited to the person making the sale free and clear of all claims.
Proposed law provides if proceeds are not sufficient to satisfy the vessel owner's outstanding
obligations to the licensed storage facility or any lienholder of record, the vessel owner
remains liable to the licensed storage facility for the deficiency.
Proposed law provides the purchaser of a boat sold pursuant to proposed law takes the vessel
free and clear of any rights of persons against whom the privilege was valid and all other
lienholders of record.
Proposed law authorizes the department to promulgate rule and regulations.
(Amends R.S. 9:4784(D); Adds R.S. 9:4791-4798)