HLS 12RS-995 ENGROSSED
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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 ENGROSSED
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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 as provided by R.S. 32:1714.13
(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
other reason is required to be transported by means of towing licensed by the17
Department of 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 and storage fees; however, this Part shall not create a privilege on a28 HLS 12RS-995 ENGROSSED
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documented vessel subject to a preferred ship mortgage or other preferred maritime1
privilege pursuant to 46 U.S.C. Chapter 131.2
§4794. Vessel owner information3
The licensed storage facility shall provide the department or its authorized4
agent within three business days of the vessel being towed and stored, the vessel's5
registration numbers, hull identification number (HIN), motor serial number, and any6
other identifying factors requested by the department. The department or its7
authorized agent shall provide to a licensed storage facility holding a towed vessel8
the name and address of the last registered owner of the vessel and lienholders as9
listed in the official records of the agency.10
§4795. Notice of privilege and default11
A. The towed vessel owner and any lienholders shall be notified of the12
privilege created by this Part before enforcement of the privilege by the licensed13
storage facility. Notification of the privilege created by this Part shall be satisfied14
by the following:15
(1) For owners and lienholders identified by the department pursuant to R.S.16
9:4794, written notification of the privilege sent by the licensed storage facility,17
using a certificate of mailing within ten business days from the date the department18
or its authorized agent sends the owner and lienholder information of the stored19
vessel to the licensed storage facility. If the department or its authorized agent sends20
the information electronically, the licensed storage facility shall send notice within21
five business days.22
(2) After compliance with R.S. 9:4794 and for which no records exist in the23
official records of the department, publishing notification of the privilege in the24
official newspaper of the parish in which the towed vessel was towed on two25
separate occasions.26
B. Notification shall include the following:27
(1) As applicable, registration numbers, a general description of the towed28
vessel, including the make, length, type of vessel, whether inboard or outboard29 HLS 12RS-995 ENGROSSED
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motors, and make and horse power, registration numbers, motor serial number, and1
hull identification number (HIN).2
(2) The date and location where the vessel was found, the present location,3
charges due on the date of the notice, and name, street address, and telephone4
number of the licensed storage facility, which the owner may contact to respond to5
the notice.6
(3) A statement the vessel is subject to the privilege held by the licensed7
storage facility and that the vessel owner is in default.8
(4) A statement that unless the claim is paid within the time stated the9
property will be sold at a commercially reasonably public sale, and the location and10
date of the sale, which shall not be earlier than thirty days after the date notice is11
mailed to the owner or thirty days after the last date of notification as provided in12
this Section. As used in this Part, "commercially reasonably" has the same meaning13
as in the Commercial Laws, R.S. 10:1-101 through 9-710.14
§4796. Advertisement: Enforcement of Privilege15
After the expiration of the thirty-day period set forth in R.S. 9:4795(B)(4),16
the licensed storage facility shall publish an advertisement of the sale once a week17
for two consecutive weeks in the official newspaper of the parish where the sale is18
to be held. The date of the sale shall be more than fifteen days after the date of the19
first advertisement of the sale is published. The advertisement shall include the20
following:21
(1) The name of the last registered owner of the vessel, if known.22
(2) The date and location where the vessel was found.23
(3) As applicable, the registration numbers, a general description of the24
towed vessel, including the make, length, type of vessel, whether inboard or outboard25
motors, and make and horse power, outboard motor serial number, and hull26
identification number (HIN).27 HLS 12RS-995 ENGROSSED
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§4797. Sale and purchasers1
A. A sale under this Part shall be held at the location of the licensed storage2
facility or at the nearest suitable location.3
B. The vessel shall be sold to the highest bidder and shall require a notarized4
bill of sale signed by both parties with two witnesses, shall clearly identify the5
licensed storage facility as the seller, and shall state the boat was sold pursuant to the6
Towed and Stored Vessel Act. The licensed storage facility shall attach to the bill7
of sale the proof of notice and sale requirements, including proof of all publications.8
C. The proceeds of the sale shall be applied in the following order:9
(1) To the reasonable expenses of the sale including, to the extent not10
prohibited by law, reasonable attorney fees and legal expenses.11
(2) To the satisfaction of all superior mortgages on the vessel held by holders12
of record to be paid in order of priority.13
(3) To the satisfaction of the privilege created by this Part.14
(4) To the satisfaction of all other mortgages and privileges on the vessel15
held by all lienholders of record to be paid in the order of priority.16
(5) To the extent the proceeds of the sale exceed the sum of the foregoing,17
the surplus shall be paid to the owner of the vessel; however, if the funds so credited18
are not claimed by the owner within six months from the date of the sale, the funds19
shall be transferred to the administrator of the Uniform Unclaimed Property Act of20
1997 as unclaimed property.21
(6) If proceeds of the sale are not sufficient to satisfy the vessel owner's22
outstanding obligations to the licensed storage facility or any lienholder of record,23
the vessel owner remains liable to the licensed storage facility for the deficiency.24
D. A purchaser of the vessel sold at a commercially reasonable sale pursuant25
to this Part takes the vessel free and clear of any rights of persons against whom the26
privilege was valid and all other lienholders of record.27 HLS 12RS-995 ENGROSSED
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E. The vessel owner shall be entitled access to the licensed storage facility1
during normal business hours for the purpose of satisfying the privilege or viewing2
and verifying the condition of the vessel.3
F. Except as otherwise provided, all notices required by this Part shall be4
sent by certificate of mailing. Notices sent to the licensed storage facility shall be5
sent to the business address or to the address of the designated representative.6
Notices to the vessel owner shall be sent to the vessel owner's address as identified7
in the official records of the department. Notices to a lienholder of record shall be8
sent to the address of the lienholder as provided in the public record that serves to9
perfect the lienholder's interest in the vessel.10
§4798. Regulations11
The department may promulgate rules and regulations to implement the12
provisions of this Part.13
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; 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 within three business days of the vessel being towed and stored. The
department shall provide the name and address of the last registered owner and lienholders
to the storage facility.
Proposed law requires the storage facility to notify the owner and lienholders within 10
business days from the date the department sends notice before the privilege can be
enforced. If the owner and lienholder can be identified, the storage facility shall 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. HLS 12RS-995 ENGROSSED
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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 reasonable expenses of the sale including, to the extent not prohibited by law,
reasonable attorney fees and legal expenses.
(2)To the satisfaction of all superior mortgages.
(3)To the satisfaction of the privilege.
(4)To the satisfaction of all other mortgages and privileges.
Proposed law provides that any surplus shall be transferred to the administrator of the
Uniform Unclaimed Property Act of 1997 as unclaimed property.
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 that 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)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Civil Law and Procedure
to the original bill.
1. Added provisions making licensed storage facilities subject to the rules
developed by DPS&C.
2. Deleted duplicate provisions relative to the collection of expenses reasonably
incurred in the sale of the towed vessel.
3. Added requirement that the storage facility provide the registration numbers and
other information to the department within three days.
4. Added requirement of notification to owners and lienholders within 10 business
days using a certificate of mailing.
5. Added provision revising the order of disbursement of the proceeds of the sale.
6. Added technical amendments.