ENROLLED Page 1 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. ACT No. 753 Regular Session, 2012 HOUSE BILL NO. 596 BY REPRESENTATIVES ST. GERMAIN AND GAROFALO AND SENATOR WARD AN ACT1 To amend and reenact R.S. 9:4781(8), 4783(B), 4784(B)(1)(c), (D), and (G), and R.S.2 39:2181(A) and to enact Part XVII of Chapter 1 of Title 9 of the Louisiana Revised3 Statutes of 1950, to be comprised of R.S. 9:4791 through 4798, relative to towed and4 stored vessels; to provide for sales of certain boats; to provide for definitions; to5 provide for a privilege on towed and stored vessels; to provide for notice and6 advertisement; to provide for the disposition of proceeds; to provide for the authority7 to promulgate rules and regulations; and to provide for related matters.8 Be it enacted by the Legislature of Louisiana:9 Section 1. R.S. 9:4781(8), 4783(B), and 4784(B)(1)(c), (D), and (G) are hereby10 amended and reenacted and Part XVII of Chapter 1 of Title 9 of the Louisiana Revised11 Statutes of 1950, comprised of R.S. 9:4791 through 4798, is hereby enacted to read as12 follows:13 §4781. Definitions14 For the purposes of this Part, the following terms shall have the following15 meanings unless the context clearly requires otherwise:16 * * *17 (8) "Rental agreement" means any written agreement or lease, entered into18 between the marina operator owner and a lessee that establishes or modifies the19 terms, conditions, rules, or any other provisions concerning use of the marina.20 * * *21 §4783. Notice of privilege22 * * *23 ENROLLEDHB NO. 596 Page 2 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. B. A marina owner who does not have a written rental agreement that1 includes a notice of the privilege created by this Part may not initiate an enforcement2 action under R.S. 9:4785 R.S. 9:4784 until thirty days after the written notice of a3 privilege required by Paragraph (A)(2) of this Section is delivered to the property4 owner.5 §4784. Enforcement of privilege6 * * *7 B. Advertisement; notice of default. Before conducting a sale under this8 Section, the marina owner shall:9 (1) Send a notice of default to the property owner. The marina owner shall10 provide a copy of the notice to each lienholder of record. The notice must include:11 * * *12 (c) A demand for payment of the charges due within a specified time not less13 than thirty days after the date the notice is delivered to the property owner and all14 marina owners of record.15 * * *16 D. Purchasers. A purchaser of property sold at a commercially reasonable17 sale pursuant to this Part takes the property free and clear of any rights of persons18 against whom the privilege was valid and all other lienholders of record. The19 purchase of a boat sold pursuant to this Part shall require a notarized bill of sale20 signed by the buyer and a representative of the marina, clearly identifying the marina21 as the seller, and shall state that the boat was sold pursuant to the Marina and22 Boatyard Storage Act. The marina shall attach to the bill of sale the proof of notice23 and sale requirements, including proof of all publications.24 * * *25 G. Notices. Except as otherwise provided, all notices required by this Part26 must be sent by registered or certified mail, return receipt requested, or by27 commercial courier as defined by R.S. 13:3204(D). Notices sent to a marina owner28 must be sent to the owner's business address or to the address of the owner's29 designated representative. Notices to a property owner must be sent to the property30 ENROLLEDHB NO. 596 Page 3 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. owner at the property owner's last known address. Notices to a lienholder of record1 must be sent to the address of the lienholder as provided in the public record that2 serve serves to perfect the lienholder's interest in the property. Notices are3 considered delivered on the either of the following dates:4 (1) The date the recipient of the notice signs the return receipt or, if the5 notice is undeliverable, the date the post office last attempts to deliver the notice.6 (2) The date of delivery as indicated on the signed receipt of delivery7 obtained by the commercial courier.8 PART XVII. TOWED AND STORED VESSEL ACT9 §4791. Short title10 This Act shall be known as the "Towed and Stored Vessel Act".11 §4792. Definitions12 For the purposes of this Part, the following terms shall have the following13 meanings:14 (1) "Department" means the Department of Wildlife and Fisheries.15 (2) "Licensed storage facility" means a lot, yard, or other storage, parking,16 or repair facility licensed by the Department of Public Safety and Corrections, office17 of state police, to store towed vehicles as provided by R.S. 32:1714.18 (3) "Tow truck" means any motor vehicle equipped with a boom or booms,19 winches, slings, tilt beds, or similar equipment designed for the towing or recovery20 of vehicles and other objects which cannot operate under their own power or for21 other reason is required to be transported by means of towing and licensed by the22 Department of Public Safety and Corrections pursuant to R.S. 32:1711 et seq.23 (4) "Towed vessel" means any vessel titled under the Vessel and Motor24 Titling Act, R.S. 34:852.1 et seq., or required to be registered pursuant to R.S.25 34:851.1 et seq., towed by a tow truck and being held at a licensed storage facility.26 "Towed vessel" does not include any vessel with a valid or expired registration27 number awarded pursuant to federal law or a federally approved numbering system28 of another state, unless subsequently registered in Louisiana.29 ENROLLEDHB NO. 596 Page 4 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. §4793. Privilege1 A licensed storage facility has a privilege on a vessel, including any inboard2 or outboard motor attached to the vessel, towed and stored at that facility for the3 towing charges and storage fees. However, this Part shall not create a privilege on4 a documented vessel subject to a preferred ship mortgage or other preferred maritime5 privilege pursuant to 46 U.S.C. Chapter 313.6 §4794. Vessel owner information7 The licensed storage facility shall provide the department or its authorized8 agent, within three business days of the vessel being towed and stored, the vessel's9 registration numbers, hull identification number (HIN), motor serial number, and any10 other identifying factors requested by the department. The department or its11 authorized agent shall provide to a licensed storage facility holding a towed vessel12 the name and address of the last registered owner of the vessel and lienholders as13 listed in the official records of the agency.14 §4795. Notice of privilege and default15 A. The towed vessel owner and any lienholders shall be notified of the16 privilege created by this Part before enforcement of the privilege by the licensed17 storage facility. Notification of the privilege created by this Part shall be satisfied18 by the following:19 (1) For owners and lienholders identified by the department pursuant to R.S.20 9:4794, written notification of the privilege sent by the licensed storage facility,21 using a certificate of mailing within ten business days from the date the department22 or its authorized agent sends the owner and lienholder information of the stored23 vessel to the licensed storage facility. If the department or its authorized agent sends24 the information electronically, the licensed storage facility shall send notice within25 five business days.26 (2) After compliance with R.S. 9:4794, for those vessels for which no27 records exist in the official records of the department, publishing notification of the28 privilege in the official newspaper of the parish in which the towed vessel was towed29 on two separate occasions.30 ENROLLEDHB NO. 596 Page 5 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. B. Notification shall include the following:1 (1) As applicable, registration numbers, a general description of the towed2 vessel, including the make, length, type of vessel, whether inboard or outboard3 motors, and make and horsepower, registration numbers, motor serial number, and4 hull identification number (HIN).5 (2) The date and location where the vessel was found, the present location,6 charges due on the date of the notice, and name, street address, and telephone7 number of the licensed storage facility, which the owner may contact to respond to8 the notice.9 (3) A statement that the vessel is subject to the privilege held by the licensed10 storage facility and that the vessel owner is in default.11 (4) A statement that unless the claim is paid within the time stated the12 property will be sold at a commercially reasonably public sale, and the location and13 date of the sale, which shall not be earlier than thirty days after the date notice is14 mailed to the owner or thirty days after the last date of notification as provided in15 this Section. As used in this Part, "commercially reasonably" has the same meaning16 as in the Commercial Laws, R.S. 10:1-101 through 9-710.17 §4796. Advertisement: Enforcement of Privilege18 After the expiration of the thirty-day period set forth in R.S. 9:4795(B)(4),19 the licensed storage facility shall publish an advertisement of the sale once a week20 for two consecutive weeks in the official newspaper of the parish where the sale is21 to be held. The date of the sale shall be more than fifteen days after the date of the22 first advertisement of the sale is published. The advertisement shall include the23 following:24 (1) The name of the last registered owner of the vessel, if known.25 (2) The date and location where the vessel was found.26 (3) As applicable, the registration numbers, a general description of the27 towed vessel, including the make, length, type of vessel, whether inboard or outboard28 motors, and make and horsepower, outboard motor serial number, and hull29 identification number (HIN).30 ENROLLEDHB NO. 596 Page 6 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. §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 the buyer and a representative of the licensed storage facility,5 clearly identifying the licensed storage facility as the seller, and shall state the boat6 was sold pursuant to the Towed and Stored Vessel Act. The licensed storage facility7 shall attach to the bill of sale the proof of notice and sale requirements, including8 proof of all publications, without which the bill of sale shall be null and void.9 C. The proceeds of the sale shall be applied in the following order:10 (1) To the reasonable expenses of the sale including, to the extent not11 prohibited by law, reasonable attorney fees and legal expenses.12 (2) To the satisfaction of all superior mortgages on the vessel held by holders13 of record to be paid in order of priority.14 (3) To the satisfaction of the privilege created by this Part.15 (4) To the satisfaction of all other mortgages and privileges on the vessel16 held by all lienholders of record to be paid in the order of priority.17 (5) To the extent the proceeds of the sale exceed the sum of the foregoing,18 the surplus shall be paid to the owner of the vessel. However, if the funds so19 credited are not claimed by the owner within six months from the date of the sale,20 the funds shall be transferred to the administrator of the Uniform Unclaimed21 Property Act of 1997 as unclaimed property.22 (6) If proceeds of the sale are not sufficient to satisfy the vessel owner's23 outstanding obligations to the licensed storage facility or any lienholder of record,24 the vessel owner remains liable to the licensed storage facility for the deficiency.25 D. A purchaser of the vessel sold at a commercially reasonable sale pursuant26 to this Part takes the vessel free and clear of any rights of persons against whom the27 privilege was valid and all other lienholders of record.28 ENROLLEDHB NO. 596 Page 7 of 7 CODING: Words in struck through type are deletions from existing law; words underscored are additions. 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 Section 2. R.S. 39:2181(A) is hereby amended and reenacted to read as follows:14 §2181. Applicability; definitions15 A. This Chapter shall apply to any contract or cooperative endeavor16 agreement that results from any bid or other award governed under Chapter 16 and17 Chapter 17 of this Title. However, provided that other applicable provisions of the18 Procurement Code are followed, this Chapter shall not apply to any purchase by a19 state agency directly from a vessel manufacturer or an outboard motor manufacturer.20 * * *21 SPEAKER OF THE HOUSE OF REPRESENTATI VES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED: