Relating to notice required in connection with possessory liens on motor vehicles.
Impact
If passed, SB1036 would amend Section 70.006 of the Property Code, altering the notification protocol for possessory liens. The legislation stipulates that notice must also be filed with the county tax assessor-collector's office for maintaining records. The bill highlights the importance of timely communication between lien holders, vehicle owners, and the state, which could streamline the lien enforcement process and potentially reduce disputes over vehicle ownership and related fees.
Summary
Senate Bill 1036 introduces revisions to the existing notice requirements in connection with possessory liens on motor vehicles. The bill mandates that lien holders of a motor vehicle or related vessels must deliver written notice to the owner and any recorded lienholders within 30 days once charges accrue. This change aims to ensure that all parties remain informed about the status of their vehicles and any related charges, thereby enhancing transparency in the lien process.
Contention
A point of contention surrounding this legislation is the procedural requirements imposed on lien holders. Critics may argue that the new obligations could be burdensome for smaller lien holders or those operating in the vehicle storage industry. They may express concerns that requiring an administrative fee and additional paperwork could deter some businesses from pursuing rightful claims under the lien law, particularly if they find these requirements cumbersome or economically unfeasible. Supporters, however, argue that these changes protect vehicle owners and prevent potential exploitation of lien laws.
Relating to the denial of the registration of a motor vehicle based on certain information provided by a county to the Texas Department of Motor Vehicles.