By: Carona S.B. No. 690
A BILL TO BE ENTITLED
AN ACT
relating to the enforcement of a self-service storage facility
lien; providing a penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 59.001, Property Code, is amended by
adding Subdivisions (1-a) and (5) to read as follows:
(1-a) "Military service" means:
(A) military service as defined by Section 101,
Servicemembers Civil Relief Act (50 U.S.C. App. Section 511); and
(B) active duty service for a period of more than
30 consecutive days as a member of the Texas State Guard or Texas
National Guard under the call of the governor.
(5) "Verified mail" means any method of mailing that
provides evidence of mailing.
SECTION 2. Subsection (a), Section 59.003, Property Code,
is amended to read as follows:
(a) Subchapter B, Chapter 54, and Chapter 70 do [does] not
apply to a self-service storage facility.
SECTION 3. Subchapter A, Chapter 59, Property Code, is
amended by adding Section 59.010 to read as follows:
Sec. 59.010. RIGHTS OF CERTAIN MILITARY MEMBERS. (a) In
this section, "servicemember" has the meaning assigned by Section
101, Servicemembers Civil Relief Act (50 U.S.C. App. Section 511).
(b) A member of the Texas State Guard or Texas National
Guard who is in military service is entitled to the same protections
and rights relating to the enforcement of storage liens under the
Servicemembers Civil Relief Act (50 U.S.C. App. Section 501 et
seq.) to which a servicemember is entitled.
SECTION 4. Subsections (b) and (c), Section 59.042,
Property Code, are amended to read as follows:
(b) If the tenant fails to satisfy the claim on or before the
14th [15th] day after the date [day that] the notice is delivered,
the lessor must publish or post notices advertising the sale as
provided by this subchapter.
(c) If notice is by publication, the lessor may not sell the
property until the 15th day after the date [day that] the notice is
first [notice is] published. If notice is by posting, the lessor
may sell the property after the 10th day after the date [day that]
the notices are posted.
SECTION 5. Section 59.043, Property Code, is amended to
read as follows:
Sec. 59.043. CONTENTS AND DELIVERY OF NOTICE OF CLAIM;
INFORMATION REGARDING TENANT'S MILITARY SERVICE. (a) The lessor's
notice to the tenant of the claim must contain:
(1) an itemized account of the claim;
(2) the name, address, and telephone number of the
lessor or the lessor's agent;
(3) a statement that the contents of the self-service
storage facility have been seized under the contractual landlord's
lien; [and]
(4) a statement that if the tenant fails to satisfy the
claim [is not satisfied] on or before the 14th [15th] day after the
date [day that] the notice is delivered, the property may be sold at
public auction; and
(5) a statement underlined or printed in conspicuous
bold print requesting a tenant who is in military service to notify
the lessor of the status of the tenant's current military service
immediately.
(b) A lessor may require written proof of a tenant's
military service in the form of documentation from the United
States Department of Defense or other documentation reasonably
acceptable to the lessor.
(c) Subject to Subsection (d), the [The] lessor must deliver
the notice in person or by e-mail or verified [by certified] mail to
the tenant's last known e-mail or postal address as stated in the
rental agreement or in a written notice from the tenant to the
lessor furnished after the execution of the rental agreement.
Notice by verified mail is considered delivered when the notice,
properly addressed with postage prepaid, is deposited with the
United States Postal Service or a common carrier. Notice by e-mail
is considered delivered when sent to the last known e-mail address
of the tenant.
(d) The notice may not be sent by e-mail unless a written
rental agreement between the lessor and the tenant contains
language underlined or in conspicuous bold print that notice may be
given by e-mail if the tenant elects to provide an e-mail address.
SECTION 6. Subchapter C, Chapter 59, Property Code, is
amended by adding Section 59.0445 to read as follows:
Sec. 59.0445. NOTICE TO OWNER AND LIENHOLDERS. (a) This
section applies to the enforcement of a lien under this chapter on:
(1) a motor vehicle subject to Chapter 501,
Transportation Code;
(2) a motorboat, vessel, or outboard motor for which a
certificate of title is required under Subchapter B, Chapter 31,
Parks and Wildlife Code; or
(3) a motor vehicle, motorboat, vessel, or outboard
motor registered or titled outside this state.
(b) In addition to the notices required by Sections 59.042
and 59.044, not later than the 30th day after the date the lessor
takes possession of the motor vehicle, motorboat, vessel, or
outboard motor to enforce a lien under this chapter, the lessor
shall give written notice of sale to the last known owner and each
holder of a lien recorded on the registration or certificate of
title of the motor vehicle, motorboat, vessel, or outboard motor
or, if the registration or title is outside this state, the owner
and each lienholder of record in the location in which the motor
vehicle, motorboat, vessel, or outboard motor is registered or
titled.
(c) Except as provided by Subsection (d), the notice
required by this section must be sent by verified mail. Notice by
verified mail is considered mailed when the notice, properly
addressed with postage prepaid, is deposited with the United States
Postal Service or a common carrier. The notice must include:
(1) the amount of the charges secured by the lien;
(2) a request for payment; and
(3) a statement that if the charges are not paid in
full before the 31st day after the date the notice is mailed or
published, as applicable, the property may be sold at public
auction.
(d) The notice required by this section may be given by
publishing the notice once in a print or electronic version of a
newspaper of general circulation in the county in which the motor
vehicle, motorboat, vessel, or outboard motor is stored if:
(1) the lessor submits a written request by verified
mail to the governmental entity with which the motor vehicle,
motorboat, vessel, or outboard motor is registered or titled
requesting information relating to the identity of the last known
owner of record and any lienholder of record;
(2) the lessor:
(A) is advised in writing by the governmental
entity with which the motor vehicle, motorboat, vessel, or outboard
motor is registered or titled that the entity is unwilling or unable
to provide information on the last known owner of record or any
lienholder of record; or
(B) does not receive a response from the
governmental entity with which the motor vehicle, motorboat,
vessel, or outboard motor is registered or titled on or before the
21st day after the date the lessor submits the request;
(3) the identity of the last known owner of record
cannot be determined;
(4) the registration or title does not contain an
address for the last known owner of record; and
(5) the lessor cannot determine the identities and
addresses of the lienholders of record.
(e) The lessor is not required to publish notice under
Subsection (d) if a correctly addressed notice is sent with
sufficient postage in accordance with Subsections (b) and (c) and
is returned as unclaimed or refused or with a notation that the
addressee is unknown or has moved without leaving a forwarding
address or the forwarding order has expired.
(f) After notice is given under this section to the owner of
or the holder of a lien on the motor vehicle, motorboat, vessel, or
outboard motor, the owner or lienholder may take possession of the
motor vehicle, motorboat, vessel, or outboard motor by paying all
charges due to the lessor before the 31st day after the date the
notice is mailed or published as provided by this section.
(g) If the charges are not paid before the 31st day after the
date the notice is mailed or published, as applicable, the lessor
may sell the motor vehicle, motorboat, vessel, or outboard motor at
a public sale and apply the proceeds to the charges.
(h) A person commits an offense if the person knowingly
provides false or misleading information in a notice required by
this section. An offense under this subsection is a Class B
misdemeanor.
SECTION 7. Subsections (a) and (e), Section 70.006,
Property Code, are amended to read as follows:
(a) A holder of a lien under this subchapter [or Chapter 59]
on a motor vehicle subject to Chapter 501, Transportation Code, or
on a motorboat, vessel, or outboard motor for which a certificate of
title is required under Subchapter B, Chapter 31, Parks and
Wildlife Code, as amended, who retains possession of the motor
vehicle, motorboat, vessel, or outboard motor shall, not later than
the 30th day after the date on which the charges accrue, give
written notice to the owner and each holder of a lien recorded on
the certificate of title. A holder of a possessory lien on a motor
vehicle under Section 70.001, other than a person licensed as a
franchised dealer under Chapter 2301, Occupations Code, shall file
a copy of the notice and all information required by this section
with the county tax assessor-collector's office in the county in
which the repairs were made with an administrative fee of $25
payable to the county tax assessor-collector. If the motor
vehicle, motorboat, vessel, or outboard motor is registered outside
this state, the holder of a lien under this subchapter who retains
possession during that period shall give notice to the last known
registered owner and each lienholder of record.
(e) After notice is given under this section to the owner of
or the holder of a lien on the motor vehicle, motorboat, vessel, or
outboard motor, the owner or holder of the lien may obtain
possession of the motor vehicle, motorboat, vessel, or outboard
motor by paying all charges due to the holder of a lien under this
subchapter [and Chapter 59] before the 31st day after the date the
notice is mailed or published as provided by this section.
SECTION 8. Subsection (c), Section 501.074, Transportation
Code, is amended to read as follows:
(c) If a constitutional or statutory lien is foreclosed, the
department may issue a new certificate of title in the name of the
purchaser at the foreclosure sale on receiving:
(1) the affidavit of the lienholder of the fact of the
creation of the lien and of the divestiture of title according to
law; and
(2) proof of notice as required by Sections 70.004 and
70.006, Property Code, or by Section 59.0445, Property Code.
SECTION 9. Section 59.047, Property Code, is repealed.
SECTION 10. The changes in law made by this Act to Chapter
59, Property Code, apply only to a self-service storage facility
rental agreement entered into, extended, or renewed on or after the
effective date of this Act. A self-service storage facility rental
agreement entered into, extended, or renewed before the effective
date of this Act is governed by the law in effect immediately before
the effective date of this Act, and the former law is continued in
effect for that purpose.
SECTION 11. This Act takes effect January 1, 2012.