85R12454 JAM-F
By: Goldman H.B. No. 3622
A BILL TO BE ENTITLED
AN ACT
relating to abandoned vehicles held by vehicle storage facilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 2303, Occupations Code, is
amended by adding Section 2303.004 to read as follows:
Sec. 2303.004. CONFLICT WITH OTHER LAW. To the extent of
any conflict between this chapter and Chapter 683, Transportation
Code, this chapter controls.
SECTION 2. Section 2303.151, Occupations Code, is amended
by amending Subsections (a) and (e) and adding Subsection (f) to
read as follows:
(a) The operator of a vehicle storage facility who receives
a vehicle that is registered in this state and that is towed to the
facility for storage shall send a written notice to the registered
owner and each recorded [the primary] lienholder of the vehicle not
later than the fifth day after the date but not earlier than 24
hours after the time [date] the operator receives the vehicle.
(e) A notice under this section is considered to have been
[given on the date indicated on the postmark and to be] timely filed
if:
(1) the postmark or electronic proof of mailing from
the United States Postal Service Internet website indicates that
the notice was mailed within the period described by Subsection (a)
or (b), as applicable; or
(2) the notice was published as provided by Section
2303.152.
(f) A state agency or a county assessor-collector may not
require proof of delivery of the notice under this section as a
condition for the issuance of a title.
SECTION 3. Section 2303.152, Occupations Code, is amended
to read as follows:
Sec. 2303.152. NOTICE BY PUBLICATION. (a) Notice to the
registered owner and each recorded [the primary] lienholder of a
vehicle towed to a vehicle storage facility may be provided by
publication in a print or electronic version of a newspaper of
general circulation in the county in which the vehicle is stored if:
(1) the vehicle is registered in another state;
(2) the operator of the vehicle storage facility
submits to the governmental entity with which the vehicle is
registered a written or electronic request for information relating
to the identity of the registered owner and any recorded lienholder
[of record]; or
(3) [the identity of the registered owner cannot be
determined;
[(4)] the registration does not contain an address for
the registered owner[; or
[(5) the operator of the storage facility cannot
reasonably determine the identity and address of each lienholder].
(b) If a [The] written request is submitted, the request
must:
(1) be correctly addressed;
(2) carry sufficient postage; and
(3) be sent by certified mail, return receipt
requested, or by electronic certified mail.
(c) Notice by publication is not required if each notice
sent as provided by Section 2303.151 is returned because:
(1) the notice was unclaimed or refused; or
(2) the person to whom the notice was sent moved
without establishing [leaving] a forwarding address with the United
States Postal Service.
(d) Only one notice is required to be published for a [an
abandoned nuisance] vehicle.
(d-1) Notice by publication may include a list of more than
one motor vehicle, watercraft, or outboard motor.
(e) Notice to the registered owner and each recorded [the
primary] lienholder of a vehicle towed to a vehicle storage
facility may be provided by publication in a print or electronic
version of a newspaper of general circulation in the county in which
the vehicle is stored if:
(1) the vehicle does not display a license plate,
registration insignia, or other [a vehicle inspection] certificate
indicating the state of registration;
(2) the identity of the registered owner cannot
reasonably be determined by the operator of the storage facility;
or
(3) the operator of the storage facility cannot
reasonably determine the identity and address of each recorded
lienholder.
SECTION 4. Section 2303.153(a), Occupations Code, is
amended to read as follows:
(a) A notice by mail provided under Section 2303.151 must
include:
(1) the date the vehicle was accepted for storage;
(2) the first day for which a storage fee is assessed;
(3) the daily storage rate;
(4) the type and amount of any other charge to be paid
when the vehicle is claimed;
(5) the full name, street address, and telephone
number of the vehicle storage facility;
(6) the hours during which the owner may claim the
vehicle; [and]
(7) the facility license number preceded by "Texas
Department of Licensing and Regulation Vehicle Storage Facility
License Number" or "TDLR VSF Lic. No."; and
(8) a description of the vehicle.
SECTION 5. Section 2303.154, Occupations Code, is amended
by amending Subsections (a), (a-1), and (b) and adding Subsection
(d) to read as follows:
(a) [If a vehicle is not claimed by a person permitted to
claim the vehicle or a law enforcement agency has not taken an
action in response to a notice under Section 683.031(c),
Transportation Code, before the 15th day after the date notice is
mailed or published under Section 2303.151 or 2303.152, the
operator of the vehicle storage facility shall send a second notice
to the registered owner and the primary lienholder of the vehicle.
[(a-1)] If a vehicle is not claimed by a person permitted to
claim the vehicle before the 10th day after the date notice is
mailed or published under Section 2303.151 or 2303.152, the
operator of the vehicle storage facility shall consider the vehicle
to be abandoned and, if required by the law enforcement agency with
jurisdiction where the vehicle is located, report the [and send
notice of] abandonment by certified mail or electronic certified
mail to the [a] law enforcement agency. A vehicle storage facility
shall pay the fee required by Section 683.031(c), Transportation
Code, if the facility is notified by the law enforcement agency that
the law enforcement agency will send notices and take custody of and
dispose of the vehicle as provided by [under] Chapter 683,
Transportation Code.
(b) On or after the 15th day after the date notice is mailed
or published under Section 2303.151 or 2303.152, the operator of a
vehicle storage facility shall send a second notice to the
registered owner and each recorded lienholder of the vehicle if the
facility has been notified that the law enforcement agency will not
take custody of the vehicle or the law enforcement agency has not
taken custody of the vehicle or has not responded to the report sent
under Subsection (a). Notice under this subsection [section] must
be sent by certified mail or electronic certified mail and include:
(1) the information listed in Section 2303.153(a);
(2) a statement of the right of the facility to dispose
of the vehicle under Section 2303.157; and
(3) a statement that the failure of the owner or any
lienholder to claim the vehicle before the 30th day after the date
the notice is provided is:
(A) a waiver by that person of all right, title,
or interest in the vehicle; and
(B) a consent to the sale of the vehicle at a
public sale.
(d) A report sent under Subsection (a) may contain a list of
more than one motor vehicle, watercraft, or outboard motor.
SECTION 6. Section 2303.1545(b), Occupations Code, is
amended to read as follows:
(b) The facility may:
(1) notify the Texas Department of Motor Vehicles
[department] that notices under Chapter 683, Transportation Code,
have been provided and shall pay a fee of $10 to the Texas
Department of Motor Vehicles [department]; or
(2) in the alternative, notify the appropriate law
enforcement agency and pay a fee of $10 to that agency, if required
by the law enforcement agency.
SECTION 7. Section 2303.157, Occupations Code, is amended
by amending Subsection (b) and adding Subsections (a-1) and (b-1)
to read as follows:
(a-1) If the vehicle is not claimed by a person entitled to
claim the vehicle within the period described by Subsection (a),
the owner and each of the lienholders:
(1) waive all rights and interests in the vehicle; and
(2) consent to the sale of the vehicle at a public
sale.
(b) An operator entitled to dispose of a vehicle under this
section may sell the vehicle at a public sale without obtaining a
release or discharge of any lien on the vehicle, regardless of
whether notice was provided by mail or by publication under this
chapter. The proceeds from the sale of the vehicle shall be applied
to the charges incurred for the vehicle under Section 2303.155, any
towing and recovery charges, and the cost of the public sale. The
operator shall pay any excess proceeds to the person entitled to
those proceeds.
(b-1) The purchaser of an abandoned vehicle:
(1) takes title free and clear of all liens and claims
of ownership;
(2) shall receive an auction sales receipt from the
vehicle storage facility; and
(3) is entitled to register the vehicle and receive a
certificate of title from the appropriate authority.
SECTION 8. Section 2303.153(d), Occupations Code, is
repealed.
SECTION 9. The changes in law made by this Act apply only to
a vehicle received in storage on or after the effective date of this
Act. A vehicle received in storage before the effective date of
this Act is governed by the law in effect on the date the vehicle was
received in storage, and the former law is continued in effect for
that purpose.
SECTION 10. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2017.