| 1 | 1 | | 86R11971 PMO-F |
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| 2 | 2 | | By: Metcalf H.B. No. 2975 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the sale of a motor vehicle, motorboat, vessel, or |
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| 8 | 8 | | outboard motor by a lienholder. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Sections 70.006(a), (e), and (f), Property Code, |
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| 11 | 11 | | are amended to read as follows: |
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| 12 | 12 | | (a) A holder of a lien under this subchapter on a motor |
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| 13 | 13 | | vehicle subject to Chapter 501, Transportation Code, or on a |
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| 14 | 14 | | motorboat, vessel, or outboard motor for which a certificate of |
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| 15 | 15 | | title is required under Subchapter B, Chapter 31, Parks and |
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| 16 | 16 | | Wildlife Code, as amended, who retains possession of the motor |
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| 17 | 17 | | vehicle, motorboat, vessel, or outboard motor shall, not later than |
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| 18 | 18 | | the 30th day after the date on which the charges accrue, give |
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| 19 | 19 | | written notice to the owner and each holder of a lien recorded on |
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| 20 | 20 | | the certificate of title. Not later than the 30th day after the |
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| 21 | 21 | | date on which the charges accrue, a holder of a possessory lien on a |
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| 22 | 22 | | motor vehicle under Section 70.001, other than a person licensed as |
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| 23 | 23 | | a franchised dealer under Chapter 2301, Occupations Code, shall |
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| 24 | 24 | | file a copy of the notice and all information required by this |
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| 25 | 25 | | section with the county tax assessor-collector's office in the |
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| 26 | 26 | | county in which the repairs were made with an administrative fee of |
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| 27 | 27 | | $25 payable to the county tax assessor-collector. If the motor |
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| 28 | 28 | | vehicle, motorboat, vessel, or outboard motor is registered outside |
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| 29 | 29 | | this state, the holder of a lien under this subchapter who retains |
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| 30 | 30 | | possession during that period shall give notice to the last known |
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| 31 | 31 | | registered owner and each lienholder of record. |
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| 32 | 32 | | (e) After notice is given under this section to the owner of |
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| 33 | 33 | | or the holder of a lien on the motor vehicle, motorboat, vessel, or |
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| 34 | 34 | | outboard motor, the owner or holder of the lien may obtain |
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| 35 | 35 | | possession of the motor vehicle, motorboat, vessel, or outboard |
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| 36 | 36 | | motor by paying all charges due to the holder of a lien under this |
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| 37 | 37 | | subchapter before the 31st day after the date: |
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| 38 | 38 | | (1) a copy of the notice relating to the motor vehicle |
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| 39 | 39 | | is filed with the county tax assessor-collector's office; or |
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| 40 | 40 | | (2) a copy of the notice relating to the motorboat, |
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| 41 | 41 | | vessel, or outboard motor is mailed or published, as applicable. |
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| 42 | 42 | | (f) If the charges are not paid within the applicable period |
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| 43 | 43 | | prescribed by Subsection (e) [before the 31st day after the date |
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| 44 | 44 | | that a copy of the notice required by Subsection (a) is filed with |
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| 45 | 45 | | the county tax assessor-collector's office], the lienholder may |
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| 46 | 46 | | sell the motor vehicle, motorboat, vessel, or outboard motor at a |
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| 47 | 47 | | public sale and apply the proceeds to the charges. The lienholder |
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| 48 | 48 | | shall pay excess proceeds to the person entitled to them. The |
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| 49 | 49 | | public sale may not take place before the 31st day after the date: |
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| 50 | 50 | | (1) a copy of the notice relating to the motor vehicle |
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| 51 | 51 | | is filed with the county tax assessor-collector's office; or |
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| 52 | 52 | | (2) a copy of the notice relating to the motorboat, |
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| 53 | 53 | | vessel, or outboard motor is mailed or published, as applicable. |
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| 54 | 54 | | SECTION 2. This Act takes effect September 1, 2019. |
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