1 | 1 | | 89R10903 AND-F |
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2 | 2 | | By: Hinojosa of Hidalgo S.B. No. 2668 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | |
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6 | 6 | | |
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7 | 7 | | A BILL TO BE ENTITLED |
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8 | 8 | | AN ACT |
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9 | 9 | | relating to regulation of vehicle storage facilities and the |
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10 | 10 | | approval and regulation by the Texas Department of Motor Vehicles |
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11 | 11 | | of Internet websites for the public sale of certain abandoned |
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12 | 12 | | vehicles by vehicle storage facility operators. |
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13 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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14 | 14 | | SECTION 1. Section 2303.151, Occupations Code, is amended |
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15 | 15 | | by adding Subsection (h) to read as follows: |
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16 | 16 | | (h) Proof of delivery of notice provided under this section |
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17 | 17 | | must be evidenced by: |
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18 | 18 | | (1) a United States Postal Service electronic |
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19 | 19 | | certified mail receipt, United States Postal Service dated domestic |
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20 | 20 | | return receipt, or United States Postal Service firm mailing book |
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21 | 21 | | for accountable mail; and |
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22 | 22 | | (2) if applicable, any unopened certified letter |
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23 | 23 | | returned as: |
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24 | 24 | | (A) undeliverable; |
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25 | 25 | | (B) unclaimed; |
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26 | 26 | | (C) refused; or |
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27 | 27 | | (D) without a forwarding address. |
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28 | 28 | | SECTION 2. Section 2303.154(a), Occupations Code, is |
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29 | 29 | | amended to read as follows: |
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30 | 30 | | (a) If a vehicle is not claimed by a person permitted to |
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31 | 31 | | claim the vehicle before the 10th day after the date notice is |
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32 | 32 | | mailed or published under Section 2303.151 or 2303.152, the |
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33 | 33 | | operator of the vehicle storage facility shall consider the vehicle |
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34 | 34 | | to be abandoned and[, if required by the law enforcement agency with |
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35 | 35 | | jurisdiction where the vehicle is located,] report the abandonment |
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36 | 36 | | to the appropriate law enforcement agency with jurisdiction. If |
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37 | 37 | | the law enforcement agency notifies the vehicle storage facility |
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38 | 38 | | that the agency will send notices and dispose of the abandoned |
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39 | 39 | | vehicle under Subchapter B, Chapter 683, Transportation Code, the |
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40 | 40 | | vehicle storage facility shall pay the fee required under Section |
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41 | 41 | | 683.031, Transportation Code. |
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42 | 42 | | SECTION 3. Section 2303.157(b), Occupations Code, is |
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43 | 43 | | amended to read as follows: |
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44 | 44 | | (b) An operator entitled to dispose of a vehicle under this |
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45 | 45 | | section shall [may] sell the vehicle at a public sale through an |
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46 | 46 | | Internet website approved by the Texas Department of Motor Vehicles |
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47 | 47 | | under Section 2303.1575. The operator is not required to obtain |
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48 | 48 | | [without obtaining] a release or discharge of any lien on the |
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49 | 49 | | vehicle, regardless of whether notice was provided by mail or by |
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50 | 50 | | publication under this chapter. The proceeds from the sale of the |
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51 | 51 | | vehicle shall be applied to the charges incurred for the vehicle |
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52 | 52 | | under Section 2303.155. The operator shall pay any excess proceeds |
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53 | 53 | | to the person entitled to those proceeds. |
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54 | 54 | | SECTION 4. Subchapter D, Chapter 2303, Occupations Code, is |
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55 | 55 | | amended by adding Section 2303.1575 to read as follows: |
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56 | 56 | | Sec. 2303.1575. INTERNET WEBSITE FOR PUBLIC SALE OF |
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57 | 57 | | ABANDONED VEHICLE; REQUIREMENTS FOR SALE. (a) The Texas |
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58 | 58 | | Department of Motor Vehicles shall approve one or more persons to |
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59 | 59 | | operate an Internet website to conduct the public sale of abandoned |
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60 | 60 | | vehicles under Section 2303.157. |
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61 | 61 | | (b) The board of the Texas Department of Motor Vehicles |
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62 | 62 | | shall adopt rules to implement this section, including rules: |
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63 | 63 | | (1) prescribing the manner and form of an application |
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64 | 64 | | for approval under Subsection (a); |
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65 | 65 | | (2) establishing eligibility requirements for |
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66 | 66 | | approval under Subsection (a); |
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67 | 67 | | (3) regulating the operation of an Internet website |
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68 | 68 | | approved under Subsection (a); and |
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69 | 69 | | (4) authorizing the revocation of a person's approval |
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70 | 70 | | under Subsection (a) as necessary to enforce a violation of this |
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71 | 71 | | section or a rule adopted under this section. |
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72 | 72 | | (c) A vehicle storage facility operator entitled to dispose |
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73 | 73 | | of a vehicle under Section 2303.157 shall submit the vehicle for |
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74 | 74 | | sale to an Internet website approved by the Texas Department of |
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75 | 75 | | Motor Vehicles under Subsection (a) in accordance with this section |
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76 | 76 | | and rules adopted under Subsection (b). The vehicle storage |
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77 | 77 | | facility operator shall provide to the Internet website photographs |
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78 | 78 | | with a full view of the vehicle's front, rear, driver's side, and |
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79 | 79 | | passenger's side. |
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80 | 80 | | (d) A vehicle storage facility operator may not submit a |
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81 | 81 | | vehicle for sale under Subsection (c) that is a salvage motor |
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82 | 82 | | vehicle because of damage caused exclusively by flooding unless the |
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83 | 83 | | facility has disclosed the damage to the Internet website and the |
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84 | 84 | | Texas Department of Motor Vehicles and the vehicle title bears any |
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85 | 85 | | notation required by Section 501.09112(d), Transportation Code. A |
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86 | 86 | | vehicle storage facility operator who submits a vehicle for sale |
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87 | 87 | | under Subsection (c) in violation of this subsection is liable to |
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88 | 88 | | the purchaser of the vehicle for three times the cost to repair the |
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89 | 89 | | undisclosed damage and any attorney's fees. |
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90 | 90 | | (e) A finding that a vehicle storage facility operator has |
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91 | 91 | | violated Subsection (d) more than once is grounds for the |
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92 | 92 | | commission to revoke the operator's license as provided by Section |
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93 | 93 | | 51.353. |
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94 | 94 | | SECTION 5. Section 152.002(b), Tax Code, is amended to read |
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95 | 95 | | as follows: |
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96 | 96 | | (b) "Total consideration" does not include: |
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97 | 97 | | (1) a cash discount; |
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98 | 98 | | (2) a full cash or credit refund to a customer of the |
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99 | 99 | | sales price of a motor vehicle returned to the seller; |
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100 | 100 | | (3) the amount charged for labor or service rendered |
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101 | 101 | | in installing, applying, remodeling, or repairing the motor vehicle |
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102 | 102 | | sold; |
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103 | 103 | | (4) a financing, carrying, or service charge or |
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104 | 104 | | interest on credit extended on a motor vehicle sold under a |
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105 | 105 | | conditional sale or other deferred payment contract; |
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106 | 106 | | (5) the value of a motor vehicle taken by a seller as |
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107 | 107 | | all or a part of the consideration for sale of another motor |
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108 | 108 | | vehicle, including any cash payment to the buyer under Section |
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109 | 109 | | 348.404 or 353.402, Finance Code; |
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110 | 110 | | (6) a charge for transportation of the motor vehicle |
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111 | 111 | | after a sale; |
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112 | 112 | | (7) motor vehicle inventory tax; [or] |
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113 | 113 | | (8) an amount made available to the customer under |
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114 | 114 | | Subchapter G, Chapter 382, Health and Safety Code; or |
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115 | 115 | | (9) storage fees for a motor vehicle sold under |
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116 | 116 | | Section 2303.157, Occupations Code, or Subchapter B, Chapter 683, |
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117 | 117 | | Transportation Code. |
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118 | 118 | | SECTION 6. The following provisions of the Occupations Code |
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119 | 119 | | are repealed: |
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120 | 120 | | (1) Section 2303.151(g); and |
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121 | 121 | | (2) Section 2303.154(f). |
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122 | 122 | | SECTION 7. As soon as practicable after the effective date |
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123 | 123 | | of this Act, the board of the Texas Department of Motor Vehicles |
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124 | 124 | | shall adopt the rules required under Section 2303.1575, Occupations |
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125 | 125 | | Code, as added by this Act. |
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126 | 126 | | SECTION 8. The changes in law made by this Act to Chapter |
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127 | 127 | | 2303, Occupations Code, apply only to a vehicle received in storage |
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128 | 128 | | on or after the effective date of this Act. A vehicle received in |
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129 | 129 | | storage before the effective date of this Act is governed by the law |
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130 | 130 | | in effect on the date the vehicle was received in storage, and the |
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131 | 131 | | former law is continued in effect for that purpose. |
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132 | 132 | | SECTION 9. The change in law made by this Act to Section |
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133 | 133 | | 152.002(b), Tax Code, does not affect tax liability accruing before |
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134 | 134 | | the effective date of this Act. That liability continues in effect |
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135 | 135 | | as if this Act had not been enacted, and the former law is continued |
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136 | 136 | | in effect for the collection of taxes due and for civil and criminal |
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137 | 137 | | enforcement of the liability for those taxes. |
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138 | 138 | | SECTION 10. This Act takes effect September 1, 2025. |
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