HB5340 - Relating to regulation of vehicle storage facilities and the approval and regulation by the Texas Department of Motor Vehicles of Internet websites for the public sale of certain abandoned vehicles by vehicle storage facility operators.

  89R10903 AND-F     By: Villalobos H.B. No. 5340       A BILL TO BE ENTITLED   AN ACT   relating to regulation of vehicle storage facilities and the   approval and regulation by the Texas Department of Motor Vehicles   of Internet websites for the public sale of certain abandoned   vehicles by vehicle storage facility operators.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 2303.151, Occupations Code, is amended   by adding Subsection (h) to read as follows:           (h)     Proof of delivery of notice provided under this section   must be evidenced by:                 (1)     a United States Postal Service electronic   certified mail receipt, United States Postal Service dated domestic   return receipt, or United States Postal Service firm mailing book   for accountable mail; and                 (2)     if applicable, any unopened certified letter   returned as:                       (A)  undeliverable;                       (B)  unclaimed;                       (C)  refused; or                       (D)  without a forwarding address.          SECTION 2.  Section 2303.154(a), Occupations Code, is   amended to read as follows:          (a)  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 abandonment   to the appropriate law enforcement agency with jurisdiction . If   the law enforcement agency notifies the vehicle storage facility   that the agency will send notices and dispose of the abandoned   vehicle under Subchapter B, Chapter 683, Transportation Code, the   vehicle storage facility shall pay the fee required under Section   683.031, Transportation Code.          SECTION 3.  Section 2303.157(b), Occupations Code, is   amended to read as follows:          (b)  An operator entitled to dispose of a vehicle under this   section shall [ may ] sell the vehicle at a public sale through an   Internet website approved by the Texas Department of Motor Vehicles   under Section 2303.1575. The operator is not required to obtain   [ 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. The operator shall pay any excess proceeds   to the person entitled to those proceeds.          SECTION 4.  Subchapter D, Chapter 2303, Occupations Code, is   amended by adding Section 2303.1575 to read as follows:           Sec.   2303.1575.     INTERNET WEBSITE FOR PUBLIC SALE OF   ABANDONED VEHICLE; REQUIREMENTS FOR SALE. (a) The Texas   Department of Motor Vehicles shall approve one or more persons to   operate an Internet website to conduct the public sale of abandoned   vehicles under Section 2303.157.           (b)     The board of the Texas Department of Motor Vehicles   shall adopt rules to implement this section, including rules:                 (1)     prescribing the manner and form of an application   for approval under Subsection (a);                 (2)     establishing eligibility requirements for   approval under Subsection (a);                 (3)     regulating the operation of an Internet website   approved under Subsection (a); and                 (4)     authorizing the revocation of a person's approval   under Subsection (a) as necessary to enforce a violation of this   section or a rule adopted under this section.           (c)     A vehicle storage facility operator entitled to dispose   of a vehicle under Section 2303.157 shall submit the vehicle for   sale to an Internet website approved by the Texas Department of   Motor Vehicles under Subsection (a) in accordance with this section   and rules adopted under Subsection (b). The vehicle storage   facility operator shall provide to the Internet website photographs   with a full view of the vehicle's front, rear, driver's side, and   passenger's side.           (d)     A vehicle storage facility operator may not submit a   vehicle for sale under Subsection (c) that is a salvage motor   vehicle because of damage caused exclusively by flooding unless the   facility has disclosed the damage to the Internet website and the   Texas Department of Motor Vehicles and the vehicle title bears any   notation required by Section 501.09112(d), Transportation Code. A   vehicle storage facility operator who submits a vehicle for sale   under Subsection (c) in violation of this subsection is liable to   the purchaser of the vehicle for three times the cost to repair the   undisclosed damage and any attorney's fees.             (e)     A finding that a vehicle storage facility operator has   violated Subsection (d) more than once is grounds for the   commission to revoke the operator's license as provided by Section   51.353.          SECTION 5.  Section 152.002(b), Tax Code, is amended to read   as follows:          (b)  "Total consideration" does not include:                (1)  a cash discount;                (2)  a full cash or credit refund to a customer of the   sales price of a motor vehicle returned to the seller;                (3)  the amount charged for labor or service rendered   in installing, applying, remodeling, or repairing the motor vehicle   sold;                (4)  a financing, carrying, or service charge or   interest on credit extended on a motor vehicle sold under a   conditional sale or other deferred payment contract;                (5)  the value of a motor vehicle taken by a seller as   all or a part of the consideration for sale of another motor   vehicle, including any cash payment to the buyer under Section   348.404 or 353.402, Finance Code;                (6)  a charge for transportation of the motor vehicle   after a sale;                (7)  motor vehicle inventory tax; [ or ]                (8)  an amount made available to the customer under   Subchapter G, Chapter 382, Health and Safety Code ; or                 (9)     storage fees for a motor vehicle sold under   Section 2303.157, Occupations Code, or Subchapter B, Chapter 683,   Transportation Code .          SECTION 6.  The following provisions of the Occupations Code   are repealed:                (1)  Section 2303.151(g); and                (2)  Section 2303.154(f).          SECTION 7.  As soon as practicable after the effective date   of this Act, the board of the Texas Department of Motor Vehicles   shall adopt the rules required under Section 2303.1575, Occupations   Code, as added by this Act.          SECTION 8.  The changes in law made by this Act to Chapter   2303, Occupations Code, 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 9.  The change in law made by this Act to Section   152.002(b), Tax Code, does not affect tax liability accruing before   the effective date of this Act. That liability continues in effect   as if this Act had not been enacted, and the former law is continued   in effect for the collection of taxes due and for civil and criminal   enforcement of the liability for those taxes.          SECTION 10.  This Act takes effect September 1, 2025.