Current with legislation from the 2023 Regular and Special Sessions signed by the Governor as of November 21, 2023.
Section 70.006 - Sale or Disposal of Motor Vehicle, Motorboat, Vessel, or Outboard Motor(a) A holder of a lien under this subchapter 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 give written notice to the owner and each holder of a lien recorded on the certificate of title. Subject to Subsection (a-1), 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.(a-1) A copy of the notice and information required to be filed with the county tax assessor-collector's office under Subsection (a) must be filed: (1) for a motor vehicle that has a gross vehicle weight rating of less than 16,000 pounds, not later than the 30th day after the date on which the charges accrue; and(2) for a motor vehicle that has a gross vehicle weight rating equal to or greater than 16,000 pounds, not later than the later of the 30th day after the date on which the charges accrue or the 30th day before the date of a proposed sale or disposition of the motor vehicle under Subsection (f) or (f-1).(b) Except as provided by Subsection (c), the notice must be sent by certified mail with return receipt requested and must include the amount of the charges and a request for payment.(b-1) 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, who is required to give notice to a lienholder of record under this section must include in the notice: (1) the physical address of the real property at which the repairs to the motor vehicle were made;(2) the legal name of the person that holds the possessory lien for which the notice is required;(3) the taxpayer identification number or employer identification number, as applicable, of the person that holds the possessory lien for which the notice is required;(4) a signed copy of the work order authorizing the repairs on the motor vehicle; and(5) if applicable, the proposed date of the sale or disposition of the motor vehicle under Subsection (f) or (f-1).(b-2) If the holder of a possessory lien required to give notice in accordance with Subsection (b-1) does not comply with that subsection, a lien recorded on the certificate of title of the motor vehicle is superior to the possessory lienholder's lien.(b-3) 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.(c) The notice may be given by publishing the notice once in a newspaper of general circulation in the county in which the motor vehicle, motorboat, vessel, or outboard motor is stored if: (1) the holder of the lien submits a written request by certified mail, return receipt requested, to the governmental entity with which the motor vehicle, motorboat, vessel, or outboard motor is registered requesting information relating to the identity of the last known registered owner and any lienholder of record;(2) the holder of the lien: (A) is advised in writing by the governmental entity with which the motor vehicle, motorboat, vessel, or outboard motor is registered that the entity is unwilling or unable to provide information on the last known registered owner 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 on or before the 21st day after the date the holder of the lien submits a request under Subdivision (1);(3) the identity of the last known registered owner cannot be determined;(4) the registration does not contain an address for the last known registered owner; and(5) the holder of the lien cannot determine the identities and addresses of the lienholders of record.(d) The holder of the lien is not required to publish notice under Subsection (c) if a correctly addressed notice is sent with sufficient postage under Subsection (b) and is returned as unclaimed or refused or with a notation that the addressee is unknown or has moved without leaving a forwarding address.(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 before the 31st day after the date a copy of the notice is filed with the county tax assessor-collector's office.(f) If the charges are not paid before the 31st day after the date that a copy of the notice required by Subsection (a) is filed with the county tax assessor-collector's office, the lienholder may sell the motor vehicle, motorboat, vessel, or outboard motor at a public sale and apply the proceeds to the charges. The lienholder shall pay excess proceeds to the person entitled to them. The public sale may not take place before the 31st day after the date a copy of the notice is filed with the county tax assessor-collector's office.(f-1) If the charges are not paid before the 31st day after the date that a copy of the notice required by Subsection (a) is filed with the county tax assessor-collector's office and the property that is the subject of the notice is a motor vehicle, the lienholder may, in lieu of selling the vehicle under Subsection (f), dispose of the vehicle in accordance with Subchapter D, Chapter 683, Transportation Code, if the lienholder determines that: (1) the vehicle's only residual value is as a source of parts or scrap metal; or(2) it is not economical to dispose of the vehicle at a public sale.(f-2) If the lienholder disposes of the property under Subsection (f-1), the lienholder shall apply the fair market value of the motor vehicle to the charges due to the lienholder.(g) After providing notice in accordance with this section, 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, on request, allow an owner and each lienholder of record to inspect or arrange an inspection of the motor vehicle by a qualified professional to verify that the repairs were made. The inspection must be completed before the date of the public sale authorized by Subsection (f).(h) Not later than the 15th business day after the date the county tax assessor-collector receives notice under this section, the county tax assessor-collector shall provide a copy of the notice that indicates the date the notice was filed with the county tax assessor-collector to the owner of the motor vehicle and each holder of a lien recorded on the certificate of title of the motor vehicle. Except as provided by this subsection, the county tax assessor-collector shall provide the notice required by this section in the same manner as a holder of a lien is required to provide a notice under this section, except that the county tax assessor-collector is not required to use certified mail. Notice under this section is required regardless of the date on which the charges on which the possessory lien is based accrued.Amended by Acts 2021, Texas Acts of the 87th Leg. - Regular Session, ch. 709,Sec. 1, eff. 9/1/2021.Amended by Acts 2017, Texas Acts of the 85th Leg. - Regular Session, ch. 1061,Sec. 6, eff. 9/1/2017.Amended by Acts 2017, Texas Acts of the 85th Leg. - Regular Session, ch. 1061,Sec. 5, eff. 9/1/2017.Amended by Acts 2015, Texas Acts of the 84th Leg. - Regular Session, ch. 1058,Sec. 2, eff. 9/1/2015.Amended By Acts 2011, 82nd Leg., R.S., Ch. 405, Sec. 7, eff. 1/1/2012.Amended By Acts 2011, 82nd Leg., R.S., Ch. 1204, Sec. 1, eff. 9/1/2011.Amended By Acts 2009, 81st Leg., R.S., Ch. 80, Sec. 2, eff. 9/1/2009.Amended By Acts 1999, 76th Leg., ch. 70, Sec. 3, eff. 9/1/1999.Amended By Acts 1997, 75th Leg., ch. 165, Sec. 30.248, eff. 9/1/1997Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 6(d), eff. 10/2/1984 Acts 1983, 68th Leg., p. 3581, ch. 576, Sec. 1, eff. 1/1/1984.