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