Recovering the Cost of Notice by Publication: Key Considerations for Vehicle Storage Facilities
Introduction
In Texas, Vehicle Storage Facilities (VSFs) are governed by both statutes (Chapter 2303 of the Occupations Code) and regulations (16 Tex. Admin. Code Chapter 85) that outline the circumstances under which fees may be charged to vehicle owners. One lesser-known fee is the publication fee, which applies when a VSF notifies a vehicle owner or lienholder by publication. Understanding the recovery of these fees is crucial for both VSF operators and vehicle owners as the costs of notice by publication can be significant.
When Can a VSF Recover the Costs of a Notice by Publication?
Texas Occupations Code § 2303.152 provides the circumstances in which Notice by Publication may be used. The conditions under which publication may be used are disjunctive, meaning that the presence of any one of the following scenarios permits the use of notice by publication:
The vehicle is registered in another state;.
The operator of the storage facility submits to the governmental entity responsible for maintaining the motor vehicle title and registration database for the state in which the vehicle is registered a request for information relating to the identity of the registered owner and any lienholder of record that is either (A) written; or (B) electronic, through the governmental entity's secure access portal;
The identity of the registered owner cannot be determined;
The registration does not contain an address for the registered owner; or
The operator of the storage facility cannot reasonably determine the identity and address of each lienholder.
Recovery of Publication Fees
16 Texas Administrative Code Section 85.722(c)(1) provides that VSFs are entitled to recover the actual costs incurred for notice by publication if the costs exceed 50% of the notification fee (currently capped at $50). This means that if the cost of publishing the notice is more than $25, the VSF can recover the full cost.
Example Scenario:
Consider a scenario where a vehicle, registered in another state, is stored in a VSF. Despite efforts to obtain the owner's contact information, the VSF is unable to do so and proceeds with a notice by publication. The costs for these publications are as follows:
First Publication Cost: $99
Second Publication Cost: $99
Since the cost of each publication exceeds $25, the VSF can recover the entire amount of $99 for each notice.
Total Charges:
Notification Fee: $50 (if applicable for initial notification attempts)
First Publication Fee: $99
Second Publication Fee: $99
Total Recoverable Cost in this Example: $248
Itemization and Transparency
To ensure transparency, it is essential that the VSF itemizes the publication fees clearly. Each publication fee should be labeled as "Publication Fees" and separately listed on the invoice provided to the vehicle owner. This detailed billing allows the owner to understand the charges incurred.
Record-Keeping Requirements
VSFs must maintain thorough records of all notices by publication. This includes:
Receipts and invoices for the publication costs.
Copies of the published notices as evidence that the publication occurred.
These records should be kept as part of the vehicle's storage documentation to demonstrate compliance with legal requirements and to support the charges billed to the vehicle owner.
Conclusion
Recovering publication fees is a straightforward process when VSFs adhere to the regulations set forth in Texas law. By ensuring that all necessary steps are followed and properly documented, VSFs can recover the costs incurred for necessary publications while maintaining transparency and fairness for vehicle owners. Understanding the conditions under which these fees can be charged and the requirements for itemization and record-keeping helps both parties navigate the process effectively.