Relating to providing notice of a vehicle towed to a vehicle storage facility by publication on a third-party Internet website.
ModeratePlan for compliance
Low Cost
Effective:2025-06-20
Enforcing Agencies
Texas Department of Licensing and Regulation (TDLR)
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: June 20, 2025 (Immediate effect triggered by supermajority vote).
Compliance Deadline:TBD. You cannot switch to digital notice until TDLR publishes the list of approved third-party websites. Until that list appears, you must continue using newspaper publications to maintain a valid lien.
Agency Rulemaking: TDLR must now establish technical criteria for "approved" websites and publish the authorized vendor links on their main domain. We anticipate a 30-90 day regulatory lag before the digital option is fully operational.
Immediate Action Plan
1.Monitor TDLR: Assign a specific staff member to check the TDLR website weekly for the publication of the "Approved Third-Party Website" list.
2.Hold Status Quo: Do not switch to digital notice today. Continue newspaper publication until the approved vendor list is officially published.
3.Prepare SOPs: Draft the new digital workflow now so your team can switch immediately upon agency implementation to maximize cost savings.
4.Audit Insurance: Verify with your broker that your Errors & Omissions (E&O) policy covers digital notification failures.
Operational Changes Required
Contracts
Newspapers: Review termination clauses in bulk-buy or retainer agreements with local newspapers. Prepare to renegotiate or cancel these contracts, as your ad volume will decrease by approximately 80-90% once the digital system is active.
Web Vendors: You will need to execute service agreements with the new digital providers. Ensure these contracts include an indemnity clause holding the VSF harmless if the website suffers downtime or loses TDLR compliance during a statutory notice period.
Hiring/Training
SOP Update: Update "Second Notice" Standard Operating Procedures. Staff must be trained to stop routing unknown-owner files to the newspaper and instead upload them to the approved web portal *only after* the TDLR list is published.
Verification: Staff must verify the chosen website is still on the active TDLR list before every batch upload.
Reporting & Record-Keeping
Audit Trail: Replace physical newspaper clippings with digital affidavits or permanent screenshots from the third-party website.
Data Integrity: Ensure the digital listing contains the exact statutory data points required by the Occupations Code (Make, Model, VIN, Storage Location, Charges).
Retention: Retain digital proofs in the vehicle packet for the standard two-year statutory period to defend against conversion claims.
Fees & Costs
Cost Reduction: Expect a significant reduction in operational costs regarding notification fees.
New Fees: Budget for per-listing fees charged by the third-party websites. While likely lower than print rates, these fees are not currently capped by the statute.
Strategic Ambiguities & Considerations
The statute does not define the specific criteria for a website to become "department-approved," nor does it set a cap on the fees these vendors can charge VSFs. Additionally, the law requires notice be "provided" but does not specify the minimum duration the digital listing must remain active. We expect TDLR rulemaking to clarify uptime requirements, searchability standards, and posting duration.
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Current law requires the operator of a vehicle storage facility to notify the registered owner and primary lienholder of a vehicle that has been towed to the facility and sets out conditions under which that notice requirement may be satisfied through publication in a newspaper of general circulation in the county in which the vehicle is stored. The bill author has informed the committee that this is becoming increasingly difficult as the number of newspapers continues to decline across Texas. In the Texas Department of Licensing and Regulation's 2025-2029 Strategic Plan, the agency found that "requiring a notice to be filed with a newspaper in the county where a vehicle is stored or where certain operations will occur creates an impediment to licensees providing the notice and the public receiving the notice" and that "due to the decline of local newspapers and a decline in readership, the required posting no longer provides the notice to the public that was intended by legislation and an alternative notice is needed." H.B. 3928 seeks to provide the option for a vehicle storage facility operator to provide the requisite notice regarding a towed vehicle on certain publicly facing websites as an alternative to providing that notice in an applicable newspaper.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 3928 amends the Occupations Code to give the operator of a vehicle storage facility, as an alternative to providing notice to the registered owner and the primary lienholder of a vehicle towed to such a facility by publication in an applicable newspaper as authorized under certain conditions, the option of providing such notice under those same conditions on a publicly available website maintained by a third party approved by the Texas Department of Licensing and Regulation (TDLR). The bill requires TDLR to include on its website a link to any website maintained by a TDLR-approved third party where notice may be provided under the bill's provisions.
Honorable Dade Phelan, Chair, House Committee on Licensing & Administrative Procedures
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB3928 by Thompson (Relating to providing notice of a vehicle towed to a vehicle storage facility by publication on a third-party Internet website.), As Introduced
No significant fiscal implication to the State is anticipated.
It is assumed that any costs associated with the bill could be absorbed using existing resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
452 Department of Licensing and Regulation
LBB Staff:
JMc, TUf, BFa
Related Legislation
Explore more bills from this author and on related topics
HB3928 immediately authorizes Vehicle Storage Facilities (VSFs) to utilize TDLR-approved third-party websites for public notification regarding vehicles with unknown owners or out-of-state registration, replacing the costly requirement for newspaper publication. While this legislation is effective immediately, VSFs cannot legally utilize this method until TDLR publishes its official list of approved vendors; utilizing an unapproved site constitutes a failure to notify and exposes the facility to liability for wrongful foreclosure. Implementation Timeline Effective Date: June 20, 2025 (Immediate effect triggered by supermajority vote).
Q
Who authored HB3928?
HB3928 was authored by Texas Representative Senfronia Thompson during the Regular Session.
Q
When was HB3928 signed into law?
HB3928 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce HB3928?
HB3928 is enforced by Texas Department of Licensing and Regulation (TDLR).
Q
How urgent is compliance with HB3928?
The compliance urgency for HB3928 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB3928?
The cost impact of HB3928 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does HB3928 address?
HB3928 addresses topics including occupational regulation, occupational regulation--other trades & professions, vehicles & traffic, vehicles & traffic--general and internet.
Legislative data provided by LegiScanLast updated: November 25, 2025
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