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.
HB 5340 would change Texas law governing vehicle storage facilities and the disposal of abandoned vehicles. The bill requires proof of mailed notice to be documented with specific U.S. Postal Service records, clarifies when a vehicle is treated as abandoned after notice is mailed or published, and requires the storage facility to report the abandonment to law enforcement when applicable. It also authorizes vehicle storage facility operators to sell eligible abandoned vehicles at public sale through an Internet website approved by the Texas Department of Motor Vehicles (TxDMV), rather than only through the existing process.
The bill creates a new TxDMV approval and rulemaking framework for one or more online auction websites used for these sales. Approved websites would have to operate under TxDMV rules, and storage facility operators would have to submit vehicle photos showing all sides of the vehicle. The bill also adds special disclosure and penalty rules for flood-damaged salvage vehicles: a facility may not submit such a vehicle unless the damage is disclosed and the title is properly branded, and violations can trigger treble damages, attorney’s fees, and possible license revocation for repeated violations. In addition, the bill amends the Tax Code so storage fees for vehicles sold under the abandoned-vehicle sale process are excluded from “total consideration” for motor vehicle sales tax purposes.
The bill’s impact on state law is to modernize and centralize the abandoned-vehicle sale process, expand TxDMV oversight of online public sales, and adjust tax treatment for certain storage fees. It also removes or repeals provisions that are no longer needed under the revised notice and abandonment procedures. The changes apply only to vehicles received in storage on or after the effective date, which is September 1, 2025.
Because there are no recorded committee transcripts or votes in the provided materials, there is little direct evidence of legislative sentiment. Based on the bill’s structure, it appears aimed at improving administrative efficiency, transparency, and consumer protection in abandoned-vehicle sales, while also giving the state more control over the online auction process. The absence of recorded opposition or debate in the provided context suggests no documented controversy at this stage, though the new disclosure liability and TxDMV approval requirements could be points of concern for vehicle storage operators and website vendors.
HB 5340 amends Chapter 2303 of the Occupations Code to change notice, abandonment, and sale procedures for vehicles held by vehicle storage facilities, and it amends the Tax Code to exclude certain storage fees from taxable motor vehicle sales consideration. It also creates a new TxDMV approval and regulatory program for Internet websites used to conduct public sales of abandoned vehicles, with enforcement tools including rulemaking authority, approval revocation, civil liability for undisclosed flood damage, and potential license revocation for repeat violations.
No committee discussion or vote record was provided, so there is no direct evidence of support or opposition from the legislative process in the supplied materials. The bill’s design suggests a generally practical, administrative tone focused on modernizing abandoned-vehicle sales, increasing transparency, and protecting purchasers from undisclosed damage. Any negative sentiment would likely come from regulated parties facing new compliance, disclosure, and oversight requirements.
The main potential points of contention are the new TxDMV approval regime for online auction websites, the mandatory use of approved Internet sales platforms, and the heightened liability for vehicle storage facility operators who fail to disclose flood damage on salvage vehicles. Vehicle storage operators may also object to the stricter proof-of-notice requirements and the expanded reporting obligations to law enforcement. The tax change excluding storage fees from total consideration is likely less controversial, but it still alters how sales are reported and taxed.