House Bill 1335

AN ACT TO REVISE THE PROCEDURE THAT MUST BE FOLLOWED TO ENFORCE A LIEN UPON AN ABANDONED MOTOR VEHICLE FOR THE PRICE OF TOWING AND STORAGE; TO REVISE A PROCEDURE FOR REMOVING ABANDONED MOTOR VEHICLES FROM THE RIGHT-OF-WAY OF PUBLIC STREETS, ROADS AND HIGHWAYS AND OTHER PUBLIC PROPERTY; TO REVISE THE PROCEDURE FOR SELLING AND DISPOSING OF SUCH MOTOR VEHICLES BY AUTOMOBILE DEALERS, WRECKER SERVICES, REPAIR SERVICE OWNERS OR PERSONS UPON WHOSE PROPERTY SUCH MOTOR VEHICLES HAVE BEEN LEFT OR LAWFULLY TOWED AT THE REQUEST OF A LAW ENFORCEMENT OFFICER; TO REPEAL SECTIONS 63-23-1 THROUGH 63-23-11 AND SECTION 85-7-251, MISSISSIPPI CODE OF 1972, WHICH PROVIDE PROCEDURES FOR THE SALE OF ABANDONED MOTOR VEHICLES; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. The intent of this act is to provide the procedures to be followed for removing abandoned motor vehicles from the right-of-way and open lands of the state, to allow a towing company to retain possession and assert a lien upon a towed motor vehicle for the price of towing and storage and provide a means of relieving automobile dealers, repairmen and others dealing in motor vehicles from unnecessary storage of motor vehicles which prevent the use of such floor space or property for storage for hire or use in their business, and is therefore in the public interest.

SECTION 2. For the purposes of this act, an "abandoned motor vehicle" shall mean a motor vehicle as defined by the Mississippi Motor Vehicle Title Law:

(a) Which has been left by the owner, or some person acting for the owner, with an automobile dealer, repairman or wrecker service for repair or for some other reason has not been called for by such owner or other person within a period of thirty (30) days after the time agreed upon or within thirty (30) days after such vehicle is turned over to such dealer, repairman or wrecker service if no time is agreed upon.

(b) Which is left unattended on a public street, road or highway or other public property for a period of at least five (5) days.

SECTION 3. (1) Any automobile dealer or repair service owner who has an abandoned vehicle on his property may sell the motor vehicle at public auction free and clear of all claims and subject to the provisions provided for in this section.

(2) Any person or party that has an abandoned vehicle on his property and is authorized to execute the sale or disposal of the vehicle shall obtain from the appropriate authority, the names and addresses of the owner and any lienholder. Prior to the sale of any one (1) abandoned vehicle, the party in possession of the vehicle shall inquire of the State Tax Commission as to the status of the vehicle with regard to the Mississippi Motor Vehicle Title Law. The inquiry shall provide the description of the vehicle, including the vehicle identification number. If the information from the appropriate authority fails to disclose the owner or lienholders, a good-faith effort shall be made to determine ownership, including a check for tag information, inspection sticker, or any papers in the vehicle that may indicate ownership.

(3) The party in possession of the vehicle shall, within ten (10) days of the vehicle being deemed abandoned, notify the last known owner of record and all lienholder(s) of record at their last known address, that the vehicle is in his possession by certified mail, return receipt requested. The notice shall (a) state the year, make, model and vehicle identification number of the abandoned motor vehicle; (b) set forth the date, time and place of sale, the name and address of the person or party who has possession of the vehicle and the vehicle's location; and (c) inform the owner and lienholder(s) of their right to reclaim the vehicle within twenty (20) days after the date of the notice upon timely payment of any towing and storage charges. If the owner and lienholder of the vehicle received the notice and has not redeemed the vehicle within twenty (20) days after the mailing of the notice, the party in possession may commence sale of the motor vehicle at public auction.

(4) If records of the State Tax Commission or any other appropriate authority contain no address for the owner or lienholder(s), or if the identity and addresses of the owner and any lienholder(s) cannot be determined with reasonable certainty, or the notice is returned unclaimed, or if the vehicle is not titled in the State of Mississippi, notice by publication shall be made once a week for two (2) consecutive weeks in a newspaper having general circulation in the county where the vehicle was abandoned. The published notice of sale shall contain substantially the same information prescribed by subsection (3) of this section for notice by mail.

SECTION 4. (1) A towing company that tows a motor vehicle upon the request of the owner of the vehicle, upon the direction of a law enforcement officer or upon the request of a real property owner upon whose property the vehicle has been left without permission of the real property owner for more than five (5) days, shall, upon complying with the provisions of this section, have a lien upon the vehicle for reasonable cost of towing and storing the vehicle and shall be entitled to retain possession of the motor vehicle until the costs are paid. A towing company that fails to make a good-faith effort to comply with the provisions of this section shall not be entitled to retain possession of the vehicle or to enforce a lien upon the vehicle, but may commence an action in a court of competent jurisdiction against the owner of the vehicle to recover the reasonable cost of towing and storing the vehicle and such other charges to which the towing company deems itself to be lawfully entitled.

(2) The following procedure must be followed in order to sell at public auction a towed vehicle or enforce the lien created under subsection (1) of this section:

(a) Within twenty-four (24) hours after towing a vehicle, the towing company shall report to the local law enforcement agency having jurisdiction of any vehicle that has been towed unless the vehicle was towed at the request of the owner of the vehicle.

(b) If the owner of a towed vehicle has not contacted the towing company within five (5) business days after the vehicle was towed, the towing company shall obtain from the appropriate authority the names and addresses of the owner and any lienholder(s).

(c) Prior to the sale of the vehicle the party in possession of the vehicle shall inquire of the State Tax Commission as to the status of the vehicle with regard to the Mississippi Motor Vehicle Title Law. The inquiry shall provide the description of the vehicle, including the vehicle identification number.

(d) If the information from the appropriate authority fails to disclose the owner or lienholder(s), a good-faith effort shall be made by the towing company to determine ownership, including a check for tag information, inspection sticker, or any papers in the vehicle that may indicate ownership.

(3) Upon location of the last known registered owner and lienholder(s), the towing company shall notify them at their last known addresses by certified mail, return receipt requested, postmarked not later than ten (10) days after the vehicle was towed, informing them of the amount due for towing and storage and that the vehicle will be sold unless the charges due and owing are timely paid. The notice shall give such owner and lienholder(s) the date, time and place of sale, the name of the person or party who has custody of the vehicle and inform the owner and lienholder(s) of their right to reclaim the vehicle within twenty (20) days after the date of the notice upon timely payment of any towing and storage charges. If the vehicle has not been redeemed within twenty (20) days after the mailing of the notice, the towing company may commence sale of the property at public auction after publishing once a week for two (2) consecutive weeks notice of the sale in a newspaper having general circulation in the county where the vehicle was towed.

(4) If the records of the State Tax Commission or any other appropriate authority contain no address for the owner or lienholder(s), or if the identity and addresses of the owner and any lienholder(s) cannot be determined with reasonable certainty, or the notice is returned unclaimed, or if the vehicle is not titled in the State of Mississippi, notice by publication shall be made once a week for two (2) consecutive weeks in a newspaper having general circulation in the county where the vehicle was towed. The published notice of sale shall contain substantially the same information prescribed by subsection (3) of this section for notice by mail.

SECTION 5. (1) After the sale of any vehicle as provided for in this act is made, the person or officer making the sale of such property shall promptly upon completion of the sale, deliver to the chancery clerk a list or itemization of the property sold, the amount paid for each item, the person to whom each item was sold and all money received from the sale and the gross charges levied by the person making the sale against the property. Any sale made by any person, officer, corporation or association shall have attached to the report of sale a sworn statement certifying as to the date the personal property or items sold first came into his possession and the date the personal property or item was sold.

(2) After the sale of any vehicle as provided for in this act, the person or officer designated and making the sale of such property shall advise the State Tax Commission of the sale and the commission shall advise the party of proper titling procedures.

(3) The proceeds of the sale of the property in excess of the amount needed to pay the towing, reasonable storage and necessary expenses of the procedures required by this act shall be held by the person selling the property for a period of six (6) months and, if not claimed by the owner within such time, shall become the property of the county and be paid to the chancery clerk of the county in which the sale was held to be deposited into the county general fund, subject, however, to any rights of the recorded lienholder.

(4) Every automobile dealership, repair service owner or towing company utilizing this act shall maintain accurate records for a period of three (3) years. The records shall identify the vehicles it has towed and/or stored and all procedures that it has taken to comply with the provisions of this act.

SECTION 6. Any person proving ownership or any lienholder may claim the motor vehicle at any time prior to sale by paying towing, repair, storage and other necessary expenses incurred.

SECTION 7. Sections 63-23-1, 63-23-3, 63-23-5, 63-23-7, 63-23-9, 63-23-11 and 85-7-251, Mississippi Code of 1972, which provide procedures for the sale of abandoned motor vehicles, are repealed.

SECTION 8. This act shall take effect and be in force from and after July 1, 2007.