House Bill 1458

AN ACT TO SPECIFY THE PROCEDURES TO BE FOLLOWED FOR REMOVING ABANDONED MOTOR VEHICLES FROM THE RIGHT-OF-WAY AND OPEN LANDS OF THE STATE; TO 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 THEIR PROPERTY FOR STORAGE FOR HIRE OR USE IN THEIR BUSINESS; TO AMEND SECTION 85-7-251, MISSISSIPPI CODE OF 1972, TO DEFINE AN ABANDONED MOTOR VEHICLE; TO CREATE SECTION 85-7-253, MISSISSIPPI CODE OF 1972, TO PROVIDE PROCEDURES TO BE FOLLOWED IN ENFORCING A LIEN FOR TOWING, STORAGE AND REPAIR CHARGES AGAINST A VEHICLE; TO CREATE SECTION 85-7-255, MISSISSIPPI CODE OF 1972, TO ALLOW AN AUTOMOBILE DEALER OR AUTOMOBILE REPAIR SERVICE OWNER TO SELL A VEHICLE ABANDONED ON HIS PROPERTY AT PUBLIC AUCTION; TO CREATE SECTION 85-7-257, MISSISSIPPI CODE OF 1972, TO ALLOW A TOWING COMPANY TO RETAIN POSSESSION OF AND ASSERT A LIEN UPON A TOWED MOTOR VEHICLE FOR THE PRICE OF TOWING AND STORAGE; TO CREATE SECTION 85-7-259, MISSISSIPPI CODE OF 1972, TO PRESCRIBE PROCEDURES TO BE FOLLOWED FOR THE SALE OF AN ABANDONED VEHICLE; TO CREATE SECTION 85-7-261, MISSISSIPPI CODE OF 1972, WHICH AUTHORIZES THE OWNER OR LIENHOLDER OF AN ABANDONED MOTOR VEHICLE TO CLAIM THE VEHICLE BEFORE SALE; TO REPEAL SECTIONS 63-23-1 THROUGH 63-23-11, MISSISSIPPI CODE OF 1972, WHICH PROVIDE FOR THE REMOVAL, STORAGE, AND SALE AT PUBLIC AUCTION OF ABANDONED VEHICLES; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 85-7-251, Mississippi Code of 1972, is amended as follows:

85-7-251. For the purposes of Sections 85-7-251 through 85-7-261, Mississippi Code of 1972, an "abandoned motor vehicle" shall mean a motor vehicle as defined by the Mississippi Motor Vehicle Title Law, that:

(a) 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, and has not been called for by the owner or other person within a period of thirty (30) days after the time agreed upon or within thirty (30) days after the vehicle is turned over to the dealer, repairman or wrecker service when no time has been agreed upon; or

(b) Is left unattended on a public street, road or highway or other public property for a period of at least five (5) days, or is towed at the direction of a law enforcement officer.

SECTION 2. The following shall be codified as Section 85-7-253, Mississippi Code of 1972:

85-7-253. (1) Any person or entity authorized under Sections 85-7-251 through 85-7-261, Mississippi Code of 1972, to execute the sale or disposal of an abandoned vehicle shall obtain from the appropriate authority the names and addresses of the owner or owners and any lienholder or lienholders.

(2) Before the sale of an abandoned vehicle under this section, the person 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 State Tax Commission fails to disclose any owner or lienholder, a good faith, diligent 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) (a) Within ten (10) days of a vehicle being deemed abandoned, the person or entity in possession of the vehicle shall notify the last known owners of record and all lienholders of record at their last known addresses by certified mail, return receipt requested, that the vehicle is in its possession. The notice shall:

(i) State the year, make, model and vehicle identification number of the abandoned motor vehicle;

(ii) The amount due for all charges, whether for towing, storage or repair;

(iii) Set forth the date, time and place of the proposed sale, the name and address of the person or party who has possession of the vehicle and the vehicle's location; and

(iv) Inform any owner and lienholder of their right to reclaim the vehicle within twenty (20) days after the date of the notice upon timely payment of all charges, whether for towing, storage or repair.

(b) If the owner and lienholder of the vehicle received notice and have not redeemed the vehicle within twenty (20) days after the mailing of the certified letter, sale of the motor vehicle at public auction may be commenced as follows:

(i) For an entity covered under Section 85-7-255, without further delay or notice; and

(ii) For an entity covered under Section 85-7-257, after publishing once a week for two (2) consecutive weeks a notice of sale in a newspaper having circulation in the county where the vehicle was initially towed.

(4) (a) Notice by publication shall be made once a week for two (2) consecutive weeks in a newspaper having circulation in the county where the vehicle was initially abandoned if:

(i) Records of the State Tax Commission or any other appropriate authority contain no address for owners or lienholders;

(ii) The identity and addresses of any owners and lienholders cannot be determined with reasonable certainty;

(iii) The notice letters are returned unclaimed; or

(iv) The vehicle is not titled in the State of Mississippi.

(b) The notice by publication shall contain substantially the same information prescribed by subsection (3) of this section for notice by mail.

SECTION 3. The following shall be codified as Section 85-7-255, Mississippi Code of 1972:

85-7-255. Any automobile dealer or repair service owner who shall have an abandoned vehicle on the property of the dealer or repair service owner may sell the motor vehicle by public auction, free and clear of all claims, subject to the notice and sale provisions contained in Sections 85-7-251 through 85-7-261.

SECTION 4. The following shall be codified as Section 85-7-257, Mississippi Code of 1972:

85-7-257. (1) A towing company that tows a motor vehicle shall have a lien upon the vehicle for the reasonable price of towing and storage of the vehicle and shall be entitled to retain possession of the motor vehicle until the price is paid under the following conditions:

(a) The vehicle was towed at the request of one (1) of the following:

(i) The owner of the vehicle;

(ii) A law enforcement officer; or

(iii) A real property owner upon whose property the vehicle has been left without permission of the real property owner;

(b) The towing company complied with the provisions of this section; and

(c) A towing company that fails to make a good faith effort to comply with the provisions of this section shall not be entitled to charge towing or storage charges and 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 price for towing and storage of the vehicle and such other charges to which the towing company deems itself to be lawfully entitled.

(2) In order to sell a towed vehicle under Section 85-7-253 or enforce the lien created under subsection (1) of this section, the towing company shall report to the local law enforcement agency having jurisdiction any vehicle that has been towed within twenty-four (24) hours after towing a vehicle, unless the vehicle was towed at the request of the owner of the vehicle. If the owner of a towed vehicle has not contacted the towing company within five (5) business days of the initial tow, the towing company may proceed as set forth in Section 85-7-253.

SECTION 5. The following shall be codified as Section 85-7-259, Mississippi Code of 1972:

85-7-259. (1) After the sale of any vehicle as set out in Sections 85-7-251 through 85-7-261 is made, the person or officer designated and 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 monies received from such 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 such personal property or items sold first came into his possession and the date said personal property or item was sold.

(2) After the sale of any vehicle as set out in Sections 85-7-251 through 85-7-261 is made, 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 depending upon method of disposition of the vehicle.

(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 Sections 85-7-251 through 85-7-261 shall be held by the company for a period of six (6) months and, if not claimed by the owner or the lienholder, shall become the property of the county and be paid at the expiration of the period to the chancery clerk of the county in which the sale was held to be deposited into the county general fund, subject to any rights of the recorded lienholder.

(4) Every automobile dealership, repair service owner or towing company availing themselves of the remedies provided in Sections 85-7-251 through 85-7-261, shall maintain accurate records for a period of three (3) years, which records shall:

(a) Identify the vehicles it has towed or stored, or both towed and stored; and

(b) Set forth all actions that it has taken to comply with the provisions of Sections 85-7-251 through 85-7-261.

SECTION 6. The following shall be codified as Section 85-7-261, Mississippi Code of 1972:

85-7-261. Any person proving ownership or any lienholder may claim a motor vehicle at any time prior to sale by paying towing, repair, storage and other necessary expenses incurred.

SECTION 7. Section 63-23-1, Mississippi Code of 1972, which deals with the purpose of removing abandoned motor vehicles; Section 63-23-3, Mississippi Code of 1972, which creates a definition of abandoned motor vehicles; Section 63-23-5, Mississippi Code of 1972, which provides for disposal procedures and escheat of proceeds; Section 63-23-7, Mississippi Code of 1972, which requires inquiry as to ownership of an abandoned vehicle before disposal; Section 63-23-9, Mississippi Code of 1972, which specifies persons to be given notice of sale of an abandoned vehicle; Section 63-23-11, Mississippi Code of 1972, which allows an owner or lienholder to claim an abandoned vehicle prior to sale, are repealed.

SECTION 8. This act shall take effect and be in force from and after July 1, 2008.