House Bill 239

AN ACT TO AUTHORIZE A CURRENT OWNER OF A MOTOR VEHICLE TO CONTEST THE SALE OF SUCH VEHICLE BY FILING A NOTICE OF APPEAL WITH THE CIRCUIT COURT IN THE COUNTY WHERE THE SALE IS SCHEDULED TO OCCUR; TO BRING FORWARD SECTIONS 63-23-5 AND 63-23-9, MISSISSIPPI CODE OF 1972, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) The current owners, registrants, secured parties, and lienholders of record, if any, of a motor vehicle, prior to the sale, may contest the sale of the motor vehicle by filing a notice of appeal with the circuit court in the county where the sale is scheduled to occur.

(2) If no application for hearing is timely made by the current owners, registrants, secured parties, or lienholders of record, if any, for the motor vehicle, the motor vehicle may be sold at the time and place designated in the notice of sale and any personal property or items contained in the vehicle may be disposed of in a manner determined by the person or entity conducting the sale.

(3) If application for a hearing is timely made by the current owners, registrants, secured parties, or lienholders of record, if any, for the motor vehicle, then all such parties shall be provided notice by the circuit court. The circuit court shall conduct a hearing to determine if the motor vehicle is an abandoned motor vehicle as defined by this chapter and whether proper notices were provided. The motor vehicle shall not be sold pending the decision by the circuit court.

(4) If the circuit court judge determines that the motor vehicle was abandoned and that proper notice or notices were issued, the motor vehicle may be sold as an abandoned motor vehicle after notice of the sale.

(5) Any contest regarding the sale of an abandoned motor vehicle, after the sale has occurred, shall be filed in the circuit court in the county where the sale occurred. Any contest regarding the reasonable cost of repair, towing, storage, and all reasonable expenses incurred in connection with the sale shall be filed in the circuit court in the county where the sale is scheduled or has occurred.

SECTION 2. Section 63-23-5, Mississippi Code of 1972, is brought forward as follows:

63-23-5. (1) Any automobile dealer, wrecker service, or repair service owner, or any person or party on whose property a motor vehicle is lawfully towed at the written request of a law enforcement officer, who shall have an abandoned motor vehicle on his property, may sell, free and clear of all claims such motor vehicle by public auction, or if the abandoned motor vehicle has no market value, may dispose of the same after having received at least two (2) written statements from licensed automobile dealers as to the worthlessness of such motor vehicle and after compliance with subsection (2) of this section and Section 63-23-9. An abandoned motor vehicle as defined by Section 63-23-3(b) shall not be sold at auction until thirty (30) days from date of removal from a public street, road or highway.

(2) The person authorized to execute the sale or disposal of an abandoned motor vehicle shall notify, within ten (10) days of receipt of such vehicle, any Mississippi lienholder on such vehicle that unless a claim on the vehicle is made within thirty (30) days of such notice, the vehicle will be sold or destroyed.

(3) After the sale of any vehicle as set out hereinabove 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, the gross charges levied by the person making the sale against the property sold and the net amount paid over to the chancery clerk. 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 or was abandoned on his premises and the date said personal property or item was sold.

(4) The proceeds of the sale in excess of repair, towing and storage expenses and all expenses incurred in connection with a sale when a sale is made under the provisions of this chapter, shall escheat to the county and shall be paid over to the chancery clerk to be placed into the general fund of the county in which the vehicle is abandoned. However, in those municipalities availing themselves of the provisions of Section 21-39-21, the proceeds of the sale in excess of the repairs, towing, storage or other necessary expenses incurred shall escheat to the general fund of the municipality.

SECTION 3. Section 63-23-9, Mississippi Code of 1972, is brought forward as follows:

63-23-9. The last-known registered owner of an abandoned motor vehicle and all lienholders of record, when such information is reasonably obtainable, shall be notified by registered or certified mail that such vehicle will be sold pursuant to the provisions of this chapter. Said notice shall give such owner and lienholders the date, time and place of sale and name of the person or party who has custody of such vehicle.

If the identity of the last registered owner cannot be determined, or if the registration contains no address for the owner, or if it is impossible to determine with reasonable certainty the identity and addresses of all lienholders, notice by three publications once each week for three consecutive weeks in a newspaper of general circulation in the county where the motor vehicle was abandoned shall be sufficient to meet all requirements of notice pursuant to this chapter.

SECTION 4. This act shall take effect and be in force from and after July 1, 2023.