MISSISSIPPI LEGISLATURE

2024 Regular Session

To: Judiciary B

By: Representatives Holloway (76th), Gibbs (72nd), Bell (65th), Mickens, Thompson

House Bill 1085

AN ACT TO AMEND SECTION 85-7-251, MISSISSIPPI CODE OF 1972, TO CREATE A PROCEDURE FOR RECLAIMING MOTOR VEHICLES OR VESSELS WHILE THEY ARE IN THE PROCESS OF BEING TOWED; 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.  (1)  The owner of a motor vehicle that has been towed at his request or at the direction of a law enforcement officer, or towed upon request of a real property owner upon whose property a vehicle has been left without permission of the real property owner, shall be liable for the reasonable price of towing and storage of such vehicle; and the towing company to whom the price of such labor and storage costs may be due shall have the right to retain possession of such motor vehicle until the price is paid. 

     (2)  Within twenty-four (24) hours, the towing company shall report to the local law enforcement agency having jurisdiction any vehicle that has been towed 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 shall obtain from the appropriate authority the names and addresses of any owner and lienholder.  If the information from the appropriate authority fails to disclose the owner or lienholder, a good faith effort shall be made by the towing company to locate ownership, including a check for tag information, inspection sticker, or any papers in the vehicle that may indicate ownership.  Upon location of the owner and lienholder, the towing company shall notify them by registered mail of the amount due for towing, postmarked no later than the tenth day following the initial tow.  If such amount shall not be paid within thirty (30) days from the initial tow, the towing company to whom such charges are payable shall notify by certified mail any legal owner and holder of any lien, as disclosed by the motor vehicle title records or other investigation, of notice of sale of the property.  If such property has not been redeemed within ten (10) days after the mailing of the certified letter, the towing company may commence sale of the property at public auction.  The towing company shall publish for two (2) consecutive weeks a notice of sale in the newspaper having circulation in the county where the vehicle was initially towed.  The proceeds of the sale of such property in excess of the amount needed to pay the towing, reasonable storage and necessary expenses of the procedures required by this section shall be held by the towing company for a period of six (6) months, and, if not reclaimed by the owner thereof 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. 

     (3)  (a)  Any person who is in the process of towing or removing a vehicle or vessel from property as authorized by this section shall stop such towing or removing if the owner or person in control of the vehicle or vessel seeks return of the vehicle or vessel and pays a reasonable service fee of not more than one-half (1/2) of the posted rate for the towing or removal service at the time the vehicle is being towed or removed.  If the owner or person in control of the vehicle does not pay the required fee, the person may continue to tow or remove the vehicle or vessel.  If the owner or person in control of the vehicle does pay the required fee, a signed, detailed receipt must be given to the person redeeming the vehicle or vessel.

          (b)  A person may not pay or accept money or other valuable consideration for the privilege of towing or removing a vehicle.

          (c)  Except as otherwise provided for property appurtenant to and a part of a single-family residence, and except for instances when notice is personally given to the owner or other legally authorized person in control of the vehicle or vessel that the area in which that vehicle or vessel is parked is reserved or otherwise unavailable for unauthorized vehicles or vessels and that the vehicle or vessel is subject to being removed at the owner's or operator's expense, any property owner or lessee, or person authorized by the property owner or lessee, prior to towing or removing any vehicle or vessel from private property without the consent of the owner or other legally authorized person in control of that vehicle or vessel, must post a notice that meets the following requirements:

               (i)  The notice must be prominently placed at each driveway access or curb cut that allows vehicular access to the property, within five (5) feet from the public right-of-way line. If there are no curbs or access barriers, the signs must be posted not less than one (1) sign for each twenty-five (25) feet of lot frontage.

               (ii)  The notice must clearly indicate, in not less than two (2) inch high, light-reflective letters on a contrasting background, that "unauthorized vehicles will be towed away at the owner's expense".  The words "tow-away zone" must be included on the sign in not less than four (4) inch high letters.

               (iii)  The notice must also provide the name and current telephone number of the person or firm towing or removing the vehicles or vessels.

               (iv)  The sign structure containing the required notices must be permanently installed with the words "tow-away zone" not less than three (3) feet and not more than six (6) feet above ground level and must be continuously maintained on the property for not less than twenty-four (24) hours before the vehicle or vessel is towed or removed.

               (v)  The local government may require permitting and inspection of these signs before any vehicle or vessel is towed or removed.

               (vi)  A business with twenty (20) or fewer parking spaces satisfies the notice requirements of this subparagraph by prominently displaying a sign stating "Reserved Parking for Customers Only, Unauthorized Vehicles or Vessels Will be Towed Away at the Owner's Expense" in not less than four (4) inch high, light-reflective letters on a contrasting background.

               (vii)  A property owner towing or removing vessels from real property must post notice, consistent with the requirements in subparagraphs (i) through (vii), which apply to vehicles or vessels, that unauthorized vehicles or vessels will be towed away at the owner's expense.

          (d)  A business owner or lessee may authorize the removal of a vehicle or vessel by a towing company when the vehicle or vessel is parked in such a manner that restricts the normal operation of business; and if a vehicle or vessel parked on a public right-of-way obstructs access to a private driveway, the owner, lessee or agent may have the vehicle or vessel removed by a towing company upon signing an order that the vehicle or vessel be removed without a posted tow-away zone sign.

          (e)  Any person or firm towing or removing any vehicles or vessels from private property without the consent of the owner or other legally authorized person in control of the vehicles or vessels shall, on any trucks, wreckers as defined in current law, or other vehicles used in the towing or removal, have the name, address, and telephone number of the company performing such service clearly printed in contrasting colors on the driver and passenger sides of the vehicle.  The name shall be in at least  three (3) inch permanently affixed letters, and the address and telephone number shall be in at least one (1) inch permanently affixed letters.

          (f)  Vehicle entry for the purpose of removing the vehicle or vessel shall be allowed with reasonable care on the part of the person or firm towing the vehicle or vessel.  Such person or firm shall be liable for any damage occasioned to the vehicle or vessel if such entry is not in accordance with the standard of reasonable care.

         (g)  When a vehicle or vessel has been towed or removed pursuant to this section, it must be released to its owner or custodian during regular business hours.  Any vehicle or vessel owner or agent shall have the right to inspect the vehicle or vessel before accepting its return, and no release or waiver of any kind which would release the person or firm towing the vehicle or vessel from liability for damages noted by the owner or other legally authorized person at the time of the redemption may be required from any vehicle or vessel owner, custodian, or agent as a condition of release of the vehicle or vessel to its owner.  A detailed, signed receipt showing the legal name of the company or person towing or removing the vehicle or vessel must be given to the person paying towing or storage charges at the time of payment, whether requested or not.  All charges paid by the vehicle owner shall not exceed the reasonable posted rates of the towing company.

          (h)  These requirements are minimum standards and do not preclude enactment of additional regulations by any municipality or county including the right to regulate rates when vehicles or vessels are towed from private property.

          (i)  All towing companies engaging in towing vehicles or vessels from private property must also meet the following conditions:

               (i)  Maintain a minimum One Million Dollars ($1,000,000.00) in general liability insurance coverage;

               (ii)  Attend annual certified training;

               (iii)  Carry a valid business license; and

               (iv)  Must be owned by an individual or individuals who are not convicted felons.

     (4)  The provisions of this section shall not apply to law enforcement, firefighters, rescue squad, ambulance, or other emergency vehicles or vessels that are marked as such or to property owned by any governmental entity.

     (5)  When a person improperly causes a vehicle or vessel to be removed, such person shall be liable to the owner or lessee of the vehicle or vessel for the cost of removal, transportation, and storage, any damages resulting from the removal, transportation, or storage of the vehicle or vessel, attorney's fees and court costs.

     ( * * *36)  The failure to make a good faith effort to comply with the requirements of this section shall preclude the imposition of any storage charges or towing charges against the towed vehicle. 

     ( * * *47)  Every towing company shall maintain accurate records for a period of three (3) years, which records shall identify the vehicles it has towed and stored and all procedures that it has taken to comply with the provisions of this chapter.

     SECTION 2.  This act shall take effect and be in force from and after July 1, 2024.