HB0538Enacted

Amends TCA Title 55, Chapter 16 and Title 55, Chapter 23.

This bill revises various provisions regarding unclaimed and abandoned vehicles, as discussed below.<br /> <br /> Under present law:<br /> <br /> (1) Whenever a motor vehicle has been stored, parked or left in a garage, trailer park, or any type of storage or parking lot for a period of more than 30 consecutive days, the owner of the garage, trailer park or lot must report in writing the make, motor number, vehicle identification number, and serial number of the motor vehicle to the department of revenue. This provision does not apply where the owner of the motor vehicle so parked or stored is personally known to the owner or operator of the garage, trailer park, storage or parking lot and where the motor vehicle owner has made arrangements for the parking or storing of the motor vehicle for a longer period of time than 30 days; and<br /> (2) Any person who fails to submit the required report within 10 days after the termination of the 30-day period forfeits all claims for storage or parking of the vehicle, and commits a Class C misdemeanor.<br /> <br /> This bill deletes the above-described present law provisions.<br /> <br /> Under present law:<br /> <br /> (1) A police department that takes into custody an abandoned, immobile, or unattended motor vehicle, must, within three business days after taking such motor vehicle into custody, verify ownership of such motor vehicle; and within three business days after receiving verification of ownership, must notify by registered mail, return receipt requested, the last known registered owner of the motor vehicle and all lien holders of record that the vehicle has been taken into custody; and<br /> (2) A police department through its chief officer, after complying with the notice requirement described above in (1) may execute a written waiver of its right to sell a vehicle taken into custody in favor of a garagekeeper or towing firm in whose possession the vehicle was lawfully placed by the police department. If a garagekeeper or towing firm has made repairs to a vehicle for which a waiver has been executed, the garagekeeper or towing firm may proceed to enforce the lien. If the garagekeeper or towing firm has not made repairs to a vehicle for which a waiver has been executed, the garagekeeper or towing firm may, after 30 days from the waiver date, proceed to sell the vehicle and keep the proceeds from the sale.<br /> <br /> This bill removes the requirement from (2) above that the garagekeeper or towing firm wait 30 days before selling the vehicle.<br /> <br /> Under present law:<br /> <br /> (1) Persons engaged in the business of towing motor vehicles by wrecker or otherwise and the storing of these motor vehicles for any type of remuneration, are prohibited from charging the owner or lienholder of any stored motor vehicle a storage fee for a period exceeding 21 days without the consent of the owner or lienholder; and<br /> (2) Upon provision of documentation from an insurer or lienholder showing its right to take custody of the vehicle, persons engaged in the businesses described in (1) must release the vehicle to the insurer or lienholder, or an authorized agent or representative for such insurer or lienholder, upon the insurer's or lienholder's payment of reasonable charges due, without requiring additional consent from the owner of the vehicle. <br /> <br /> For purposes of (2) above, present law specifies that "reasonable charges" do not include a gate, access, or release fee for any day during which daily storage is also being charged. This bill specifies that this provision applies only to such fees charged during normal business hours (so such fees charged outside normal business hours will be considered to be reasonable fees). <br /> <br /> ON APRIL 4, 2019, THE HOUSE SUBSTITUTED SENATE BILL 1493 FOR HOUSE BILL 538, ADOPTED AMENDMENT #1, AND RESET SENATE BILL 1493, AS AMENDED.<br /> <br /> AMENDMENT #1 removes the present law authorization for a garagekeeper or towing firm to keep the proceeds from the sale of a vehicle that a police department waived its right to sell and lawfully placed with the garagekeeper or towing firm, as described above in the bill summary.<br /> <br /> Present law provides for a towing advisory board to advise the towing industry and law enforcement agencies on the adoption of policies and other issues related to the towing industry. This amendment expands the towing advisory board from nine to 11 members by adding a member appointed by the Tennessee Trucking Association and a member appointed by the American Car Rental Association.<br /> <br /> ON APRIL 10, 2019, THE HOUSE FURTHER CONSIDERED AND PASSED SENATE BILL 1493, AS AMENDED.<br /> <br />

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Overview

This bill revises various provisions regarding unclaimed and abandoned vehicles, as discussed below.<br /> <br /> Under present law:<br /> <br /> (1) Whenever a motor vehicle has been stored, parked or left in a garage, trailer park, or any type of storage or parking lot for a period of more than 30 consecutive days, the owner of the garage, trailer park or lot must report in writing the make, motor number, vehicle identification number, and serial number of the motor vehicle to the department of revenue. This provision does not apply where the owner of the motor vehicle so parked or stored is personally known to the owner or operator of the garage, trailer park, storage or parking lot and where the motor vehicle owner has made arrangements for the parking or storing of the motor vehicle for a longer period of time than 30 days; and<br /> (2) Any person who fails to submit the required report within 10 days after the termination of the 30-day period forfeits all claims for storage or parking of the vehicle, and commits a Class C misdemeanor.<br /> <br /> This bill deletes the above-described present law provisions.<br /> <br /> Under present law:<br /> <br /> (1) A police department that takes into custody an abandoned, immobile, or unattended motor vehicle, must, within three business days after taking such motor vehicle into custody, verify ownership of such motor vehicle; and within three business days after receiving verification of ownership, must notify by registered mail, return receipt requested, the last known registered owner of the motor vehicle and all lien holders of record that the vehicle has been taken into custody; and<br /> (2) A police department through its chief officer, after complying with the notice requirement described above in (1) may execute a written waiver of its right to sell a vehicle taken into custody in favor of a garagekeeper or towing firm in whose possession the vehicle was lawfully placed by the police department. If a garagekeeper or towing firm has made repairs to a vehicle for which a waiver has been executed, the garagekeeper or towing firm may proceed to enforce the lien. If the garagekeeper or towing firm has not made repairs to a vehicle for which a waiver has been executed, the garagekeeper or towing firm may, after 30 days from the waiver date, proceed to sell the vehicle and keep the proceeds from the sale.<br /> <br /> This bill removes the requirement from (2) above that the garagekeeper or towing firm wait 30 days before selling the vehicle.<br /> <br /> Under present law:<br /> <br /> (1) Persons engaged in the business of towing motor vehicles by wrecker or otherwise and the storing of these motor vehicles for any type of remuneration, are prohibited from charging the owner or lienholder of any stored motor vehicle a storage fee for a period exceeding 21 days without the consent of the owner or lienholder; and<br /> (2) Upon provision of documentation from an insurer or lienholder showing its right to take custody of the vehicle, persons engaged in the businesses described in (1) must release the vehicle to the insurer or lienholder, or an authorized agent or representative for such insurer or lienholder, upon the insurer's or lienholder's payment of reasonable charges due, without requiring additional consent from the owner of the vehicle. <br /> <br /> For purposes of (2) above, present law specifies that "reasonable charges" do not include a gate, access, or release fee for any day during which daily storage is also being charged. This bill specifies that this provision applies only to such fees charged during normal business hours (so such fees charged outside normal business hours will be considered to be reasonable fees). <br /> <br /> ON APRIL 4, 2019, THE HOUSE SUBSTITUTED SENATE BILL 1493 FOR HOUSE BILL 538, ADOPTED AMENDMENT #1, AND RESET SENATE BILL 1493, AS AMENDED.<br /> <br /> AMENDMENT #1 removes the present law authorization for a garagekeeper or towing firm to keep the proceeds from the sale of a vehicle that a police department waived its right to sell and lawfully placed with the garagekeeper or towing firm, as described above in the bill summary.<br /> <br /> Present law provides for a towing advisory board to advise the towing industry and law enforcement agencies on the adoption of policies and other issues related to the towing industry. This amendment expands the towing advisory board from nine to 11 members by adding a member appointed by the Tennessee Trucking Association and a member appointed by the American Car Rental Association.<br /> <br /> ON APRIL 10, 2019, THE HOUSE FURTHER CONSIDERED AND PASSED SENATE BILL 1493, AS AMENDED.<br /> <br />

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Sponsor

Howell, Dan

Details
Session

111th General Assembly

Introduced

February 4, 2019

Last Action

May 1, 2019

Comp. became Pub. Ch. 209

Subjects
Motor VehiclesLiensUnclaimed Property

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