NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC files

Department of Public Safety

SUMMARY

Synopsis of HGUAC Amendment

The House Government Urban Affairs Committee inserts on page 4, line 24 after the period, the following:

"To preserve his lien, the lienholder must comply with the requirements for notice to owners of and persons having prior liens on abandoned vehicles pursuant to applicable rules of the public regulation commission.".

Synopsis of Bill

According to the Department of Public Safety (DPS) HB 873 adds language to Section 66-7-350 to provide that a person removing an abandoned vehicle pursuant to a police order, has a towing and storage lien on the vehicle. It further states that if the vehicle is not claimed by the owner in thirty days, the lien holder may foreclose the lien by releasing the vehicle to a person licensed as a wrecker. The bill also expands the definition of abandoned vehicle under the Motor Vehicle Code to include vehicles illegally stopped on the highway.

Significant Issues

DPS reports HB 873 proposes changes that will affect the costs of removal of a vehicle left unattended on the highway, which does not immediately impact the agency. DPS reports it will be able to continue to remove such vehicles in accordance with the law.

ADMINISTRATIVE IMPLICATIONS

DPS reports the administrative impact should be confined to officers being able to advise towing operators that there is a payment mechanism for having towed an abandoned vehicle.

OTHER SUBSTANTIVE ISSUES

DPS reports the ability to establish a lien on a towed vehicle is already made clear in Section 48-3-19, but what is additional in this legislation is a specific authorization of the lien holder to foreclose his lien by releasing the vehicle to a wrecker in return for payment of charges, rather than selling the property at public sale. This recognizes that many abandoned vehicles might be more suitable for the wrecker than for public use.

LAT/gm