First Substitute H.B. 67

Representative James R. Gowans proposes the following substitute bill:

1 ABANDONED VEHICLES AMENDMENTS
2 2005 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: James R. Gowans
5
6 LONG TITLE
7 General Description:
8 This bill modifies the Motor Vehicles Code to amend provisions related to abandoned
9 vehicles.
10 Highlighted Provisions:
11 This bill:
12 . allows the Motor Vehicle Division to authorize certain public garages, impound
13 lots, or impound yards to conduct the sale of seized vehicles, vessels, and outboard
14 motors;
15 . requires the Motor Vehicle Division to provide notice to the registered owner and
16 lienholder of the vehicle, vessel, or outboard motor that is removed or impounded
17 that the vehicle, vessel, or outboard motor will be sold if, within 30 days from the
18 date of the removal or impoundment, the owner fails to make a claim for release of
19 the vehicle, vessel, or outboard motor; and
20 . makes technical changes.
21 Monies Appropriated in this Bill:
22 None
23 Other Special Clauses:
24 None
25 Utah Code Sections Affected:

26 AMENDS:
27 41-1a-1101, as last amended by Chapter 2, Laws of Utah 2005
28 41-1a-1103, as renumbered and amended by Chapter 1, Laws of Utah 1992
29 41-1a-1104, as renumbered and amended by Chapter 1, Laws of Utah 1992
30 41-6a-1406, as renumbered and amended by Chapter 2, Laws of Utah 2005
31
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 41-1a-1101 is amended to read:
34 41-1a-1101. Seizure -- Circumstances where permitted -- Impound lot standards.
35 (1) The division or any peace officer, without a warrant, may seize and take possession
36 of any vehicle, vessel, or outboard motor:
37 (a) that the division or the peace officer has reason to believe has been stolen;
38 (b) on which any identification number has been defaced, altered, or obliterated;
39 (c) that has been abandoned [on the public highways] in accordance with Section
40 41-6a-1408 ;
41 (d) for which the applicant has written a check for registration or title fees that has not
42 been honored by the applicant's bank and that is not paid within 30 days;
43 (e) that is placed on the water with improper registration; or
44 (f) that is being operated on a highway:
45 (i) with registration that has been expired for more than three months;
46 (ii) having never been properly registered by the current owner; or
47 (iii) with registration that is suspended or revoked.
48 (2) If necessary for the transportation of a seized vessel, the vessel's trailer may be
49 seized to transport and store the vessel.
50 (3) Any peace officer seizing or taking possession of a vehicle, vessel, or outboard
51 motor under this section shall comply with the provisions of Section 41-6a-1406 .
52 (4) (a) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
53 the commission shall make rules setting standards for public garages, impound lots, and
54 impound yards that may be used by peace officers and the division.
55 (b) The standards shall be equitable, reasonable, and unrestrictive as to the number of
56 public garages, impound lots, or impound yards per geographical area.

57 (5) (a) Except as provided under Subsection (5)(b), a person may not operate or allow
58 to be operated a vehicle stored in a public garage, impound lot, or impound yard regulated
59 under this part without prior written permission of the owner of the vehicle.
60 (b) Incidental and necessary operation of a vehicle to move the vehicle from one
61 parking space to another within the facility and that is necessary for the normal management of
62 the facility is not prohibited under this Subsection (5)(a).
63 (6) A person who violates the provisions of Subsection (5) is guilty of a class C
64 misdemeanor.
65 (7) The division or the peace officer who seizes a vehicle shall record the mileage
66 shown on the vehicle's odometer at the time of seizure, if:
67 (a) the vehicle is equipped with an odometer; and
68 (b) the odometer reading is accessible to the division or the peace officer.
69 Section 2. Section 41-1a-1103 is amended to read:
70 41-1a-1103. Sale.
71 (1) If the owner or lienholder of a seized vehicle, vessel, or outboard motor does not
72 recover the vehicle, vessel, or outboard motor within 30 days from the date of seizure, or if the
73 division is unable to determine the owner or lienholder through reasonable efforts, the division
74 shall sell the vehicle, vessel, or outboard motor.
75 (2) The sale [shall be conducted by an authorized representative of the division and]
76 shall:
77 (a) be held in the form of a public auction at the place of storage[.]; and
78 (b) at the discretion of the division, be conducted by:
79 (i) an authorized representative of the division; or
80 (ii) a public garage, impound lot, or impound yard that:
81 (A) is authorized by the division;
82 (B) meets the standards under Subsection 41-1a-1101 (4); and
83 (C) complies with the requirements of Section 72-9-603 .
84 (3) At least five days prior to the date set for sale, the division shall publish a notice of
85 sale in a newspaper of general statewide circulation setting forth the date, time, and place of
86 sale and a description of the vehicle, vessel, or outboard motor to be sold.
87 (4) At the time of sale the division or other person authorized to conduct the sale shall

88 tender to the highest bidder a certificate of sale conveying all rights, title, and interest in the
89 vehicle, vessel, or outboard motor.
90 (5) The proceeds from the sale of a vehicle, vessel, or outboard motor under this
91 section shall be distributed as provided under Section 41-1a-1104 .
92 (6) [Where] If the owner or lienholder of a vehicle, vessel, or outboard motor seized
93 under Section 41-1a-1101 and subsequently released by the division fails to take possession of
94 the vehicle, vessel, or outboard motor and satisfy the amount due to the place of storage within
95 30 days from the date of release, the division shall renotify the owner or lienholder and sell the
96 vehicle, vessel, or outboard motor in accordance with this section 30 days from the date of the
97 notice.
98 Section 3. Section 41-1a-1104 is amended to read:
99 41-1a-1104. Disposition of proceeds from sale.
100 (1) If, for purposes of this part and Section 41-1a-1301 , the ownership of a vehicle,
101 vessel, or outboard motor seized [and sold by the division under Section 41-1a-1301 or this
102 part] cannot be determined, [then] the excess of the proceeds of any sale over the fees for
103 registration or transfer and penalties and costs shall be deposited with the state treasurer in a
104 suspense account.
105 (2) (a) If the owner or the owner's heirs or assigns file a claim for the excess of the
106 proceeds within one year of date of sale of the vehicle, vessel, or outboard motor, the excess of
107 the proceeds shall be refunded to the claimant.
108 (b) If a claim is not filed in accordance with Subsection (2)(a), then the moneys shall
109 be deposited in the General Fund.
110 Section 4. Section 41-6a-1406 is amended to read:
111 41-6a-1406. Removal and impoundment of vehicles -- Reporting and notification
112 requirements -- Administrative impound fee -- Refunds -- Possessory lien -- Rulemaking.
113 (1) If a vehicle, vessel, or outboard motor is removed or impounded as provided under
114 Section 41-1a-1101 , 41-6a-527 , 41-6a-1405 , 41-6a-1408 , or 73-18-20.1 by an order of a peace
115 officer or by an order of a person acting on behalf of a law enforcement agency or highway
116 authority, the removal or impoundment of the vehicle, vessel, or outboard motor shall be at the
117 expense of the owner.
118 (2) The vehicle, vessel, or outboard motor under Subsection (1) shall be removed or

119 impounded to:
120 (a) a state impound yard; or
121 (b) if none, a garage, docking area, or other place of safety.
122 (3) The peace officer may move a vehicle, vessel, or outboard motor or cause it to be
123 removed by a tow truck motor carrier that meets standards established:
124 (a) under Title 72, Chapter 9, Motor Carrier Safety Act; and
125 (b) by the department under Subsection (10).
126 (4) (a) Immediately after the removal of the vehicle, vessel, or outboard motor, a report
127 of the removal shall be sent to the Motor Vehicle Division by:
128 (i) the peace officer or agency by whom the peace officer is employed; and
129 (ii) the tow truck operator or the tow truck motor carrier by whom the tow truck
130 operator is employed.
131 (b) The report shall be in a form specified by the Motor Vehicle Division and shall
132 include:
133 (i) the operator's name, if known;
134 (ii) a description of the vehicle, vessel, or outboard motor;
135 (iii) the vehicle identification number or vessel or outboard motor identification
136 number;
137 (iv) the license number or other identification number issued by a state agency;
138 (v) the date, time, and place of impoundment;
139 (vi) the reason for removal or impoundment;
140 (vii) the name of the tow truck motor carrier who removed the vehicle, vessel, or
141 outboard motor; and
142 (viii) the place where the vehicle, vessel, or outboard motor is stored.
143 (c) Until the tow truck operator or tow truck motor carrier reports the removal as
144 required under this Subsection (4), a tow truck motor carrier or impound yard may not:
145 (i) collect any fee associated with the removal; and
146 (ii) begin charging storage fees.
147 (5) (a) Upon receipt of the report, the Motor Vehicle Division shall give notice to the
148 registered owner of the vehicle, vessel, or outboard motor and any lien holder in the manner
149 prescribed by Section 41-1a-114 .

150 (b) The notice shall:
151 (i) state the date, time, and place of removal, the name, if applicable, of the person
152 operating the vehicle, vessel, or outboard motor at the time of removal, the reason for removal,
153 and the place where the vehicle, vessel, or outboard motor is stored;
154 (ii) state that the registered owner is responsible for payment of towing, impound, and
155 storage fees charged against the vehicle, vessel, or outboard motor; [and]
156 (iii) inform the registered owner of the vehicle, vessel, or outboard motor of the
157 conditions that must be satisfied before the vehicle, vessel, or outboard motor is released[.];
158 and
159 (iv) inform the registered owner and lienholder of the division's intent to sell the
160 vehicle, vessel, or outboard motor, if within 30 days from the date of the removal or
161 impoundment under this section, the owner, lien holder, or the owner's agent fails to make a
162 claim for release of the vehicle, vessel, or outboard motor.
163 (c) If the vehicle, vessel, or outboard motor is not registered in this state, the Motor
164 Vehicle Division shall make a reasonable effort to notify the registered owner and any lien
165 holder of the removal and the place where the vehicle, vessel, or outboard motor is stored.
166 (d) The Motor Vehicle Division shall forward a copy of the notice to the place where
167 the vehicle, vessel, or outboard motor is stored.
168 (6) (a) The vehicle, vessel, or outboard motor shall be released after the registered
169 owner, lien holder, or the owner's agent:
170 (i) makes a claim for release of the vehicle, vessel, or outboard motor at any office of
171 the State Tax Commission;
172 (ii) presents identification sufficient to prove ownership of the impounded vehicle,
173 vessel, or outboard motor;
174 (iii) completes the registration, if needed, and pays the appropriate fees;
175 (iv) if the impoundment was made under Section 41-6a-527 , pays an administrative
176 impound fee of $230; and
177 (v) pays all towing and storage fees to the place where the vehicle, vessel, or outboard
178 motor is stored.
179 (b) (i) Twenty-nine dollars of the administrative impound fee assessed under
180 Subsection (6)(a)(iv) shall be dedicated credits to the Motor Vehicle Division;

181 (ii) $97 of the administrative impound fee assessed under Subsection (6)(a)(iv) shall be
182 deposited in the Department of Public Safety Restricted Account created in Section 53-3-106 ;
183 and
184 (iii) the remainder of the administrative impound fee assessed under Subsection
185 (6)(a)(iv) shall be deposited in the General Fund.
186 (c) The administrative impound fee assessed under Subsection (6)(a)(iv) shall be
187 waived or refunded by the State Tax Commission if the registered owner, lien holder, or
188 owner's agent presents written evidence to the State Tax Commission that:
189 (i) the Driver License Division determined that the arrested person's driver license
190 should not be suspended or revoked under Section 53-3-223 or 41-6a-521 as shown by a letter
191 or other report from the Driver License Division presented within 30 days of the final
192 notification from the Driver License Division; or
193 (ii) the vehicle was stolen at the time of the impoundment as shown by a copy of the
194 stolen vehicle report presented within 30 days of the impoundment.
195 (7) (a) An impounded vehicle, vessel, or outboard motor not claimed by the registered
196 owner or the owner's agent within the time prescribed by Section 41-1a-1103 shall be sold in
197 accordance with that section and the proceeds, if any, shall be disposed of as provided under
198 Section 41-1a-1104 .
199 (b) The date of impoundment is considered the date of seizure for computing the time
200 period provided under Section 41-1a-1103 .
201 (8) The registered owner who pays all fees and charges incurred in the impoundment of
202 the owner's vehicle, vessel, or outboard motor, has a cause of action for all the fees and
203 charges, together with damages, court costs, and attorney fees, against the operator of the
204 vehicle, vessel, or outboard motor whose actions caused the removal or impoundment.
205 (9) Towing, impound fees, and storage fees are a possessory lien on the vehicle, vessel,
206 or outboard motor.
207 (10) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
208 the department shall make rules setting the performance standards for towing companies to be
209 used by the department.
210 (11) (a) The Motor Vehicle Division may specify that a report required under
211 Subsection (4) be submitted in electronic form utilizing a database for submission, storage, and

212 retrieval of the information.
213 (b) (i) Unless otherwise provided by statute, the Motor Vehicle Division or the
214 administrator of the database may adopt a schedule of fees assessed for utilizing the database.
215 (ii) The fees under this Subsection (11)(b) shall:
216 (A) be reasonable and fair; and
217 (B) reflect the cost of administering the database.