7 LONG TITLE
8 General Description:
9 This bill modifies the Motor Vehicles Code by amending provisions relating to vehicle
11 Highlighted Provisions:
12 This bill:
13 ▸ provides that the Motor Vehicle Division or a peace officer may seize and take
14 possession of any vehicle that is being operated on a highway without owner's or
15 operator's security in effect for the vehicle except in certain circumstances;
16 ▸ repeals the requirement that the Motor Vehicle Division or a peace officer shall
17 seize and take possession of any vehicle that is being operated on a highway without
18 owner's or operator's security in effect for the vehicle except in certain
19 circumstances; and
20 ▸ makes technical and conforming changes.
21 Money Appropriated in this Bill:
23 Other Special Clauses:
25 Utah Code Sections Affected:
27 41-1a-1101, as last amended by Laws of Utah 2014, Chapter 382
28 41-1a-1103, as last amended by Laws of Utah 2014, Chapter 382
29 41-12a-806, as last amended by Laws of Utah 2015, Chapter 109
31 Be it enacted by the Legislature of the state of Utah:
32 Section 1. Section 41-1a-1101 is amended to read:
33 41-1a-1101. Seizure -- Circumstances where permitted -- Impound lot standards.
34 (1) (a) The division or any peace officer, without a warrant, may seize and take
35 possession of any vehicle, vessel, or outboard motor:
40 has not been honored by the applicant's bank and that is not paid within 30 days;
46 (D) subject to the restriction in Subsection (1)(b), without owner's or operator's security
47 in effect for the vehicle as required under Section 41-12a-301; or
49 involved in an accident described in Section 41-6a-401, 41-6a-401.3, or 41-6a-401.5; and
51 fulfilled the requirements described in Section 41-6a-401 or 41-6a-401.7.
61 (b) The division or any peace officer may not seize and take possession of a vehicle
62 under Subsection [
63 evidence of owner's or operator's security as defined in Section 41-12a-303.2 in the vehicle
64 unless the division or peace officer verifies that owner's or operator's security is not in effect for
65 the vehicle through the Uninsured Motorist Identification Database created in accordance with
66 Section 41-12a-803[
74 seized to transport and store the vessel.
76 outboard motor under this section shall comply with the provisions of Section 41-6a-1406.
78 Act, the commission shall make rules setting standards for public garages, impound lots, and
79 impound yards that may be used by peace officers and the division.
80 (b) The standards shall be equitable, reasonable, and unrestrictive as to the number of
81 public garages, impound lots, or impound yards per geographical area.
83 or allow to be operated a vehicle stored in a public garage, impound lot, or impound yard
84 regulated under this part without prior written permission of the owner of the vehicle.
85 (b) Incidental and necessary operation of a vehicle to move the vehicle from one
86 parking space to another within the facility and that is necessary for the normal management of
87 the facility is not prohibited under Subsection [
89 class C misdemeanor.
91 shown on the vehicle's odometer at the time of seizure, if:
92 (a) the vehicle is equipped with an odometer; and
93 (b) the odometer reading is accessible to the division or the peace officer.
94 Section 2. Section 41-1a-1103 is amended to read:
95 41-1a-1103. Sale.
96 (1) If the owner or lienholder of a seized vehicle, vessel, or outboard motor does not
97 recover the vehicle, vessel, or outboard motor within 30 days from the date of seizure, or if the
98 division is unable to determine the owner or lienholder through reasonable efforts, the division
99 shall sell the vehicle, vessel, or outboard motor.
100 (2) The sale shall:
101 (a) be held in the form of a public auction at the place of storage; and
102 (b) at the discretion of the division, be conducted by:
103 (i) an authorized representative of the division; or
104 (ii) a public garage, impound lot, or impound yard that:
105 (A) is authorized by the division;
106 (B) meets the standards under Subsection 41-1a-1101[
107 (C) complies with the requirements of Section 72-9-603.
108 (3) At least five days prior to the date set for sale, the division shall publish a notice of
109 sale setting forth the date, time, and place of sale and a description of the vehicle, vessel, or
110 outboard motor to be sold:
111 (a) on the division's website; and
112 (b) as required in Section 45-1-101.
113 (4) At the time of sale the division or other person authorized to conduct the sale shall
114 tender to the highest bidder a certificate of sale conveying all rights, title, and interest in the
115 vehicle, vessel, or outboard motor.
116 (5) The proceeds from the sale of a vehicle, vessel, or outboard motor under this
117 section shall be distributed as provided under Section 41-1a-1104.
118 (6) If the owner or lienholder of a vehicle, vessel, or outboard motor seized under
119 Section 41-1a-1101 and subsequently released by the division fails to take possession of the
120 vehicle, vessel, or outboard motor and satisfy the amount due to the place of storage within 30
121 days from the date of release, the division shall renotify the owner or lienholder and sell the
122 vehicle, vessel, or outboard motor, in accordance with this section, 30 days from the date of the
124 Section 3. Section 41-12a-806 is amended to read:
125 41-12a-806. Restricted account -- Creation -- Funding -- Interest -- Purposes.
126 (1) There is created within the Transportation Fund a restricted account known as the
127 "Uninsured Motorist Identification Restricted Account."
128 (2) The account consists of money generated from the following revenue sources:
129 (a) money received by the state under Section 41-1a-1218, the uninsured motorist
130 identification fee;
131 (b) money received by the state under Section 41-1a-1220, the registration
132 reinstatement fee; and
133 (c) appropriations made to the account by the Legislature.
134 (3) (a) The account shall earn interest.
135 (b) All interest earned on account money shall be deposited into the account.
136 (4) The Legislature shall appropriate money from the account to:
137 (a) the department to fund the contract with the designated agent;
138 (b) the department to offset the costs to state and local law enforcement agencies of
139 using the information for the purposes authorized under this part;
140 (c) the Tax Commission to offset the costs to the Motor Vehicle Division for revoking
141 and reinstating vehicle registrations under Subsection 41-1a-110(2)(a)(ii); and
142 (d) the department to reimburse a person for the costs of towing and storing the
143 person's vehicle if:
144 (i) the person's vehicle was impounded in accordance with Subsection 41-1a-1101[
146 (ii) the impounded vehicle had owner's or operator's security in effect for the vehicle at
147 the time of the impoundment;
148 (iii) the database indicated that owner's or operator's security was not in effect for the
149 impounded vehicle; and
150 (iv) the department determines that the person's vehicle was wrongfully impounded.
151 (5) The Legislature may appropriate not more than $500,000 annually from the account
152 to the Peace Officer Standards and Training Division, created under Section 53-6-103, for use
153 in law enforcement training, including training on the use of the Uninsured Motorist
154 Identification Database Program created under Title 41, Chapter 12a, Part 8, Uninsured
155 Motorist Identification Database Program.
156 (6) (a) By following the procedures in Title 63G, Chapter 4, Administrative Procedures
157 Act, the department shall hold a hearing to determine whether a person's vehicle was
158 wrongfully impounded under Subsection 41-1a-1101[
159 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
160 division shall make rules establishing procedures for a person to apply for a reimbursement
161 under Subsection (4)(d).
162 (c) A person is not eligible for a reimbursement under Subsection (4)(d) unless the
163 person applies for the reimbursement within six months from the date that the motor vehicle
164 was impounded.
Legislative Review Note
Office of Legislative Research and General Counsel