BILL ANALYSIS
AB 3004
Page 1
Date of Hearing: April 29, 2008
ASSEMBLY COMMITTEE ON JUDICIARY
Dave Jones, Chair
AB 3004 (Duvall) - As Amended: April 1, 2008
PROPOSED CONSENT
SUBJECT : VEHICLE LIENS
KEY ISSUE : IN ORDER TO PROVIDE VEHICLE OWNERS WITH REQUIRED
DOCUMENTS, SHOULD A VEHICLE LIEN BE EXTINGUISHED IF A LIENHOLDER
FAILS TO TIMELY PROVIDE THE VEHICLE OWNER WITH SPECIFED
DOCUMENTS?
SYNOPSIS
This non-controversial bill, sponsored by the Personal Insurance
Federation of California, provides that a vehicle lien is
extinguished if requested documents are not provided to the
legal owner of the vehicle, by the lienholder, as specified.
Current law requires every operator of a towing service to keep
a written record of every vehicle of a type subject to
registration stored for a period longer than 12 hours. This
written record must contain the name and address of the person
storing the vehicle or requesting the towing, the names of the
owner and driver of the vehicle and a brief description of the
vehicle including the name or make, the motor or other number of
the vehicle, the nature of any damage to the vehicle, and the
license number and registration number shown by the license
plates or registration card. According to the author, vehicle
lienholders often do not follow procedures for perfecting their
lien by giving required notices or following the statutory
requirements. Consequently, the author states, an owner may not
receive appropriate notices regarding the lien in a timely
manner or at all, but the lienholder presses for excessive lien
storage fees despite the deficiency in required notice and/or
required documentation. Given the relatively minor scope of the
bill, the author has acknowledged that should it be amended, the
Committee reserves the right to hear the bill again. This bill
has no known opposition.
SUMMARY : Provides that a vehicle lien is extinguished if
requested documents are not provided to the legal owner of the
vehicle, by the lienholder, as specified. Specifically, this
AB 3004
Page 2
bill provides that any lien that arises for the storage, repair,
or safekeeping of, or for the rental of parking space for, a
vehicle shall be extinguished if the lienholder, after written
demand made by either the legal owner or lessor of the vehicle,
within 72 hours after the receipt of that written demand, fails
to provide copies of requested documents required to be filed or
mailed as specified.
EXISTING LAW :
1)Provides that any lien that arises because work or services
have been performed on a vehicle with the consent of the
registered owner shall be extinguished, and no lien sale shall
be conducted, if the lienholder, after written demand made by
either personal service or certified mail with return receipt
requested by the legal owner or the lessor to receive a
written copy of the work order or invoice reflecting the
services or repairs performed on the vehicle and the
authorization from the registered owner requesting the
lienholder to perform the services or repairs, fails to
provide that copy to the legal owner or lessor, or his or her
agent, within 10 days after the receipt of that written
demand. (Civil Code Section 3068.)
2)Provides that every operator of a towing service and every
keeper of a garage or trailer park shall keep a written record
of every vehicle of a type subject to registration stored for
a period longer than 12 hours. Provides that the record shall
contain the name and address of the person storing the vehicle
or requesting the towing, the names of the owner and driver of
the vehicle, if ascertainable, and a brief description of the
vehicle including the name or make, the motor or other number
of the vehicle, the nature of any damage to the vehicle, and
the license number and registration number shown by the
license plates or registration card, if either of the latter
is attached to the vehicle in a clearly discernible place.
Provides that all records shall be kept for one year from the
commencement of storage and shall be open to inspection by any
peace officer. (Vehicle Code Section 10650.)
FISCAL EFFECT : As currently in print this bill is keyed
non-fiscal.
COMMENTS : According to the author, vehicle lienholders often do
not follow procedures for perfecting their lien by giving
AB 3004
Page 3
required notices or following the statutory requirements.
Consequently, the author states, an owner may not receive
appropriate notices regarding the lien in a timely manner or at
all, but the lienholder presses for excessive lien storage fees
despite the deficiency in required notice and/or required
documentation. According to the sponsor, the Personal Insurance
Federation of California, this bill will fight against outright
fraud or less than forthright business practices by lienholders
who seek lien fees without complying with the Civil Code and
Vehicle Code requirements. The sponsor states that oftentimes,
the lienholder uses their possession of the vehicle and
accumulating storage as additional leverage to release the
vehicle despite the noncompliance with the notice requirements
of the lienholder.
Additional Amendments . The author has indicated that there are
on-going discussions that are planned to fine-tune this bill in
order to better address the issues that are trying to be
resolved. As a result, the author has agreed that should this
bill be amended after it has been heard by this Committee, the
subsequent version of this bill will, at the Committee's
discretion, be presented again.
REGISTERED SUPPORT / OPPOSITION :
Support
Personal Insurance Federation of California (sponsor)
Opposition
None on file
Analysis Prepared by : Manuel Valencia / JUD. / (916) 319-2334