BILL NUMBER: AB 1884 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Lowenthal
FEBRUARY 19, 2014
An act to amend Sections 3068.1, 3071, 3072, 3073, and 3074 of the
Civil Code, and to amend Sections 22851.1 and 22851.12 of the
Vehicle Code, relating to liens.
LEGISLATIVE COUNSEL'S DIGEST
AB 1884, as introduced, Lowenthal. Vehicle liens.
Existing law provides one lien sale procedure for vehicles that
have been determined to have a value that does not exceed $4,000 and
a different lien sale procedure for vehicles that have been
determined to have a value exceeding $4,000. Existing law requires a
lienholder to apply to the Department of Motor Vehicles for the
issuance of an authorization to conduct a lien sale, upon an
application that is to be executed under penalty of perjury.
This bill would require a lienholder to obtain a federal National
Motor Vehicle Title Information System (NMVTIS) vehicle history
report from a NMVTIS data provider prior to applying to the
department for the authorization to conduct a lien sale. This bill
would require a NMVTIS vehicle history report to be included in the
application and would also revise the applicability of each lien sale
procedure based on information from the NMVTIS vehicle history
report. This bill would include the amount of the fee charged for a
NMVTIS vehicle history report in the cost of processing the vehicle
that is paid to the lienholder from the proceeds of a vehicle lien
sale. This bill would provide that these NMVTIS vehicle history
report requirements would be inoperative if NMVTIS data providers
cease to make a report available to the public, as specified.
By expanding the scope of the crime of perjury, this bill would
impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 3068.1 of the Civil Code is amended to read:
3068.1. (a) (1) Every person has a lien dependent upon possession
for the compensation to which the person is legally entitled for
towing, storage, or labor associated with recovery or load salvage of
any vehicle subject to registration that has been authorized to be
removed by a public agency, a private property owner pursuant to
Section 22658 of the Vehicle Code, or a lessee, operator, or
registered owner of the vehicle. The lien is deemed to arise on the
date of possession of the vehicle. Possession is deemed to arise when
the vehicle is removed and is in transit, or when vehicle recovery
operations or load salvage operations have begun. A person seeking to
enforce a lien for the storage and safekeeping of a vehicle shall
impose no charge exceeding that for one day of storage if, 24 hours
or less after the vehicle is placed in storage, the vehicle is
released. If the release is made more than 24 hours after the vehicle
is placed in storage, charges may be imposed on a full-calendar-day
basis for each day, or part thereof, that the vehicle is in storage.
If a request to release the vehicle is made and the appropriate fees
are tendered and documentation establishing that the person
requesting release is entitled to possession of the vehicle, or is
the owner's insurance representative, is presented within the initial
24 hours of storage, and the storage facility fails to comply with
the request to release the vehicle or is not open for business during
normal business hours, then only one day's charge may be required to
be paid until after the first business day. A "business day" is any
day in which the lienholder is open for business to the public for at
least eight hours. If the request is made more than 24 hours after
the vehicle is placed in storage, charges may be imposed on a
full-calendar-day basis for each day, or part thereof, that the
vehicle is in storage.
(2) "Documentation" that would entitle a person to possession of
the vehicle includes, but is not limited to, a certificate of
ownership, vehicle registration, information in the possession of the
lienholder including ownership information obtained from the
Department of Motor Vehicles or a facially valid registration found
within the vehicle, or a notarized letter or statement from the legal
or registered owner providing authorization to release to a
particular person with a government-issued photographic
identification card. Documentation that establishes that a person is
the owner's insurance representative includes, but is not limited to,
a faxed letter or other letter from the owner's insurance company. A
lienholder is not responsible for determining the authenticity of
documentation specifically described in this subdivision that
establishes either a person's entitlement to possession or that a
person is the owner's insurance representative.
(b) If the vehicle has been determined to have a value
not exceeding four thousand dollars ($4,000), was last
titled in California or has no record of being titled in any state
as shown from the federal National Motor Vehicle Title Information
System report required by subdivision (a) of Section 3072, and has a
value determined to be four thousand dollars ($4,000) or
less, the lien shall be satisfied pursuant to Section 3072.
Lien sale proceedings pursuant to Section 3072 shall commence within
15 days of the date the lien arises. No storage shall accrue beyond
the 15-day period unless lien sale proceedings pursuant to Section
3072 have commenced. The storage lien may be for a period not
exceeding 60 days if a completed notice of a pending lien sale form
has been filed pursuant to Section 3072 within 15 days after the lien
arises. Notwithstanding this 60-day limitation, the storage lien may
be for a period not exceeding 120 days if any one of the following
occurs:
(1) A Declaration of Opposition form is filed with the department
pursuant to Section 3072.
(2) The vehicle has an out-of-state registration.
(3) The vehicle identification number was altered or removed.
(4) A person who has an interest in the vehicle becomes known to
the lienholder after the lienholder has complied with subdivision
(b) (c) of Section 3072.
(c) If the vehicle was last titled in another state or
has been determined to have a value exceeding four thousand dollars
($4,000) pursuant to Section 22670 of the Vehicle Code, the lien
shall be satisfied pursuant to Section 3071. The storage lien may be
for a period not exceeding 120 days if an application for an
authorization to conduct a lien sale has been filed pursuant to
Section 3071.
(d) (1) Any lien under this section shall be extinguished, and a
lien sale shall not be conducted, if any one of the following occurs:
(A) The lienholder, after written demand to inspect the vehicle
made by either personal service or certified mail with return receipt
requested by the legal owner or the lessor, fails to permit the
inspection by the legal owner or lessor, or his or her agent, within
a period of time of at least 24 hours, but not to exceed 72 hours,
after the receipt of that written demand, during the normal business
hours of the lienholder. The legal owner or lessor shall comply with
inspection and vehicle release policies of the impounding public
agency.
(B) The amount claimed for storage exceeds the posted rates.
(2) "Agent" includes, but is not limited to, any person designated
to inspect the vehicle by the request of the legal owner or lessor,
in writing or by telephone, to the lienholder. A lienholder is not
responsible for determining the authenticity of documentation
establishing a person's agency for the purposes of inspection of a
vehicle.
(e) A lienholder shall not be liable for any claim or dispute
directly arising out of the reliance on documentation specifically
described in paragraph (2) of subdivision (a) for purposes of
releasing a vehicle.
SEC. 2. Section 3071 of the Civil Code is amended to read:
3071. (a) (1) A lienholder shall apply to
the department for the issuance of an authorization to conduct a lien
sale pursuant to this section for any vehicle with a value
determined to be over four thousand dollars ($4,000) or any
vehicle determined to be last titled in a different state . A
filing fee shall be charged by the department and may be recovered by
the lienholder if a lien sale is conducted or if the vehicle is
redeemed. The application shall be executed under penalty of perjury
and shall include all of the following information:
(1)
(A) A description of the vehicle, including make, year
model, identification number, license number, and state of
registration. For motorcycles, the engine number also shall be
included. If the vehicle identification number is not available, the
department shall request an inspection of the vehicle by a peace
officer, licensed vehicle verifier, or departmental employee before
accepting the application.
(2)
(B) The names and addresses of the registered and legal
owners of the vehicle, if ascertainable from the registration
certificates within the vehicle, and the name and address of any
person whom the lienholder knows, or reasonably should know, claims
an interest in the vehicle.
(3)
(C) A statement of the amount of the lien and the facts
that give rise to the lien.
(2) (A) A copy of a vehicle history report from the federal
National Motor Vehicle Title Information System (NMVTIS), obtained
from a NMVTIS data provider for the vehicle identification number of
the vehicle, shall be included with the application required pursuant
to paragraph (1). Any fee charged for the NMVTIS report may be
recovered by the lienholder if a lien sale is conducted or if the
vehicle is redeemed.
(B) As used in this section "NMVTIS," "NMVTIS history report," and
"NMVTIS data provider" shall have the same meanings as defined in
subdivision (d) of Section 11713.26 of the Vehicle Code.
(C) This section shall not prohibit a NMVTIS data provider from
including, in a NMVTIS history report containing information required
by paragraph (2) of subdivision (d) of Section 11713.26 of the
Vehicle Code, additional vehicle history information obtained from
resources other than NMVTIS.
(D) This section shall not create any legal duty upon the
lienholder related to the accuracy, errors, or omissions contained in
a NMVTIS vehicle history report that is obtained from a NMVTIS data
provider or any legal duty to provide information added to NMVTIS
after the lienholder obtained the NMVTIS vehicle history report
pursuant to paragraph (1) of subdivision (a) of this section.
(E) In the event that all NMVTIS data providers cease to make
NMVTIS vehicle history reports available to the public, this
paragraph shall become inoperative.
(b) Upon receipt of an application made pursuant to subdivision
(a), the department shall do all of the following:
(1) Notify the vehicle registry agency of a foreign state of the
pending lien sale, if the vehicle bears indicia of registration in
that state or the NMVTIS report required by subparagraph (A) of
paragraph (2) of subdivision (a) indicates the vehicle was last
titled in that state .
(2) By certified mail, send a notice, a copy of the application,
and a return envelope preaddressed to the department to the
registered and legal owners at their addresses of record with the
department, and to any other person whose name and address is listed
in the application.
(c) The notice required pursuant to subdivision (b) shall include
all of the following statements and information:
(1) An application has been made with the department for
authorization to conduct a lien sale.
(2) The person has a right to a hearing in court.
(3) If a hearing in court is desired, a Declaration of Opposition
form, signed under penalty of perjury, shall be signed and returned
to the department within 10 days of the date that the notice required
pursuant to subdivision (b) was mailed.
(4) If the Declaration of Opposition form is signed and returned
to the department, the lienholder shall be allowed to sell the
vehicle only if he or she obtains a court judgment, if he or she
obtains a subsequent release from the declarant or if the declarant,
cannot be served as described in subdivision (e).
(5) If a court action is filed, the declarant shall be notified of
the lawsuit at the address shown on the Declaration of Opposition
form and may appear to contest the claim.
(6) The person may be liable for court costs if a judgment is
entered in favor of the lienholder.
(d) If the department receives the Declaration of Opposition form
in the time specified, the department shall notify the lienholder
within 16 days of the receipt of the form that a lien sale shall not
be conducted unless the lienholder files an action in court within 30
days of the department's notice under this subdivision. A lien sale
of the vehicle shall not be conducted unless judgment is subsequently
entered in favor of the lienholder or the declarant subsequently
releases his or her interest in the vehicle. If a money judgment is
entered in favor of the lienholder and the judgment is not paid
within five days after becoming final, then the judgment may be
enforced by lien sale proceedings conducted pursuant to subdivision
(f).
(e) Service on the declarant in person or by certified mail with
return receipt requested, signed by the declarant or an authorized
agent of the declarant at the address shown on the Declaration of
Opposition form, shall be effective for the serving of process. If
the lienholder has served the declarant by certified mail at the
address shown on the Declaration of Opposition form and the mail has
been returned unclaimed, or if the lienholder has attempted to effect
service on the declarant in person with a marshal, sheriff, or
licensed process server and the marshal, sheriff, or licensed process
server has been unable to effect service on the declarant, the
lienholder may proceed with the judicial proceeding or proceed with
the lien sale without a judicial proceeding. The lienholder shall
notify the department of the inability to effect service on the
declarant and shall provide the department with a copy of the
documents with which service on the declarant was attempted. Upon
receipt of the notification of unsuccessful service, the department
shall send authorization of the sale to the lienholder and send
notification of the authorization to the declarant.
(f) Upon receipt of authorization to conduct the lien sale from
the department, the lienholder shall immediately do all of the
following:
(1) At least five days, but not more than 20 days, prior to the
lien sale, not counting the day of the sale, give notice of the sale
by advertising once in a newspaper of general circulation published
in the county in which the vehicle is located. If there is no
newspaper published in the county, notice shall be given by posting a
Notice of Sale form in three of the most public places in the town
in which the vehicle is located and at the place where the vehicle is
to be sold for 10 consecutive days prior to and including the day of
the sale.
(2) Send a Notice of Pending Lien Sale form 20 days prior to the
sale but not counting the day of sale, by certified mail with return
receipt requested, to each of the following:
(A) The registered and legal owners of the vehicle, if registered
in this state.
(B) All persons known to have an interest in the vehicle.
(C) The department.
(g) All notices required by this section, including the notice
forms prescribed by the department, shall specify the make, year
model, vehicle identification number, license number, and state of
registration, if available, and the specific date, exact time, and
place of sale. For motorcycles, the engine number shall also be
included.
(h) Following the sale of a vehicle, the person who conducts the
sale shall do both of the following:
(1) Remove and destroy the vehicle's license plates.
(2) Within five days of the sale, submit a completed "Notice of
Release of Liability" form to the Department of Motor Vehicles.
(i) The Department of Motor Vehicles shall retain all submitted
forms described in paragraph (2) of subdivision (h) for two years.
(j) No lien sale shall be undertaken pursuant to this section
unless the vehicle has been available for inspection at a location
easily accessible to the public for at least one hour before the sale
and is at the place of sale at the time and date specified on the
notice of sale. Sealed bids shall not be accepted. The lienholder
shall conduct the sale in a commercially reasonable manner.
(k) Within 10 days after the sale of any vehicle pursuant to this
section, the legal or registered owner may redeem the vehicle upon
the payment of the amount of the sale, all costs and expenses of the
sale, together with interest on the sum at the rate of 12 percent per
annum from the due date thereof or the date when that sum was
advanced until the repayment. If the vehicle is not redeemed, all
lien sale documents required by the department shall then be
completed and delivered to the buyer.
( l ) Any lien sale pursuant to this section shall be
void if the lienholder does not comply with this chapter. Any lien
for fees or storage charges for parking and storage of a motor
vehicle shall be subject to Section 10652.5 of the Vehicle Code.
SEC. 3. Section 3072 of the Civil Code is amended to read:
3072. (a) For vehicles with a value determined to be four
thousand dollars ($4,000) or less, the lienholder shall
apply to the department for the names and addresses of the registered
and legal owners of record. The request shall include a description
of the vehicle, including make, year, model, identification number,
license number, and state of registration. If the vehicle
identification number is not available, the Department of Motor
Vehicles shall request an inspection of the vehicle by a peace
officer, licensed vehicle verifier, or departmental employee before
releasing the names and addresses of the registered and legal owners
and interested parties. obtain a copy of a vehicle
history report from the National Motor Vehicle Title Information
System (NMVTIS), from a NMVTIS data provider for the vehicle
identification number of the vehicle. If the NMVTIS vehicle history
report indicates that the vehicle was last titled in another state,
the lien shall be satisfied pursuant to Section 3071, regardless of
value. Any fee charged for the NMVTIS report may be recovered by the
lienholder if a lien sale is conducted or if the vehicle is redeemed.
(1) As used in this section "NMVTIS," "NMVTIS history report," and
"NMVTIS data provider" shall have the same meanings as defined in
subdivision (d) of Section 11713.26 of the Vehicle Code.
(2) This section shall not prohibit a NMVTIS data provider from
including, in a NMVTIS history report containing information required
by paragraph (2) of subdivision (d) of Section 11713.26 of the
Vehicle Code, additional vehicle history information obtained from
resources other than NMVTIS.
(3) This section shall not create any legal duty upon the
lienholder related to the accuracy, errors, or omissions contained in
a NMVTIS vehicle history report that is obtained from a NMVTIS data
provider or any legal duty to provide information added to NMVTIS
after the lienholder obtained the NMVTIS vehicle history report
pursuant to subdivision (a).
(4) In the event that all NMVTIS data providers cease to make
NMVTIS vehicle history reports available to the public, this
subdivision shall become inoperative.
(b) For vehicles that were last titled in California or have no
record of being titled in any state as shown from the NMVTIS report
required in subdivision (a) of Section 3072, and with a value
determined to be four thousand dollars ($4,000) or less, the
lienholder shall apply to the department for the names and addresses
of the registered and legal owners of record. The request shall
include a description of the vehicle, including make, year, model,
identification number, license number, and state of registration. If
the vehicle identification number is not available, the department
shall request an inspection of the vehicle by a peace officer,
licensed vehicle verifier, or departmental employee before releasing
the names and addresses of the registered and legal owners and
interested parties.
(b)
(c) The lienholder shall, immediately upon receipt of
the names and addresses, send, by certified mail with return receipt
requested or by United States Postal Service Certificate of Mailing,
a completed Notice of Pending Lien Sale form, a blank Declaration of
Opposition form, and a return envelope preaddressed to the
department, to the registered owner and legal owner at their
addresses of record with the department, and to any other person
known to have an interest in the vehicle. The lienholder shall
additionally send a copy of the completed Notice of Pending Lien Sale
form to the department by certified mail on the same day that the
other notices are mailed pursuant to this subdivision.
(c)
(d) All notices to persons having an interest in the
vehicle shall be signed under penalty of perjury and shall include
all of the following information and statements:
(1) A description of the vehicle, including make, year model,
identification number, license number, and state of registration. For
motorcycles, the engine number shall also be included.
(2) The specific date, exact time, and place of sale, which shall
be set not less than 31 days, but not more than 41 days, from the
date of mailing.
(3) The names and addresses of the registered and legal owners of
the vehicle and any other person known to have an interest in the
vehicle.
(4) All of the following statements:
(A) The amount of the lien and the facts concerning the claim
which gives rise to the lien.
(B) The person has a right to a hearing in court.
(C) If a court hearing is desired, a Declaration of Opposition
form, signed under penalty of perjury, shall be signed and returned
to the department within 10 days of the date the Notice of Pending
Lien Sale form was mailed.
(D) If the Declaration of Opposition form is signed and returned,
the lienholder shall be allowed to sell the vehicle only if he or she
obtains a court judgment or if he or she obtains a subsequent
release from the declarant or if the declarant cannot be served as
described in subdivision (e). (f).
(E) If a court action is filed, the declarant shall be notified of
the lawsuit at the address shown on the Declaration of Opposition
form and may appear to contest the claim.
(F) The person may be liable for court costs if a judgment is
entered in favor of the lienholder.
(d)
(e) If the department receives the completed
Declaration of Opposition form within the time specified, the
department shall notify the lienholder within 16 days that a lien
sale shall not be conducted unless the lienholder files an action in
court within 30 days of the notice and judgment is subsequently
entered in favor of the lienholder or the declarant subsequently
releases his or her interest in the vehicle. If a money judgment is
entered in favor of the lienholder and the judgment is not paid
within five days after becoming final, then the judgment may be
enforced by lien sale proceedings conducted pursuant to subdivision
(f). (g).
(e)
(f) Service on the declarant in person or by certified
mail with return receipt requested, signed by the declarant or an
authorized agent of the declarant at the address shown on the
Declaration of Opposition form, shall be effective for the serving of
process. If the lienholder has served the declarant by certified
mail at the address shown on the Declaration of Opposition form and
the mail has been returned unclaimed, or if the lienholder has
attempted to effect service on the declarant in person with a
marshal, sheriff, or licensed process server and the marshal,
sheriff, or licensed process server has been unable to effect service
on the declarant, the lienholder may proceed with the judicial
proceeding or proceed with the lien sale without a judicial
proceeding. The lienholder shall notify the Department of Motor
Vehicles of the inability to effect service on the declarant and
shall provide the Department of Motor Vehicles with a copy of the
documents with which service on the declarant was attempted. Upon
receipt of the notification of unsuccessful service, the Department
of Motor Vehicles shall send authorization of the sale to the
lienholder and shall send notification of the authorization to the
declarant.
(f)
(g) At least 10 consecutive days prior to and including
the day of the sale, the lienholder shall post a Notice of Pending
Lien Sale form in a conspicuous place on the premises of the business
office of the lienholder and if the pending lien sale is scheduled
to occur at a place other than the premises of the business office of
the lienholder, at the site of the forthcoming sale. The Notice of
Pending Lien Sale form shall state the specific date and exact time
of the sale and description of the vehicle, including the make, year
model, identification number, license number, and state of
registration. For motorcycles, the engine number shall also be
included. The notice of sale shall remain posted until the sale is
completed.
(g)
(h) Following the sale of a vehicle, the person who
conducts the sale shall do both of the following:
(1) Remove and destroy the vehicle's license plates.
(2) Within five days of the sale, submit a completed "Notice of
Release of Liability" form with the Department of Motor Vehicles.
(h)
(i) The Department of Motor Vehicles shall retain all
submitted forms described in paragraph (2) of subdivision
(g) (h) for two years.
(i)
(j) No lien sale shall be undertaken pursuant to this
section unless the vehicle has been available for inspection at a
location easily accessible to the public at least one hour before the
sale and is at the place of sale at the time and date specified on
the notice of sale. Sealed bids shall not be accepted. The lienholder
shall conduct the sale in a commercially reasonable manner. All lien
sale documents required by the department shall be completed and
delivered to the buyer immediately following the sale.
sale and include a copy of the NMVTIS history report
required by subdivision (a).
(j)
(k) Any lien sale pursuant to this section shall be
void if the lienholder does not comply with this chapter. Any lien
for fees or storage charges for parking and storage of a motor
vehicle shall be subject to Section 10652.5 of the Vehicle Code.
SEC. 4. Section 3073 of the Civil Code is amended to read:
3073. The proceeds of a vehicle lien sale under this article
shall be disposed of as follows:
(a) The amount necessary to discharge the lien and the cost of
processing the vehicle shall be paid to the lienholder. The cost of
processing shall not exceed seventy dollars ($70) for each
vehicle valued at four thousand dollars ($4,000) or less, or one
hundred dollars ($100) for each vehicle valued over four thousand
dollars ($4,000). any of the following:
(1) Seventy dollars ($70) for each vehicle last titled in
California or that has no record of being titled in any state as
shown from the federal National Motor Vehicle Title Information
System report required in subdivision (a) of Section 3072, and valued
at four thousand dollars ($4,000) or less, or one hundred dollars
($100) for each vehicle last titled in another state or valued over
four thousand dollars
($4,000).
(2) Any fee charged for a federal National Motor Vehicle Title
Information System vehicle history report required under subparagraph
(A) of paragraph (2) of subdivision (a) of Section 3071 and
subdivision (a) of Section 3072 may be recovered in addition to the
cost of processing in this subdivision.
(b) The balance, if any, shall be forwarded to the Department of
Motor Vehicles within 15 days of any sale conducted pursuant to
Section 3071 or within five days of any sale conducted pursuant to
Section 3072 and deposited in the Motor Vehicle Account in the State
Transportation Fund, unless federal law requires these funds to be
disposed in a different manner.
(c) Any person claiming an interest in the vehicle may file a
claim with the Department of Motor Vehicles for any portion of the
funds from the lien sale that were forwarded to the department
pursuant to subdivision (b). Upon a determination of the Department
of Motor Vehicles that the claimant is entitled to an amount from the
balance deposited with the department, the department shall pay that
amount determined by the department, which amount shall not exceed
the amount forwarded to the department pursuant to subdivision (b) in
connection with the sale of the vehicle in which the claimant claims
an interest. The department shall not honor any claim unless the
claim has been filed within three years of the date the funds were
deposited in the Motor Vehicle Account.
SEC. 5. Section 3074 of the Civil Code is amended to read:
3074. The lienholder may charge a fee for lien sale preparations
not to exceed seventy dollars ($70) in the case of a vehicle
last titled in California or that has no record of being titled in
any state as shown from the federal National Motor Vehicle Title
Information System (NMVTIS) report required in subdivision (a) of
Section 3072, and having a value determined to be four thousand
dollars ($4,000) or less and not to exceed one hundred dollars
($100) in the case of a vehicle last titled in another state or
having a value determined to be greater than four thousand
dollars ($4,000), from any person who redeems the vehicle prior to
disposal or is paid through a lien sale pursuant to this chapter.
Any fee charged for a NMVTIS vehicle history report required
under subparagraph (A) of paragraph (2) of subdivision (a) of Section
3071, and subdivision (a) of Section 3072, may be recovered in
addition to the lien sale preparations fee authorized by this
section. These charges may commence and become part of the
possessory lien when the lienholder requests the names and addresses
of all persons having an interest in the vehicle from the Department
of Motor Vehicles. Not more than 50 percent of the allowable fee may
be charged until the lien sale notifications are mailed to all
interested parties and the lienholder or registration service agent
has possession of the required lien processing documents. This charge
shall not be made in the case of any vehicle redeemed prior to 72
hours from the initial storage.
SEC. 6. Section 22851.1 of the Vehicle Code is amended to read:
22851.1. (a) If the vehicle is impounded pursuant to subdivision
(i) of Section 22651 and not released as provided in that
subdivision, the vehicle may be sold pursuant to this chapter to
satisfy the liens specified in Section 22851 and in subdivision (b)
of this section.
(b) A local authority impounding a vehicle pursuant to subdivision
(i) of Section 22651 shall have a lien dependent upon possession by
the keeper of the garage for satisfaction of bail for all outstanding
notices of parking violation issued by the local authority for the
vehicle, when the conditions specified in subdivision (c) have been
met. This lien shall be subordinate in priority to the lien
established by Section 22851, and the proceeds of any sale shall be
applied accordingly. Consistent with this order of priority, the term
"lien," as used in this article and in Chapter 6.5 (commencing with
Section 3067) of Title 14 of Part 4 of Division 3 of the Civil Code,
includes a lien imposed by this subdivision. In any action brought to
perfect the lien, where required by subdivision (d) of Section
22851.8 of this code, or by subdivision (d) of Section 3071 or
subdivision (d) (e) of Section 3072 of
the Civil Code, it shall be a defense to the recovery of bail that
the owner of the vehicle at the time of impoundment was not the owner
of the vehicle at the time of the parking offense.
(c) A lien shall exist for bail with respect to parking violations
for which no person has answered the charge in the notice of parking
violation given, or filed an affidavit of nonownership pursuant to
and within the time specified in subdivision (b) of Section 41103.
SEC. 7. Section 22851.12 of the Vehicle Code is amended to read:
22851.12. (a) The lienholder may charge a
fee for lien-sale preparations not to exceed seventy dollars
($70) in the case of a vehicle having a value determined to be four
thousand dollars ($4,000) or less and not to exceed one hundred
dollars ($100) in the case of a vehicle having a value determined to
be greater than four thousand dollars ($4,000), from any person who
redeems the vehicle prior to disposal or is sold through a lien sale
pursuant to this chapter. These charges may commence and become part
of the possessory lien when the lienholder requests the names and
addresses of all persons having an interest in the vehicle from the
department. Not more than 50 percent of the allowable fee may be
charged until the lien sale notifications are mailed to all
interested parties and the lienholder or the registration service
agent has possession of the required lien processing documents. This
charge shall not be made in the case of any vehicle redeemed prior to
72 hours from the initial storage. from any person
who redeems the vehicle prior to disposal or is sold through a lien
sale pursuant to this chapter. The fee shall not exceed the
following:
(1) Seventy dollars ($70) in the case of a vehicle having a value
determined to be five hundred dollars ($500) or less and the lien is
satisfied pursuant to Sections 22851.8 and 22851.10.
(2) Seventy dollars ($70) in the case of a vehicle last titled in
California or that has no record of being titled in any state as
shown from the federal National Motor Vehicle Title Information
System report required in subdivision (a) of Section 3072 of the
Civil Code, and having a value determined to be four thousand dollars
($4,000) or less.
(3) One hundred dollars ($100) in the case of a vehicle last
titled in another state or having a value determined to be greater
than four thousand dollars ($4,000).
(b) These charges may commence and become part of the possessory
lien when the lienholder requests the names and addresses of all
persons having an interest in the vehicle from the department. Not
more than 50 percent of the allowable fee may be charged until the
lien sale notifications are mailed to all interested parties and the
lienholder or the registration service agent has possession of the
required lien processing documents. This charge shall not be made in
the case of any vehicle redeemed prior to 72 hours from the initial
storage.
SEC. 8. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.