Amended in Assembly April 21, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1884

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 amended, 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 begin delete 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, end delete begin insert has been determined to have
a value not exceeding four thousand dollars ($4,000), end insert 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
(c) of Section 3072.

(c) If the vehicle begin delete was last titled in another state or end delete 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) begin delete or any vehicle determined to be last
titled in a different state end delete . 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:

(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.

(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.

(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). begin delete Any fee charged
for end delete begin insert The fee charged to obtain end insert 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 begin delete pursuant to paragraph (1) of subdivision (a)
of this section end delete .

(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 begin delete required by subparagraph (A) of
paragraph (2) of subdivision (a) end delete 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 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. begin delete 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 end delete begin insert The fee charged to obtain end insert
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.

begin delete

(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

end delete

begin insert end insert
begin insert (b) end insert begin insert   end insert begin insert (1) end insert begin insert   end insert begin insert The end insert lienholder shall apply to the department for the
names and addresses of the registered and legal owners of begin delete record. end delete
begin insert record and interested parties known to the department. end insert 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.

begin insert

(2) If the required NMVTIS vehicle history report indicates that
the vehicle was last titled in another state, the lienholder shall do
one of the following:

end insert begin insert

(A) Apply to the registry agency of that foreign state directly,
to obtain name and address information for the registered and
legal owner of the vehicle in order to provide notifications required
in paragraph (1) of subdivision (c). The request shall be sent by
certified mail with return receipt requested or by United States
Postal Service Certificate of Mailing. The notices required in
subdivision (c) shall not be mailed until the name and address
information is received or until 15 days after the request for
information was mailed, whichever occurs first.

end insert begin insert

(B) Apply to the registry agency of that foreign state indirectly,
through the use of an authorized vendor, to obtain name and
address information of the registered and legal owner of the
vehicle, in order to provide notifications required in paragraph
(1) of subdivision (c).

end insert begin insert

(C) Send the registered and legal owner notifications required
in paragraph (1) of subdivision (c) to the registry agency of the
foreign state as referenced in paragraph (2) of subdivision (c).

end insert

(c)  begin insert (1) end insert begin insert   end insert 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 begin delete department, end delete begin insert department or the records
of the registry of a foreign state if last titled in that state, end insert 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.

begin insert

(2) If the vehicle was last titled in another state and the name
and address information of the registered and legal owner within
that state is not obtained, the notices to the registered and legal
owners required in paragraph (1) shall be sent to the registry
agency of the foreign state, along with a request to forward the
notices to the registered and legal owners. A blank stamped
envelope for each notice shall be included.

end insert

(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. begin insert For notices being sent to a registry agency of a
foreign state pursuant to paragraph (2) of subdivision (c), the
specific date of sale shall be set not less than 36 days, but not more
than 41 days, from the date of mailing. end insert

(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. begin insert For notices sent to a registry agency
of a foreign state and forwarded to the registered or legal owner
within that state, the Declaration of Opposition form shall be
signed and returned to the department within 15 days of the date
the Notice of Pending Lien Sale form was mailed to the registry
agency. end insert

(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 (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.

(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 (g).

(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.

(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.

(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.

(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 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 and include
a copy of the NMVTIS history report required by subdivision (a).

(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)  begin insert (1) end insert begin insert   end insert 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 begin delete any of the following: end delete begin insert 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). end insert

begin delete

(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).

end delete

(2)  begin delete Any fee charged for end delete begin insert The fee to obtain end insert 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 begin delete 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 end delete 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 begin delete last titled in another state or end delete 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. begin delete Any
fee charged for a end delete begin insert The fee charged to obtain a required end insert NMVTIS
vehicle history report begin delete required under subparagraph (A) of paragraph
(2) of subdivision (a) of Section 3071, and subdivision (a) of
Section 3072, end delete 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 (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 begin delete 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: end delete begin insert 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. The fee charged to obtain a required
federal National Motor Vehicle Title Information System vehicle
history report pursuant to Section 3071 or 3072 of the Civil Code
may be recovered in addition to the lien sale preparations fee.
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. end insert

begin delete

(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.

end delete

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.