The bill amends existing laws regarding the possessory lien held by towing and storage firms, specifically addressing the definition of "cargo" and the scope of the lien. It introduces a new definition of "cargo" to include various goods and materials transported by motor carriers, such as pallets, containers, and securement systems. Additionally, the bill clarifies that while towing and storage firms have a first priority possessory lien on vehicles and their contents, this lien does not extend to certain personal items, including medications, personal documents, and notably, cargo being transported by commercial motor carriers.

Furthermore, the bill includes an emergency clause, stating that the current interpretation of possessory liens on cargo imposes undue hardship on owners, shippers, brokers, and carriers, potentially affecting the quality and utility of the cargo and exacerbating supply chain issues. The act is deemed immediately necessary for the preservation of public peace, health, and safety, and will take effect upon approval by the Governor or under specified conditions if not vetoed.

Statutes affected:
HB 1563: 27-50-1202, 27-50-1208(a)