ON MARCH 16, 2023, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 87, AS AMENDED.
AMENDMENT #1 rewrites this bill to revise present law provisions relative to motor vehicles, as described below.
GARAGEKEEPER'S OR TOWING FIRM'S LIEN
Present law provides that, if the motor vehicle clearly identifies the rental company and a garage keeper or towing firm lawfully comes into possession of the vehicle, then the garage keeper or towing firm must notify the rental company at the address identified with the vehicle's registration within three working days of taking possession of such vehicle by registered mail return receipt requested. In addition to any other penalty provided for a violation of this provision, such a violation is also deemed to be a violation of the Tennessee Consumer Protection Act of 1977, and the rental company may seek relief under that act. This amendment clarifies that a rental company, which the amendment redefines as rental vehicle company, as used in these provisions means a person or entity, or a subsidiary or affiliate of the person or entity, including a franchisee, in the business of renting vehicles to the public.
Present law further provides the following:
(1) That no person, firm, or entity has a right to a lien on any vehicle that has been towed without authorization of a police department or the owner of the vehicle or where the vehicle has been towed in violation of provisions governing unclaimed or abandoned vehicles; and
(2) If the owner of the vehicle is not present, then prior to any person, firm or entity towing any vehicle, such person, firm or entity must notify local law enforcement of the vehicle identification number (VIN), registration information, license plate number and description of the vehicle. Local law enforcement must keep a record of all such information which must be available for public inspection.
This amendment revises (2) above by requiring the person or entity towing the vehicle to notify local law enforcement as required by (2), within 15 minutes of the person or entity towing the vehicle. This amendment makes a violation of this notification requirement a Class A misdemeanor.
UNCLAIMED OR ABANDONED VEHICLES / NOTIFICATION OF OWNERS AND LIENHOLDERS
Present law requires a police department that takes into custody an abandoned, immobile, or unattended motor vehicle, to, within three business days after taking such motor vehicle into custody, verify ownership of such motor vehicle; and within three business days after receiving verification of ownership, notify by registered mail, return receipt requested, the last known registered owner of the motor vehicle and all lien holders of record that the vehicle has been taken into custody. However, a police department does not have to comply with the requirements of the above provision if it provides preseizure notice to the owner of the motor vehicle and all lienholders of record that the vehicle has been found to be abandoned, immobile, or unattended. Any preseizure notice must be sent by registered or certified mail, return receipt requested, to the last known address of the owner of record and to all lienholders of record. This amendment revises these provisions to authorize such notices to be sent by overnight delivery using a nationally recognized carrier with proof of delivery.
Under present law, when an employee of a public agency or a towing company contracting with a public agency takes possession of a vehicle found abandoned, immobile, or unattended, an employee of the agency must verify ownership through the Tennessee Information Enforcement System (TIES) and must place the ownership information on the towing sheet or form. Present law further requires the agency to provide the ownership information to any towing company or garagekeeper with whom the agency has a contract. This amendment revises the above provision to also apply to a towing company authorized to tow by a private property owner or the private property owner's authorized agent.
In addition to the notification requirements for a police department that takes into custody an abandoned, immobile, or unattended motor vehicle, present law requires:
(1) A garagekeeper or towing firm, which has in its possession an abandoned, immobile or unattended motor vehicle taken into custody by a police department, and in whose possession the vehicle was lawfully placed by the police department, to, within three business days after such motor vehicle is taken into its possession, verify ownership of such motor vehicle; and
(2) The garagekeeper or towing firm to, within three business days after receiving verification of ownership, provide notice to the last known registered owner of the motor vehicle and all lienholders of record. All notification requirements for a police department that takes into custody an abandoned, immobile, or unattended motor vehicle apply to the notice required to be provided by a garagekeeper or towing firm.
This amendment revises the above provisions to also apply to a garagekeeper or towing firm, which has in its possession an abandoned, immobile, or unattended motor vehicle authorized by a private property owner to be towed, and in whose possession the vehicle was authorized to be placed by a private property owner.
MOTOR VEHICLE STORAGE ACT
Present law prohibits persons engaged in the business of towing motor vehicles by wrecker or otherwise and the storing of these motor vehicles for any type of remuneration, whether as the principal business of those persons or as an incidence to the persons' principal business, from charging the owner or lienholder of the stored motor vehicle a storage fee for a period exceeding 21 days without the consent of the owner or lienholder, except as provided in the Motor Vehicle Storage Act. This amendment clarifies that this provision applies to persons engaged in the following:
(1) The business of towing motor vehicles or otherwise; or
(2) The business of storing towed motor vehicles.

Statutes affected:
Introduced: 55-7-114