ON APRIL 11, 2024, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 1692, AS AMENDED.
AMENDMENT #1 rewrites the bill to enact the "Modernization of Towing, Immobilization, and Oversight Normalization Act" ("act") as follows:
BOOTING AND TOWING PROHIBITED ON COMMERCIAL PARKING LOTS
(1) Establishes that it is an offense for a commercial parking lot owner to boot or tow a motor vehicle located on the lot owner's lot if the motor vehicle is not an abandoned, immobile, or unattended motor vehicle;
(2) Establishes that it is not an offense for a licensed parking lot, or a licensed parking attendant on the licensed parking lot's behalf, to boot or tow motor vehicles located on the licensed parking lot if the licensed parking lot is located within the jurisdiction of a local government that has passed an ordinance pursuant to this act and the licensed parking lot or licensed parking attendant boots or tows a motor vehicle in compliance with the ordinance;
(3) Establishes that a violation of the provisions under this heading also constitutes a violation of the Tennessee Consumer Protection Act (TCPA) and an unfair or deceptive act or practice, subject to the penalties and remedies of the TCPA as well as this act;
(4) Establishes that the attorney general has all of the investigative and enforcement authority of the TCPA as relates to violations of this act. If the attorney general believes a person has violated this act, authorizes the attorney general to institute a proceeding under this act. Costs of any kind or nature must not be taxed against the attorney general or the state in actions commenced under this act;
(5) In addition to the remedy provided under this heading, provides that a person injured as a result of a violation of the provisions under the heading is entitled to maintain a private right of action for injunctive relief and to recover actual damages, compensatory damages, punitive damages, and reasonable attorney fees against an alleged violator;
BOOTING PROHIBITED GENERALLY
(6) Establishes that it is an offense for a person, other than a licensed parking attendant, to knowingly boot a motor vehicle in this state. A violation of this offense if a Class B misdemeanor; however, a second or subsequent offense is a Class A misdemeanor;
LOCAL OPTION
(7) If, after the effective date of this act, a local government passes an ordinance specifically opting to be governed by the provisions under this heading, authorizes the local government to permit a licensed parking lot, or a licensed parking attendant on the licensed parking lot's behalf, to boot or tow on the licensed parking lot; however, the ordinance must comply with the requirements as described under this heading;
(8) Requires such local ordinance to, at a minimum, do the following:
(A) Require the annual licensure of the commercial parking lot owner as a licensed parking lot and the issuance of a license number to the licensed parking lot;
(B) Specify in the annual licensure whether the licensure permits the licensed parking lot to boot, tow, or both boot and tow;
(C) Require the annual licensure of any employee authorized by the licensed parking lot to boot or tow from the lot as a licensed parking attendant and issue a license number and photo identification from the local government to the licensed parking attendant;
(D) Prohibit any person from booting or towing a motor vehicle on a licensed parking lot except by a licensed parking attendant licensed by the local government;
(E) Require licensed parking attendants licensed pursuant to (C) above to (i) prominently display the photo identification issued by the local government on the licensed parking attendant's person at all times when the licensed parking attendant is on duty and available to boot or tow a motor vehicle located on a licensed parking lot; and (ii) wear a distinctive uniform identifying the licensed parking attendant as an employee of the licensed parking lot at all times when the licensed parking attendant is on duty and available to boot or tow a motor vehicle located on the licensed parking lot;
(F) Require a licensed parking lot and licensed parking attendant to accept credit cards and debit cards as methods of payment for the removal of a vehicle immobilization device from a motor vehicle;
(G) Require a licensed parking lot to maintain a phone number that is monitored by a natural person 24 hours per day, seven days per week;
(H) Require a licensed parking lot to post signage at the terminal end of each parking spot that is subject to being booted or towed bearing notice: (i) that the parking policy for the property is strictly enforced; (ii) that a violator's vehicle will be immobilized with a vehicle immobilization device with the owner of the vehicle having to pay to have the device removed, if the licensed parking lot has been licensed by the local government to boot vehicles pursuant to (B); towed at the owner's expense, if the licensed parking lot has been licensed by the local government to tow vehicles pursuant to (B); or both, if the licensed parking lot has been licensed by the local government to boot and tow vehicles pursuant to (B); of the name of the licensed parking lot, the licensed parking lot registration number issued by the local government pursuant to (A), and the phone number required by (G); and (iii) that this act protects consumers from booting and towing violations and that violations may be reported to the attorney general and reporter and the phone number for the enforcement division of the local government;
(I) Require that the signage required by (H) be no less than 24 inches in height and 18 inches in width and contain lettering that is no less than two inches in height and be viewable from the driver's seat of an average motor vehicle parked in the parking spot;
(J) Require that immediately upon booting a vehicle, the licensed parking attendant must place a notice conspicuously displayed on the windshield of the motor vehicle immediately in front of the driver's seat indicating: (i) that a vehicle immobilization device has been installed on the motor vehicle and that damage could occur if the vehicle is moved without first removing the vehicle immobilization device; (ii) the information in (H); (iii) the name, license number issued by the local government, and direct contact number for the licensed parking attendant who has booted the motor vehicle; and (iv) the date and time that the vehicle immobilization device was installed on the motor vehicle;
(K) Require a licensed parking lot to pay for any damage done to a motor vehicle if the notice required by (J) is not posted;
(L) Require a licensed parking lot to have a licensed parking attendant arrive at the licensed parking lot within 30 minutes of a call requesting the removal of a vehicle immobilization device and immediately remove the device upon satisfactory payment of any parking fee and vehicle immobilization device removal fee;
(M) Prohibit a licensed parking lot from charging a vehicle immobilization device removal fee of greater than $75;
(N) Prohibit a licensed parking lot from charging any fee to remove a vehicle immobilization device to a person who had paid to park and who was improperly booted by the licensed parking lot or a licensed parking attendant; and
(O) Provide for the revocation of any license issued pursuant to the ordinance for violations of the ordinance or this act;
(9) Provides that the provisions under this heading do not prohibit a local government from passing an ordinance with requirements that are stricter than the minimum requirements;
(10) Provides that the provisions under this heading do not prohibit a local government from booting a motor vehicle that is located on public property; however, if the local government boots a motor vehicle on public property, then the local government must immediately, upon booting the motor vehicle, place a notice conspicuously displayed on the windshield of the motor vehicle immediately in front of the driver's seat indicating (i) that a vehicle immobilization device has been installed on the motor vehicle and that damage could occur if the vehicle is moved without first removing the vehicle immobilization device; (ii) the name of the local government official who booted the motor vehicle; (iii) the date and time the motor vehicle was booted; and (iv) the contact number the owner of the motor vehicle must call to have the vehicle immobilization device removed from the vehicle.
REQUIREMENTS OF COMMERCIAL PARKING LOTS
(11) Prohibits a commercial parking lot owner in this state from doing the following:
(i) Utilizing an automatic license plate reader to enforce the lot owner's parking requirements without first posting a sign that contains red lettering that is no less than six inches in height displayed on a white background; contains the language "LICENSE PLATE READER IN USE"; and is located at each designated entrance to the property, or, if there is no designated entrance, is erected in a place that is clearly visible from each parking space; and
(ii) Charging a penalty for non-payment of parking fees for a first violation in excess of the actual cost of the unpaid cost to park; however, a commercial parking lot owner may charge a late fee of up to $50 in addition to the actual cost of the unpaid cost to park if the actual cost of the unpaid cost to park is not paid within 30 calendar days;
(12) Establishes that a violation of (i) and (ii) under these headings constitutes a violation of the TCPA and an unfair or deceptive act or practice affecting trade or commerce subject to the penalties and remedies provided in the TCPA, in addition to any penalties and remedies established under this act;
(13) Establishes that the attorney general has all of the investigative and enforcement authority of the TCPA as relates to violations of this act. If the attorney general believes a person has violated this act, authorizes the attorney general to institute a proceeding under this act. Costs of any kind or nature must not be taxed against the attorney general or the state in actions commenced under this act;
(14) Provides that, in addition to the remedy provided under this heading, a person injured as a result of a violation of the provisions under this heading is entitled to maintain a private right of action for injunctive relief and to recover actual damages, compensatory damages, punitive damages, and reasonable attorney fees against an alleged violator;
UNCLAIMED OR ABANDONED VEHICLES - CUSTODY - REMOVAL - RESERVATION AND STORAGE
(15) Authorizes a police department to take into custody a motor vehicle found abandoned, immobile, unattended, or used in curbstoning on public or private property; however, a motor vehicle used in curbstoning on residential property must not be taken into custody unless the police department provides notice on the motor vehicle at least 48 hours prior to the seizure;
(16) Authorizes a police department to employ its own personnel, equipment, and facilities or hire persons, equipment, and facilities for the purpose of removing, preserving, and storing motor vehicles that are abandoned, immobile, unattended, or used in curbstoning;
(17) Establishes that any motor vehicle used in curbstoning is subject to seizure and forfeiture in the same manner as provided by law for seizure and forfeiture of other items under state law;
(18) Establishes that the provisions under this heading do not limit a local government's initiative for more restrictive requirements regarding the sale of curbstoned vehicles;
(19) Provides that, for purposes of this amendment, "curbstoning" means selling, offering for sale, advertising for sale, or soliciting the sale of (i) a motor vehicle without a properly endorsed certificate of title by a person or entity engaged primarily in the sale of used motor vehicles if the person or entity is not licensed as a motor vehicle dealer; or (ii) more than five motor vehicles in any twelve-month period when the motor vehicles are titled in the person's name or the name of the entity engaged primarily in the sale of used motor vehicles if the person or entity is not licensed as a motor vehicle dealer;
NOTICE AND PENALTY
(20) Requires a police department that takes into custody an abandoned, immobile, or unattended motor vehicle, to, within three business days after taking the motor vehicle into custody, verify ownership of the motor vehicle. The police department must, within three business days after receiving verification of ownership, notify by a nationally recognized overnight delivery carrier, other than the United States postal service, requesting proof of delivery, the last known registered owner of the motor vehicle and all lienholders of record that the vehicle has been taken into custody. The notice must do the following:
(i) Describe the year, make, model, and vehicle identification number of the abandoned, immobile, or unattended motor vehicle;
(ii) Stipulate the location of the facility where the motor vehicle is being held;
(iii) Inform the owner and any lienholders of the right to reclaim the motor vehicle within 20 days after the date of the notice, upon payment of all towing, preservation, and storage charges resulting from placing the vehicle in custody; and
(iv) State that the failure of the owner or lienholder to exercise the right to reclaim the vehicle within the time provided is deemed a waiver by the owner and all lienholders of all right, title, and interest in the vehicle and consent to the sale of the abandoned, immobile, or unattended motor vehicle at a public auction;
(21) Establishes that a police department is not required to comply with the notice procedure described under this heading 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;
(22) Requires that a preseizure notice be sent by a nationally recognized overnight delivery carrier, other than the United States postal service, requesting proof of delivery, to the last known address of the owner of record and to all lienholders of record;
(23) Requires the preseizure notice to do the following:
(A) Be written in plain language;
(B) Contain the year, make, model, and vehicle identification number of the motor vehicle, if ascertainable;
(C) Provide the location of the motor vehicle, and a statement advising the owner that the police department will take the abandoned, immobile, or unattended vehicle into custody in no less than 20 days, unless the owner appeals the determination by the police department that the vehicle is abandoned, immobile, or unattended or the owner removes the vehicle from the property within the twenty-day period;
(D) Inform the owner and any lienholders of the right to reclaim the motor vehicle after it is taken into custody but before it is sold or demolished, upon payment of all towing, preservation, storage, or other charges resulting from placing the vehicle in custody; and
(E) State that the failure of the owner or lienholders to exercise the right to reclaim the vehicle will be deemed a waiver by the owner and all lienholders of all right, title, and interest in the vehicle and consent to the demolition of the vehicle or its sale at a public auction;
(24) Provides that, if the owner or lienholder cannot be located through the exercise of due diligence, then requires the notice on the motor vehicle portal to be given as set out under this heading;
(25) Provides that, if the owner or lienholder of an abandoned, immobile, or unattended motor vehicle fails to appeal the determination that the vehicle is abandoned, immobile, or unattended or fails to remove the motor vehicle within 20 days from receipt of the preseizure notice, authorizes the police department to take the vehicle into custody;
(26) Provides that, if an appeal is made, prohibits the police department from taking the motor vehicle into custody while the appeal is pending;
(27) Establishes that without exception, failure to appeal within the specific time period constitutes a waiver of the right of appeal;
(28) Provides that, if there is no response to the notice requesting proof of delivery, requires the police department to make notice within three business days of receipt of the delivery confirmation by posting the abandoned, immobile, or unattended motor vehicle on the motor vehicle portal;
(29) Establishes that the consequences and effect of failure to reclaim an abandoned, immobile, or unattended motor vehicle must be as described in a valid notice;
(30) Provides that, if the owner of a motor vehicle is not present at the time the motor vehicle is towed, then within 15 minutes of a person, firm, or entity towing the motor vehicle, requires such person, firm, or entity to notify local law enforcement of the vehicle identification number (VIN), registration information, license plate number, and description of the vehicle. A violation of this requirement is a Class B misdemeanor. A police department must keep a record of all information required by that the police department must make available for public inspection;
(31) Provides that, if an employee of a public agency, a towing company contracting with a public agency, or a towing company authorized to tow by a private property owner or the private property owner's authorized agent, takes possession of a motor vehicle found abandoned, immobile, or unattended, requires an employee of the agency to verify ownership through the Tennessee information enforcement system (TIES) and place the ownership information on the towing sheet or form. The agency must also provide the ownership information to a garagekeeper with whom the agency has a contract or to a towing company authorized to tow by a private property owner or private property owner's authorized agent, as applicable. If a public agency attempts to verify ownership information through TIES and the response is "Not on File," requires the agency to contact the department of revenue title and registration division, which must search records not contained in TIES for the ownership information. If the title and registration division locates ownership information through this search, requires the division to notify the appropriate public agency and the agency must distribute the information. When any other person takes possession of a motor vehicle found abandoned, immobile, or unattended, the action must be reported immediately to the taxpayer and vehicle services division for verification of ownership on a form prescribed and provided by the registrar of motor vehicles;
(32) Provides that, in addition to the notification requirements described under this heading, requires a garagekeeper that has in its possession an abandoned, immobile, or unattended motor vehicle taken into custody by a police department or authorized by a private property owner or the private property owner's authorized agent to be towed, and in whose possession the motor vehicle was lawfully placed by the police department or authorized to be placed by a private property owner or the pri