Citations Affected: IC 9-22; IC 32-33.
Synopsis: Towing liens. Requires the bureau of motor vehicles
(bureau) to sell an abandoned vehicle no later than 90 days after the
bureau sends notice to the vehicle owner and any lienholders. Allows
an unpaid provider of towing services to obtain a mechanic's lien on a
towed vehicle and sell the vehicle. Prohibits the bureau from selling
certain abandoned vehicles at a public sale.
Effective: July 1, 2004.
January 12, 2004, read first time and referred to Committee on Judiciary.
January 29, 2004, reported favorably _ Do Pass.
A BILL FOR AN ACT to amend the Indiana Code concerning
motor vehicles.
SECTION 1. IC 9-22-1-19, AS AMENDED BY P.L.78-2003,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 19. (a) Within seventy-two (72) hours after
removal of an abandoned vehicle to a storage area under section 13, 14,
or 16 of this chapter, the public agency or towing operator shall prepare
and forward to the bureau an abandoned vehicle report containing a
description of the vehicle, including the following information
concerning the vehicle:
(1) The make.
(2) The model.
(3) The identification number.
(4) The number of the license plate.
In addition to the abandoned vehicle report, a towing operator
shall provide the bureau with a written notice indicating whether
the towing operator intends to sell the abandoned vehicle under
IC 9-22-5-15.
(b) The public agency or towing operator shall request that the
bureau advise the public agency or towing operator of the name and
most recent address of the person who owns or holds a lien on the
vehicle.
(c) Notwithstanding section 4 of this chapter, if the public agency
or towing operator fails to notify the bureau of the removal of an
abandoned vehicle within seventy-two (72) hours after the vehicle is
removed as required by subsection (a), the public agency or towing
operator:
(1) may not initially collect more in reimbursement for the costs
of storing the vehicle than the cost incurred for storage for
seventy-two (72) hours; and
(2) may collect further reimbursement under this chapter only for
additional storage costs incurred after notifying the bureau of the
removal of the abandoned vehicle.
SECTION 2. IC 9-22-1-22 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 22. (a) This section
applies to the bureau.
(b) Except as provided in subsection (c), if the person who owns or
holds a lien upon a vehicle does not appear within twenty (20) days
after the mailing of a notice under section 20 of this chapter, the bureau
shall sell the vehicle or parts to the highest bidder at a public sale
unless the bureau has received notification under section 19 of this
chapter that the vehicle will be sold under IC 9-22-5-15. Notice of
the sale under this section shall be given under IC 5-3-1, except only
one (1) newspaper insertion one (1) week before the public sale is
required.
(c) This subsection applies to a consolidated city or a county
containing a consolidated city. If the person who owns or holds a lien
upon a vehicle does not appear within fifteen (15) days after the
mailing of a notice under section 20 of this chapter, the bureau shall
sell the vehicle or parts to the highest bidder at a public sale unless the
bureau has received notification under section 19 of this chapter
that the vehicle will be sold under IC 9-22-5-15. Notice of the sale
under this section shall be given under IC 5-3-1, except only one (1)
newspaper insertion one (1) week before the public sale is required.
(d) A public sale under this section must occur not later than
ninety (90) days after the mailing of a notice under section 20 of
this chapter.
SECTION 3. IC 9-22-5-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 15. (a) An individual,
a firm, a limited liability company, or a corporation that performs labor,
furnishes materials or storage, or does repair work on a motor vehicle,
trailer, semitrailer, or recreational vehicle at the request of the person
who owns the motor vehicle has a lien on the vehicle to the reasonable
value of the charges for the labor, materials, storage, or repairs.
(b) An individual, a firm, a partnership, a limited liability
company, or a corporation that provides towing services for a
motor vehicle, trailer, semitrailer, or recreational vehicle at the
request of:
(1) the person who owns the motor vehicle, trailer,
semitrailer, or recreational vehicle; or
(2) an individual, a firm, a partnership, a limited liability
company, a corporation, or a unit of government on whose
property an abandoned vehicle, trailer, semitrailer, or
recreational vehicle is located;
has a lien on the vehicle to the reasonable value of the charges for
the towing services and other related costs. An individual, a firm,
a partnership, a limited liability company, or a corporation that
obtains a lien for an abandoned vehicle under subdivision (2) must
comply with the requirements of IC 9-22-1-16, IC 9-22-1-17, and
IC 9-22-1-19.
(c) If:
(1) the charges made under subsection (a) or (b) are not paid; and
(2) the motor vehicle, trailer, semitrailer, or recreational vehicle
is not claimed;
within thirty (30) days from the date on which the motor vehicle was
left in or came into the possession of the individual, firm, limited
liability company, or corporation for repairs, storage, towing, or the
furnishing of materials, the individual, firm, limited liability company,
or corporation may advertise the vehicle for sale. The vehicle may not
be sold before fifteen (15) days after the date the advertisement
required by subsection (c) (d) has been placed or after notice required
by subsection (d) (e) has been sent, whichever is later.
(c) (d) Before a vehicle may be sold under subsection (b), (c), an
advertisement must be placed in a newspaper of general circulation
printed in the English language in the city or town in which the
lienholder's place of business is located. The advertisement must
contain at least the following information:
(1) A description of the vehicle, including make, type, and
manufacturer's identification number.
(2) The amount of the unpaid charges.
(3) The time, place, and date of the sale.
(d) (e) In addition to the advertisement required under subsection
(c), (d), the person who holds the mechanic's lien must:
a certificate of title for the vehicle under IC 9-17.
(j) An abandoned motor vehicle, trailer, semitrailer, or
recreational vehicle to which a lien attaches under this section may
not be sold as an abandoned vehicle in the manner provided in
IC 9-22-1 if notice is provided to the bureau under IC 9-22-1-19
that the towing operator that removed the motor vehicle, trailer,
semitrailer, or recreational vehicle intends to sell it.
SECTION 4. IC 32-33-10-5, AS ADDED BY P.L.2-2002,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 5. A person engaged in:
(1) towing, repairing, storing, servicing, or furnishing supplies or
accessories for motor vehicles, airplanes, construction machinery
and equipment, and farm machinery; or
(2) maintaining a motor vehicle garage, an airport or repair shop
for airplanes, or a repair shop or servicing facilities for
construction machinery and equipment and farm machinery;
has a lien on any motor vehicle or airplane or any unit of construction
machinery and equipment or farm machinery towed, stored, repaired,
serviced, or maintained for the person's reasonable charges for the
towing, repair work, storage, or service, including reasonable charges
for labor, for the use of tools, machinery, and equipment, and for all
accessories, materials, gasoline, oils, lubricants, and other supplies
furnished in connection with the towing, repair, storage, servicing, or
maintenance of the motor vehicle, airplane, unit of construction
machinery and equipment, or farm machinery.
SECTION 5. IC 32-33-10-6, AS ADDED BY P.L.2-2002,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 6. (a) A person seeking to acquire a lien upon a
motor vehicle, an airplane, a unit of construction machinery and
equipment, or farm machinery, whether the claim to be secured by the
lien is then due or not, must file in the recorder's office of the county
where:
(1) the towing, repair, service, or maintenance work was
performed; or
(2) the storage, supplies, or accessories were furnished;
a notice in writing of the intention to hold the lien upon the motor
vehicle, airplane, unit of construction machinery and equipment, or
farm machinery for the amount of the person's claim.
(b) A notice filed under subsection (a) must specifically state the
amount claimed and give a substantial description of the motor vehicle,
airplane, unit of construction machinery and equipment, or farm
machinery upon which the lien is asserted.