HB184: HB184 Georgia Consumer Protection Towing Act; enact

26 LC 39 5027S The House Committee on Motor Vehicles offers the following substitute to HB 184: A BILL TO BE ENTITLED AN ACT To amend Article 1A of Chapter 11 of Title 40 of the Official Code of Georgia Annotated,1 relating to abandoned motor vehicles, so as to provide for the establishment of a towed motor2 vehicle database by the Department of Revenue or an authorized third party; to provide for3 the use of such database to satisfy notice requirements for lie ns upon motor vehicles in4 certain instances; to allow for re-impoundment of motor vehicles upon failing to comply with5 notice requirements; to provide for certain fees; to provide fo r definitions; to provide for6 related matters; to provide for effective dates; to repeal conf licting laws; and for other7 purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 PART I10 SECTION 1-1.11 Article 1A of Chapter 11 of Title 40 of the Official Code of Georgia Annotated, relating to12 abandoned motor vehicles, is amended in Code Section 40-11-13, relating to definitions, by13 adding a new paragraph to read as follows:14 H. B. 184 (SUB) - 1 - 26 LC 39 5027S "(8.1) 'Towed motor vehicle database' means the database established pursuant to Code15 Section 40-11-13.1."16 SECTION 1-2.17 Said article is further amended by adding a new Code section to read as follows:18 "40-11-13.1.19 No later than October 1, 2026, the department shall provide by rule or regulation for the20 establishment of a towed motor vehicle database for purposes of this article. Such database21 shall be developed and functional no later than January 1, 2027, and shall provide for the22 submission of information upon the removal of a motor vehicle and include a feature that23 allows a motor vehicle owner to search for the location of a to wed vehicle by vehicle24 identification number and license plate number. Such database may be operated and25 maintained by a third party that is a nonprofit corporation org anized under Section26 501(c)(6) of Title 26 of the Internal Revenue Code and recogniz ed as a membership27 organization for the towing and storage industry. Such third p arty shall be required to28 possess and maintain a surety bond in an amount of no less than $1 million, demonstrate29 internal controls and provide data security audits by a licensed certified public accountant,30 and maintain all records relating to such database for at least five years."31 PART II32 SECTION 2-1.33 Said article is further amended in Code Section 40-11-15, relat ing to removal of vehicle,34 liability, and duty of towing and storage firm when removal at request of law enforcement,35 by revising subsection (d) as follows:36 "(d) A towing and storage firm that has removed an unattended m otor vehicle from37 public property at the request of a peace officer shall, within three days of the removal,38 H. B. 184 (SUB) - 2 - 26 LC 39 5027S submit the vehicle identification number of the motor vehicle to the towed motor vehicle39 database and request from the department the identification and addresses of all owners40 of such vehicle contained in the records of the department; pro vided, however, that, if41 such vehicle has an out-of-state license plate, such request sh all be made to the state42 where the vehicle is registered or to an entity with access to such state's vehicle43 registration information. The department shall furnish the requested owner information44 no later than five days from the date the request was received. The department may45 charge a fee of no more than $2.00 for such owner information. For purposes of this46 subsection, an unattended motor vehicle shall include a motor v ehicle required to be47 moved due to arrest of the vehicle's operator or any direction of a peace officer."48 SECTION 2-2.49 Said article is further amended in Code Section 40-11-16, relat ing to duty of towing and50 storage firm when removal at request of property owners and obl igations of repair facility51 or salvage dealer in possession of vehicle, by revising paragra ph (1) of subsection (a) as52 follows:53 "(a)(1) Any towing and storage firm which has removed an unatte nded motor vehicle54 from private property at the request of the property owner shall, within three days of the55 removal, submit the vehicle identification number of the motor vehicle to the towed56 motor vehicle database and request from the department the identification and addresses57 of all owners of such vehicle contained in the records of the d epartment; provided,58 however, that, if such vehicle has an out-of-state license plate, such request shall be made59 to the state where the vehicle is registered or to an entity wi th access to such state's60 vehicle registration information. The department shall furnish t h e r e q u e s t e d o w n e r61 information no later than five days from the date the request w as received. The62 department may charge a fee of no more than $2.00 for such owner information."63 H. B. 184 (SUB) - 3 - 26 LC 39 5027S SECTION 2-3.64 Said article is further amended in Code Section 40-11-19, relat ing to notification letter to65 owners, advertisement, lien upon vehicle, recoverable fees, form disclaiming ownership, and66 demand letter, by revising subsection (a) and adding a new subsection to read as follows:67 "(a)(1) Within 15 calendar seven days of removal or initial storage of a motor vehicle,68 a towing and storage firm shall send all owners the notification letter form developed by69 the Council of Magistrate Court Judges for such purpose. Such notification shall be by70 certified mail or by hand delivery with acknowledgment of such receipt by signature of71 the owner and a copy of such owner's driver's license. Such no tification letter shall72 include, at a minimum:73 (A) The location of the vehicle;74 (B) The fees connected with the removal of the vehicle, which shall be the maximum75 allowable charge for the removal of the motor vehicle as set forth by rule and regulation76 of the Department of Public Safety for maximum state-wide rate tariffs or the rate77 specified pursuant to an agreement with a local governing autho rity, except when78 otherwise exempted or provided for by federal law, rule, or regulation;79 (C) The daily fees for storage of the vehicle, which shall be the maximum allowable80 daily rate for the storage of the motor vehicle as set forth by rule and regulation of the81 Department of Public Safety for maximum state-wide rate tariffs or the rate specified82 pursuant to an agreement with a local governing authority;83 (D) A statement informing the recipient that daily fees will accrue until full payment84 has been made;85 (E) A statement informing the recipient that the fees which are recoverable by a towing86 and storage firm include costs for obtaining the owner's information and notifying the87 owner, court filing costs, attorney's fees, and interest;88 H. B. 184 (SUB) - 4 - 26 LC 39 5027S (F) A statement informing the recipient that the towing and storage firm has the right89 to petition a court to foreclose a lien for all amounts owed after ten calendar days from90 the date such notice is sent;91 (G) A statement informing the recipient that a court may order the sale of the vehicle92 to satisfy the debt; and93 (H) A form to disclaim ownership interest in the motor vehicle by oath or affirmation94 as set forth in Code Section 40-11-19.5.95 (2) If the identity of the owner cannot be ascertained by the department or the department96 fails to timely furnish the owner information requested pursuan t to Code Section97 40-11-15 or 40-11-16, the towing and storage firm shall, within 60 days of such removal,98 place an advertisement in a newspaper of general circulation or the legal organ in the99 county where such vehicle was obtained. Any advertisement required by this paragraph100 shall run in the newspaper once a week for two consecutive weeks. The advertisement101 shall be in the form provided by the Council of Magistrate Court Judges for such purpose. 102 Such advertisement form shall include a space for describing th e motor vehicle's year,103 make, model, and manufacturer's vehicle identification number, the present location of104 such vehicle, the fact that such vehicle is subject to a lien which can be foreclosed upon,105 and the fact that such vehicle may be ordered sold to satisfy such lien evidence that the106 towing and storage firm timely entered the vehicle identificati on number in the towed107 motor vehicle database shall be deemed sufficient notice for purposes of this article.108 (3) If the identity of an owner which was previously not ascer tained becomes known109 while an advertisement is run pursuant to paragraph (2) of this subsection, the towing and110 storage firm shall send a notification letter pursuant to the same requirements set forth in111 paragraph (1) of this subsection within ten days of obtaining such information."112 "(g) If a towing and storage firm, repair facility, or salvage dealer fails to comply with the113 notice requirements in this Code section, the motor vehicle may be re-impounded to permit114 H. B. 184 (SUB) - 5 - 26 LC 39 5027S compliance. Any daily storage fees incurred prior to the date of such re-impoundment shall115 be waived and not recoverable."116 SECTION 2-4.117 Said article is further amended by revising Code Section 40-11-19.1, relating to petition to118 foreclose a lien on motor vehicle, answer, motion for judgment, timing, and fees, as follows:119 "40-11-19.1.120 (a) Not sooner than ten calendar days and not later than six months after compliance with121 the notice requirements set forth in Code Section 40-11-19, a t owing and storage firm,122 repair facility, or salvage dealer may file an action for a petition to foreclose a lien against123 the motor vehicle in any magistrate court in the county where the motor vehicle is located. 124 An action filed pursuant to this Code section shall be on a form provided by the Council125 of Magistrate Court Judges for such purpose and shall be accompanied by a filing fee of126 no more than $11.00. Any person bringing such action shall include with such form a copy127 of the owner information obtained pursuant to the request requi red by Code Section128 40-11-15 or 40-11-16 and proof of compliance with the notice re quirements set forth in129 Code Section 40-11-19. The petition to foreclose a lien shall be verified by oath or130 affirmation by the towing and storage firm, repair facility, or salvage dealer in a manner131 consistent with Article 5 of Chapter 10 of Title 9.132 (b)(1) The party bringing such action shall send a copy of the oath or affirmation page133 of the filed petition to any person known to be an owner of the motor vehicle by certified134 mail or statutory overnight delivery, return receipt requested . The court shall accept135 electronic documentation as proof that such copy of the filed p etition was sent and136 delivered in accordance with the requirements of this subsection. Inclu ded in such137 mailing shall be a copy of a standardized answer form provided by the Council of138 Magistrate Court Judges for such purpose. Such form shall require oath or affirmation139 of the respondent and shall include space to set forth:140 H. B. 184 (SUB) - 6 - 26 LC 39 5027S (A) The name of the owner;141 (B) The address at which the owner resides;142 (C) A description of the motor vehicle, including the license plate number and the143 model, make, and year of the vehicle;144 (D) A description of the date the owner obtained an interest in the motor vehicle;145 (E) A brief statement as to why removal of the vehicle was unauthorized, if applicable;146 (F) Any other brief statement as to why the lien claimed by th e towing and storage147 firm, repair facility, or salvage dealer is invalid;148 (G) A copy of any documentation in the owner's possession supp orting his or her149 answer; and150 (H) Any additional facts supporting the owner's answer or as to why the lien should not151 be foreclosed upon.152 (2) If notice required under Code Section 40-11-19 was satisfi ed by advertisement, or153 the signed proof of receipt of a copy of the petition required to be sent under154 paragraph (1) of this subsection has not been returned after ten days of such mailing or155 has been returned as unclaimed, the party filing the petition shall, within 60 days, place156 an advertisement in a newspaper of general circulation or the l egal organ where such157 action has been filed. No such advertisement shall be required if the return receipt158 required as proof of delivery has been returned with a notation that the notice of the filing159 of the petition has been refused. Such notice shall run in the newspaper once a week for160 two consecutive weeks. Such notice shall include instructions for how an owner may161 obtain the standardized answer form described in this subsection and shall be deemed as162 notice to any and all persons having an interest in or right affected by such petition and163 from any sale of the motor vehicle resulting therefrom.164 (3)(2) If the identity of an owner which was previously not ascertained becomes known165 while an advertisement is run pursuant to paragraph (2) of this subsection, the party filing166 a petition to foreclose shall send a copy of the filed petition pursuant to the same167 H. B. 184 (SUB) - 7 - 26 LC 39 5027S requirements set forth in paragraph (1) of this subsection with in ten days of obtaining168 such information.169 (c) An owner may file an answer to the petition no later than ten 30 calendar days after170 receipt notice was sent pursuant to subsection (b) of this Code sectio n by using the171 standardized answer form provided. If service is made by adver tisement pursuant to172 paragraph (2) of subsection (b) of this Code section, an owner may file an answer no later173 than ten days after the expiration of the required two-week advertisement.174 (d) If no answer has been filed at the expiration of the period set forth in subsection (c) of175 this Code section, the towing and storage firm, repair facility, or salvage dealer may seek176 to foreclose the lien through a judgment as provided in Code Section 15-10-43 by making177 such request in writing and submitting to the court proof of se rvice as set forth in178 compliance with subsection (b) of this Code section. Unless providentially hi ndered, it179 shall be the duty of the judge to decide all motions for judgment submitted pursuant to this180 subsection no later than 15 days from when such motion has been made. When a judgment181 is granted, the motor vehicle shall be considered abandoned and within five days the court182 shall issue an order for the disposition of the motor vehicle as provided for in Code Section183 40-11-19.2. A certified copy of such order shall be issued by the clerk of court. A fee of184 no more than $14.00 may be charged for a certified copy of such order, which shall be185 issued by the clerk of court. If no answer has been filed but the court finds that a petition186 fails to comply with the requirements of this article, a petiti on may be refiled for such187 action once within six months of the issuance of denial of a ju dgment the motor vehicle188 may be re-impounded by a towing and storage firm, repair facili ty, or salvage dealer to189 permit compliance. Any daily storage fees incurred prior to th e date of such190 re-impoundment shall be waived and not recoverable.191 (e)(1) If an answer is returned to the court, a trial shall be held within ten days after192 receipt of such answer; provided, however, that such trial may be continued by the court193 for good cause shown by either party.194 H. B. 184 (SUB) - 8 - 26 LC 39 5027S (2) At the trial, the court shall hear evidence of and determine whether the removal of195 the vehicle was lawful, whether the lien amount is based upon r ecoverable fees as set196 forth in subsection (d) of Code Section 40-11-19, and whether notice to all owners was197 proper, and shall hear any other facts pertinent to the case to reach a decision on198 foreclosure of the lien. The court may hear evidence of and ma ke a determination on199 whether storage fees should accrue after the filing date of the petition. Upon conclusion200 of the trial, the court shall issue a decision on whether to fo reclose the lien for the201 recoverable fees set forth in subsection (d) of Code Section 40-11-19 and, if foreclosure202 is granted, the court shall order the disposition of the motor vehicle as provided for in203 Code Section 40-11-19.2. A fee of no more than $14.00 may be charged for a certified204 copy of such order which shall be issued by the clerk of court."205 PART III206 SECTION 3-1.207 (a) Except as provided for in subsection (b) of this section, this Act shall become effective208 on July 1, 2026.209 (b) Part II of this Act shall become effective on January 1, 2028.210 SECTION 3-2.211 All laws and parts of laws in conflict with this Act are repealed.212 H. B. 184 (SUB) - 9 -