HB 184: Georgia Consumer Protection Towing Act; enact

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, relating to abandoned motor vehicles, so as to provide for the establishment of a towed motor vehicle database by the Department of Revenue or an authorized third party; to provide for the use of such database to satisfy notice requirements for liens upon motor vehicles in certain instances; to allow for re-impoundment of motor vehicles upon failing to comply with notice requirements; to provide for certain fees; to provide for definitions; to provide for related matters; to provide for effective dates; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

PART I

SECTION 1-1.

Article 1A of Chapter 11 of Title 40 of the Official Code of Georgia Annotated, relating to abandoned motor vehicles, is amended in Code Section 40-11-13, relating to definitions, by adding a new paragraph to read as follows:

"(8.1) 'Towed motor vehicle database' means the database established pursuant to Code Section 40-11-13.1."

SECTION 1-2.

Said article is further amended by adding a new Code section to read as follows:

"40-11-13.1.

No later than October 1, 2026, the department shall provide by rule or regulation for the establishment of a towed motor vehicle database for purposes of this article. Such database shall be developed and functional no later than January 1, 2027, and shall provide for the submission of information upon the removal of a motor vehicle and include a feature that allows a motor vehicle owner to search for the location of a towed vehicle by vehicle identification number and license plate number. Such database may be operated and maintained by a third party that is a nonprofit corporation organized under Section 501(c)(6) of Title 26 of the Internal Revenue Code and recognized as a membership organization for the towing and storage industry. Such third party shall be required to possess and maintain a surety bond in an amount of no less than $1 million, demonstrate internal controls and provide data security audits by a licensed certified public accountant, and maintain all records relating to such database for at least five years."

PART II

SECTION 2-1.

Said article is further amended in Code Section 40-11-15, relating to removal of vehicle, liability, and duty of towing and storage firm when removal at request of law enforcement, by revising subsection (d) as follows:

"(d) A towing and storage firm that has removed an unattended motor vehicle from public property at the request of a peace officer shall, within three days of the removal, submit the vehicle identification number of the motor vehicle to the towed motor vehicle database and request from the department the identification and addresses of all owners of such vehicle contained in the records of the department; provided, however, that, if such vehicle has an out-of-state license plate, such request shall be made to the state where the vehicle is registered or to an entity with access to such state's vehicle registration information. The department shall furnish the requested owner information no later than five days from the date the request was received. The department may charge a fee of no more than $2.00 for such owner information. For purposes of this subsection, an unattended motor vehicle shall include a motor vehicle required to be moved due to arrest of the vehicle's operator or any direction of a peace officer."

SECTION 2-2.

Said article is further amended in Code Section 40-11-16, relating to duty of towing and storage firm when removal at request of property owners and obligations of repair facility or salvage dealer in possession of vehicle, by revising paragraph (1) of subsection (a) as follows:

"(a)(1) Any towing and storage firm which has removed an unattended motor vehicle from private property at the request of the property owner shall, within three days of the removal, submit the vehicle identification number of the motor vehicle to the towed motor vehicle database and request from the department the identification and addresses of all owners of such vehicle contained in the records of the department; provided, however, that, if such vehicle has an out-of-state license plate, such request shall be made to the state where the vehicle is registered or to an entity with access to such state's vehicle registration information. The department shall furnish the requested owner information no later than five days from the date the request was received. The department may charge a fee of no more than $2.00 for such owner information."

SECTION 2-3.

Said article is further amended in Code Section 40-11-19, relating to notification letter to owners, advertisement, lien upon vehicle, recoverable fees, form disclaiming ownership, and demand letter, by revising subsection (a) and adding a new subsection to read as follows: "(a)(1) Within 15 calendar seven days of removal or initial storage of a motor vehicle, a towing and storage firm shall send all owners the notification letter form developed by the Council of Magistrate Court Judges for such purpose. Such notification shall be by certified mail or by hand delivery with acknowledgment of such receipt by signature of the owner and a copy of such owner's driver's license. Such notification letter shall include, at a minimum:

(A) The location of the vehicle;

(B) The fees connected with the removal of the vehicle, which shall be the maximum allowable charge for the removal of the motor vehicle as set forth by rule and regulation of the Department of Public Safety for maximum state-wide rate tariffs or the rate specified pursuant to an agreement with a local governing authority, except when otherwise exempted or provided for by federal law, rule, or regulation;

(C) The daily fees for storage of the vehicle, which shall be the maximum allowable daily rate for the storage of the motor vehicle as set forth by rule and regulation of the Department of Public Safety for maximum state-wide rate tariffs or the rate specified pursuant to an agreement with a local governing authority;

(D) A statement informing the recipient that daily fees will accrue until full payment has been made;

(E) A statement informing the recipient that the fees which are recoverable by a towing and storage firm include costs for obtaining the owner's information and notifying the owner, court filing costs, attorney's fees, and interest;

(F) A statement informing the recipient that the towing and storage firm has the right to petition a court to foreclose a lien for all amounts owed after ten calendar days from the date such notice is sent;

(G) A statement informing the recipient that a court may order the sale of the vehicle to satisfy the debt; and

(H) A form to disclaim ownership interest in the motor vehicle by oath or affirmation as set forth in Code Section 40-11-19.5.

(2) If the identity of the owner cannot be ascertained by the department or the department fails to timely furnish the owner information requested pursuant to Code Section 40-11-15 or 40-11-16, the towing and storage firm shall, within 60 days of such removal, place an advertisement in a newspaper of general circulation or the legal organ in the county where such vehicle was obtained. Any advertisement required by this paragraph shall run in the newspaper once a week for two consecutive weeks. The advertisement shall be in the form provided by the Council of Magistrate Court Judges for such purpose. Such advertisement form shall include a space for describing the motor vehicle's year, make, model, and manufacturer's vehicle identification number, the present location of such vehicle, the fact that such vehicle is subject to a lien which can be foreclosed upon, and the fact that such vehicle may be ordered sold to satisfy such lien evidence that the towing and storage firm timely entered the vehicle identification number in the towed motor vehicle database shall be deemed sufficient notice for purposes of this article.

(3) If the identity of an owner which was previously not ascertained becomes known while an advertisement is run pursuant to paragraph (2) of this subsection, the towing and storage firm shall send a notification letter pursuant to the same requirements set forth in paragraph (1) of this subsection within ten days of obtaining such information." "(g) If a towing and storage firm, repair facility, or salvage dealer fails to comply with the notice requirements in this Code section, the motor vehicle may be re-impounded to permit compliance. Any daily storage fees incurred prior to the date of such re-impoundment shall be waived and not recoverable."

SECTION 2-4.

Said article is further amended by revising Code Section 40-11-19.1, relating to petition to foreclose a lien on motor vehicle, answer, motion for judgment, timing, and fees, as follows:

"40-11-19.1.

(a) Not sooner than ten calendar days and not later than six months after compliance with the notice requirements set forth in Code Section 40-11-19, a towing and storage firm, repair facility, or salvage dealer may file an action for a petition to foreclose a lien against the motor vehicle in any magistrate court in the county where the motor vehicle is located. An action filed pursuant to this Code section shall be on a form provided by the Council of Magistrate Court Judges for such purpose and shall be accompanied by a filing fee of no more than $11.00. Any person bringing such action shall include with such form a copy of the owner information obtained pursuant to the request required by Code Section 40-11-15 or 40-11-16 and proof of compliance with the notice requirements set forth in Code Section 40-11-19. The petition to foreclose a lien shall be verified by oath or affirmation by the towing and storage firm, repair facility, or salvage dealer in a manner consistent with Article 5 of Chapter 10 of Title 9.

(b)(1) The party bringing such action shall send a copy of the oath or affirmation page of the filed petition to any person known to be an owner of the motor vehicle by certified mail or statutory overnight delivery, return receipt requested. The court shall accept electronic documentation as proof that such copy of the filed petition was sent and delivered in accordance with the requirements of this subsection. Included in such mailing shall be a copy of a standardized answer form provided by the Council of Magistrate Court Judges for such purpose. Such form shall require oath or affirmation of the respondent and shall include space to set forth:

(A) The name of the owner;

(B) The address at which the owner resides;

(C) A description of the motor vehicle, including the license plate number and the model, make, and year of the vehicle;

(D) A description of the date the owner obtained an interest in the motor vehicle;

(E) A brief statement as to why removal of the vehicle was unauthorized, if applicable;

(F) Any other brief statement as to why the lien claimed by the towing and storage firm, repair facility, or salvage dealer is invalid;

(G) A copy of any documentation in the owner's possession supporting his or her answer; and

(H) Any additional facts supporting the owner's answer or as to why the lien should not be foreclosed upon.

(2) If notice required under Code Section 40-11-19 was satisfied by advertisement, or the signed proof of receipt of a copy of the petition required to be sent under paragraph (1) of this subsection has not been returned after ten days of such mailing or has been returned as unclaimed, the party filing the petition shall, within 60 days, place an advertisement in a newspaper of general circulation or the legal organ where such action has been filed. No such advertisement shall be required if the return receipt required as proof of delivery has been returned with a notation that the notice of the filing of the petition has been refused. Such notice shall run in the newspaper once a week for two consecutive weeks. Such notice shall include instructions for how an owner may obtain the standardized answer form described in this subsection and shall be deemed as notice to any and all persons having an interest in or right affected by such petition and from any sale of the motor vehicle resulting therefrom.

(3)(2) If the identity of an owner which was previously not ascertained becomes known while an advertisement is run pursuant to paragraph (2) of this subsection, the party filing a petition to foreclose shall send a copy of the filed petition pursuant to the same requirements set forth in paragraph (1) of this subsection within ten days of obtaining such information.

(c) An owner may file an answer to the petition no later than ten 30 calendar days after receipt notice was sent pursuant to subsection (b) of this Code section by using the standardized answer form provided. If service is made by advertisement pursuant to paragraph (2) of subsection (b) of this Code section, an owner may file an answer no later than ten days after the expiration of the required two-week advertisement.

(d) If no answer has been filed at the expiration of the period set forth in subsection (c) of this Code section, the towing and storage firm, repair facility, or salvage dealer may seek to foreclose the lien through a judgment as provided in Code Section 15-10-43 by making such request in writing and submitting to the court proof of service as set forth in compliance with subsection (b) of this Code section. Unless providentially hindered, it shall be the duty of the judge to decide all motions for judgment submitted pursuant to this subsection no later than 15 days from when such motion has been made. When a judgment is granted, the motor vehicle shall be considered abandoned and within five days the court shall issue an order for the disposition of the motor vehicle as provided for in Code Section

40-11-19.2. A certified copy of such order shall be issued by the clerk of court. A fee of no more than $14.00 may be charged for a certified copy of such order, which shall be issued by the clerk of court. If no answer has been filed but the court finds that a petition fails to comply with the requirements of this article, a petition may be refiled for such action once within six months of the issuance of denial of a judgment the motor vehicle may be re-impounded by a towing and storage firm, repair facility, or salvage dealer to permit compliance. Any daily storage fees incurred prior to the date of such re-impoundment shall be waived and not recoverable.

(e)(1) If an answer is returned to the court, a trial shall be held within ten days after receipt of such answer; provided, however, that such trial may be continued by the court for good cause shown by either party.

(2) At the trial, the court shall hear evidence of and determine whether the removal of the vehicle was lawful, whether the lien amount is based upon recoverable fees as set forth in subsection (d) of Code Section 40-11-19, and whether notice to all owners was proper, and shall hear any other facts pertinent to the case to reach a decision on foreclosure of the lien. The court may hear evidence of and make a determination on whether storage fees should accrue after the filing date of the petition. Upon conclusion of the trial, the court shall issue a decision on whether to foreclose the lien for the recoverable fees set forth in subsection (d) of Code Section 40-11-19 and, if foreclosure is granted, the court shall order the disposition of the motor vehicle as provided for in Code Section 40-11-19.2. A fee of no more than $14.00 may be charged for a certified copy of such order which shall be issued by the clerk of court."

PART III

SECTION 3-1.

(a) Except as provided for in subsection (b) of this section, this Act shall become effective on July 1, 2026.

(b) Part II of this Act shall become effective on January 1, 2028.

SECTION 3-2.

All laws and parts of laws in conflict with this Act are repealed.