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HF 3800

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to motor vehicles; permitting sale of impounded vehicles and contents
after voluntary title transfer; providing for notice of impound, right to reclaim
contents, and waiver of right; establishing right to retrieve contents without
charge in certain cases; limiting deficiency claim; providing for permit for
oversize and overweight tow trucks in certain cases; amending Minnesota
Statutes 2006, sections 168B.051, subdivision 2; 168B.06, subdivisions 1,
3; 168B.07, by adding a subdivision; 168B.08, subdivision 1; 168B.087,
subdivision 1; 169.86, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 168B.051, subdivision 2, is amended to
read:


Subd. 2.

Sale after 45 daysnew text begin or title transfernew text end.

deleted text beginAndeleted text end new text begin(a) If an unauthorized vehicle is
impounded, other than by the city of Minneapolis or the city of St. Paul, the
new text endimpounded
vehicle is eligible for disposal or sale under section 168B.08, new text beginthe earlier of:
new text end

new text begin (1) new text end45 days after notice to the ownerdeleted text begin, if the vehicle is determined to be an
unauthorized vehicle that was not impounded by the city of Minneapolis or the city of
St. Paul
deleted text endnew text begin; or
new text end

new text begin (2) the date of a voluntary written title transfer by the registered owner to the
impound lot operator
new text end.

new text begin (b) A voluntary written title transfer constitutes a waiver by the registered owner of
any right, title, and interest in the vehicle.
new text end

Sec. 2.

Minnesota Statutes 2006, section 168B.06, subdivision 1, is amended to read:


Subdivision 1.

deleted text beginContents;deleted text end new text beginWaiver of right to reclaim vehicle; written new text endnotice deleted text begingiven
within five days
deleted text endnew text begin of impoundnew text end.

new text begin(a) new text endWhen an impounded vehicle is taken into custody, the
unit of government or impound lot operator taking it into custody shall give new text beginwritten new text endnotice
of the taking within five daysnew text begin to the registered vehicle owner and any lienholders. The
failure of the registered owner or lienholders to exercise the right to reclaim the vehicle
before the expiration of the waiting periods provided under section 168B.051 constitutes a
waiver of all right, title, and interest in the vehicle and a consent to the transfer of title to,
and disposal or sale of, the vehicle under section 168B.08. The failure of the registered
owner to exercise the right provided under section 168B.07, subdivision 3, constitutes a
waiver of all right, title, and interest in the contents and a consent to the transfer of title to,
and disposal or sale of, the contents under section 168B.08
new text end.

new text begin (b) new text endThe notice deleted text beginshalldeleted text endnew text begin must:
new text end

(1) set forth the date and place of the takingdeleted text begin,deleted text endnew text begin;
new text end

new text begin (2) provide new text endthe year, make, modelnew text begin,new text end and serial number of the impounded motor
vehiclenew text begin,new text end if such information can be reasonably obtainednew text begin,new text end and the place where the vehicle
is being helddeleted text begin,deleted text endnew text begin;
new text end

deleted text begin (2)deleted text endnew text begin (3)new text end inform the owner and any lienholders of their right to reclaim the vehicle
under section 168B.07deleted text begin, anddeleted text endnew text begin;
new text end

deleted text begin (3)deleted text endnew text begin (4)new text end state that failure of the owner or lienholders tonew text begin:
new text end

new text begin (i) new text end exercise their right to reclaim the vehicle deleted text beginand contentsdeleted text end within the appropriate time
allowed under section 168B.051, subdivision 1, 1a, or 2, deleted text beginshall be deemeddeleted text end new text beginand under the
conditions set forth in section 168B.07, subdivision 1, constitutes
new text enda waiver by them of all
right, title, and interest in the vehicle deleted text beginand contentsdeleted text end and a consent to the transfer of title to
and disposal or sale of the vehicle deleted text beginand contentsdeleted text end pursuant to section 168B.08new text begin; or
new text end

new text begin (ii) exercise their right to reclaim the contents of the vehicle within the appropriate
time allowed and under the conditions set forth in section 168B.07, subdivision 3,
constitutes a waiver by them of all right, title, and interest in the contents and consent to
sell or dispose of the contents under section 168B.08; and
new text end

new text begin (5) new text endnew text beginstate that a vehicle owner who provides to the impound lot operator
documentation from a government or nonprofit agency or legal aid office that the owner
is homeless, receives relief based on need, is eligible for legal aid services, or has a
household income at or below 50 percent of state median income has the unencumbered
right to retrieve any and all contents without charge
new text end.

Sec. 3.

Minnesota Statutes 2006, section 168B.06, subdivision 3, is amended to read:


Subd. 3.

Unauthorized vehicle; new text beginsecond new text endnotice.

If an unauthorized vehicle remains
unclaimed after 30 days from the date the notice was sent under subdivision 2, a second
notice deleted text beginshalldeleted text end new text beginmust new text endbe sent by certified mail, return receipt requested, to the registered owner,
if any, of the unauthorized vehicle and to all readily identifiable lienholders of record.

Sec. 4.

Minnesota Statutes 2006, section 168B.07, is amended by adding a subdivision
to read:


new text begin Subd. 3. new text end

new text begin Retrieval of contents. new text end

new text begin (a) For purposes of this subdivision:
new text end

new text begin (1) "contents" does not include any permanently affixed mechanical or
nonmechanical automobile parts; automobile body parts; or automobile accessories,
including audio or video players; and
new text end

new text begin (2) "relief based on need" includes, but is not limited to, receipt of MFIP
and Diversionary Work Program, medical assistance, general assistance, general
assistance medical care, emergency general assistance, Minnesota supplemental aid,
MSA-emergency assistance, MinnesotaCare, Supplemental Security Income, energy
assistance, emergency assistance, Food Stamps, earned income tax credit, or Minnesota
working family tax credit.
new text end

new text begin (b) A unit of government or impound lot operator shall establish reasonable
procedures for retrieval of vehicle contents, and may establish reasonable procedures to
protect the safety and security of the impound lot and its personnel.
new text end

new text begin (c) At any time before the expiration of the waiting periods provided in section
168B.051, a registered owner who provides documentation from a government or
nonprofit agency or legal aid office that the registered owner is homeless, receives relief
based on need, is eligible for legal aid services, or has a household income at or below 50
percent of state median income has the unencumbered right to retrieve any and all contents
without charge and regardless of whether the registered owner pays incurred charges or
fees, transfers title, or reclaims the vehicle.
new text end

new text begin (d) At any time before the expiration of the waiting periods provided in section
168B.051, a registered owner other than a registered owner described in paragraph (c)
has the unencumbered right to retrieve the following contents: medicine; medical-related
items and equipment; clothing; eyeglasses; educational materials; and legal documents,
including, but not limited to, a driver's license, identification, passports, insurance
documents, any other documents related to a pending or concluded judicial or
administrative proceeding, tax returns, and documents indicating receipt of or eligibility
for public benefit programs. This provision does not prohibit the return of other contents
at the discretion of the impound lot operator.
new text end

new text begin (e) An impound lot operator is not required to return any contents to a person who is
not the registered owner of the impounded vehicle, other than legal documents. Legal
documents include, but are not limited to, driver's license, identification, passports,
insurance documents, any other documents related to a pending or concluded judicial or
administrative proceeding, and tax returns. An impound lot operator is not required to
return any contents to a person who is not the registered owner after the expiration of
the waiting periods provided in section 168B.051, or if the registered owner voluntarily
transfers title to the impound lot operator under section 168B.051, subdivision 2.
new text end

Sec. 5.

Minnesota Statutes 2006, section 168B.08, subdivision 1, is amended to read:


Subdivision 1.

Auction or sale.

(a) If an abandoned or unauthorized vehicle deleted text beginand
contents
deleted text end taken into custody by a unit of government or any impound lot is not reclaimed
under section 168B.07, new text beginsubdivision 1, new text endit may be disposed of or sold at auction or sale when
eligible pursuant to sections 168B.06 and 168B.07. new text beginIf the contents of an abandoned or
unauthorized vehicle taken into custody by a unit of government or any impound lot is not
reclaimed under section 168B.07, subdivision 3, it may be disposed of or sold at auction
or sale when eligible pursuant to sections 168B.06 and 168B.07.
new text end

(b) The purchaser shall be given a receipt in a form prescribed by the registrar of
motor vehicles which shall be sufficient title to dispose of the vehicle. The receipt shall
also entitle the purchaser to register the vehicle and receive a certificate of title, free and
clear of all liens and claims of ownership. Before such a vehicle is issued a new certificate
of title it must receive a motor vehicle safety check.

Sec. 6.

Minnesota Statutes 2006, section 168B.087, subdivision 1, is amended to read:


Subdivision 1.

Deficiency claim.

(a) The deleted text beginnonpublicdeleted text end impound lot operator has a
deficiency claim against the registered owner of the vehicle for the reasonable costs of
services provided in the towing, storage, and inspection of the vehicle minus the proceeds
of the sale or auctionnew text begin, except as provided in paragraph (c)new text end.

(b) The claim for storage costs may not exceed the costs of:

(1) 25 days storage, for a vehicle described in section 168B.051, subdivision 1; deleted text beginand
deleted text end

(2) new text begin15 days storage, for a vehicle described in section 168B.051, subdivision 1a; and
new text end

new text begin (3) new text end55 days storage, for a vehicle described in section 168B.051, subdivision 2.

new text begin (c) A public impound lot operator is prohibited from:
new text end

new text begin (1) filing a deficiency claim against a registered owner whom the operator knows:
new text end

new text begin (i) is homeless;
new text end

new text begin (ii) receives relief based on need, as defined in section 168B.07; or
new text end

new text begin (iii) has a household income at or below 50 percent of state median income; or
new text end

new text begin (2) recovering a deficiency from a registered owner who demonstrates that the
owner, at the time the deficiency claim was filed:
new text end

new text begin (i) was homeless;
new text end

new text begin (ii) received relief based on need, as defined in section 168B.07; or
new text end

new text begin (iii) had a household income at or below 50 percent of state median income.
new text end

Sec. 7.

Minnesota Statutes 2006, section 169.86, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Tow truck. new text end

new text begin A tow truck or towing vehicle, when towing a disabled or
damaged vehicle to a place of repair or to a place of safekeeping, may exceed the length
and weight limitations of this chapter, subject to a $300 annual permit fee and any other
conditions prescribed by the commissioner.
new text end