Bill Summary
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Senate Counsel & Research   State of Minnesota
 
S.F. No. 3327 - Impounded and Abandoned Motor Vehicles (Delete-Everything Amendment, SCS3327A-2)
Author: Senator D. Scott Dibble
Prepared by: Bonnie Berezovsky, Senate Counsel (651/296-9191)

Krista Boyd, Fiscal Analyst (651/296-9191)

Date: March 28, 2006


Section 1 provides that 60 percent of motor vehicle transfer fee revenues must be credited to the abandoned vehicle account, created in section 7 of this amendment from July 1, 2006, until June 30, 2007. Motor vehicle transfer fee revenues are currently dedicated to the general fund and are scheduled to be credited to the environmental fund after June 30, 2007. The credit to the environmental fund is eliminated in this amendment.

Section 2 allows a nonpublic impound lot operator to sell or dispose of an impounded vehicle before the expiration of the 45-day waiting period, if the vehicle owner provides a written statement of consent to transfer of title or disposal of the vehicle and contents.

Section 3 clarifies that an owner's failure to reclaim any contents is deemed to be a waiver of any interest in remaining contents of the vehicle. The notice to the owner of an impounded vehicle must include the statement, "You have the right to pick up the contents of your car, whether or not you intend to reclaim your car."

Section 4 is a new subdivision concerning retrieval of contents of an impounded vehicle. The section requires a unit of government or impound lot operator to establish reasonable procedures for retrieval of contents without charge. The owner may retrieve contents at any time before the waiting period expires, or before the owner consents to transfer of title, whichever occurs earlier. Contents do not include permanently affixed auto parts, auto body parts, or accessories including audio or video players.

Section 5 provides that the owner's or lienholder's failure to reclaim a vehicle and contents in timely fashion is a waiver of claim to the vehicle and contents. The impound lot operator may then sell or dispose of the vehicle and its contents.

Section 6 eliminates existing language providing for a nonpublic impound lot operator's deficiency claim against the registered owner for towing, storage, and inspection.

Section 7 creates the abandoned vehicle account in the special revenue fund. A portion of the motor vehicle transfer fee, as specified in section 1, is credited to the account and used by the Commissioner of Public Safety, ten percent for administration costs and 90 percent for compensation to impound lot operators for allowable deficiency claims.

Section 8 directs the commissioner to adopt guidelines that:

(1) require a unit of government or impound lot operator to substantiate a reimbursement

claim;

(2) allow reimbursement of expenses of providing notice and determining the identity and address of the registered owner;

(3) limit a towing claim to $75/vehicle;

(4) limit a storage claim to $25/day for 25 days for a junk or abandoned vehicle, or $25/day for 55 days for an unauthorized vehicle not impounded by the city of Minneapolis or the city of St. Paul; and

(5) limit a transportation claim for moving an unauthorized vehicle to a disposal facility to $75/vehicle.

Section 9 adds the towing of damaged vehicles to a place of safekeeping to the existing exemption from weight limit laws for a tow truck or towing vehicle.

Section 10 establishes a $300 annual permit fee for an overweight, over-length tow truck or towing vehicle that tows disabled or damaged vehicles to a place of repair or a place of safekeeping.

Section 11 directs the Department of Administration to study the Department of Public Safety's motor vehicle title transfer system and make recommendations to improve the safety and accuracy of the system. An Advisory Committee is created with four legislators, and representatives of various named organizations. The Department of Administration must present its report and recommendations to the Legislature no later than December 15, 2006.

Section 12 appropriates an unspecified amount from the general fund to the Commissioner of Administration for the study in section 11.

BB/KB:rer




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