Bill > HSB559

Introduced Session

Code sections 321.89 and 321.90 regulate the taking into custody and disposal of abandoned vehicles, as defined in Code section 321.89. Current law requires an entity that takes custody of an abandoned vehicle to send notice by certified mail to all known claimants of the vehicle no more than 20 days after taking custody of the vehicle. This bill requires such notice to be H.F. _____ sent no more than 10 days after taking custody of the vehicle. Under current law and the bill, notice is deemed given when mailed. Current law requires a person to ask for a hearing regarding an abandoned vehicle, or reclaim an abandoned vehicle and personal property left inside such vehicle, within 10 days after notice is mailed. The bill extends the reclamation period to 20 days. If notice is not provided and a private entity or police authority takes custody of the vehicle and sells the vehicle at auction, the bill requires payment to the lienholder from the auction proceeds as much as those proceeds can cover of the remainder owed on the vehicle loan before paying the vehicle owner. The bill authorizes a private entity that takes a vehicle into custody to charge towing, preservation, storage, or other fees during the first 24 hours after taking custody of a vehicle. After 24 hours, towing, preservation, and storage fees do not accrue until the vehicle owner, lienholders, and any known claimants are notified. A claim by a private entity for payment of all such fees is invalid when a private entity fails to send notice. Under the bill, a lienholder or insurance company who receives notice may request information regarding the condition of the vehicle. The private entity having custody of the vehicle may charge an inspection fee not to exceed $100. An inspection may be in person or the private entity is authorized to provide photos of the vehicle sufficient to reasonably ascertain the condition of the vehicle. A private entity must comply with an inspection request prior to the expiration of the 20-day reclamation period. The bill authorizes a person to reclaim personal property from within the vehicle without paying reclamation fees, so long as the property is not attached to the vehicle, only once while the vehicle is in custody of a private entity. The bill requires a private entity with custody of an H.F. _____ abandoned vehicle to provide an itemized account of all fees assessed when the vehicle is reclaimed. Under current law, if an abandoned vehicle is not reclaimed, it can be sold at public auction or for junk or scrap if it is determined to not be appropriate for highway use. The bill directs how proceeds of a sold abandoned vehicle are distributed. If proper notice was provided, a private entity or police authority may reimburse itself only for costs incurred, except costs of bookkeeping and other administrative costs. Any remainder from the proceeds of a sale must be held first for any lienholder of record, if applicable, for 30 days after notice of the sale is provided, and second for any owner of record for an additional 60 days. Current law only requires a police authority to hold proceeds from a sale for both the lienholder and owner for 90 days. The bill requires any remaining proceeds to be deposited in the statutory allocations fund (SAF) rather than the road use tax fund. A private entity that was hired by a police authority must be paid from the SAF the amount incurred by the entity that was not otherwise recouped by the entity from the sale. The person or persons who owned the vehicle when it was taken into custody are jointly and severally liable for reimbursing the SAF for those costs. Pursuant to current law, revenues remaining in the SAF at the end of a fiscal year are credited to the road use tax fund. After the sale of an abandoned vehicle, the bill requires a private entity or police authority who sold the vehicle at auction, within 10 days after the sale, to send notice by certified mail to the person who owned the vehicle when it was taken into custody and to any lienholders of record detailing the amount of proceeds remaining and the timeline for claiming the proceeds. The department of transportation (DOT) is required to adopt administrative rules providing a claims procedure for police authorities to obtain expenses and costs from the SAF, for H.F. _____ private entities to remit excess proceeds to the SAF, and for payment from the SAF for expenses and costs incurred by a police authority or private entity hired by a police authority. If a private entity was hired by a police authority, the police authority must file a claim with the DOT for reimbursement of the private entity’s costs. A violation of Code section 321.89, as amended by the bill, committed by a private entity is a prohibited practice or act under Code section 714H.3. Pursuant to current law, a consumer who suffers an ascertainable loss of money or property as the result of a prohibited practice or act in violation of Code chapter 714H may bring an action at law to recover actual damages. The court may order such equitable relief, including reasonable attorney fees, as it deems necessary to protect the public from further violations, including temporary and permanent injunctive relief. If the finder of fact finds by a preponderance of clear, convincing, and satisfactory evidence that a prohibited practice or act constitutes willful and wanton disregard for the rights or safety of another, in addition to an award of actual damages, statutory damages up to three times the amount of actual damages may be awarded to a prevailing consumer. A consumer must bring a consumer fraud action within two years of the occurrence of the event giving rise to the cause of action or within two years of the discovery of the violation, whichever is later. Because the bill places additional requirements on police authorities and private entities beyond the notice requirements under current law, the bill strikes certain provisions limiting claims or rights when proper notice is provided or after the reclamation period. The bill instead provides that if proper notice is provided and the persons receiving notice do not ask for a hearing before the police authority or reclaim the vehicle or personal property within the 20-day reclaiming period, the owner, lienholders, or claimants shall not have a right to, title in, claim for, or interest in the vehicle or H.F. _____ personal property in the vehicle. For disposal to a demolisher under Code section 321.90, such rights and claims are limited only if proper notice is provided.

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No sponsors listed

Other Sponsors (1)

House Transportation Subcommittee (12:15:00 2/12/2026 RM 304) (on 02/12/2026)

Official Document