2000 Legislation
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HOUSE BILL NO. 605 – MV, liens, notice/sale

HOUSE BILL NO. 605

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Daily Data Tracking History



H0605.........................................by TRANSPORTATION AND DEFENSE
MOTOR VEHICLES - LIENS - Amends existing law to delete language for a form
for notice of lien and to provide for a notice of lien; to change a timing
requirement and to provide that if the legal owner of the vehicle does not
return notice of opposition within the time limit, and no opposition to the
sale of a vehicle has been lodged, the possessor lienholder shall have full
and complete authority to complete the sale as authorized by the issuance
of the authorization to conduct a lien sale from the Idaho Transportation
Department; to provide that failure of the registered or legal owners of
record to file a notice of opposition to the sale shall cause their
interest in the vehicle to be forfeited; to provide that upon completion of
the lien sale and application for certificate, a new Idaho title may be
issued to the purchase free of any prior liens.
                                                                        
02/17    House intro - 1st rdg - to printing
02/18    Rpt prt - to Transp

Bill Text


 H0605
                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 605
                                                                        
                          BY TRANSPORTATION AND DEFENSE COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO LIENS; AMENDING SECTION 49-1702, IDAHO CODE,  TO  DELETE  LANGUAGE
  3        FOR  A FORM FOR NOTICE OF LIEN AND TO PROVIDE FOR A NOTICE OF LIEN; AMEND-
  4        ING SECTION 49-1705, IDAHO CODE, TO CHANGE A TIMING REQUIREMENT,  TO  PRO-
  5        VIDE  THAT  IF  THE  LEGAL  OWNER OF THE VEHICLE DOES NOT RETURN NOTICE OF
  6        OPPOSITION WITHIN THE TIME LIMIT AND NO OPPOSITION TO THE SALE OF A  VEHI-
  7        CLE HAS BEEN LODGED, THE POSSESSOR LIENHOLDER SHALL HAVE FULL AND COMPLETE
  8        AUTHORITY TO COMPLETE THE SALE AS AUTHORIZED BY THE ISSUANCE OF THE AUTHO-
  9        RIZATION TO CONDUCT THE LIEN SALE FROM THE IDAHO TRANSPORTATION DEPARTMENT
 10        AND  TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 49-1706, IDAHO CODE,
 11        TO PROVIDE THAT FAILURE OF THE REGISTERED OR LEGAL OWNERS OF RECORD  OF  A
 12        VEHICLE  TO  FILE  A  NOTICE  OF  OPPOSITION TO THE SALE SHALL CAUSE THEIR
 13        INTEREST IN THE VEHICLE TO BE FORFEITED AND THEY  SHALL  HAVE  NO  FURTHER
 14        CLAIM  TO  TITLE TO THE VEHICLE AND TO PROVIDE THAT UPON COMPLETION OF THE
 15        LIEN SALE, AN APPLICATION FOR CERTIFICATE OF A  NEW  IDAHO  TITLE  MAY  BE
 16        ISSUED TO THE PURCHASER FREE OF ANY PRIOR LIENS.
                                                                        
 17    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 18        SECTION  1.  That  Section 49-1702, Idaho Code, be, and the same is hereby
 19    amended to read as follows:
                                                                        
 20        49-1702.  FORM FOR NOTICE OF LIEN. To claim the benefits of the provisions
 21    of this chapter a lien claimant shall, prior to making any repairs,  rendering
 22    service  or rendering storage facilities available, provide notice to the reg-
 23    istered and legal owner or authorized agent of the owner of a motor vehicle of
 24    intended repairs, service, or storage. at the request of a person  in  posses-
 25    sion  of  the  vehicle The registered owner or authorized agent, must sign the
 26    notice and consent to the performance or rendering of the repairs, service  or
 27    storage. The notice shall be substantially in the following form include:
 28        (1)  Date of the notice;
 29        (2)  A  description  of  the  vehicle  including the make, model, year and
 30    either the license number or vehicle identification number;
 31        (3)  The name and address of the registered owner or their agent or  both;
 32    and
 33        (4)  The nature of the repairs, service or storage.
 34        To:         [Name of registered and legal owner and addresses]
 35        Notice  is  hereby  given,  in accordance with the provisions of         ,
 36    Idaho Code, that the  undersigned,          of          [address]    has  been
 37    requested  by         , of          ,         [address]    ,         [the reg-
 38    istered owner, or agent thereof]    , to         [repair or as  the  case  may
 39    be]      the following described motor vehicle of which you are designated the
 40    registered or legal owner  on  the  title:          [specify  year,  make  and
 41    model]    ,          [vehicle  identification  no.]        ,          [license
 42    no.]    . If appropriate, add: The repairs requested are as follows:         .
 43        The  undersigned intends to begin such         [repairs or as the case may
                                                                        
                                           2
                                                                        
  1    be]    on approximately         , 19  .
  2        The approximate charges for the services requested will be $        ,  and
  3    the   undersigned  will  claim  a lien on the vehicle for the actual amount of
  4    such charges.
  5        In accordance with the provisions of sections         and         ,  Idaho
  6    Code,  the  undersigned  requests  that  you  consent  to  the  performance of
  7            (such repairs or as the case may be)    by signing and  returning  the
  8    enclosed copy of this notice.
  9        Dated         , 19 .
 10                                                                       (Signature)
 11                                       Consent
 12        I   hereby   consent   to   the   performance   of   the  above  described
 13            (repairs or as the case may be.)
 14        Dated         , 19  .
                                                                        
 15                                          (Signature of registered or legal owner)
                                                                        
 16        SECTION 2.  That Section 49-1705, Idaho Code, be, and the same  is  hereby
 17    amended to read as follows:
                                                                        
 18        49-1705.  SALE  TO  SATISFY LIENS. (1) When a possessory lienholder is not
 19    paid the amount of the lien due, within ten (10) business days after the  same
 20    becomes  due, the lienholder may proceed to conduct a sale as provided by this
 21    section to satisfy the lien and costs of sale, if an authorization to  conduct
 22    a  lien sale has been issued by the department, or a judgment has been entered
 23    in favor of the lienholder on the claim which gives rise to the lien,  or  the
 24    registered  and  legal  owners  of the vehicle have signed, after the lien has
 25    arisen, a release of any interest in the vehicle.
 26        (2)  A possessory lienholder may apply to the department for the  issuance
 27    of  an authorization to conduct a lien sale. The application shall include all
 28    of the following information:
 29        (a)  A description of the vehicle, including make, vehicle  identification
 30        number, and license number;
 31        (b)  The  names  and  addresses  of the registered and legal owners of the
 32        vehicle, if ascertainable from registration certificates within the  vehi-
 33        cle,  and  the  names  and  addresses of other persons whom the lienholder
 34        knows or reasonably should know to could claim an interest in the vehicle;
 35        (c)  A statement of the amount of the lien and the  facts  concerning  the
 36        claim which give rise to the lien; and
 37        (d)  A  statement  that  the  lienholder has no information or belief that
 38        there is a valid defense to the claim which gives rise to the lien.
 39        (3)  Upon receipt of an application, the department shall send a  copy  of
 40    the  application  to  the  registered  and  legal owners at their addresses of
 41    record with the department and to any other interested persons listed  in  the
 42    application.  The  department shall also send a notice which shall include the
 43    following information:
 44        (a)  That an application has been made with the department for  the  issu-
 45        ance of an authorization to conduct a lien sale;
 46        (b)  That the person has a legal right to a hearing in court;
 47        (c)  That  if  a  hearing  in court is desired, an enclosed declaration of
 48        opposition must be signed and returned;
 49        (d)  That if the declaration is signed and returned, the possessory  lien-
 50        holder  will  be allowed to sell the vehicle only if he obtains a judgment
 51        in court or obtains a release from the registered and legal owners;
 52        (e)  That the department will issue the authorization to  conduct  a  lien
                                                                        
                                           3
                                                                        
  1        sale  unless  the  person  signs and returns the declaration of opposition
  2        within ten (10) business days after the date the notice was mailed; and
  3        (f)  That the person may be liable for costs if the lienholder  brings  an
  4        action and if a judgment is entered in favor of the lienholder.
  5        (4)  If the department receives a timely mailed declaration of opposition,
  6    it  shall notify the possessory lienholder that he may not conduct a lien sale
  7    unless:
  8        (a)  A judgment has been entered in his favor on  the  claim  which  gives
  9        rise to the lien; or
 10        (b)  The  registered and legal owners of the vehicle have signed a release
 11        of any interest in the vehicle.
 12        (5)  An applicant shall include with his application for lien sale  a  fee
 13    of  ten  dollars  ($10.00)  which  shall be deposited in the abandoned vehicle
 14    trust account. The  fee shall be recoverable as a cost by the lienholder.
 15        (6)  If the legal owner of the vehicle herein described does  not   return
 16    notice  of opposition within the time limit prescribed in subsection (3)(e) of
 17    this section and no opposition to the sale has  been  lodged,  the  possessory
 18    lienholder  shall  have  full  and  complete authority to complete the sale as
 19    authorized by the issuance of the authorization to conduct the lien sale  from
 20    the Idaho transportation department.
                                                                        
 21        SECTION  3.  That  Section 49-1706, Idaho Code, be, and the same is hereby
 22    amended to read as follows:
                                                                        
 23        49-1706.  RELEASE OF OWNER'S INTEREST IN  VEHICLE.  (1)  A  registered  or
 24    legal  owner  of  a vehicle in the possession of a person holding a lien under
 25    the provisions of this chapter may release any interest in the  vehicle  after
 26    the lien has attached.
 27        (2)  The release shall contain the following information:
 28        (a)  A description of the vehicle, including the year and make, the engine
 29        or vehicle identification number, and the license number;
 30        (b)  The names and addresses of the registered and legal owners of record;
 31        (c)  A  statement  of  the amount of the lien and the facts concerning the
 32        claim which give rise to the lien; and
 33        (d)  A statement that the person releasing the interest  understands  that
 34        he  has a legal right to a hearing in court prior to the sale of the vehi-
 35        cle and that he waives the right to contest the claim.
 36        (3)  A copy of the release shall be filed with the department  in  connec-
 37    tion  with  the transfer of interest in a vehicle under the provisions of this
 38    section.
 39        (4)  Failure of the registered or legal owners of record to file a  notice
 40    of opposition to the sale shall cause their interest in the vehicle to be for-
 41    feited and they shall have no further claim to title to the vehicle.
 42        (5)  Upon  completion  of the lien sale and application for certificate of
 43    title, a new Idaho title may be issued to the  purchaser  free  of  any  prior
 44    liens.

Statement of Purpose / Fiscal Impact


     
     
                STATEMENT OF PURPOSE 
                      RS 10044 
     
     The purpose of this legislation is to amend and simplify the process for vehicle
     liens. 
     
     
     
     
     
                           
                     FISCAL NOTE 
     
     $1200 expense to the Department of Motor Vehicles. 
     
     
     
     
     
     
     
     
               CONTACT:  Rep. Ellsworth
               332-1000 
     
                                             STATEMENT OF PURPOSE/ FISCAL NOTE                           H 605