H 3582 Session 111 (1995-1996)
H 3582 General Bill, By Sharpe, Bailey, Davenport, R.C. Fulmer, R.J. Herdklotz,
Law, Littlejohn, Mason, McCraw, Meacham, Phillips, Rice, Riser, D. Smith,
Vaughn and Young-Brickell
A Bill to amend Section 29-15-10, Code of Laws of South Carolina, 1976,
relating to repair or storage, so as to revise the requirements for persons,
proprietors, owners, and operators of storage places, garages, towing
services, and repair shops; to amend Section 56-5-5640, relating to the sale
of unclaimed vehicles, so as to allow for the sale by a magistrate pursuant to
Section 29-15-10 and revise the sale requirements; to amend Section 56-5-5900,
relating to liability of lienholders of stolen vehicles, so as to provide that
owners or lienholders of stolen vehicles are not exempt from towing and
storage costs when a vehicle is recovered; and to amend Section 56-19-840,
relating to the reporting of unclaimed vehicles in certain businesses, so as
to include law enforcement vehicles and revise the reporting requirements.
02/14/95 House Introduced and read first time HJ-14
02/14/95 House Referred to Committee on Labor, Commerce and
Industry HJ-14
A BILL
TO AMEND SECTION 29-15-10, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO LIENS FOR REPAIR OR
STORAGE, SO AS TO REVISE THE REQUIREMENTS FOR
PERSONS, PROPRIETORS, OWNERS, AND OPERATORS OF
STORAGE PLACES, GARAGES, TOWING SERVICES, AND
REPAIR SHOPS; TO AMEND SECTION 56-5-5640, RELATING
TO THE SALE OF UNCLAIMED VEHICLES, SO AS TO
ALLOW FOR THE SALE BY A MAGISTRATE PURSUANT TO
SECTION 29-15-10 AND REVISE THE SALE REQUIREMENTS;
TO AMEND SECTION 56-5-5900, RELATING TO LIABILITY
OF LIENHOLDERS OF STOLEN VEHICLES, SO AS TO
PROVIDE THAT OWNERS OR LIENHOLDERS OF STOLEN
VEHICLES ARE NOT EXEMPT FROM TOWING AND
STORAGE COSTS WHEN A VEHICLE IS RECOVERED; AND
TO AMEND SECTION 56-19-840, RELATING TO THE
REPORTING OF UNCLAIMED VEHICLES IN CERTAIN
BUSINESSES, SO AS TO INCLUDE LAW ENFORCEMENT
VEHICLES AND REVISE THE REPORTING REQUIREMENTS.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Section 29-15-10 of the 1976 Code is amended to
read:
"Section 29-15-10. (A) It is lawful for
any a person, a proprietor, an
owner, or an operator of any a storage
place, garage, towing service, or repair shop of
whatever kind or a repairman who makes repairs upon
any an article under a written, an oral, or an
implied contract, or who furnishes any
material or services for the repairs to: (1) sell the property as provided in this section.;
(2) hire or contract persons or companies to act as
his agent to effect the notifications required by this section. The
agent is not deemed to be acting as an attorney under this item.
(B) When property has been left at his
a shop or location for repairs or storage by its
owner or his agent or by the lienholder or his agent, or has been
stored at the direction of a law enforcement officer, and after
the completion of these repairs or the expiration of the storage
contract, or the property was stored for reasons other than
repairs or pursuant to a storage contract and has not been
reclaimed and the article has been continuously retained
in his possession continuously, the property may be
sold at public auction to the highest bidder upon the expiration of
thirty days after written notice has been given
mailed to the owner of the property and to any
recorded lienholder with a perfected security interest in the
property that the repairs have been completed or storage charges
are due that the property is stored there and that charges for
repairs, materials, storage, recoupment of fees incurred to determine
ownership or lienholders and their notice or other accrued charges
are due. The notice must be sent by certified or registered
mail, return receipt requested, to the last address known and on file
with the Department of Revenue and Taxation if the property is a
motor vehicle or on file with another titling agency if the item
requires a title or to the address left by the owner or his agent with
the shop or location. If the notice is returned by the post office, the
attempt to notify constitutes notice.
(C) When a vehicle or item is impounded, stored, or seized by
law enforcement, and the owner, the lienholder, or their agent has
not contacted the repair shop or location within fifteen days from
the date the vehicle or item is towed, impounded, or seized, the
storage contract is considered terminated and payment for storage,
repair, or services is due. Storage costs must be charged until the
vehicle or item is claimed by the owner, the lienholder, or their
agent, or until the vehicle or item is sold at public auction in
accordance with this section.
(D) The owner or lienholder during the thirty-day period may
request a hearing by a magistrate of the county where the vehicle or
item is stored to contest the charges and fees. If a hearing is not
requested, the lien must be established by default, and no other
hearing is required.
(E) The property must be sold by any a
magistrate, or his designated agent, of the county in which
the work was done or the vehicle or thing item was
stored. However, only those storage charges which accrued
after the day on which written notice was mailed to the lienholder
constitutes a lien against the vehicle or property to be sold a
lienholder's liability for storage is only for those storage charges
occurring after the day written notice is mailed, by registered or
certified mail, return receipt requested, to the lienholder. The owner
is responsible for storage charges from the date the vehicle or item
is stored or impounded or repairs are completed if the shop or
location complies with Section 56-19-840. If the shop or location
fails to comply with Section 56-19-840, storage must not be
charged until the owner is notified by certified or registered mail,
return receipt requested. The magistrate shall, before
selling the property, insure shall ensure that
any a lienholder of record has been notified or
an attempt has been made to notify him of the pending sale,
and the magistrate shall advertise the property for at least fifteen
days by posting a notice in three public places in his
township county. If the identity of the owner or
lienholder cannot be determined, notice by one publication in a
newspaper of general circulation in the area where the property is
stored is sufficient to meet all the requirements of notice. The
notice by publication may contain multiple listings of unclaimed
property. The notice must describe the property and list the storage
location address and must be published at least ten days before the
sale of the property.
(F) He shall, After deducting all proper costs and
commissions, the magistrate shall pay to the claimant the
money due to him, taking his receipt for it, after which he shall
deposit the receipt, as well as the items of costs and commissions
with the remainder of the money or proceeds of the sale in the
office of the clerk of court of the county subject to the
order of the owner of the article and any lienholders having
a perfected security interest in the article or any
legal representative of the owner or the lienholder. The
purchaser takes possession and title to the property free of previous
liens. The magistrate who sells the property is entitled
to may receive the same commissions as
allowed by law for the sale of personal property by constables.
The public auction must be scheduled at a time convenient to
the magistrate conducting the auction. The auction may be held at
the magistrate's office or at the location where the property is
stored.
When the value of the property repaired or stored does not
exceed ten dollars, the storage owner, operator, or repairman may
sell the property at public auction to the highest bidder upon the
expiration of thirty days after written notice has been given to the
owner of the property that the repairs have been completed or
storage charges are due and if a description of the article to be
offered for sale and the cost of it has been from the time of the
written notice advertised, together with the time and place of the
proposed sale, in a prominent place in the shop or garage, on the
county bulletin board at the courthouse, and in some other public
place. The sale must be made for cash to the highest bidder
at the shop or garage at which the repairs were made or storage
incurred at ten a.m. on the first Monday of the first month after the
thirty days' notice has been given, and the true result
of the sale immediately must be immediately made
known to the original owner of the article sold by notice addressed
to the last known address of the owner, as defined in subsection
(B)."
SECTION 2. Section 56-5-5640 of the 1976 Code is amended
to read:
"Section 56-5-5640. If an abandoned vehicle has not been
reclaimed as provided for in Section 56-5-5630, the sheriff or chief
of police shall sell the abandoned vehicle at a public auction, or
a magistrate in the county shall sell the vehicle in accordance with
Section 29-15-10. The purchaser of the vehicle shall
take takes title to it free and clear of all liens and
claims of ownership, shall receive receives a sales
receipt from the sheriff, or chief of police, or
magistrate, and shall be entitled to may register
the purchased vehicle and receive a certificate of title. The sales
receipt at such sale shall be, if the purchaser plans to
dispose of the vehicle for salvage, is sufficient title only
for purposes of transferring the vehicle to a demolisher for
demolition, wrecking, or dismantling, and in such
case no further titling of the vehicle shall be is
necessary. The expenses of the auction, the costs of towing,
preserving, and storing the vehicle which resulted from
placing the vehicle in custody, and all notice and publication costs
incurred pursuant to Section 56-5-5630 or 29-15-10,
shall must be reimbursed from the proceeds of the
sale of the vehicle. Only the agency actually holding the sale is
entitled to reimbursement of costs incurred. Any remainder
from the proceeds of the sale shall must be held for
the owner of the vehicle or entitled lienholder for ninety days and
then shall must be deposited in the general fund of
the county or municipality."
SECTION 3. Section 56-5-5900 of the 1976 Code is amended
to read:
"Section 56-5-5900. No A lienholder
shall be is not subject to any a
penalty imposed by law in this State for abandonment unless the
motor vehicle is abandoned by the lienholder or his agent or
servant. No An owner of a motor vehicle which has
been stolen and thereafter abandoned, as defined by this
article, shall be is not liable for any charges
or penalties imposed herein in this article. This
section does not exempt the owner or lienholder from liability for
towing and storage costs when a vehicle is recovered. A motor
vehicle shall be deemed to be is considered stolen
when the owner notifies a police officer of this State and
such the report is accepted and carried on the
records of the sheriff, chief of police, or department as a
stolen motor vehicle."
SECTION 4. Section 56-19-840 of the 1976 Code is amended
to read:
"Section 56-19-840. (A) An operator of a place
of business for garaging, repairing, parking, or storing
vehicles for the public or law enforcement in which a
vehicle remains unclaimed for a period of thirty days
shall, within five days after the expiration of that period,
shall report the vehicle as unclaimed to the department.
Such The report shall must be on a
form prescribed by the department. If the report is not made
within five days, all storage is lost until the report is made and a
certified or registered letter, return receipt requested, to the owner
or lienholder is mailed. The date on which both are complied with
is the date storage starts.
(B) A vehicle left by its owner whose name and
address are known to the operator or his employee is not
considered unclaimed when thirty days after repairs are
completed the vehicle is unclaimed and no contact or contract for
storage is made by the owner and facility. A person who fails
to report a vehicle as unclaimed in accordance with this section
forfeits all claims and liens for its garaging, parking, or
storing."
SECTION 5. This act takes effect upon approval by the
Governor.
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