South Carolina General Assembly
111th Session, 1995-1996

Bill 3582


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Bill Number:                       3582
Type of Legislation:               General Bill GB
Introducing Body:                  House
Introduced Date:                   19950214
Primary Sponsor:                   Sharpe
All Sponsors:                      Sharpe, Bailey, Meacham, Law,
                                   A. Young, Phillips, McCraw, Fulmer,
                                   Herdklotz, Rice, Davenport,
                                   Littlejohn, Vaughn, Mason, Riser and
                                   D. Smith 
Drafted Document Number:           pfm\7126bdw.95
Companion Bill Number:             547
Residing Body:                     House
Current Committee:                 Labor, Commerce and Industry
                                   Committee 26 HLCI
Subject:                           Liens, unclaimed or stolen
                                   vehicles



History


Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

House   19950214  Introduced, read first time,             26 HLCI
                  referred to Committee

View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

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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