AN
ACT Relating to the redemption of vehicles through credit cards and checks
drawn on financial institutions; amending RCW 46.55.130; and reenacting and
amending RCW 46.55.120.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
46.55.120 and 1999 c 398 s 7 and 1999 c 327 s 5 are each reenacted and amended
to read as follows:
(1)
Vehicles or other items of personal property registered or titled with the
department that are impounded by registered tow truck operators pursuant to RCW
46.55.080, 46.55.085, 46.55.113, or 9A.88.140 may be redeemed only under the
following circumstances:
(a)
Only the legal owner, the registered owner, a person authorized in writing by
the registered owner or the vehicle's insurer, a person who is determined and
verified by the operator to have the permission of the registered owner of the
vehicle or other item of personal property registered or titled with the
department, or one who has purchased a vehicle or item of personal property
registered or titled with the department from the registered owner who produces
proof of ownership or written authorization and signs a receipt therefor, may
redeem an impounded vehicle or items of personal property registered or titled
with the department. In addition, a vehicle impounded because the operator is
in violation of RCW 46.20.342(1)(c) shall not be released until a person
eligible to redeem it under this subsection (1)(a) satisfies the requirements
of (e) of this subsection, including paying all towing, removal, and storage
fees, notwithstanding the fact that the hold was ordered by a government
agency. If the department's records show that the operator has been convicted
of a violation of RCW 46.20.342 or a similar local ordinance within the past
five years, the vehicle may be held for up to thirty days at the written
direction of the agency ordering the vehicle impounded. A vehicle impounded
because the operator is arrested for a violation of RCW 46.20.342 may be
released only pursuant to a written order from the agency that ordered the
vehicle impounded or from the court having jurisdiction. An agency may issue a
written order to release pursuant to a provision of an applicable state agency
rule or local ordinance authorizing release on the basis of economic or
personal hardship to the spouse of the operator, taking into consideration
public safety factors, including the operator's criminal history and driving
record.
If
a vehicle is impounded because the operator is in violation of RCW 46.20.342(1)
(a) or (b), the vehicle may be held for up to thirty days at the written
direction of the agency ordering the vehicle impounded. However, if the
department's records show that the operator has been convicted of a violation
of RCW 46.20.342(1) (a) or (b) or a similar local ordinance within the past
five years, the vehicle may be held at the written direction of the agency
ordering the vehicle impounded for up to sixty days, and for up to ninety days
if the operator has two or more such prior offenses. If a vehicle is impounded
because the operator is arrested for a violation of RCW 46.20.342, the vehicle
may not be released until a person eligible to redeem it under this subsection
(1)(a) satisfies the requirements of (e) of this subsection, including paying
all towing, removal, and storage fees, notwithstanding the fact that the hold
was ordered by a government agency.
(b)
If the vehicle is directed to be held for a suspended license impound, a person
who desires to redeem the vehicle at the end of the period of impound shall
within five days of the impound at the request of the tow truck operator pay a
security deposit to the tow truck operator of not more than one-half of the
applicable impound storage rate for each day of the proposed suspended license
impound. The tow truck operator shall credit this amount against the final
bill for removal, towing, and storage upon redemption. The tow truck operator
may accept other sufficient security in lieu of the security deposit. If the
person desiring to redeem the vehicle does not pay the security deposit or
provide other security acceptable to the tow truck operator, the tow truck
operator may process and sell at auction the vehicle as an abandoned vehicle
within the normal time limits set out in RCW 46.55.130(1). The security
deposit required by this section may be paid and must be accepted at any time
up to twenty-four hours before the beginning of the auction to sell the vehicle
as abandoned. The registered owner is not eligible to purchase the vehicle at
the auction, and the tow truck operator shall sell the vehicle to the highest
bidder who is not the registered owner.
(c)
Notwithstanding (b) of this subsection, a rental car business may immediately
redeem a rental vehicle it owns by payment of the costs of removal, towing, and
storage, whereupon the vehicle will not be held for a suspended license
impound.
(d)
Notwithstanding (b) of this subsection, a motor vehicle dealer or lender with a
perfected security interest in the vehicle may redeem or lawfully repossess a
vehicle immediately by payment of the costs of removal, towing, and storage,
whereupon the vehicle will not be held for a suspended license impound. A
motor vehicle dealer or lender with a perfected security interest in the
vehicle may not knowingly and intentionally engage in collusion with a
registered owner to repossess and then return or resell a vehicle to the
registered owner in an attempt to avoid a suspended license impound. However,
this provision does not preclude a vehicle dealer or a lender with a perfected
security interest in the vehicle from repossessing the vehicle and then
selling, leasing, or otherwise disposing of it in accordance with chapter 62A.9
RCW, including providing redemption rights to the debtor under RCW 62A.9-506.
If the debtor is the registered owner of the vehicle, the debtor's right to
redeem the vehicle under chapter 62A.9 RCW is conditioned upon the debtor obtaining
and providing proof from the impounding authority or court having jurisdiction
that any fines, penalties, and forfeitures owed by the registered owner, as a
result of the suspended license impound, have been paid, and proof of the
payment must be tendered to the vehicle dealer or lender at the time the debtor
tenders all other obligations required to redeem the vehicle. Vehicle dealers
or lenders are not liable for damages if they rely in good faith on an order
from the impounding agency or a court in releasing a vehicle held under a
suspended license impound.
(e)
The vehicle or other item of personal property registered or titled with the
department shall be released upon the presentation to any person having custody
of the vehicle of commercially reasonable tender sufficient to cover the costs
of towing, storage, or other services rendered during the course of towing,
removing, impounding, or storing any such vehicle, with credit being given for
the amount of any security deposit paid under (b) of this subsection. In
addition, if a vehicle is impounded because the operator was arrested for a
violation of RCW 46.20.342 or ((46.20.420)) 46.20.345 and was
being operated by the registered owner when it was impounded under local
ordinance or agency rule, it must not be released to any person until the
registered owner establishes with the agency that ordered the vehicle impounded
or the court having jurisdiction that any penalties, fines, or forfeitures owed
by him or her have been satisfied. Registered tow truck operators are not
liable for damages if they rely in good faith on an order from the impounding
agency or a court in releasing a vehicle held under a suspended license
impound. Commercially reasonable tender shall include, without limitation, cash,
major bank credit cards issued by financial institutions, or personal
checks drawn on ((in-state banks)) Washington state branches of
financial institutions if accompanied by two pieces of valid
identification, one of which may be required by the operator to have a
photograph. If the towing firm ((can)) cannot determine through
the customer's bank or a check verification service that the presented check
would ((not)) be paid by the bank or guaranteed by the service, the
towing firm may refuse to accept the check. Any person who stops payment on a
personal check or credit card, or does not make restitution within ten days
from the date a check becomes insufficient due to lack of funds, to a towing
firm that has provided a service pursuant to this section or in any other
manner defrauds the towing firm in connection with services rendered pursuant
to this section shall be liable for damages in the amount of twice the towing
and storage fees, plus costs and reasonable attorney's fees.
(2)(a)
The registered tow truck operator shall give to each person who seeks to redeem
an impounded vehicle, or item of personal property registered or titled with
the department, written notice of the right of redemption and opportunity for a
hearing, which notice shall be accompanied by a form to be used for requesting
a hearing, the name of the person or agency authorizing the impound, and a copy
of the towing and storage invoice. The registered tow truck operator shall
maintain a record evidenced by the redeeming person's signature that such
notification was provided.
(b)
Any person seeking to redeem an impounded vehicle under this section has a
right to a hearing in the district or municipal court for the jurisdiction in
which the vehicle was impounded to contest the validity of the impoundment or
the amount of towing and storage charges. The district court has jurisdiction
to determine the issues involving all impoundments including those authorized
by the state or its agents. The municipal court has jurisdiction to determine
the issues involving impoundments authorized by agents of the municipality.
Any request for a hearing shall be made in writing on the form provided for
that purpose and must be received by the appropriate court within ten days of
the date the opportunity was provided for in subsection (2)(a) of this section
and more than five days before the date of the auction. At the time of the
filing of the hearing request, the petitioner shall pay to the court clerk a
filing fee in the same amount required for the filing of a suit in district
court. If the hearing request is not received by the court within the ten-day
period, the right to a hearing is waived and the registered owner is liable for
any towing, storage, or other impoundment charges permitted under this
chapter. Upon receipt of a timely hearing request, the court shall proceed to
hear and determine the validity of the impoundment.
(3)(a)
The court, within five days after the request for a hearing, shall notify the
registered tow truck operator, the person requesting the hearing if not the
owner, the registered and legal owners of the vehicle or other item of personal
property registered or titled with the department, and the person or agency
authorizing the impound in writing of the hearing date and time.
(b)
At the hearing, the person or persons requesting the hearing may produce any
relevant evidence to show that the impoundment, towing, or storage fees charged
were not proper. The court may consider a written report made under oath by
the officer who authorized the impoundment in lieu of the officer's personal
appearance at the hearing.
(c)
At the conclusion of the hearing, the court shall determine whether the
impoundment was proper, whether the towing or storage fees charged were in
compliance with the posted rates, and who is responsible for payment of the
fees. The court may not adjust fees or charges that are in compliance with the
posted or contracted rates.
(d)
If the impoundment is found proper, the impoundment, towing, and storage fees
as permitted under this chapter together with court costs shall be assessed
against the person or persons requesting the hearing, unless the operator did
not have a signed and valid impoundment authorization from a private property
owner or an authorized agent.
(e)
If the impoundment is determined to be in violation of this chapter, then the
registered and legal owners of the vehicle or other item of personal property
registered or titled with the department shall bear no impoundment, towing, or
storage fees, and any security shall be returned or discharged as appropriate,
and the person or agency who authorized the impoundment shall be liable for any
towing, storage, or other impoundment fees permitted under this chapter. The
court shall enter judgment in favor of the registered tow truck operator
against the person or agency authorizing the impound for the impoundment,
towing, and storage fees paid. In addition, the court shall enter judgment in
favor of the registered and legal owners of the vehicle, or other item of
personal property registered or titled with the department, for the amount of
the filing fee required by law for the impound hearing petition as well as
reasonable damages for loss of the use of the vehicle during the time the same
was impounded, for not less than fifty dollars per day, against the person or
agency authorizing the impound. However, if an impoundment arising from an
alleged violation of RCW 46.20.342 or ((46.20.420)) 46.20.345 is
determined to be in violation of this chapter, then the law enforcement officer
directing the impoundment and the government employing the officer are not
liable for damages if the officer relied in good faith and without gross
negligence on the records of the department in ascertaining that the operator
of the vehicle had a suspended or revoked driver's license. If any judgment
entered is not paid within fifteen days of notice in writing of its entry, the
court shall award reasonable attorneys' fees and costs against the defendant in
any action to enforce the judgment. Notice of entry of judgment may be made by
registered or certified mail, and proof of mailing may be made by affidavit of
the party mailing the notice. Notice of the entry of the judgment shall read
essentially as follows:
TO: . . . . . .
YOU ARE HEREBY NOTIFIED JUDGMENT was entered against you
in the . . . . . . Court located at
. . . . . . in the sum of
$. . . . . ., in an action entitled
. . . . . ., Case No. . . . . YOU ARE
FURTHER NOTIFIED that attorneys fees and costs will be awarded against you
under RCW . . . if the judgment is not paid within 15 days of the
date of this notice.
DATED this . . . . day of
. . . . . ., (year) . . .
Signature ..................
Typed name and address
of
party mailing notice
(4)
Any impounded abandoned vehicle or item of personal property registered or
titled with the department that is not redeemed within fifteen days of mailing
of the notice of custody and sale as required by RCW 46.55.110(3) shall be sold
at public auction in accordance with all the provisions and subject to all the
conditions of RCW 46.55.130. A vehicle or item of personal property registered
or titled with the department may be redeemed at any time before the start of
the auction upon payment of the applicable towing and storage fees.
Sec.
2. RCW
46.55.130 and 1998 c 203 s 6 are each amended to read as follows:
(1)
If, after the expiration of fifteen days from the date of mailing of notice of
custody and sale required in RCW 46.55.110(((2))) (3) to the
registered and legal owners, the vehicle remains unclaimed and has not been
listed as a stolen vehicle, or a suspended license impound has been
directed, but no security paid under RCW 46.55.120, then the registered tow
truck operator having custody of the vehicle shall conduct a sale of the
vehicle at public auction after having first published a notice of the date,
place, and time of the auction in a newspaper of general circulation in the
county in which the vehicle is located not less than three days and no more
than ten days before the date of the auction. The notice shall contain a
description of the vehicle including the make, model, year, and license number
and a notification that a three-hour public viewing period will be available
before the auction. The auction shall be held during daylight hours of a
normal business day.
(2)
The following procedures are required in any public auction of such abandoned
vehicles:
(a)
The auction shall be held in such a manner that all persons present are given
an equal time and opportunity to bid;
(b)
All bidders must be present at the time of auction unless they have submitted
to the registered tow truck operator, who may or may not choose to use the
preauction bid method, a written bid on a specific vehicle. Written bids may
be submitted up to five days before the auction and shall clearly state which
vehicle is being bid upon, the amount of the bid, and who is submitting the
bid;
(c)
The open bid process, including all written bids, shall be used so that
everyone knows the dollar value that must be exceeded;
(d)
The highest two bids received shall be recorded in written form and shall
include the name, address, and telephone number of each such bidder;
(e)
In case the high bidder defaults, the next bidder has the right to purchase the
vehicle for the amount of his or her bid;
(f)
The successful bidder shall apply for title within fifteen days;
(g)
The registered tow truck operator shall post a copy of the auction procedure at
the bidding site. If the bidding site is different from the licensed office
location, the operator shall post a clearly visible sign at the office location
that describes in detail where the auction will be held. At the bidding site a
copy of the newspaper advertisement that lists the vehicles for sale shall be
posted;
(h)
All surplus moneys derived from the auction after satisfaction of the
registered tow truck operator's lien shall be remitted within thirty days to
the department for deposit in the state motor vehicle fund. A report
identifying the vehicles resulting in any surplus shall accompany the remitted
funds. If the director subsequently receives a valid claim from the registered
vehicle owner of record as determined by the department within one year from
the date of the auction, the surplus moneys shall be remitted to such owner;
(i)
If an operator receives no bid, or if the operator is the successful bidder at
auction, the operator shall, within forty-five days sell the vehicle to a
licensed vehicle wrecker, hulk hauler, or scrap processor by use of the
abandoned vehicle report-affidavit of sale, or the operator shall apply for
title to the vehicle.
(3)
In no case may an operator hold a vehicle for longer than ninety days without
holding an auction on the vehicle, except for vehicles that are under a police
or judicial hold.
(4)(a)
In no case may the accumulation of storage charges exceed fifteen days from the
date of receipt of the information by the operator from the department as
provided by RCW 46.55.110(((2))) (3).
(b)
The failure of the registered tow truck operator to comply with the time limits
provided in this chapter limits the accumulation of storage charges to five
days except where delay is unavoidable. Providing incorrect or incomplete
identifying information to the department in the abandoned vehicle report shall
be considered a failure to comply with these time limits if correct information
is available. However, storage charges begin to accrue again on the date
the correct and complete information is provided to the department by the
registered tow truck operator.
