SB 826 — Towing-storage Operator Liens

Florida Senate - 2019 CS for SB 826 By Senatorthe RousonCommittee 19-01178-19on 2019826__Judiciary; A bill to be entitled An act relating to towing-storage operator liens;

and Senator Rouson 590-03197-19 2019826c1 A bill to be entitled An act relating to towing-storage operator liens;

requiring that certain lien notices be sent through ana electronic third-party mailingnotification service;

definingdeleting a provision authorizing the termaward “electronicof thirdattorney fees to the prevailing party mailingin service”;court proceedings determining the respective rights of owners or lienholders of vehicles or vessels and towing-storage operators;

requiringrevising electronicrequirements thirdfor partythe mailinginspection servicesand torelease applyof tovehicles theor Departmentvessels ofand Highwaypersonal Safetyproperty andin Motorsuch Vehiclesvehicles foror approval;vessels;

requiringdefining the departmentterm to“third-party approvenotification anservice”; application if certain conditions are met;

requiring third-party notification services to apply to the Department of Highway Safety and Motor Vehicles for approval;

authorizing the department to approve an application if certain conditions are met;

requiring approved third-party notification services to provide the department with proof that it has maintained the performance bond;

requiring approved third-party notification services to submit a specified annual audit to the department;

requiring ana electronic third-party mailingnotification service to maintain certain records for a specified timeframeperiod and to allow for the inspection and copying of such records by the department;

requiringauthorizing thetowing departmentstorage operators to adoptsend rules;notices on their own behalf if there are no approved third-party notification services;

1831 Be It Enacted by the Legislature of the State of Florida:

2033 Section 1. Paragraphs (c) and (d) of subsection (4)(4), subsection (6), and subsection (6)(10) of section 713.78, Florida Statutes, are amended, and subsection (14) is added to that section, to read:

713.78 Liens for recovering, towing, or storing vehicles and vessels.— (4) (c) Notice by certified mail shall be sent Within 7 business days after the date of storage of the vehicle or vessel, the towing-storage operator shall, through ana electronic third-party mailingnotification service approved by the Department of Highway Safety and Motor Vehicles, send notice by certified mail to the registered owner, the insurance company insuring the vehicle notwithstanding the provisions of s.

(d) If attempts to locate the name and address of the owner or lienholder prove unsuccessful, the towing-storage operator shall, after 7 business working days, excluding Saturday and Sunday, of the initial tow or storage, the towing-storage operator, through ana electronic third-party mailingnotification service approved by the Department of Highway Safety and Motor Vehicles, shall send notice by certified mail to notify the public agency of jurisdiction where the vehicle or vessel is stored in writing by certified mail or acknowledged hand delivery that the towing storage company has been unable to locate the name and address of the owner or lienholder and a physical search of the vehicle or vessel has disclosed no ownership information and a good faith effort has been made, including records checks of the Department of Highway Safety and Motor Vehicles database and the National Motor Vehicle Title Information System or an equivalent commercially available system.

The towing storage operator, through ana electronic third-party mailingnotification service approved by the Department of Highway Safety and Motor Vehicles, shall send notice shall be sent by certified mail to the owner of the vehicle or vessel and the person having the recorded lien on the vehicle or vessel at the address shown on the records of the registering agency and shall be mailed not less than 15 days before the date of the sale.

(14)(a) As(10) Persons usedwho inprovide thisservices section,pursuant theto termthis “electronicsection third-partyshall mailingpermit: service” means a person who, upon a request submitted through a website by a towing-storage operator:

1. Obtains(a) A thevehicle or vessel owner, a lienholder, or insureran information,owners, aslienholders, applicable,insurance forcompany arepresentative, upon presentation of documentation of ownership or recorded claim of lien, including the vehicle or vessel fromregistration, thelease Departmentor ofcontract, Highwaytitle Safetycertificate, andelectronic Motortitle, Vehicles;or lien sale notice;

2. Prepares or assists(b) An agent of the towing-storagevehicle operatoror invessel preparingowner representatives, or their agents, which agency is evidenced by an original writing acknowledged by the owner before a noticenotary requiredpublic or other person empowered by thislaw sectionto throughadminister oaths, 168 immediately upon his or her arrival at the website;storage facility and before payment of any charges, to inspect the towed vehicle or vessel and shall release to the owner, lienholder, or agent the vehicle, vessel, or all personal property not affixed to the vehicle or vessel which was in the vehicle or vessel at the time the vehicle or vessel came into the custody of the person providing such services.

3. PrintsUpon receiving the documentation required under paragraph (a) or paragraph (b) and sendspayment of the noticetowing and storage charges, the person providing such services must release the vehicle or vessel to the intendedowner, recipientlienholder, byor certifiedagent mail;who paid the charges.

and(14)(a) For 4. Electronicallypurposes returnsof trackingthis informationsection, orthe otherterm proof“third-party ofnotification mailingservice” andmeans deliverya ofqualified thebusiness noticeentity tothat, theupon towinga storagerequest operator.submitted through a website by a towing-storage operator:

(b) An1. Accesses electronicthe third-partyDepartment mailingof serviceHighway shallSafety applyand toMotor Vehicles’ database and mustthe beNational approvedMotor byVehicle theTitle departmentInformation System to beobtain eligibleany toowner, providelienholder, servicesor underinsurer information necessary for sending a notice required by this section.section;

2. Electronically generates, and provides for the printing and mailing of, the notice on behalf of the towing-storage operator;

3. Electronically returns tracking information or other proof of mailing and delivery of the notice to the towing storage operator;

and 4. Electronically reports to the Department of Highway Safety and Motor Vehicles, through an electronic data exchange process that uses the Internet, the following information, as applicable, related to the notice:

a. The vehicle identification number or vessel hull identification number;

b. The license plate number;

c. The name and address of the towing-storage operator;

d. The physical location of the vehicle or vessel;

e. The date of the tow;

f. The amount of towing and storage charges owed when the notice is generated;

and g. The date the notice is mailed and delivered.

(b) A third-party notification service must apply to the Department of Highway Safety and Motor Vehicles and be approved in order to provide notices under this section.

The department shallmay approve ana electronic third-party mailingnotification service if the applicant demonstratesas to the satisfaction of the department that it is qualified to provide the services described in paragraph (a).(a) if the applicant:

The1. Provides department may deny, suspend, or revoke approval of an electronic third-party mailing service if the department determineswith thata theperformance electronicbond third-partyin mailingthe serviceamount hasof committed$1 anmillion actissued ofby frauda orsurety misrepresentationcompany relatedauthorized to ado noticebusiness requiredin by this section.state;

(c) An2. Submits electronican third-partyacceptable mailinglevel service2 shallinternal maintaincontrol alland recordsdata relatedsecurity toaudit, or the provisionequivalent, offrom servicesan underindependent thiscertified sectionpublic foraccountant 3licensed yearsin andthis state, which audit must allowhave thebeen departmentconducted towithin inspect1 suchyear recordsbefore uponapplying request.to the department;

and 3. Successfully demonstrates its ability to electronically report to the department the required information related to a towing-storage notice through an electronic data exchange process that uses the Internet.

227 To remain eligible to provide notices under this section, an approved third-party notification service must annually provide the department with proof it has maintained the performance bond required under subparagraph 1.

and must annually submit to the department an acceptable audit required under subparagraph 2.