AB 284 — Revises provisions relating to statutory liens on motor vehicles. (BDR 9-761)

(ReprintedAssembly withBill amendmentsNo. adopted on April 14, 2021) FIRST REPRINT A.B.

284284–Assemblywoman ASSEMBLYMartinez BILLNCHAPTER.......... O .

284–ASSEMBLYWOMAN M ARTINEZ M ARCH 15, 2021 ____________ Referred to Committee on Judiciary SUMMARY—Revises provisions relating to statutory liens on motor vehicles.

(BDR 9-761) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

providing a procedure to contest the validity of acertain lienliens on a motor vehicle;

Existing law authorizes a person to contest the validity of a lien on a mobile home or manufactured home.

(NRS 108.355) Section 1 of this bill establishes abilea similar procedure for a person to contest the validity of acertain lienliens on a motor vehicle.

Existing law requires that a notice of lien on a mobile home or manufactured home must include:

and (2) aactured description of the legal proceedings available to contest the lien.

(NRS 108.2725) Section 3 of this bill requires that similar information be included in a notice of lien on Under existing law, a lienmotor onvehicle. a mobile home or manufactured home expires 1 year after the lien is filed with the Housing Division of the Department of Business and Industry.

(NRSUnder 108.2735)existing Sectionlaw, 4a oflien thison billa providesmobile thathome aor manufactured home expires 1 year after the lien onis afiled motorwith the Housing Division of the Department of Business vehicle expires 6 months after the lien is filed with the Department of Motor Vehicles.motor Vehicles, except when tolled by a pending civil action or administrative proceeding relating to the lien on the motor vehicle or an underlying repair to the motor vehicle.

-EXPLANATION *AB284_R1* – 2Matter –in THEbolded PEOPLEitalics OFis THEnew; STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Except as otherwise provided in subsection 5,7, a person contesting the validity of a lien on a motor vehicle may filefile, in addition to any other civil action authorized by law, a notice of opposition to the lien in the justice court in whosethe jurisdiction thewhere registered owner of the motor vehicle lives.is located.

A person may file a notice of opposition atwithin any7 timecalendar days after receiving a notice of lien and must include the facts supporting the opposition.

- 81st Session (2021) – 2 – 2.

Upon the filing of the notice of opposition to the lien, the justice of the peace shall schedule a hearing on the notice, which must be held not later than 14 calendar days after service of the notice but not sooner than 5 calendar days after service of the notice.to the notice and order that a copy be served upon the liene hearing claimant within 5 calendar days after the date of the order.

The justice of the peace shall affix the date of the hearing to the notice and order that a copy be served upon the lien claimant within 5 calendar days after the date of the order.

The justice of the peace shallshall: dismiss the objections to the lien claim, declare the lien invalid or declare the amount of the lien if the amount of the lien is different from that described by the lien claimant.

(a) Dismiss the objections to the lien claim;

(b) Declare the lien invalid and issue a writ of possession;

or (c) Declare the amount of the lien if the amount of the lien is different from that described by the lien claimant.

 A lien is invalid if a body shop or garage operator fails to comply with the provisions of subsection 1 of NRS 487.567, NRS 487.6875 or 487.6877.

AfterIf receipt of a noticewrit of oppositionpossession tois aissued lien or other notice pursuant to anyparagraph proceeding(b) to contest the validity of asubsection lien3, on a motor vehicle, the Departmentwrit ofmust: Motor Vehicles shall not transfer the title to the motor vehicle that is subject to the lien until the matter has been adjudicated.

(a) Be directed to the sheriff within whose jurisdiction the motor vehicle is located;

(b) Describe the motor vehicle to be seized and specify the location where, as determined by the justice of the peace from all the evidence, there is probable cause to believe the motor vehicle will be found;

and (c) Direct the levying office to seize the motor vehicle if it is found and return the motor vehicle to the registered owner.

The scope of a notice of opposition to a lien filed pursuant to this section is limited to judicial review of the procedures set 487.6877, the reasonableness of storage costs and compliance with the notice provisions of this section and NRS 108.265 to 108.367, inclusive.

6.

After receipt of a notice of opposition to a lien or other notice pursuant to any proceeding to contest the validity of a lien on a motor vehicle, the Department of Motor Vehicles shall not transfer the title to the motor vehicle that is subject to the lien until the matter has been adjudicated.

7.

(a) Affect the rights of a secured party pursuant to chapter 104 of (b)NRS. Apply to a lien asserted by the operator of a tow car holding a certificate of public convenience and necessity issued pursuant to NRS 706.4463.

(b) Apply to a lien asserted by the operator of a tow car holding a certificate of public convenience and necessity issued pursuant to NRS 706.4463.