3067. Words used in this chapter which are defined in Division 1 of
the Vehicle Code shall have the same meaning as in the Vehicle Code.
3067.1. All forms required pursuant to the provisions of this
chapter shall be prescribed by the Department of Motor Vehicles. The
language used in the notices and declarations shall be simple and
nontechnical.
3067.2. This chapter shall not apply to any manufactured home, as
defined in Section 18007 of the Health and Safety Code, to any
mobilehome, as defined in Section 18008 of the Health and Safety
Code, or to any commercial coach, as defined in Section 18001.8 of
the Health and Safety Code, whether or not the manufactured home,
mobilehome, or commercial coach is subject to registration under the
Health and Safety Code.
3068. (a) Every person has a lien dependent upon possession for the
compensation to which the person is legally entitled for making
repairs or performing labor upon, and furnishing supplies or
materials for, and for the storage, repair, or safekeeping of, and
for the rental of parking space for, any vehicle of a type subject to
registration under the Vehicle Code, subject to the limitations set
forth in this chapter. The lien shall be deemed to arise at the time
a written statement of charges for completed work or services is
presented to the registered owner or 15 days after the work or
services are completed, whichever occurs first. Upon completion of
the work or services, the lienholder shall not dismantle, disengage,
remove, or strip from the vehicle the parts used to complete the work
or services.
(b) (1) Any lien under this section that arises because work or
services have been performed on a vehicle with the consent of the
registered owner shall be extinguished and no lien sale shall be
conducted unless either of the following occurs:
(A) The lienholder applies for an authorization to conduct a lien
sale within 30 days after the lien has arisen.
(B) An action in court is filed within 30 days after the lien has
arisen.
(2) A person whose lien for work or services on a vehicle has been
extinguished shall turn over possession of the vehicle, at the place
where the work or services were performed, to the legal owner or the
lessor upon demand of the legal owner or lessor, and upon tender by
the legal owner or lessor, by cashier's check or in cash, of only the
amount for storage, safekeeping, or parking space rental for the
vehicle to which the person is entitled by subdivision (c).
(3) Any lien under this section that arises because work or
services have been performed on a vehicle with the consent of the
registered owner shall be extinguished, and no lien sale shall be
conducted, if the lienholder, after written demand made by either
personal service or certified mail with return receipt requested by
the legal owner or the lessor to inspect the vehicle, fails to permit
that inspection by the legal owner or lessor, or his or her agent,
within a period of time not sooner than 24 hours nor later than 72
hours after the receipt of that written demand, during the normal
business hours of the lienholder.
(4) Any lien under this section that arises because work or
services have been performed on a vehicle with the consent of the
registered owner shall be extinguished, and no lien sale shall be
conducted, if the lienholder, after written demand made by either
personal service or certified mail with return receipt requested by
the legal owner or the lessor to receive a written copy of the work
order or invoice reflecting the services or repairs performed on the
vehicle and the authorization from the registered owner requesting
the lienholder to perform the services or repairs, fails to provide
that copy to the legal owner or lessor, or his or her agent, within
10 days after the receipt of that written demand.
(c) The lienholder shall not charge the legal owner or lessor any
amount for release of the vehicle in excess of the amounts authorized
by this subdivision.
(1) That portion of the lien in excess of one thousand five
hundred dollars ($1,500) for any work or services, or that amount,
subject to the limitations contained in Section 10652.5 of the
Vehicle Code, in excess of one thousand twenty-five dollars ($1,025)
for any storage, safekeeping, or rental of parking space or, if an
application for an authorization to conduct a lien sale has been
filed pursuant to Section 3071 within 30 days after the commencement
of the storage or safekeeping, in excess of one thousand two hundred
fifty dollars ($1,250) for any storage or safekeeping, rendered or
performed at the request of any person other than the legal owner or
lessor, is invalid, unless prior to commencing any work, services,
storage, safekeeping, or rental of parking space, the person claiming
the lien gives actual notice in writing either by personal service
or by registered letter addressed to the legal owner named in the
registration certificate, and the written consent of that legal owner
is obtained before any work, services, storage, safekeeping, or
rental of parking space are performed.
(2) Subject to the limitations contained in Section 10652.5 of the
Vehicle Code, if any portion of a lien includes charges for the
care, storage, or safekeeping of, or for the rental of parking space
for, a vehicle for a period in excess of 60 days, the portion of the
lien that accrued after the expiration of that period is invalid
unless Sections 10650 and 10652 of the Vehicle Code have been
complied with by the holder of the lien.
(3) The charge for the care, storage, or safekeeping of a vehicle
which may be charged to the legal owner or lessor shall not exceed
that for one day of storage if, 24 hours or less after the vehicle is
placed in storage, a request is made for the release of the vehicle.
If the request is made more than 24 hours after the vehicle is
placed in storage, charges may be imposed on a full, calendar-day
basis for each day, or part thereof, that the vehicle is in storage.
(d) In any action brought by or on behalf of the legal owner or
lessor to recover a vehicle alleged to be wrongfully withheld by the
person claiming a lien pursuant to this section, the prevailing party
shall be entitled to reasonable attorney's fees and costs, not to
exceed one thousand seven hundred fifty dollars ($1,750).
3068.1. (a) (1) Every person has a lien dependent upon possession
for the compensation to which the person is legally entitled for
towing, storage, or labor associated with recovery or load salvage of
any vehicle subject to registration that has been authorized to be
removed by a public agency, a private property owner pursuant to
Section 22658 of the Vehicle Code, or a lessee, operator, or
registered owner of the vehicle. The lien is deemed to arise on the
date of possession of the vehicle. Possession is deemed to arise when
the vehicle is removed and is in transit, or when vehicle recovery
operations or load salvage operations have begun. A person seeking to
enforce a lien for the storage and safekeeping of a vehicle shall
impose no charge exceeding that for one day of storage if, 24 hours
or less after the vehicle is placed in storage, the vehicle is
released. If the release is made more than 24 hours after the vehicle
is placed in storage, charges may be imposed on a full-calendar-day
basis for each day, or part thereof, that the vehicle is in storage.
If a request to release the vehicle is made and the appropriate fees
are tendered and documentation establishing that the person
requesting release is entitled to possession of the vehicle, or is
the owner's insurance representative, is presented within the initial
24 hours of storage, and the storage facility fails to comply with
the request to release the vehicle or is not open for business during
normal business hours, then only one day's charge may be required to
be paid until after the first business day. A "business day" is any
day in which the lienholder is open for business to the public for at
least eight hours. If the request is made more than 24 hours after
the vehicle is placed in storage, charges may be imposed on a
full-calendar-day basis for each day, or part thereof, that the
vehicle is in storage.
(2) "Documentation" that would entitle a person to possession of
the vehicle includes, but is not limited to, a certificate of
ownership, vehicle registration, information in the possession of the
lienholder including ownership information obtained from the
Department of Motor Vehicles or a facially valid registration found
within the vehicle, or a notarized letter or statement from the legal
or registered owner providing authorization to release to a
particular person with a government-issued photographic
identification card. Documentation that establishes that a person is
the owner's insurance representative includes, but is not limited to,
a faxed letter or other letter from the owner's insurance company. A
lienholder is not responsible for determining the authenticity of
documentation specifically described in this subdivision that
establishes either a person's entitlement to possession or that a
person is the owner's insurance representative.
(b) If the vehicle has been determined to have a value not
exceeding four thousand dollars ($4,000), the lien shall be satisfied
pursuant to Section 3072. Lien sale proceedings pursuant to Section
3072 shall commence within 15 days of the date the lien arises. No
storage shall accrue beyond the 15-day period unless lien sale
proceedings pursuant to Section 3072 have commenced. The storage lien
may be for a period not exceeding 60 days if a completed notice of a
pending lien sale form has been filed pursuant to Section 3072
within 15 days after the lien arises. Notwithstanding this 60-day
limitation, the storage lien may be for a period not exceeding 120
days if any one of the following occurs:
(1) A Declaration of Opposition form is filed with the department
pursuant to Section 3072.
(2) The vehicle has an out-of-state registration.
(3) The vehicle identification number was altered or removed.
(4) A person who has an interest in the vehicle becomes known to
the lienholder after the lienholder has complied with subdivision (b)
of Section 3072.
(c) If the vehicle has been determined to have a value exceeding
four thousand dollars ($4,000) pursuant to Section 22670 of the
Vehicle Code, the lien shall be satisfied pursuant to Section 3071.
The storage lien may be for a period not exceeding 120 days if an
application for an authorization to conduct a lien sale has been
filed pursuant to Section 3071.
(d) (1) Any lien under this section shall be extinguished, and a
lien sale shall not be conducted, if any one of the following occurs:
(A) The lienholder, after written demand to inspect the vehicle
made by either personal service or certified mail with return receipt
requested by the legal owner or the lessor, fails to permit the
inspection by the legal owner or lessor, or his or her agent, within
a period of time of at least 24 hours, but not to exceed 72 hours,
after the receipt of that written demand, during the normal business
hours of the lienholder. The legal owner or lessor shall comply with
inspection and vehicle release policies of the impounding public
agency.
(B) The amount claimed for storage exceeds the posted rates.
(2) "Agent" includes, but is not limited to, any person designated
to inspect the vehicle by the request of the legal owner or lessor,
in writing or by telephone, to the lienholder. A lienholder is not
responsible for determining the authenticity of documentation
establishing a person's agency for the purposes of inspection of a
vehicle.
(e) A lienholder shall not be liable for any claim or dispute
directly arising out of the reliance on documentation specifically
described in paragraph (2) of subdivision (a) for purposes of
releasing a vehicle.
3068.2. (a) A tow truck operator who has a lien on a vehicle
pursuant to Section 3068.1 has a deficiency claim against the
registered owner of the vehicle if the vehicle is not leased or
leased with a driver for an amount equal to the towing and storage
charges, not to exceed 120 days of storage, and the lien sale
processing fee pursuant to Section 3074, less the amount received
from the sale of the vehicle.
(b) A tow truck operator who has a lien on a vehicle pursuant to
Section 3068.1 has a deficiency claim against the lessee of the
vehicle if the vehicle is leased without a driver for an amount equal
to the towing and storage charge, not to exceed 120 days of storage,
and the lien sale processing fee described in Section 3074, less the
amount received from the sale of the vehicle.
(c) Storage costs incurred after the sale shall not be included in
calculating the amount received from the sale of the vehicle.
(d) A registered owner who has sold or transferred his or her
vehicle prior to the vehicle's removal and who was not responsible
for creating the circumstances leading to the removal of the vehicle
is not liable for any deficiency under this section if that
registered owner executes a notice pursuant to Section 5900 of the
Vehicle Code and submits the notice to the Department of Motor
Vehicles. The person identified as the transferee in the notice
submitted to the Department of Motor Vehicles shall be liable for the
amount of any deficiency only if that person received notice of the
transfer and is responsible for the event leading to abandonment of
the vehicle or requested the removal.
(e) Except as provided in Section 22524.5 of the Vehicle Code, if
the transferee is an insurer and the transferor is its insured or his
or her agent or representative, the insurer shall not be liable for
any deficiency, unless the insurer agrees at the time of the
transfer, to assume liability for the deficiency.
3069. Any lien provided for in this chapter for labor or materials,
or for storage or safekeeping of a vehicle when abandoned on private
property may be assigned by written instrument accompanied by
delivery of possession of the vehicle, subject to the lien, and the
assignee may exercise the rights of a lienholder as provided in this
chapter. Any lienholder assigning a lien as authorized herein shall
at the time of assigning the lien give written notice either by
personal delivery or by registered or certified mail, to the
registered and legal owner of the assignment, including the name and
address of the person to whom the lien is assigned.
3070. (a) Whenever the possessory lien upon any vehicle is lost
through trick, fraud, or device, the repossession of the vehicle by
the lienholder revives the possessory lien but any lien so revived is
subordinate to any right, title, or interest of any person under any
sale, transfer, encumbrance, lien, or other interest acquired or
secured in good faith and for value between the time of the loss of
possession and the time of repossession.
(b) It is a misdemeanor for any person to obtain possession of any
vehicle or any part thereof subject to a lien pursuant to this
chapter by trick, fraud, or device.
(c) It is a misdemeanor for any person claiming a lien on a
vehicle to knowingly violate this chapter.
(d) (1) Any person who improperly causes a vehicle to be towed or
removed in order to create or acquire a lienhold interest enforceable
under this chapter, or who violates subdivision (c), shall forfeit
all claims for towing, removal, or storage, and shall be liable to
the owner or lessee of the vehicle for the cost of removal,
transportation, and storage, damages resulting from the towing,
removal, transportation, or storage of the vehicle, attorneys' fees,
and court costs.
(2) For purposes of this subdivision, "improperly causes a vehicle
to be towed or removed" includes, but is not limited to, engaging in
any of the following acts, the consequence of which is the towing or
removal of a vehicle:
(A) Failure to comply with Section 10650, 10652.5, or 10655 of the
Vehicle Code.
(B) Misrepresentation of information described in subdivision (b)
of Section 10650 of the Vehicle Code.
(C) Failure to comply with Section 22658 of the Vehicle Code.
(D) Failure, when obtaining authorization for the removal of a
vehicle from a vehicle owner or operator where a law enforcement
officer is not present at the scene of an accident, to present a form
for signature that plainly identifies all applicable towing and
storage fees and charges by type and amount, and identifies the name
and address of the storage facility unless a different storage
facility is specified by the vehicle owner or operator, and to
furnish a copy of the signed form to the owner or operator.
(E) Failure by the owner or operator of a facility used for the
storage of towed vehicles to display, in plain view at all cashiers'
stations, a sign not less than 17 by 22 inches in size with lettering
not less than one inch in height, disclosing all storage fees and
charges in force, including the maximum daily storage rate.
(F) Undertaking repairs or service on a vehicle which is being
stored at a facility used for the storage of towed vehicles without
first providing a written estimate to, and obtaining the express
written consent of, the owner of the vehicle.
(G) The promise to pay or the payment of money or other valuable
consideration by any owner or operator of a towing service to the
owner or operator of the premises from which the vehicle is towed or
removed, for the privilege of towing or removing the vehicle.
3071. (a) A lienholder shall apply to the department for the
issuance of an authorization to conduct a lien sale pursuant to this
section for any vehicle with a value determined to be over four
thousand dollars ($4,000). A filing fee shall be charged by the
department and may be recovered by the lienholder if a lien sale is
conducted or if the vehicle is redeemed. The application shall be
executed under penalty of perjury and shall include all of the
following information:
(1) A description of the vehicle, including make, year model,
identification number, license number, and state of registration. For
motorcycles, the engine number also shall be included. If the
vehicle identification number is not available, the department shall
request an inspection of the vehicle by a peace officer, licensed
vehicle verifier, or departmental employee before accepting the
application.
(2) The names and addresses of the registered and legal owners of
the vehicle, if ascertainable from the registration certificates
within the vehicle, and the name and address of any person whom the
lienholder knows, or reasonably should know, claims an interest in
the vehicle.
(3) A statement of the amount of the lien and the facts that give
rise to the lien.
(b) Upon receipt of an application made pursuant to subdivision
(a), the department shall do all of the following:
(1) Notify the vehicle registry agency of a foreign state of the
pending lien sale, if the vehicle bears indicia of registration in
that state.
(2) By certified mail, send a notice, a copy of the application,
and a return envelope preaddressed to the department to the
registered and legal owners at their addresses of record with the
department, and to any other person whose name and address is listed
in the application.
(c) The notice required pursuant to subdivision (b) shall include
all of the following statements and information:
(1) An application has been made with the department for
authorization to conduct a lien sale.
(2) The person has a right to a hearing in court.
(3) If a hearing in court is desired, a Declaration of Opposition
form, signed under penalty of perjury, shall be signed and returned
to the department within 10 days of the date that the notice required
pursuant to subdivision (b) was mailed.
(4) If the Declaration of Opposition form is signed and returned
to the department, the lienholder shall be allowed to sell the
vehicle only if he or she obtains a court judgment, if he or she
obtains a subsequent release from the declarant or if the declarant,
cannot be served as described in subdivision (e).
(5) If a court action is filed, the declarant shall be notified of
the lawsuit at the address shown on the Declaration of Opposition
form and may appear to contest the claim.
(6) The person may be liable for court costs if a judgment is
entered in favor of the lienholder.
(d) If the department receives the Declaration of Opposition form
in the time specified, the department shall notify the lienholder
within 16 days of the receipt of the form that a lien sale shall not
be conducted unless the lienholder files an action in court within 30
days of the department's notice under this subdivision. A lien sale
of the vehicle shall not be conducted unless judgment is subsequently
entered in favor of the lienholder or the declarant subsequently
releases his or her interest in the vehicle. If a money judgment is
entered in favor of the lienholder and the judgment is not paid
within five days after becoming final, then the judgment may be
enforced by lien sale proceedings conducted pursuant to subdivision
(f).
(e) Service on the declarant in person or by certified mail with
return receipt requested, signed by the declarant or an authorized
agent of the declarant at the address shown on the Declaration of
Opposition form, shall be effective for the serving of process. If
the lienholder has served the declarant by certified mail at the
address shown on the Declaration of Opposition form and the mail has
been returned unclaimed, or if the lienholder has attempted to effect
service on the declarant in person with a marshal, sheriff, or
licensed process server and the marshal, sheriff, or licensed process
server has been unable to effect service on the declarant, the
lienholder may proceed with the judicial proceeding or proceed with
the lien sale without a judicial proceeding. The lienholder shall
notify the department of the inability to effect service on the
declarant and shall provide the department with a copy of the
documents with which service on the declarant was attempted. Upon
receipt of the notification of unsuccessful service, the department
shall send authorization of the sale to the lienholder and send
notification of the authorization to the declarant.
(f) Upon receipt of authorization to conduct the lien sale from
the department, the lienholder shall immediately do all of the
following:
(1) At least five days, but not more than 20 days, prior to the
lien sale, not counting the day of the sale, give notice of the sale
by advertising once in a newspaper of general circulation published
in the county in which the vehicle is located. If there is no
newspaper published in the county, notice shall be given by posting a
Notice of Sale form in three of the most public places in the town
in which the vehicle is located and at the place where the vehicle is
to be sold for 10 consecutive days prior to and including the day of
the sale.
(2) Send a Notice of Pending Lien Sale form 20 days prior to the
sale but not counting the day of sale, by certified mail with return
receipt requested, to each of the following:
(A) The registered and legal owners of the vehicle, if registered
in this state.
(B) All persons known to have an interest in the vehicle.
(C) The department.
(g) All notices required by this section, including the notice
forms prescribed by the department, shall specify the make, year
model, vehicle identification number, license number, and state of
registration, if available, and the specific date, exact time, and
place of sale. For motorcycles, the engine number shall also be
included.
(h) Following the sale of a vehicle, the person who conducts the
sale shall do both of the following:
(1) Remove and destroy the vehicle's license plates.
(2) Within five days of the sale, submit a completed "Notice of
Release of Liability" form to the Department of Motor Vehicles.
(i) The Department of Motor Vehicles shall retain all submitted
forms described in paragraph (2) of subdivision (h) for two years.
(j) No lien sale shall be undertaken pursuant to this section
unless the vehicle has been available for inspection at a location
easily accessible to the public for at least one hour before the sale
and is at the place of sale at the time and date specified on the
notice of sale. Sealed bids shall not be accepted. The lienholder
shall conduct the sale in a commercially reasonable manner.
(k) Within 10 days after the sale of any vehicle pursuant to this
section, the legal or registered owner may redeem the vehicle upon
the payment of the amount of the sale, all costs and expenses of the
sale, together with interest on the sum at the rate of 12 percent per
annum from the due date thereof or the date when that sum was
advanced until the repayment. If the vehicle is not redeemed, all
lien sale documents required by the department shall then be
completed and delivered to the buyer.
(l) Any lien sale pursuant to this section shall be void if the
lienholder does not comply with this chapter. Any lien for fees or
storage charges for parking and storage of a motor vehicle shall be
subject to Section 10652.5 of the Vehicle Code.
3071.5. (a) A registered or legal owner of a vehicle in the
possession of a person holding a lien under this chapter may release
any interest in the vehicle after the lien has arisen. The release
shall be dated when signed and a copy shall be given at the time the
release is signed to the person releasing the interest.
(b) The release shall be in at least 12-point type and shall
contain all of the following information in simple, nontechnical
language:
(1) A description of the vehicle, including the year and make, the
engine or vehicle identification number, and the license number, if
available.
(2) The names and addresses of the registered and legal owners of
record with the Department of Motor Vehicles, if available.
(3) A statement of the amount of the lien and the facts concerning
the claim which gives rise to the lien.
(4) A statement that the person releasing the interest understands
that (i) he has a legal right to a hearing in court prior to any
sale of the vehicle to satisfy the lien and (ii) he is giving up the
right to appear to contest the claim of the lienholder.
(5) A statement that (i) the person releasing the interest gives
up any interest he may have in the vehicle and (ii) he is giving the
lienholder permission to sell the vehicle.
(c) The release required by this section shall not be filed with
the department in connection with any transfer of interest in a
vehicle.
3072. (a) For vehicles with a value determined to be four thousand
dollars ($4,000) or less, the lienholder shall apply to the
department for the names and addresses of the registered and legal
owners of record. The request shall include a description of the
vehicle, including make, year, model, identification number, license
number, and state of registration. If the vehicle identification
number is not available, the Department of Motor Vehicles shall
request an inspection of the vehicle by a peace officer, licensed
vehicle verifier, or departmental employee before releasing the names
and addresses of the registered and legal owners and interested
parties.
(b) The lienholder shall, immediately upon receipt of the names
and addresses, send, by certified mail with return receipt requested
or by United States Postal Service Certificate of Mailing, a
completed Notice of Pending Lien Sale form, a blank Declaration of
Opposition form, and a return envelope preaddressed to the
department, to the registered owner and legal owner at their
addresses of record with the department, and to any other person
known to have an interest in the vehicle. The lienholder shall
additionally send a copy of the completed Notice of Pending Lien Sale
form to the department by certified mail on the same day that the
other notices are mailed pursuant to this subdivision.
(c) All notices to persons having an interest in the vehicle shall
be signed under penalty of perjury and shall include all of the
following information and statements:
(1) A description of the vehicle, including make, year model,
identification number, license number, and state of registration. For
motorcycles, the engine number shall also be included.
(2) The specific date, exact time, and place of sale, which shall
be set not less than 31 days, but not more than 41 days, from the
date of mailing.
(3) The names and addresses of the registered and legal owners of
the vehicle and any other person known to have an interest in the
vehicle.
(4) All of the following statements:
(A) The amount of the lien and the facts concerning the claim
which gives rise to the lien.
(B) The person has a right to a hearing in court.
(C) If a court hearing is desired, a Declaration of Opposition
form, signed under penalty of perjury, shall be signed and returned
to the department within 10 days of the date the Notice of Pending
Lien Sale form was mailed.
(D) If the Declaration of Opposition form is signed and returned,
the lienholder shall be allowed to sell the vehicle only if he or she
obtains a court judgment or if he or she obtains a subsequent
release from the declarant or if the declarant cannot be served as
described in subdivision (e).
(E) If a court action is filed, the declarant shall be notified of
the lawsuit at the address shown on the Declaration of Opposition
form and may appear to contest the claim.
(F) The person may be liable for court costs if a judgment is
entered in favor of the lienholder.
(d) If the department receives the completed Declaration of
Opposition form within the time specified, the department shall
notify the lienholder within 16 days that a lien sale shall not be
conducted unless the lienholder files an action in court within 30
days of the notice and judgment is subsequently entered in favor of
the lienholder or the declarant subsequently releases his or her
interest in the vehicle. If a money judgment is entered in favor of
the lienholder and the judgment is not paid within five days after
becoming final, then the judgment may be enforced by lien sale
proceedings conducted pursuant to subdivision (f).
(e) Service on the declarant in person or by certified mail with
return receipt requested, signed by the declarant or an authorized
agent of the declarant at the address shown on the Declaration of
Opposition form, shall be effective for the serving of process. If
the lienholder has served the declarant by certified mail at the
address shown on the Declaration of Opposition form and the mail has
been returned unclaimed, or if the lienholder has attempted to effect
service on the declarant in person with a marshal, sheriff, or
licensed process server and the marshal, sheriff, or licensed process
server has been unable to effect service on the declarant, the
lienholder may proceed with the judicial proceeding or proceed with
the lien sale without a judicial proceeding. The lienholder shall
notify the Department of Motor Vehicles of the inability to effect
service on the declarant and shall provide the Department of Motor
Vehicles with a copy of the documents with which service on the
declarant was attempted. Upon receipt of the notification of
unsuccessful service, the Department of Motor Vehicles shall send
authorization of the sale to the lienholder and shall send
notification of the authorization to the declarant.
(f) At least 10 consecutive days prior to and including the day of
the sale, the lienholder shall post a Notice of Pending Lien Sale
form in a conspicuous place on the premises of the business office of
the lienholder and if the pending lien sale is scheduled to occur at
a place other than the premises of the business office of the
lienholder, at the site of the forthcoming sale. The Notice of
Pending Lien Sale form shall state the specific date and exact time
of the sale and description of the vehicle, including the make, year
model, identification number, license number, and state of
registration. For motorcycles, the engine number shall also be
included. The notice of sale shall remain posted until the sale is
completed.
(g) Following the sale of a vehicle, the person who conducts the
sale shall do both of the following:
(1) Remove and destroy the vehicle's license plates.
(2) Within five days of the sale, submit a completed "Notice of
Release of Liability" form with the Department of Motor Vehicles.
(h) The Department of Motor Vehicles shall retain all submitted
forms described in paragraph (2) of subdivision (g) for two years.
(i) No lien sale shall be undertaken pursuant to this section
unless the vehicle has been available for inspection at a location
easily accessible to the public at least one hour before the sale and
is at the place of sale at the time and date specified on the notice
of sale. Sealed bids shall not be accepted. The lienholder shall
conduct the sale in a commercially reasonable manner. All lien sale
documents required by the department shall be completed and delivered
to the buyer immediately following the sale.
(j) Any lien sale pursuant to this section shall be void if the
lienholder does not comply with this chapter. Any lien for fees or
storage charges for parking and storage of a motor vehicle shall be
subject to Section 10652.5 of the Vehicle Code.
3073. The proceeds of a vehicle lien sale under this article shall
be disposed of as follows:
(a) The amount necessary to discharge the lien and the cost of
processing the vehicle shall be paid to the lienholder. The cost of
processing shall not exceed seventy dollars ($70) for each vehicle
valued at four thousand dollars ($4,000) or less, or one hundred
dollars ($100) for each vehicle valued over four thousand dollars
($4,000).
(b) The balance, if any, shall be forwarded to the Department of
Motor Vehicles within 15 days of any sale conducted pursuant to
Section 3071 or within five days of any sale conducted pursuant to
Section 3072 and deposited in the Motor Vehicle Account in the State
Transportation Fund, unless federal law requires these funds to be
disposed in a different manner.
(c) Any person claiming an interest in the vehicle may file a
claim with the Department of Motor Vehicles for any portion of the
funds from the lien sale that were forwarded to the department
pursuant to subdivision (b). Upon a determination of the Department
of Motor Vehicles that the claimant is entitled to an amount from the
balance deposited with the department, the department shall pay that
amount determined by the department, which amount shall not exceed
the amount forwarded to the department pursuant to subdivision (b) in
connection with the sale of the vehicle in which the claimant claims
an interest. The department shall not honor any claim unless the
claim has been filed within three years of the date the funds were
deposited in the Motor Vehicle Account.
3074. The lienholder may charge a fee for lien sale preparations
not to exceed seventy dollars ($70) in the case of a vehicle having a
value determined to be four thousand dollars ($4,000) or less and
not to exceed one hundred dollars ($100) in the case of a vehicle
having a value determined to be greater than four thousand dollars
($4,000), from any person who redeems the vehicle prior to disposal
or is paid through a lien sale pursuant to this chapter. These
charges may commence and become part of the possessory lien when the
lienholder requests the names and addresses of all persons having an
interest in the vehicle from the Department of Motor Vehicles. Not
more than 50 percent of the allowable fee may be charged until the
lien sale notifications are mailed to all interested parties and the
lienholder or registration service agent has possession of the
required lien processing documents. This charge shall not be made in
the case of any vehicle redeemed prior to 72 hours from the initial
storage.
3067. Words used in this chapter which are defined in Division 1 of
the Vehicle Code shall have the same meaning as in the Vehicle Code.
3067.1. All forms required pursuant to the provisions of this
chapter shall be prescribed by the Department of Motor Vehicles. The
language used in the notices and declarations shall be simple and
nontechnical.
3067.2. This chapter shall not apply to any manufactured home, as
defined in Section 18007 of the Health and Safety Code, to any
mobilehome, as defined in Section 18008 of the Health and Safety
Code, or to any commercial coach, as defined in Section 18001.8 of
the Health and Safety Code, whether or not the manufactured home,
mobilehome, or commercial coach is subject to registration under the
Health and Safety Code.
3068. (a) Every person has a lien dependent upon possession for the
compensation to which the person is legally entitled for making
repairs or performing labor upon, and furnishing supplies or
materials for, and for the storage, repair, or safekeeping of, and
for the rental of parking space for, any vehicle of a type subject to
registration under the Vehicle Code, subject to the limitations set
forth in this chapter. The lien shall be deemed to arise at the time
a written statement of charges for completed work or services is
presented to the registered owner or 15 days after the work or
services are completed, whichever occurs first. Upon completion of
the work or services, the lienholder shall not dismantle, disengage,
remove, or strip from the vehicle the parts used to complete the work
or services.
(b) (1) Any lien under this section that arises because work or
services have been performed on a vehicle with the consent of the
registered owner shall be extinguished and no lien sale shall be
conducted unless either of the following occurs:
(A) The lienholder applies for an authorization to conduct a lien
sale within 30 days after the lien has arisen.
(B) An action in court is filed within 30 days after the lien has
arisen.
(2) A person whose lien for work or services on a vehicle has been
extinguished shall turn over possession of the vehicle, at the place
where the work or services were performed, to the legal owner or the
lessor upon demand of the legal owner or lessor, and upon tender by
the legal owner or lessor, by cashier's check or in cash, of only the
amount for storage, safekeeping, or parking space rental for the
vehicle to which the person is entitled by subdivision (c).
(3) Any lien under this section that arises because work or
services have been performed on a vehicle with the consent of the
registered owner shall be extinguished, and no lien sale shall be
conducted, if the lienholder, after written demand made by either
personal service or certified mail with return receipt requested by
the legal owner or the lessor to inspect the vehicle, fails to permit
that inspection by the legal owner or lessor, or his or her agent,
within a period of time not sooner than 24 hours nor later than 72
hours after the receipt of that written demand, during the normal
business hours of the lienholder.
(4) Any lien under this section that arises because work or
services have been performed on a vehicle with the consent of the
registered owner shall be extinguished, and no lien sale shall be
conducted, if the lienholder, after written demand made by either
personal service or certified mail with return receipt requested by
the legal owner or the lessor to receive a written copy of the work
order or invoice reflecting the services or repairs performed on the
vehicle and the authorization from the registered owner requesting
the lienholder to perform the services or repairs, fails to provide
that copy to the legal owner or lessor, or his or her agent, within
10 days after the receipt of that written demand.
(c) The lienholder shall not charge the legal owner or lessor any
amount for release of the vehicle in excess of the amounts authorized
by this subdivision.
(1) That portion of the lien in excess of one thousand five
hundred dollars ($1,500) for any work or services, or that amount,
subject to the limitations contained in Section 10652.5 of the
Vehicle Code, in excess of one thousand twenty-five dollars ($1,025)
for any storage, safekeeping, or rental of parking space or, if an
application for an authorization to conduct a lien sale has been
filed pursuant to Section 3071 within 30 days after the commencement
of the storage or safekeeping, in excess of one thousand two hundred
fifty dollars ($1,250) for any storage or safekeeping, rendered or
performed at the request of any person other than the legal owner or
lessor, is invalid, unless prior to commencing any work, services,
storage, safekeeping, or rental of parking space, the person claiming
the lien gives actual notice in writing either by personal service
or by registered letter addressed to the legal owner named in the
registration certificate, and the written consent of that legal owner
is obtained before any work, services, storage, safekeeping, or
rental of parking space are performed.
(2) Subject to the limitations contained in Section 10652.5 of the
Vehicle Code, if any portion of a lien includes charges for the
care, storage, or safekeeping of, or for the rental of parking space
for, a vehicle for a period in excess of 60 days, the portion of the
lien that accrued after the expiration of that period is invalid
unless Sections 10650 and 10652 of the Vehicle Code have been
complied with by the holder of the lien.
(3) The charge for the care, storage, or safekeeping of a vehicle
which may be charged to the legal owner or lessor shall not exceed
that for one day of storage if, 24 hours or less after the vehicle is
placed in storage, a request is made for the release of the vehicle.
If the request is made more than 24 hours after the vehicle is
placed in storage, charges may be imposed on a full, calendar-day
basis for each day, or part thereof, that the vehicle is in storage.
(d) In any action brought by or on behalf of the legal owner or
lessor to recover a vehicle alleged to be wrongfully withheld by the
person claiming a lien pursuant to this section, the prevailing party
shall be entitled to reasonable attorney's fees and costs, not to
exceed one thousand seven hundred fifty dollars ($1,750).
3068.1. (a) (1) Every person has a lien dependent upon possession
for the compensation to which the person is legally entitled for
towing, storage, or labor associated with recovery or load salvage of
any vehicle subject to registration that has been authorized to be
removed by a public agency, a private property owner pursuant to
Section 22658 of the Vehicle Code, or a lessee, operator, or
registered owner of the vehicle. The lien is deemed to arise on the
date of possession of the vehicle. Possession is deemed to arise when
the vehicle is removed and is in transit, or when vehicle recovery
operations or load salvage operations have begun. A person seeking to
enforce a lien for the storage and safekeeping of a vehicle shall
impose no charge exceeding that for one day of storage if, 24 hours
or less after the vehicle is placed in storage, the vehicle is
released. If the release is made more than 24 hours after the vehicle
is placed in storage, charges may be imposed on a full-calendar-day
basis for each day, or part thereof, that the vehicle is in storage.
If a request to release the vehicle is made and the appropriate fees
are tendered and documentation establishing that the person
requesting release is entitled to possession of the vehicle, or is
the owner's insurance representative, is presented within the initial
24 hours of storage, and the storage facility fails to comply with
the request to release the vehicle or is not open for business during
normal business hours, then only one day's charge may be required to
be paid until after the first business day. A "business day" is any
day in which the lienholder is open for business to the public for at
least eight hours. If the request is made more than 24 hours after
the vehicle is placed in storage, charges may be imposed on a
full-calendar-day basis for each day, or part thereof, that the
vehicle is in storage.
(2) "Documentation" that would entitle a person to possession of
the vehicle includes, but is not limited to, a certificate of
ownership, vehicle registration, information in the possession of the
lienholder including ownership information obtained from the
Department of Motor Vehicles or a facially valid registration found
within the vehicle, or a notarized letter or statement from the legal
or registered owner providing authorization to release to a
particular person with a government-issued photographic
identification card. Documentation that establishes that a person is
the owner's insurance representative includes, but is not limited to,
a faxed letter or other letter from the owner's insurance company. A
lienholder is not responsible for determining the authenticity of
documentation specifically described in this subdivision that
establishes either a person's entitlement to possession or that a
person is the owner's insurance representative.
(b) If the vehicle has been determined to have a value not
exceeding four thousand dollars ($4,000), the lien shall be satisfied
pursuant to Section 3072. Lien sale proceedings pursuant to Section
3072 shall commence within 15 days of the date the lien arises. No
storage shall accrue beyond the 15-day period unless lien sale
proceedings pursuant to Section 3072 have commenced. The storage lien
may be for a period not exceeding 60 days if a completed notice of a
pending lien sale form has been filed pursuant to Section 3072
within 15 days after the lien arises. Notwithstanding this 60-day
limitation, the storage lien may be for a period not exceeding 120
days if any one of the following occurs:
(1) A Declaration of Opposition form is filed with the department
pursuant to Section 3072.
(2) The vehicle has an out-of-state registration.
(3) The vehicle identification number was altered or removed.
(4) A person who has an interest in the vehicle becomes known to
the lienholder after the lienholder has complied with subdivision (b)
of Section 3072.
(c) If the vehicle has been determined to have a value exceeding
four thousand dollars ($4,000) pursuant to Section 22670 of the
Vehicle Code, the lien shall be satisfied pursuant to Section 3071.
The storage lien may be for a period not exceeding 120 days if an
application for an authorization to conduct a lien sale has been
filed pursuant to Section 3071.
(d) (1) Any lien under this section shall be extinguished, and a
lien sale shall not be conducted, if any one of the following occurs:
(A) The lienholder, after written demand to inspect the vehicle
made by either personal service or certified mail with return receipt
requested by the legal owner or the lessor, fails to permit the
inspection by the legal owner or lessor, or his or her agent, within
a period of time of at least 24 hours, but not to exceed 72 hours,
after the receipt of that written demand, during the normal business
hours of the lienholder. The legal owner or lessor shall comply with
inspection and vehicle release policies of the impounding public
agency.
(B) The amount claimed for storage exceeds the posted rates.
(2) "Agent" includes, but is not limited to, any person designated
to inspect the vehicle by the request of the legal owner or lessor,
in writing or by telephone, to the lienholder. A lienholder is not
responsible for determining the authenticity of documentation
establishing a person's agency for the purposes of inspection of a
vehicle.
(e) A lienholder shall not be liable for any claim or dispute
directly arising out of the reliance on documentation specifically
described in paragraph (2) of subdivision (a) for purposes of
releasing a vehicle.
3068.2. (a) A tow truck operator who has a lien on a vehicle
pursuant to Section 3068.1 has a deficiency claim against the
registered owner of the vehicle if the vehicle is not leased or
leased with a driver for an amount equal to the towing and storage
charges, not to exceed 120 days of storage, and the lien sale
processing fee pursuant to Section 3074, less the amount received
from the sale of the vehicle.
(b) A tow truck operator who has a lien on a vehicle pursuant to
Section 3068.1 has a deficiency claim against the lessee of the
vehicle if the vehicle is leased without a driver for an amount equal
to the towing and storage charge, not to exceed 120 days of storage,
and the lien sale processing fee described in Section 3074, less the
amount received from the sale of the vehicle.
(c) Storage costs incurred after the sale shall not be included in
calculating the amount received from the sale of the vehicle.
(d) A registered owner who has sold or transferred his or her
vehicle prior to the vehicle's removal and who was not responsible
for creating the circumstances leading to the removal of the vehicle
is not liable for any deficiency under this section if that
registered owner executes a notice pursuant to Section 5900 of the
Vehicle Code and submits the notice to the Department of Motor
Vehicles. The person identified as the transferee in the notice
submitted to the Department of Motor Vehicles shall be liable for the
amount of any deficiency only if that person received notice of the
transfer and is responsible for the event leading to abandonment of
the vehicle or requested the removal.
(e) Except as provided in Section 22524.5 of the Vehicle Code, if
the transferee is an insurer and the transferor is its insured or his
or her agent or representative, the insurer shall not be liable for
any deficiency, unless the insurer agrees at the time of the
transfer, to assume liability for the deficiency.
3069. Any lien provided for in this chapter for labor or materials,
or for storage or safekeeping of a vehicle when abandoned on private
property may be assigned by written instrument accompanied by
delivery of possession of the vehicle, subject to the lien, and the
assignee may exercise the rights of a lienholder as provided in this
chapter. Any lienholder assigning a lien as authorized herein shall
at the time of assigning the lien give written notice either by
personal delivery or by registered or certified mail, to the
registered and legal owner of the assignment, including the name and
address of the person to whom the lien is assigned.
3070. (a) Whenever the possessory lien upon any vehicle is lost
through trick, fraud, or device, the repossession of the vehicle by
the lienholder revives the possessory lien but any lien so revived is
subordinate to any right, title, or interest of any person under any
sale, transfer, encumbrance, lien, or other interest acquired or
secured in good faith and for value between the time of the loss of
possession and the time of repossession.
(b) It is a misdemeanor for any person to obtain possession of any
vehicle or any part thereof subject to a lien pursuant to this
chapter by trick, fraud, or device.
(c) It is a misdemeanor for any person claiming a lien on a
vehicle to knowingly violate this chapter.
(d) (1) Any person who improperly causes a vehicle to be towed or
removed in order to create or acquire a lienhold interest enforceable
under this chapter, or who violates subdivision (c), shall forfeit
all claims for towing, removal, or storage, and shall be liable to
the owner or lessee of the vehicle for the cost of removal,
transportation, and storage, damages resulting from the towing,
removal, transportation, or storage of the vehicle, attorneys' fees,
and court costs.
(2) For purposes of this subdivision, "improperly causes a vehicle
to be towed or removed" includes, but is not limited to, engaging in
any of the following acts, the consequence of which is the towing or
removal of a vehicle:
(A) Failure to comply with Section 10650, 10652.5, or 10655 of the
Vehicle Code.
(B) Misrepresentation of information described in subdivision (b)
of Section 10650 of the Vehicle Code.
(C) Failure to comply with Section 22658 of the Vehicle Code.
(D) Failure, when obtaining authorization for the removal of a
vehicle from a vehicle owner or operator where a law enforcement
officer is not present at the scene of an accident, to present a form
for signature that plainly identifies all applicable towing and
storage fees and charges by type and amount, and identifies the name
and address of the storage facility unless a different storage
facility is specified by the vehicle owner or operator, and to
furnish a copy of the signed form to the owner or operator.
(E) Failure by the owner or operator of a facility used for the
storage of towed vehicles to display, in plain view at all cashiers'
stations, a sign not less than 17 by 22 inches in size with lettering
not less than one inch in height, disclosing all storage fees and
charges in force, including the maximum daily storage rate.
(F) Undertaking repairs or service on a vehicle which is being
stored at a facility used for the storage of towed vehicles without
first providing a written estimate to, and obtaining the express
written consent of, the owner of the vehicle.
(G) The promise to pay or the payment of money or other valuable
consideration by any owner or operator of a towing service to the
owner or operator of the premises from which the vehicle is towed or
removed, for the privilege of towing or removing the vehicle.
3071. (a) A lienholder shall apply to the department for the
issuance of an authorization to conduct a lien sale pursuant to this
section for any vehicle with a value determined to be over four
thousand dollars ($4,000). A filing fee shall be charged by the
department and may be recovered by the lienholder if a lien sale is
conducted or if the vehicle is redeemed. The application shall be
executed under penalty of perjury and shall include all of the
following information:
(1) A description of the vehicle, including make, year model,
identification number, license number, and state of registration. For
motorcycles, the engine number also shall be included. If the
vehicle identification number is not available, the department shall
request an inspection of the vehicle by a peace officer, licensed
vehicle verifier, or departmental employee before accepting the
application.
(2) The names and addresses of the registered and legal owners of
the vehicle, if ascertainable from the registration certificates
within the vehicle, and the name and address of any person whom the
lienholder knows, or reasonably should know, claims an interest in
the vehicle.
(3) A statement of the amount of the lien and the facts that give
rise to the lien.
(b) Upon receipt of an application made pursuant to subdivision
(a), the department shall do all of the following:
(1) Notify the vehicle registry agency of a foreign state of the
pending lien sale, if the vehicle bears indicia of registration in
that state.
(2) By certified mail, send a notice, a copy of the application,
and a return envelope preaddressed to the department to the
registered and legal owners at their addresses of record with the
department, and to any other person whose name and address is listed
in the application.
(c) The notice required pursuant to subdivision (b) shall include
all of the following statements and information:
(1) An application has been made with the department for
authorization to conduct a lien sale.
(2) The person has a right to a hearing in court.
(3) If a hearing in court is desired, a Declaration of Opposition
form, signed under penalty of perjury, shall be signed and returned
to the department within 10 days of the date that the notice required
pursuant to subdivision (b) was mailed.
(4) If the Declaration of Opposition form is signed and returned
to the department, the lienholder shall be allowed to sell the
vehicle only if he or she obtains a court judgment, if he or she
obtains a subsequent release from the declarant or if the declarant,
cannot be served as described in subdivision (e).
(5) If a court action is filed, the declarant shall be notified of
the lawsuit at the address shown on the Declaration of Opposition
form and may appear to contest the claim.
(6) The person may be liable for court costs if a judgment is
entered in favor of the lienholder.
(d) If the department receives the Declaration of Opposition form
in the time specified, the department shall notify the lienholder
within 16 days of the receipt of the form that a lien sale shall not
be conducted unless the lienholder files an action in court within 30
days of the department's notice under this subdivision. A lien sale
of the vehicle shall not be conducted unless judgment is subsequently
entered in favor of the lienholder or the declarant subsequently
releases his or her interest in the vehicle. If a money judgment is
entered in favor of the lienholder and the judgment is not paid
within five days after becoming final, then the judgment may be
enforced by lien sale proceedings conducted pursuant to subdivision
(f).
(e) Service on the declarant in person or by certified mail with
return receipt requested, signed by the declarant or an authorized
agent of the declarant at the address shown on the Declaration of
Opposition form, shall be effective for the serving of process. If
the lienholder has served the declarant by certified mail at the
address shown on the Declaration of Opposition form and the mail has
been returned unclaimed, or if the lienholder has attempted to effect
service on the declarant in person with a marshal, sheriff, or
licensed process server and the marshal, sheriff, or licensed process
server has been unable to effect service on the declarant, the
lienholder may proceed with the judicial proceeding or proceed with
the lien sale without a judicial proceeding. The lienholder shall
notify the department of the inability to effect service on the
declarant and shall provide the department with a copy of the
documents with which service on the declarant was attempted. Upon
receipt of the notification of unsuccessful service, the department
shall send authorization of the sale to the lienholder and send
notification of the authorization to the declarant.
(f) Upon receipt of authorization to conduct the lien sale from
the department, the lienholder shall immediately do all of the
following:
(1) At least five days, but not more than 20 days, prior to the
lien sale, not counting the day of the sale, give notice of the sale
by advertising once in a newspaper of general circulation published
in the county in which the vehicle is located. If there is no
newspaper published in the county, notice shall be given by posting a
Notice of Sale form in three of the most public places in the town
in which the vehicle is located and at the place where the vehicle is
to be sold for 10 consecutive days prior to and including the day of
the sale.
(2) Send a Notice of Pending Lien Sale form 20 days prior to the
sale but not counting the day of sale, by certified mail with return
receipt requested, to each of the following:
(A) The registered and legal owners of the vehicle, if registered
in this state.
(B) All persons known to have an interest in the vehicle.
(C) The department.
(g) All notices required by this section, including the notice
forms prescribed by the department, shall specify the make, year
model, vehicle identification number, license number, and state of
registration, if available, and the specific date, exact time, and
place of sale. For motorcycles, the engine number shall also be
included.
(h) Following the sale of a vehicle, the person who conducts the
sale shall do both of the following:
(1) Remove and destroy the vehicle's license plates.
(2) Within five days of the sale, submit a completed "Notice of
Release of Liability" form to the Department of Motor Vehicles.
(i) The Department of Motor Vehicles shall retain all submitted
forms described in paragraph (2) of subdivision (h) for two years.
(j) No lien sale shall be undertaken pursuant to this section
unless the vehicle has been available for inspection at a location
easily accessible to the public for at least one hour before the sale
and is at the place of sale at the time and date specified on the
notice of sale. Sealed bids shall not be accepted. The lienholder
shall conduct the sale in a commercially reasonable manner.
(k) Within 10 days after the sale of any vehicle pursuant to this
section, the legal or registered owner may redeem the vehicle upon
the payment of the amount of the sale, all costs and expenses of the
sale, together with interest on the sum at the rate of 12 percent per
annum from the due date thereof or the date when that sum was
advanced until the repayment. If the vehicle is not redeemed, all
lien sale documents required by the department shall then be
completed and delivered to the buyer.
(l) Any lien sale pursuant to this section shall be void if the
lienholder does not comply with this chapter. Any lien for fees or
storage charges for parking and storage of a motor vehicle shall be
subject to Section 10652.5 of the Vehicle Code.
3071.5. (a) A registered or legal owner of a vehicle in the
possession of a person holding a lien under this chapter may release
any interest in the vehicle after the lien has arisen. The release
shall be dated when signed and a copy shall be given at the time the
release is signed to the person releasing the interest.
(b) The release shall be in at least 12-point type and shall
contain all of the following information in simple, nontechnical
language:
(1) A description of the vehicle, including the year and make, the
engine or vehicle identification number, and the license number, if
available.
(2) The names and addresses of the registered and legal owners of
record with the Department of Motor Vehicles, if available.
(3) A statement of the amount of the lien and the facts concerning
the claim which gives rise to the lien.
(4) A statement that the person releasing the interest understands
that (i) he has a legal right to a hearing in court prior to any
sale of the vehicle to satisfy the lien and (ii) he is giving up the
right to appear to contest the claim of the lienholder.
(5) A statement that (i) the person releasing the interest gives
up any interest he may have in the vehicle and (ii) he is giving the
lienholder permission to sell the vehicle.
(c) The release required by this section shall not be filed with
the department in connection with any transfer of interest in a
vehicle.
3072. (a) For vehicles with a value determined to be four thousand
dollars ($4,000) or less, the lienholder shall apply to the
department for the names and addresses of the registered and legal
owners of record. The request shall include a description of the
vehicle, including make, year, model, identification number, license
number, and state of registration. If the vehicle identification
number is not available, the Department of Motor Vehicles shall
request an inspection of the vehicle by a peace officer, licensed
vehicle verifier, or departmental employee before releasing the names
and addresses of the registered and legal owners and interested
parties.
(b) The lienholder shall, immediately upon receipt of the names
and addresses, send, by certified mail with return receipt requested
or by United States Postal Service Certificate of Mailing, a
completed Notice of Pending Lien Sale form, a blank Declaration of
Opposition form, and a return envelope preaddressed to the
department, to the registered owner and legal owner at their
addresses of record with the department, and to any other person
known to have an interest in the vehicle. The lienholder shall
additionally send a copy of the completed Notice of Pending Lien Sale
form to the department by certified mail on the same day that the
other notices are mailed pursuant to this subdivision.
(c) All notices to persons having an interest in the vehicle shall
be signed under penalty of perjury and shall include all of the
following information and statements:
(1) A description of the vehicle, including make, year model,
identification number, license number, and state of registration. For
motorcycles, the engine number shall also be included.
(2) The specific date, exact time, and place of sale, which shall
be set not less than 31 days, but not more than 41 days, from the
date of mailing.
(3) The names and addresses of the registered and legal owners of
the vehicle and any other person known to have an interest in the
vehicle.
(4) All of the following statements:
(A) The amount of the lien and the facts concerning the claim
which gives rise to the lien.
(B) The person has a right to a hearing in court.
(C) If a court hearing is desired, a Declaration of Opposition
form, signed under penalty of perjury, shall be signed and returned
to the department within 10 days of the date the Notice of Pending
Lien Sale form was mailed.
(D) If the Declaration of Opposition form is signed and returned,
the lienholder shall be allowed to sell the vehicle only if he or she
obtains a court judgment or if he or she obtains a subsequent
release from the declarant or if the declarant cannot be served as
described in subdivision (e).
(E) If a court action is filed, the declarant shall be notified of
the lawsuit at the address shown on the Declaration of Opposition
form and may appear to contest the claim.
(F) The person may be liable for court costs if a judgment is
entered in favor of the lienholder.
(d) If the department receives the completed Declaration of
Opposition form within the time specified, the department shall
notify the lienholder within 16 days that a lien sale shall not be
conducted unless the lienholder files an action in court within 30
days of the notice and judgment is subsequently entered in favor of
the lienholder or the declarant subsequently releases his or her
interest in the vehicle. If a money judgment is entered in favor of
the lienholder and the judgment is not paid within five days after
becoming final, then the judgment may be enforced by lien sale
proceedings conducted pursuant to subdivision (f).
(e) Service on the declarant in person or by certified mail with
return receipt requested, signed by the declarant or an authorized
agent of the declarant at the address shown on the Declaration of
Opposition form, shall be effective for the serving of process. If
the lienholder has served the declarant by certified mail at the
address shown on the Declaration of Opposition form and the mail has
been returned unclaimed, or if the lienholder has attempted to effect
service on the declarant in person with a marshal, sheriff, or
licensed process server and the marshal, sheriff, or licensed process
server has been unable to effect service on the declarant, the
lienholder may proceed with the judicial proceeding or proceed with
the lien sale without a judicial proceeding. The lienholder shall
notify the Department of Motor Vehicles of the inability to effect
service on the declarant and shall provide the Department of Motor
Vehicles with a copy of the documents with which service on the
declarant was attempted. Upon receipt of the notification of
unsuccessful service, the Department of Motor Vehicles shall send
authorization of the sale to the lienholder and shall send
notification of the authorization to the declarant.
(f) At least 10 consecutive days prior to and including the day of
the sale, the lienholder shall post a Notice of Pending Lien Sale
form in a conspicuous place on the premises of the business office of
the lienholder and if the pending lien sale is scheduled to occur at
a place other than the premises of the business office of the
lienholder, at the site of the forthcoming sale. The Notice of
Pending Lien Sale form shall state the specific date and exact time
of the sale and description of the vehicle, including the make, year
model, identification number, license number, and state of
registration. For motorcycles, the engine number shall also be
included. The notice of sale shall remain posted until the sale is
completed.
(g) Following the sale of a vehicle, the person who conducts the
sale shall do both of the following:
(1) Remove and destroy the vehicle's license plates.
(2) Within five days of the sale, submit a completed "Notice of
Release of Liability" form with the Department of Motor Vehicles.
(h) The Department of Motor Vehicles shall retain all submitted
forms described in paragraph (2) of subdivision (g) for two years.
(i) No lien sale shall be undertaken pursuant to this section
unless the vehicle has been available for inspection at a location
easily accessible to the public at least one hour before the sale and
is at the place of sale at the time and date specified on the notice
of sale. Sealed bids shall not be accepted. The lienholder shall
conduct the sale in a commercially reasonable manner. All lien sale
documents required by the department shall be completed and delivered
to the buyer immediately following the sale.
(j) Any lien sale pursuant to this section shall be void if the
lienholder does not comply with this chapter. Any lien for fees or
storage charges for parking and storage of a motor vehicle shall be
subject to Section 10652.5 of the Vehicle Code.
3073. The proceeds of a vehicle lien sale under this article shall
be disposed of as follows:
(a) The amount necessary to discharge the lien and the cost of
processing the vehicle shall be paid to the lienholder. The cost of
processing shall not exceed seventy dollars ($70) for each vehicle
valued at four thousand dollars ($4,000) or less, or one hundred
dollars ($100) for each vehicle valued over four thousand dollars
($4,000).
(b) The balance, if any, shall be forwarded to the Department of
Motor Vehicles within 15 days of any sale conducted pursuant to
Section 3071 or within five days of any sale conducted pursuant to
Section 3072 and deposited in the Motor Vehicle Account in the State
Transportation Fund, unless federal law requires these funds to be
disposed in a different manner.
(c) Any person claiming an interest in the vehicle may file a
claim with the Department of Motor Vehicles for any portion of the
funds from the lien sale that were forwarded to the department
pursuant to subdivision (b). Upon a determination of the Department
of Motor Vehicles that the claimant is entitled to an amount from the
balance deposited with the department, the department shall pay that
amount determined by the department, which amount shall not exceed
the amount forwarded to the department pursuant to subdivision (b) in
connection with the sale of the vehicle in which the claimant claims
an interest. The department shall not honor any claim unless the
claim has been filed within three years of the date the funds were
deposited in the Motor Vehicle Account.
3074. The lienholder may charge a fee for lien sale preparations
not to exceed seventy dollars ($70) in the case of a vehicle having a
value determined to be four thousand dollars ($4,000) or less and
not to exceed one hundred dollars ($100) in the case of a vehicle
having a value determined to be greater than four thousand dollars
($4,000), from any person who redeems the vehicle prior to disposal
or is paid through a lien sale pursuant to this chapter. These
charges may commence and become part of the possessory lien when the
lienholder requests the names and addresses of all persons having an
interest in the vehicle from the Department of Motor Vehicles. Not
more than 50 percent of the allowable fee may be charged until the
lien sale notifications are mailed to all interested parties and the
lienholder or registration service agent has possession of the
required lien processing documents. This charge shall not be made in
the case of any vehicle redeemed prior to 72 hours from the initial
storage.
3067. Words used in this chapter which are defined in Division 1 of
the Vehicle Code shall have the same meaning as in the Vehicle Code.
3067.1. All forms required pursuant to the provisions of this
chapter shall be prescribed by the Department of Motor Vehicles. The
language used in the notices and declarations shall be simple and
nontechnical.
3067.2. This chapter shall not apply to any manufactured home, as
defined in Section 18007 of the Health and Safety Code, to any
mobilehome, as defined in Section 18008 of the Health and Safety
Code, or to any commercial coach, as defined in Section 18001.8 of
the Health and Safety Code, whether or not the manufactured home,
mobilehome, or commercial coach is subject to registration under the
Health and Safety Code.
3068. (a) Every person has a lien dependent upon possession for the
compensation to which the person is legally entitled for making
repairs or performing labor upon, and furnishing supplies or
materials for, and for the storage, repair, or safekeeping of, and
for the rental of parking space for, any vehicle of a type subject to
registration under the Vehicle Code, subject to the limitations set
forth in this chapter. The lien shall be deemed to arise at the time
a written statement of charges for completed work or services is
presented to the registered owner or 15 days after the work or
services are completed, whichever occurs first. Upon completion of
the work or services, the lienholder shall not dismantle, disengage,
remove, or strip from the vehicle the parts used to complete the work
or services.
(b) (1) Any lien under this section that arises because work or
services have been performed on a vehicle with the consent of the
registered owner shall be extinguished and no lien sale shall be
conducted unless either of the following occurs:
(A) The lienholder applies for an authorization to conduct a lien
sale within 30 days after the lien has arisen.
(B) An action in court is filed within 30 days after the lien has
arisen.
(2) A person whose lien for work or services on a vehicle has been
extinguished shall turn over possession of the vehicle, at the place
where the work or services were performed, to the legal owner or the
lessor upon demand of the legal owner or lessor, and upon tender by
the legal owner or lessor, by cashier's check or in cash, of only the
amount for storage, safekeeping, or parking space rental for the
vehicle to which the person is entitled by subdivision (c).
(3) Any lien under this section that arises because work or
services have been performed on a vehicle with the consent of the
registered owner shall be extinguished, and no lien sale shall be
conducted, if the lienholder, after written demand made by either
personal service or certified mail with return receipt requested by
the legal owner or the lessor to inspect the vehicle, fails to permit
that inspection by the legal owner or lessor, or his or her agent,
within a period of time not sooner than 24 hours nor later than 72
hours after the receipt of that written demand, during the normal
business hours of the lienholder.
(4) Any lien under this section that arises because work or
services have been performed on a vehicle with the consent of the
registered owner shall be extinguished, and no lien sale shall be
conducted, if the lienholder, after written demand made by either
personal service or certified mail with return receipt requested by
the legal owner or the lessor to receive a written copy of the work
order or invoice reflecting the services or repairs performed on the
vehicle and the authorization from the registered owner requesting
the lienholder to perform the services or repairs, fails to provide
that copy to the legal owner or lessor, or his or her agent, within
10 days after the receipt of that written demand.
(c) The lienholder shall not charge the legal owner or lessor any
amount for release of the vehicle in excess of the amounts authorized
by this subdivision.
(1) That portion of the lien in excess of one thousand five
hundred dollars ($1,500) for any work or services, or that amount,
subject to the limitations contained in Section 10652.5 of the
Vehicle Code, in excess of one thousand twenty-five dollars ($1,025)
for any storage, safekeeping, or rental of parking space or, if an
application for an authorization to conduct a lien sale has been
filed pursuant to Section 3071 within 30 days after the commencement
of the storage or safekeeping, in excess of one thousand two hundred
fifty dollars ($1,250) for any storage or safekeeping, rendered or
performed at the request of any person other than the legal owner or
lessor, is invalid, unless prior to commencing any work, services,
storage, safekeeping, or rental of parking space, the person claiming
the lien gives actual notice in writing either by personal service
or by registered letter addressed to the legal owner named in the
registration certificate, and the written consent of that legal owner
is obtained before any work, services, storage, safekeeping, or
rental of parking space are performed.
(2) Subject to the limitations contained in Section 10652.5 of the
Vehicle Code, if any portion of a lien includes charges for the
care, storage, or safekeeping of, or for the rental of parking space
for, a vehicle for a period in excess of 60 days, the portion of the
lien that accrued after the expiration of that period is invalid
unless Sections 10650 and 10652 of the Vehicle Code have been
complied with by the holder of the lien.
(3) The charge for the care, storage, or safekeeping of a vehicle
which may be charged to the legal owner or lessor shall not exceed
that for one day of storage if, 24 hours or less after the vehicle is
placed in storage, a request is made for the release of the vehicle.
If the request is made more than 24 hours after the vehicle is
placed in storage, charges may be imposed on a full, calendar-day
basis for each day, or part thereof, that the vehicle is in storage.
(d) In any action brought by or on behalf of the legal owner or
lessor to recover a vehicle alleged to be wrongfully withheld by the
person claiming a lien pursuant to this section, the prevailing party
shall be entitled to reasonable attorney's fees and costs, not to
exceed one thousand seven hundred fifty dollars ($1,750).
3068.1. (a) (1) Every person has a lien dependent upon possession
for the compensation to which the person is legally entitled for
towing, storage, or labor associated with recovery or load salvage of
any vehicle subject to registration that has been authorized to be
removed by a public agency, a private property owner pursuant to
Section 22658 of the Vehicle Code, or a lessee, operator, or
registered owner of the vehicle. The lien is deemed to arise on the
date of possession of the vehicle. Possession is deemed to arise when
the vehicle is removed and is in transit, or when vehicle recovery
operations or load salvage operations have begun. A person seeking to
enforce a lien for the storage and safekeeping of a vehicle shall
impose no charge exceeding that for one day of storage if, 24 hours
or less after the vehicle is placed in storage, the vehicle is
released. If the release is made more than 24 hours after the vehicle
is placed in storage, charges may be imposed on a full-calendar-day
basis for each day, or part thereof, that the vehicle is in storage.
If a request to release the vehicle is made and the appropriate fees
are tendered and documentation establishing that the person
requesting release is entitled to possession of the vehicle, or is
the owner's insurance representative, is presented within the initial
24 hours of storage, and the storage facility fails to comply with
the request to release the vehicle or is not open for business during
normal business hours, then only one day's charge may be required to
be paid until after the first business day. A "business day" is any
day in which the lienholder is open for business to the public for at
least eight hours. If the request is made more than 24 hours after
the vehicle is placed in storage, charges may be imposed on a
full-calendar-day basis for each day, or part thereof, that the
vehicle is in storage.
(2) "Documentation" that would entitle a person to possession of
the vehicle includes, but is not limited to, a certificate of
ownership, vehicle registration, information in the possession of the
lienholder including ownership information obtained from the
Department of Motor Vehicles or a facially valid registration found
within the vehicle, or a notarized letter or statement from the legal
or registered owner providing authorization to release to a
particular person with a government-issued photographic
identification card. Documentation that establishes that a person is
the owner's insurance representative includes, but is not limited to,
a faxed letter or other letter from the owner's insurance company. A
lienholder is not responsible for determining the authenticity of
documentation specifically described in this subdivision that
establishes either a person's entitlement to possession or that a
person is the owner's insurance representative.
(b) If the vehicle has been determined to have a value not
exceeding four thousand dollars ($4,000), the lien shall be satisfied
pursuant to Section 3072. Lien sale proceedings pursuant to Section
3072 shall commence within 15 days of the date the lien arises. No
storage shall accrue beyond the 15-day period unless lien sale
proceedings pursuant to Section 3072 have commenced. The storage lien
may be for a period not exceeding 60 days if a completed notice of a
pending lien sale form has been filed pursuant to Section 3072
within 15 days after the lien arises. Notwithstanding this 60-day
limitation, the storage lien may be for a period not exceeding 120
days if any one of the following occurs:
(1) A Declaration of Opposition form is filed with the department
pursuant to Section 3072.
(2) The vehicle has an out-of-state registration.
(3) The vehicle identification number was altered or removed.
(4) A person who has an interest in the vehicle becomes known to
the lienholder after the lienholder has complied with subdivision (b)
of Section 3072.
(c) If the vehicle has been determined to have a value exceeding
four thousand dollars ($4,000) pursuant to Section 22670 of the
Vehicle Code, the lien shall be satisfied pursuant to Section 3071.
The storage lien may be for a period not exceeding 120 days if an
application for an authorization to conduct a lien sale has been
filed pursuant to Section 3071.
(d) (1) Any lien under this section shall be extinguished, and a
lien sale shall not be conducted, if any one of the following occurs:
(A) The lienholder, after written demand to inspect the vehicle
made by either personal service or certified mail with return receipt
requested by the legal owner or the lessor, fails to permit the
inspection by the legal owner or lessor, or his or her agent, within
a period of time of at least 24 hours, but not to exceed 72 hours,
after the receipt of that written demand, during the normal business
hours of the lienholder. The legal owner or lessor shall comply with
inspection and vehicle release policies of the impounding public
agency.
(B) The amount claimed for storage exceeds the posted rates.
(2) "Agent" includes, but is not limited to, any person designated
to inspect the vehicle by the request of the legal owner or lessor,
in writing or by telephone, to the lienholder. A lienholder is not
responsible for determining the authenticity of documentation
establishing a person's agency for the purposes of inspection of a
vehicle.
(e) A lienholder shall not be liable for any claim or dispute
directly arising out of the reliance on documentation specifically
described in paragraph (2) of subdivision (a) for purposes of
releasing a vehicle.
3068.2. (a) A tow truck operator who has a lien on a vehicle
pursuant to Section 3068.1 has a deficiency claim against the
registered owner of the vehicle if the vehicle is not leased or
leased with a driver for an amount equal to the towing and storage
charges, not to exceed 120 days of storage, and the lien sale
processing fee pursuant to Section 3074, less the amount received
from the sale of the vehicle.
(b) A tow truck operator who has a lien on a vehicle pursuant to
Section 3068.1 has a deficiency claim against the lessee of the
vehicle if the vehicle is leased without a driver for an amount equal
to the towing and storage charge, not to exceed 120 days of storage,
and the lien sale processing fee described in Section 3074, less the
amount received from the sale of the vehicle.
(c) Storage costs incurred after the sale shall not be included in
calculating the amount received from the sale of the vehicle.
(d) A registered owner who has sold or transferred his or her
vehicle prior to the vehicle's removal and who was not responsible
for creating the circumstances leading to the removal of the vehicle
is not liable for any deficiency under this section if that
registered owner executes a notice pursuant to Section 5900 of the
Vehicle Code and submits the notice to the Department of Motor
Vehicles. The person identified as the transferee in the notice
submitted to the Department of Motor Vehicles shall be liable for the
amount of any deficiency only if that person received notice of the
transfer and is responsible for the event leading to abandonment of
the vehicle or requested the removal.
(e) Except as provided in Section 22524.5 of the Vehicle Code, if
the transferee is an insurer and the transferor is its insured or his
or her agent or representative, the insurer shall not be liable for
any deficiency, unless the insurer agrees at the time of the
transfer, to assume liability for the deficiency.
3069. Any lien provided for in this chapter for labor or materials,
or for storage or safekeeping of a vehicle when abandoned on private
property may be assigned by written instrument accompanied by
delivery of possession of the vehicle, subject to the lien, and the
assignee may exercise the rights of a lienholder as provided in this
chapter. Any lienholder assigning a lien as authorized herein shall
at the time of assigning the lien give written notice either by
personal delivery or by registered or certified mail, to the
registered and legal owner of the assignment, including the name and
address of the person to whom the lien is assigned.
3070. (a) Whenever the possessory lien upon any vehicle is lost
through trick, fraud, or device, the repossession of the vehicle by
the lienholder revives the possessory lien but any lien so revived is
subordinate to any right, title, or interest of any person under any
sale, transfer, encumbrance, lien, or other interest acquired or
secured in good faith and for value between the time of the loss of
possession and the time of repossession.
(b) It is a misdemeanor for any person to obtain possession of any
vehicle or any part thereof subject to a lien pursuant to this
chapter by trick, fraud, or device.
(c) It is a misdemeanor for any person claiming a lien on a
vehicle to knowingly violate this chapter.
(d) (1) Any person who improperly causes a vehicle to be towed or
removed in order to create or acquire a lienhold interest enforceable
under this chapter, or who violates subdivision (c), shall forfeit
all claims for towing, removal, or storage, and shall be liable to
the owner or lessee of the vehicle for the cost of removal,
transportation, and storage, damages resulting from the towing,
removal, transportation, or storage of the vehicle, attorneys' fees,
and court costs.
(2) For purposes of this subdivision, "improperly causes a vehicle
to be towed or removed" includes, but is not limited to, engaging in
any of the following acts, the consequence of which is the towing or
removal of a vehicle:
(A) Failure to comply with Section 10650, 10652.5, or 10655 of the
Vehicle Code.
(B) Misrepresentation of information described in subdivision (b)
of Section 10650 of the Vehicle Code.
(C) Failure to comply with Section 22658 of the Vehicle Code.
(D) Failure, when obtaining authorization for the removal of a
vehicle from a vehicle owner or operator where a law enforcement
officer is not present at the scene of an accident, to present a form
for signature that plainly identifies all applicable towing and
storage fees and charges by type and amount, and identifies the name
and address of the storage facility unless a different storage
facility is specified by the vehicle owner or operator, and to
furnish a copy of the signed form to the owner or operator.
(E) Failure by the owner or operator of a facility used for the
storage of towed vehicles to display, in plain view at all cashiers'
stations, a sign not less than 17 by 22 inches in size with lettering
not less than one inch in height, disclosing all storage fees and
charges in force, including the maximum daily storage rate.
(F) Undertaking repairs or service on a vehicle which is being
stored at a facility used for the storage of towed vehicles without
first providing a written estimate to, and obtaining the express
written consent of, the owner of the vehicle.
(G) The promise to pay or the payment of money or other valuable
consideration by any owner or operator of a towing service to the
owner or operator of the premises from which the vehicle is towed or
removed, for the privilege of towing or removing the vehicle.
3071. (a) A lienholder shall apply to the department for the
issuance of an authorization to conduct a lien sale pursuant to this
section for any vehicle with a value determined to be over four
thousand dollars ($4,000). A filing fee shall be charged by the
department and may be recovered by the lienholder if a lien sale is
conducted or if the vehicle is redeemed. The application shall be
executed under penalty of perjury and shall include all of the
following information:
(1) A description of the vehicle, including make, year model,
identification number, license number, and state of registration. For
motorcycles, the engine number also shall be included. If the
vehicle identification number is not available, the department shall
request an inspection of the vehicle by a peace officer, licensed
vehicle verifier, or departmental employee before accepting the
application.
(2) The names and addresses of the registered and legal owners of
the vehicle, if ascertainable from the registration certificates
within the vehicle, and the name and address of any person whom the
lienholder knows, or reasonably should know, claims an interest in
the vehicle.
(3) A statement of the amount of the lien and the facts that give
rise to the lien.
(b) Upon receipt of an application made pursuant to subdivision
(a), the department shall do all of the following:
(1) Notify the vehicle registry agency of a foreign state of the
pending lien sale, if the vehicle bears indicia of registration in
that state.
(2) By certified mail, send a notice, a copy of the application,
and a return envelope preaddressed to the department to the
registered and legal owners at their addresses of record with the
department, and to any other person whose name and address is listed
in the application.
(c) The notice required pursuant to subdivision (b) shall include
all of the following statements and information:
(1) An application has been made with the department for
authorization to conduct a lien sale.
(2) The person has a right to a hearing in court.
(3) If a hearing in court is desired, a Declaration of Opposition
form, signed under penalty of perjury, shall be signed and returned
to the department within 10 days of the date that the notice required
pursuant to subdivision (b) was mailed.
(4) If the Declaration of Opposition form is signed and returned
to the department, the lienholder shall be allowed to sell the
vehicle only if he or she obtains a court judgment, if he or she
obtains a subsequent release from the declarant or if the declarant,
cannot be served as described in subdivision (e).
(5) If a court action is filed, the declarant shall be notified of
the lawsuit at the address shown on the Declaration of Opposition
form and may appear to contest the claim.
(6) The person may be liable for court costs if a judgment is
entered in favor of the lienholder.
(d) If the department receives the Declaration of Opposition form
in the time specified, the department shall notify the lienholder
within 16 days of the receipt of the form that a lien sale shall not
be conducted unless the lienholder files an action in court within 30
days of the department's notice under this subdivision. A lien sale
of the vehicle shall not be conducted unless judgment is subsequently
entered in favor of the lienholder or the declarant subsequently
releases his or her interest in the vehicle. If a money judgment is
entered in favor of the lienholder and the judgment is not paid
within five days after becoming final, then the judgment may be
enforced by lien sale proceedings conducted pursuant to subdivision
(f).
(e) Service on the declarant in person or by certified mail with
return receipt requested, signed by the declarant or an authorized
agent of the declarant at the address shown on the Declaration of
Opposition form, shall be effective for the serving of process. If
the lienholder has served the declarant by certified mail at the
address shown on the Declaration of Opposition form and the mail has
been returned unclaimed, or if the lienholder has attempted to effect
service on the declarant in person with a marshal, sheriff, or
licensed process server and the marshal, sheriff, or licensed process
server has been unable to effect service on the declarant, the
lienholder may proceed with the judicial proceeding or proceed with
the lien sale without a judicial proceeding. The lienholder shall
notify the department of the inability to effect service on the
declarant and shall provide the department with a copy of the
documents with which service on the declarant was attempted. Upon
receipt of the notification of unsuccessful service, the department
shall send authorization of the sale to the lienholder and send
notification of the authorization to the declarant.
(f) Upon receipt of authorization to conduct the lien sale from
the department, the lienholder shall immediately do all of the
following:
(1) At least five days, but not more than 20 days, prior to the
lien sale, not counting the day of the sale, give notice of the sale
by advertising once in a newspaper of general circulation published
in the county in which the vehicle is located. If there is no
newspaper published in the county, notice shall be given by posting a
Notice of Sale form in three of the most public places in the town
in which the vehicle is located and at the place where the vehicle is
to be sold for 10 consecutive days prior to and including the day of
the sale.
(2) Send a Notice of Pending Lien Sale form 20 days prior to the
sale but not counting the day of sale, by certified mail with return
receipt requested, to each of the following:
(A) The registered and legal owners of the vehicle, if registered
in this state.
(B) All persons known to have an interest in the vehicle.
(C) The department.
(g) All notices required by this section, including the notice
forms prescribed by the department, shall specify the make, year
model, vehicle identification number, license number, and state of
registration, if available, and the specific date, exact time, and
place of sale. For motorcycles, the engine number shall also be
included.
(h) Following the sale of a vehicle, the person who conducts the
sale shall do both of the following:
(1) Remove and destroy the vehicle's license plates.
(2) Within five days of the sale, submit a completed "Notice of
Release of Liability" form to the Department of Motor Vehicles.
(i) The Department of Motor Vehicles shall retain all submitted
forms described in paragraph (2) of subdivision (h) for two years.
(j) No lien sale shall be undertaken pursuant to this section
unless the vehicle has been available for inspection at a location
easily accessible to the public for at least one hour before the sale
and is at the place of sale at the time and date specified on the
notice of sale. Sealed bids shall not be accepted. The lienholder
shall conduct the sale in a commercially reasonable manner.
(k) Within 10 days after the sale of any vehicle pursuant to this
section, the legal or registered owner may redeem the vehicle upon
the payment of the amount of the sale, all costs and expenses of the
sale, together with interest on the sum at the rate of 12 percent per
annum from the due date thereof or the date when that sum was
advanced until the repayment. If the vehicle is not redeemed, all
lien sale documents required by the department shall then be
completed and delivered to the buyer.
(l) Any lien sale pursuant to this section shall be void if the
lienholder does not comply with this chapter. Any lien for fees or
storage charges for parking and storage of a motor vehicle shall be
subject to Section 10652.5 of the Vehicle Code.
3071.5. (a) A registered or legal owner of a vehicle in the
possession of a person holding a lien under this chapter may release
any interest in the vehicle after the lien has arisen. The release
shall be dated when signed and a copy shall be given at the time the
release is signed to the person releasing the interest.
(b) The release shall be in at least 12-point type and shall
contain all of the following information in simple, nontechnical
language:
(1) A description of the vehicle, including the year and make, the
engine or vehicle identification number, and the license number, if
available.
(2) The names and addresses of the registered and legal owners of
record with the Department of Motor Vehicles, if available.
(3) A statement of the amount of the lien and the facts concerning
the claim which gives rise to the lien.
(4) A statement that the person releasing the interest understands
that (i) he has a legal right to a hearing in court prior to any
sale of the vehicle to satisfy the lien and (ii) he is giving up the
right to appear to contest the claim of the lienholder.
(5) A statement that (i) the person releasing the interest gives
up any interest he may have in the vehicle and (ii) he is giving the
lienholder permission to sell the vehicle.
(c) The release required by this section shall not be filed with
the department in connection with any transfer of interest in a
vehicle.
3072. (a) For vehicles with a value determined to be four thousand
dollars ($4,000) or less, the lienholder shall apply to the
department for the names and addresses of the registered and legal
owners of record. The request shall include a description of the
vehicle, including make, year, model, identification number, license
number, and state of registration. If the vehicle identification
number is not available, the Department of Motor Vehicles shall
request an inspection of the vehicle by a peace officer, licensed
vehicle verifier, or departmental employee before releasing the names
and addresses of the registered and legal owners and interested
parties.
(b) The lienholder shall, immediately upon receipt of the names
and addresses, send, by certified mail with return receipt requested
or by United States Postal Service Certificate of Mailing, a
completed Notice of Pending Lien Sale form, a blank Declaration of
Opposition form, and a return envelope preaddressed to the
department, to the registered owner and legal owner at their
addresses of record with the department, and to any other person
known to have an interest in the vehicle. The lienholder shall
additionally send a copy of the completed Notice of Pending Lien Sale
form to the department by certified mail on the same day that the
other notices are mailed pursuant to this subdivision.
(c) All notices to persons having an interest in the vehicle shall
be signed under penalty of perjury and shall include all of the
following information and statements:
(1) A description of the vehicle, including make, year model,
identification number, license number, and state of registration. For
motorcycles, the engine number shall also be included.
(2) The specific date, exact time, and place of sale, which shall
be set not less than 31 days, but not more than 41 days, from the
date of mailing.
(3) The names and addresses of the registered and legal owners of
the vehicle and any other person known to have an interest in the
vehicle.
(4) All of the following statements:
(A) The amount of the lien and the facts concerning the claim
which gives rise to the lien.
(B) The person has a right to a hearing in court.
(C) If a court hearing is desired, a Declaration of Opposition
form, signed under penalty of perjury, shall be signed and returned
to the department within 10 days of the date the Notice of Pending
Lien Sale form was mailed.
(D) If the Declaration of Opposition form is signed and returned,
the lienholder shall be allowed to sell the vehicle only if he or she
obtains a court judgment or if he or she obtains a subsequent
release from the declarant or if the declarant cannot be served as
described in subdivision (e).
(E) If a court action is filed, the declarant shall be notified of
the lawsuit at the address shown on the Declaration of Opposition
form and may appear to contest the claim.
(F) The person may be liable for court costs if a judgment is
entered in favor of the lienholder.
(d) If the department receives the completed Declaration of
Opposition form within the time specified, the department shall
notify the lienholder within 16 days that a lien sale shall not be
conducted unless the lienholder files an action in court within 30
days of the notice and judgment is subsequently entered in favor of
the lienholder or the declarant subsequently releases his or her
interest in the vehicle. If a money judgment is entered in favor of
the lienholder and the judgment is not paid within five days after
becoming final, then the judgment may be enforced by lien sale
proceedings conducted pursuant to subdivision (f).
(e) Service on the declarant in person or by certified mail with
return receipt requested, signed by the declarant or an authorized
agent of the declarant at the address shown on the Declaration of
Opposition form, shall be effective for the serving of process. If
the lienholder has served the declarant by certified mail at the
address shown on the Declaration of Opposition form and the mail has
been returned unclaimed, or if the lienholder has attempted to effect
service on the declarant in person with a marshal, sheriff, or
licensed process server and the marshal, sheriff, or licensed process
server has been unable to effect service on the declarant, the
lienholder may proceed with the judicial proceeding or proceed with
the lien sale without a judicial proceeding. The lienholder shall
notify the Department of Motor Vehicles of the inability to effect
service on the declarant and shall provide the Department of Motor
Vehicles with a copy of the documents with which service on the
declarant was attempted. Upon receipt of the notification of
unsuccessful service, the Department of Motor Vehicles shall send
authorization of the sale to the lienholder and shall send
notification of the authorization to the declarant.
(f) At least 10 consecutive days prior to and including the day of
the sale, the lienholder shall post a Notice of Pending Lien Sale
form in a conspicuous place on the premises of the business office of
the lienholder and if the pending lien sale is scheduled to occur at
a place other than the premises of the business office of the
lienholder, at the site of the forthcoming sale. The Notice of
Pending Lien Sale form shall state the specific date and exact time
of the sale and description of the vehicle, including the make, year
model, identification number, license number, and state of
registration. For motorcycles, the engine number shall also be
included. The notice of sale shall remain posted until the sale is
completed.
(g) Following the sale of a vehicle, the person who conducts the
sale shall do both of the following:
(1) Remove and destroy the vehicle's license plates.
(2) Within five days of the sale, submit a completed "Notice of
Release of Liability" form with the Department of Motor Vehicles.
(h) The Department of Motor Vehicles shall retain all submitted
forms described in paragraph (2) of subdivision (g) for two years.
(i) No lien sale shall be undertaken pursuant to this section
unless the vehicle has been available for inspection at a location
easily accessible to the public at least one hour before the sale and
is at the place of sale at the time and date specified on the notice
of sale. Sealed bids shall not be accepted. The lienholder shall
conduct the sale in a commercially reasonable manner. All lien sale
documents required by the department shall be completed and delivered
to the buyer immediately following the sale.
(j) Any lien sale pursuant to this section shall be void if the
lienholder does not comply with this chapter. Any lien for fees or
storage charges for parking and storage of a motor vehicle shall be
subject to Section 10652.5 of the Vehicle Code.
3073. The proceeds of a vehicle lien sale under this article shall
be disposed of as follows:
(a) The amount necessary to discharge the lien and the cost of
processing the vehicle shall be paid to the lienholder. The cost of
processing shall not exceed seventy dollars ($70) for each vehicle
valued at four thousand dollars ($4,000) or less, or one hundred
dollars ($100) for each vehicle valued over four thousand dollars
($4,000).
(b) The balance, if any, shall be forwarded to the Department of
Motor Vehicles within 15 days of any sale conducted pursuant to
Section 3071 or within five days of any sale conducted pursuant to
Section 3072 and deposited in the Motor Vehicle Account in the State
Transportation Fund, unless federal law requires these funds to be
disposed in a different manner.
(c) Any person claiming an interest in the vehicle may file a
claim with the Department of Motor Vehicles for any portion of the
funds from the lien sale that were forwarded to the department
pursuant to subdivision (b). Upon a determination of the Department
of Motor Vehicles that the claimant is entitled to an amount from the
balance deposited with the department, the department shall pay that
amount determined by the department, which amount shall not exceed
the amount forwarded to the department pursuant to subdivision (b) in
connection with the sale of the vehicle in which the claimant claims
an interest. The department shall not honor any claim unless the
claim has been filed within three years of the date the funds were
deposited in the Motor Vehicle Account.
3074. The lienholder may charge a fee for lien sale preparations
not to exceed seventy dollars ($70) in the case of a vehicle having a
value determined to be four thousand dollars ($4,000) or less and
not to exceed one hundred dollars ($100) in the case of a vehicle
having a value determined to be greater than four thousand dollars
($4,000), from any person who redeems the vehicle prior to disposal
or is paid through a lien sale pursuant to this chapter. These
charges may commence and become part of the possessory lien when the
lienholder requests the names and addresses of all persons having an
interest in the vehicle from the Department of Motor Vehicles. Not
more than 50 percent of the allowable fee may be charged until the
lien sale notifications are mailed to all interested parties and the
lienholder or registration service agent has possession of the
required lien processing documents. This charge shall not be made in
the case of any vehicle redeemed prior to 72 hours from the initial
storage.
