Iowa:
In Iowa, the definition of “abandoned vehicle” includes a vehicle that has been unlawfully parked on private property or has been placed on private property without the consent of the owner or person in control of the property for more than 24 hours. A police authority, upon the authority’s own initiative or upon the request of any other authority having the duties of control of highways or traffic, may take an abandoned vehicle on private property into custody. The police authority may employ its own personnel, equipment, and facilities or hire a private entity, equipment, and facilities for the purpose of removing, preserving, storing, or disposing of abandoned vehicles. A property owner or other person in control of private property may employ a private entity who is a garagekeeper to dispose of an abandoned vehicle, and the private entity may take into custody the abandoned vehicle without a police authority’s initiative. If a police authority employs a private entity to dispose of abandoned vehicles, the police authority must provide the private entity with the names and addresses of the registered owners, all lienholders of record, and any other known claimant to the vehicle or the personal property found in the vehicle.
A police authority or private entity that takes an abandoned vehicle into custody must notify, within 20 days by certified mail, the last-known registered owner of the vehicle, all lienholders of record, and any other known claimant to the vehicle or to personal property found in the vehicle. The notice must be addressed to the parties’ last known addresses of record and indicate that the abandoned vehicle has been taken into custody. The notice must state the year, make, model, and vehicle identification number of the vehicle, describe any personal property found in the vehicle, set forth the location of the facility where the vehicle is being held, and inform the persons receiving the notice of their right to reclaim the vehicle and personal property within ten days after the effective date of the notice upon payment of all towing, preservation, and storage charges resulting from placing the vehicle in custody and upon payment of providing this notice. The notice also must state that the failure of the owner, lienholders, or claimants to exercise their right to reclaim the vehicle or personal property within the time provided shall be deemed a waiver by the owner, lienholders, and claimants of all right, title, claim, and interest in the vehicle or personal property and that failure to reclaim the vehicle or personal property is deemed consent to the sale of the vehicle at a public auction or disposal of the vehicle to a demolisher and to disposal of the personal property by sale or destruction. Notice is deemed given when mailed.
If the abandoned vehicle was taken into custody by a private entity without a police authority’s initiative, the notice shall state that the private entity may claim a garagekeeper’s lien and may proceed to sell or dispose of the vehicle. If the abandoned vehicle was taken into custody by a police authority or by a private entity hired by a police authority, the notice shall state that any person claiming rightful possession of the vehicle or personal property who disputes the planned disposition of the vehicle or property by the police authority or private entity or of the assessment of fees and charges may ask for an evidentiary hearing before the police authority to contest those matters. If the persons receiving notice do not ask for a hearing or exercise their right to reclaim the vehicle or personal property within the ten-day reclaiming period, the owner, lienholders, or claimants shall no longer have any right, title, claim, or interest in or to the vehicle or the personal property. A court in any case in law or equity shall not recognize any right, title, claim, or interest of the owner, lienholders, or claimants after the expiration of the ten-day reclaiming period.
If it is impossible to determine with reasonable certainty the identity and addresses of the last registered owner and all lienholders, notice by one publication in one newspaper of general circulation in the area where the vehicle was abandoned shall be sufficient to meet all requirements of notice. The published notice may contain multiple listings of abandoned vehicles and personal property but shall be published within the same time requirements and contain the same information as prescribed for mailed notice.
If an abandoned vehicle has not been reclaimed as provided for, the police authority or private entity makes a determination as to whether the vehicle should be sold for use upon the highways. If the vehicle is to be sold for use on the highways, it must be sold at public auction. If the vehicle is not sold for use upon the highways, it is sold for junk, or demolished and sold as scrap without public auction after the required notice period lapses. The vehicle purchaser at public auction takes title free and clear of all liens and claims of ownership, receives a sales receipt from the police authority or private entity. If the vehicle is sold for use on highways, the purchaser is entitled to register the vehicle and receive a certificate of title. If the vehicle is sold or disposed of to a demolisher for junk or scrap, the demolisher must apply to the county treasurer for a junking certificate within 30 days of purchase and must surrender the sales receipt in lieu of the certificate of title.
If the police authority did not hire a private entity, the police authority reimburses itself for the expenses of the auction from the proceeds of the sale, including the expenses related to towing, preserving, and storing that resulted from placing the abandoned vehicle in custody, expenses incurred for providing notice and publication, costs of inspection, and any other costs incurred other than bookkeeping and other administrative costs. Any remainder from the proceeds of a sale is held for the owner of the vehicle or entitled lienholder for 90 days, and is then deposited in the road use tax fund. Whenever the proceeds from a sale of the abandoned vehicles are insufficient to cover a police agency’s expenses and costs, the balance is paid from the road use tax fund and become an obligation of the last vehicle owner or owners, jointly and severally.
If a private entity has been hired by a police authority, the police authority can file a claim with the State of Iowa Department of Transportation for reimbursement of towing fees which are paid from the road use tax fund. Reimbursement is limited to $50 per vehicle for towing services, actual postage or publication costs for notice services, $5 per day per vehicle, not to exceed 45 days, for storage services, 10% of the vehicle’s sale price or $10, whichever is less, for auction fees.
Michigan: In Michigan, like in Iowa, the definition of “abandoned vehicle” includes a vehicle that has remained on private property without the consent of the owner. If a vehicle has remained on private property without the consent of the property owner, the owner of the private property may have the vehicle taken into custody as an abandoned vehicle by contacting a local towing agency. A local towing agency is considered a towing agency whose storage lot is located within 15 miles from the border of the local unit of government having jurisdiction over the abandoned vehicle. Before removing the vehicle from private property, the towing agency must provide reasonable notice by telephone, or otherwise, to a police agency having jurisdiction over the vehicle that the vehicle is being removed. The police agency must determine whether the vehicle has been reported stolen and must enter the vehicle into the law enforcement information network as an abandoned vehicle.
Within 24 hours after taking the abandoned vehicle into custody, the police agency must notify the secretary of state through the Michigan law enforcement information network that the vehicle has been taken into custody as abandoned. Each notification contains the following information:
• The year, make, and vehicle identification number of the vehicle if available.
• The address or approximate location from which the vehicle was taken into custody.
• The date on which the vehicle was taken into custody.
• The name and address of the police agency that had the vehicle taken into custody.
• The name and business address of the custodian of the vehicle.
• The name of the court that has jurisdiction over the case.
Within seven days after being notified, the secretary of state must do both of the following:
• Enter this information described on a website maintained by the department for public use in locating vehicles that are removed under this section as abandoned.
• Send to the owner and secured party, as shown by the records of the secretary of state, by first-class mail or personal service, notice that the vehicle is considered abandoned. The Michigan Secretary of State’s form must contain the following information:
• The year, make, and vehicle identification number of the vehicle if available.
• The location from which the vehicle was taken into custody.
• The date on which the vehicle was taken into custody.
• The name of the towing agency that had the vehicle taken into custody.
• The business address of the custodian of the vehicle.
• The procedure to redeem the vehicle.
• The procedure to contest the fact that the vehicle is considered abandoned or the reasonableness of the towing fees and daily storage fees.
• A form petition that the owner may file in person or by mail with the specified court that requests a hearing on the custodian’s action.
• A warning that the failure to redeem the vehicle or to request a hearing within 20 days after the date of the notice may result in the sale of the vehicle and the termination of all rights of the owner and the secured party to the vehicle or the proceeds of the sale.
If the towing fees and daily storage fees are established by contract with the local governmental unit or local law enforcement agency they may not be challenged. Otherwise, the vehicle owner may contest the fact that the vehicle is abandoned, and the reasonableness of the towing fees and/or the daily storage fees by requesting a hearing. A request for a hearing is made by filing a petition with the court specified in the notice within 20 days after the date of the notice. If the vehicle owner requests a hearing, the matter shall be resolved after a hearing. A vehicle owner who requests a hearing may obtain release of the vehicle by posting a towing and storage bond in an amount equal to $40.00 plus the accrued towing and storage fees with the court. Alternatively, the vehicle may deposit that amount with the court. An owner requesting a hearing but not taking possession of the vehicle must post with the court a towing and storage bond in an amount equal to $40.00 plus the accrued towing and storage fees.
If the owner does not request a hearing, he or she may obtain the release of the vehicle by paying a fee of $40.00 plus the accrued charges to the custodian of the vehicle. The custodian must forward $25.00 of the fee collected to the secretary of state within 30 days after receipt in a manner prescribed by the secretary of state, who must deposit the fee into the abandoned vehicle fund. If the owner does not redeem the vehicle or request a hearing within 20 days after the date of the notice, the secured party may obtain the release of the vehicle by paying a fee of $40.00 and the accrued towing and storage fees to the custodian of the vehicle. The custodian must forward $25.00 of the fee collected under this subsection to the secretary of state within 30 days after receipt in a manner prescribed by the secretary of state, who deposits the fee into the abandoned vehicle fund.
Not less than 20 days after the disposition of the hearing or, if a hearing is not requested, not less than 20 days after the date of the notice, the custodian of the vehicle must offer the vehicle for sale at a public sale. If the ownership of a vehicle that is considered abandoned cannot be determined either because of the condition of the vehicle identification numbers or because a check with the records of the secretary of state does not reveal ownership, the police agency may sell the vehicle at public sale not less than 30 days after public notice of the sale has been published. The secretary of state must release a vehicle for disposition within 45 days after the vehicle is entered into the law enforcement information network as an abandoned vehicle.
Minnesota:
In Minnesota, the definition of “abandoned vehicle” includes a motor vehicle that has remained illegally on private property for a period of time without the consent of the person in control of the property; and that lacks vital component parts or is in an inoperable condition such that it has no substantial potential for further use consistent with its usual functions, unless it is kept in an enclosed garage or storage building. Further, an “unauthorized vehicle” that is not an abandoned vehicle is subject to impoundment at the following times by units of government and peace officers if has been on private property:
• Immediately, if the location is is single-family or duplex residential property.
• Immediately, if the location is private, nonresidential property that is properly posted.
• After 24 hours, if the property is private, nonresidential property, that is not posted.
• Five business days after notifying the vehicle owner by certified mail, return receipt requested, of the property owner's intention to have the vehicle removed from the property, if the property is private, nonresidential property of an operator of an establishment for the servicing, repair, or maintenance of motor vehicles.
• Immediately, if the property is any properly posted residential property.
An “unauthorized vehicle” may also be towed.
These provisions, applicable to Minnesota units of government and peace officers, do not restrict the authority of the owner of private property to authorize the towing of a motor vehicle unlawfully parked on private property. Private property owners seeking to have unauthorized vehicles removed from their property must make their own arrangements with a private towing service.
A person who tows and stores a motor vehicle at the request of a law enforcement officer has a lien on the motor vehicle for the value of the storage and towing and the right to retain possession of the motor vehicle until the lien is lawfully discharged. An impounded vehicle is eligible for disposal or sale 15 days after notice to the owner, if the vehicle is determined to be an abandoned vehicle. An unauthorized vehicle impounded by the city of Minneapolis or by the city of St. Paul is eligible for disposal or sale 15 days after notice is sent by certified mail, return receipt requested, to the registered owner, if any, of the unauthorized vehicle and to all readily identifiable lienholders of record. If, before the expiration of the 15 day period following notice of taking, the registered owner or lienholder of record delivers to the impound lot operator a written statement of intent to reclaim the vehicle, the vehicle is not eligible for disposal or sale until 45 days after the notice of taking, if the owner or lienholder has not reclaimed. If an unauthorized vehicle is impounded, other than by the city of Minneapolis or the city of St. Paul, the impounded vehicle is eligible for disposal or sale the earlier of 45 days after notice to the owner; or the date of a voluntary written title transfer by the registered owner to the impound lot operator. A voluntary written title transfer constitutes a waiver by the registered owner of any right, title, and interest in the vehicle.
For vehicles impounded by units of government and peace officers, the entity taking the vehicle into custody must give written notice of the impoundment within five days, excluding Saturdays, Sundays, and legal holidays, to the registered vehicle owner and any lienholders. The notice must:
• Set forth the date and place of the intended impoundment.
• Provide the year, make, model, and serial number of the impounded motor vehicle, if the information can be reasonably obtained, and the place where the vehicle is being held.
• Inform the owner and any lien holders of their right to reclaim the vehicle.
• State that failure of the owner or lien holders to:
• Exercise their right to reclaim the vehicle within the time allowed and under the appropriate conditions constitutes a waiver by them of all right, title, and interest in the vehicle and consent to the transfer of title to and disposal or sale of the vehicle.
• Exercise their right to reclaim the contents of the vehicle within the appropriate time allowed and under the appropriate conditions, constitutes a waiver by them of all right, title, and interest in the contents and consent to sell or dispose of that personal property; and
• State that a vehicle owner who provides to the impound lot operator documentation from a government or nonprofit agency or legal aid office that the owner is homeless, receives relief based on need, or is eligible for legal aid services, has the unencumbered right to retrieve any and all contents without charge.
The notice must be sent by mail to the registered owner, if any, of an impounded vehicle and to all readily identifiable lienholders of record. This information must be made available to impound lot operators for notification purposes. If it is impossible to determine with reasonable certainty the identity and address of the registered owner and all lienholders, the notice shall be published once in a newspaper of general circulation in the area where the motor vehicle was towed from or abandoned. Published notices may be grouped together for convenience and economy. If an unauthorized vehicle remains unclaimed after 30 days from the date the notice was sent, a second notice must be sent by certified mail, return receipt requested, to the registered owner, if any, of the unauthorized vehicle and to all readily identifiable lienholders of record.
The owner or any lienholder of an impounded vehicle has a right to reclaim a vehicle from the unit of government or impound lot operator taking it into custody upon payment of all towing and storage charges resulting from taking the vehicle into custody within 15 or 45 days, after the date of the notice. Nothing impairs any lien of a garagekeeper, or the right of a lienholder to foreclose.
Summary of the Factual Data and Analytical Methodologies that the Agency Used in Support of the Proposed Rule and How Any Related Findings Support the Regulatory Approach Chosen for the Proposed Rule:
The proposed permanent rule was drafted with input from individual towing services and the Wisconsin Towing Association, governmental entities and the League of Wisconsin Municipalities, the Wisconsin Housing Alliance, the Apartment Association of South Central Wisconsin, the Tenant Resource Center, and members of the public during the public hearing and comment period for an emergency rule promulgated by the Department in 2014. That emergency rule public hearing and comment period are not considered a public hearing and comment period for this rulemaking.
The design and display of the required notice in the initial emergency rule was largely based on existing design standards for other signs, such as the requirements for handicapped parking signs set forth in Wis. Admin. Code ch. Trans 200, and standards used in other states. The guidelines for tow services to provide notice to law enforcement in the initial emergency rule were based on input from law enforcement. The Department received substantial testimony and comments during the public hearing and comment period for the initial emergency rule. Many of these comments indicated that the fees in the schedule established in the corresponding emergency rule were lower than what towing services normally charged. In this permanent rulemaking, the Department proposes that towing industry ordinary or standard rates be permitted, provided they are reasonable and do not exceed maximum fee limits established in the rule. Many of the persons commenting on the initial emergency rule further indicated that the fee schedule itself did not account for complex tows involving specialized equipment and procedures. This proposed permanent rulemaking therefore includes a provision allowing a towing service to charge for necessary and commercially reasonable towing services beyond common tow services and associated storage.
Analysis Regarding Rule’s Effect on Small Businesses:
There are many towing services throughout the state, and some likely qualify as small businesses under Wis. Stats s. 227.114. This rulemaking does not dictate standard fees that are imposed statewide. Rather, this rule requires a towing service and storage facility to charge ordinary and reasonable charges, not exceeding a limit set in this rule. Because a business’ current ordinary charge will be permitted to be charged, provided it meets community standards for reasonableness, subject only to the limits in this rule, the Department does not believe this rulemaking will have a significant effect upon small business towing services.
