Towing companies; revise require notification before vehicle is sold.

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To: Judiciary A
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Lamar

HOUSE BILL NO. 1382

AN ACT TO AMEND SECTION 85-7-251, MISSISSIPPI CODE OF 1972, 1
TO REVISE NOTIFICATION REQUIRED BY TOWING COMPANIES BEFORE 2
PROPERTY IS SOLD; TO AMEND SECTION 63-23-5, MISSISSIPPI CODE OF 3
1972, TO AUTHORIZE THIRD-PARTY VENDORS TO ASSIST IN NOTIFICATION 4
WHEN NO CLAIMS HAVE BEEN MADE TO VEHICLES; TO AMEND SECTION 5
63-23-9, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PRECEDING 6
SECTION; AND FOR RELATED PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. Section 85-7-251, Mississippi Code of 1972, is 9
amended as follows: 10
85-7-251. (1) The owner of a motor vehicle that has been 11
towed at his request or at the direction of a law enforcement 12
officer, or towed upon request of a real property owner upon whose 13
property a vehicle has been left without permission of the real 14
property owner, shall be liable for the reasonable price of towing 15
and storage of such vehicle; and the towing company to whom the 16
price of such labor and storage costs may be due shall have the 17
right to retain possession of such motor vehicle until the price 18
is paid. 19
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(2) Within twenty-four (24) hours, the towing company shall 20
report to the local law enforcement agency having jurisdiction any 21
vehicle that has been towed unless the vehicle was towed at the 22
request of the owner of the vehicle. If the owner of a towed 23
vehicle has not contacted the towing company within * * * two (2) 24
business days of the initial tow, the towing company shall obtain 25
from the appropriate authority the names and addresses of any 26
owner and lienholder. If the information from the appropriate 27
authority fails to disclose the owner or lienholder, a good faith 28
effort shall be made by the towing company to locate ownership, 29
including a check for tag information, inspection sticker, or any 30
papers in the vehicle that may indicate ownership. Upon location 31
of the owner and lienholder, the towing company, using a 32
third-party vendor that meets the requirements of the department, 33
shall notify them by * * * certified mail of the amount due for 34
towing, postmarked no later than the * * * seventh day following 35
the initial tow. If such amount shall not be paid within thirty 36
(30) days from the initial tow, the towing company to whom such 37
charges are payable shall, using a third-party vendor that meets 38
the requirements of the department, notify by certified mail any 39
legal owner and holder of any lien, as disclosed by the motor 40
vehicle title records or other investigation, of notice of sale of 41
the property. For all notifications required to be sent to owners 42
and lienholders, the third-party vendor must utilize the format 43
and transmit the data required by the department. If such 44
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property has not been redeemed within ten (10) days after the 45
mailing of the second certified letter, the towing company may 46
commence sale of the property at public auction. The towing 47
company shall publish for two (2) consecutive weeks a notice of 48
sale in the newspaper having circulation in the county where the 49
vehicle was initially towed. The proceeds of the sale of such 50
property in excess of the amount needed to pay the towing, 51
reasonable storage and necessary expenses of the procedures 52
required by this section shall be held by the towing company for a 53
period of six (6) months, and, if not reclaimed by the owner 54
thereof within such time, shall become the property of the county 55
and be paid to the chancery clerk of the county in which the sale 56
was held to be deposited into the county general fund, subject, 57
however, to any rights of the recorded lienholder. 58
(3) The failure to make a good faith effort to comply with 59
the requirements of this section shall preclude the imposition of 60
any storage charges or towing charges against the towed vehicle. 61
(4) Every towing company shall maintain accurate records for 62
a period of three (3) years, which records shall identify the 63
vehicles it has towed and stored and all procedures that it has 64
taken to comply with the provisions of this chapter. 65
SECTION 2. Section 63-23-5, Mississippi Code of 1972, is 66
amended as follows: 67
63-23-5. (1) Any automobile dealer, wrecker service, or 68
repair service owner, or any person or party on whose property a 69
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motor vehicle is lawfully towed at the written request of a law 70
enforcement officer, who shall have an abandoned motor vehicle on 71
his property, may sell, free and clear of all claims such motor 72
vehicle by public auction, or if the abandoned motor vehicle has 73
no market value, may dispose of the same after having received at 74
least two (2) written statements from licensed automobile dealers 75
as to the worthlessness of such motor vehicle and after compliance 76
with subsection (2) of this section and Section 63-23-9. An 77
abandoned motor vehicle as defined by Section 63-23-3(b) shall not 78
be sold at auction until thirty (30) days from date of removal 79
from a public street, road or highway. 80
(2) The person authorized to execute the sale or disposal of 81
an abandoned motor vehicle shall notify by certified mail using a 82
third-party vendor that meets the requirements of the department, 83
within * * * seven (7) days of receipt of such vehicle, any 84
Mississippi lienholder on such vehicle that unless a claim on the 85
vehicle is made within thirty (30) days of receipt of such notice, 86
the vehicle will be sold or destroyed. If no claim is made on the 87
vehicle within thirty (30) days following receipt of such required 88
notifications to lienholders under this section, the third-party 89
vendor shall immediately notify the department that no claim has 90
been made and provide the department with electronic copies of all 91
notifications required to be sent to lienholders, and the 92
department shall immediately remove any and all outstanding liens 93
from the motor vehicle in the department's automated statewide 94
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motor vehicle registration system, provided the third-party vendor 95
provides adequate evidence that any lienholders were notified in 96
compliance with this section. For all notifications required to 97
be sent to lienholders, the third-party vendor must utilize the 98
format and transmit the data required by the department. 99
(3) After the sale of any vehicle as set out hereinabove is 100
made, the person or officer designated and making the sale of such 101
property shall promptly upon completion of the sale deliver to the 102
chancery clerk a list or itemization of the property sold, the 103
amount paid for each item, the person to whom each item was sold, 104
and all monies received from such sale, the gross charges levied 105
by the person making the sale against the property sold and the 106
net amount paid over to the chancery clerk. Any sale made by any 107
person, officer, corporation or association, shall have attached 108
to the report of sale a sworn statement certifying as to the date 109
such personal property or items sold first came into his 110
possession or was abandoned on his premises and the date said 111
personal property or item was sold. 112
(4) The proceeds of the sale in excess of repair, towing and 113
storage expenses and all expenses incurred in connection with a 114
sale when a sale is made under the provisions of this chapter, 115
shall escheat to the county and shall be paid over to the chancery 116
clerk to be placed into the general fund of the county in which 117
the vehicle is abandoned. However, in those municipalities 118
availing themselves of the provisions of Section 21-39-21, the 119
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proceeds of the sale in excess of the repairs, towing, storage or 120
other necessary expenses incurred shall escheat to the general 121
fund of the municipality. 122
(5) Every towing company shall maintain accurate records for 123
a period of three (3) years, which records shall identify the 124
vehicles it has towed and stored and all procedures that it has 125
taken to comply with the provisions of this chapter. 126
SECTION 3. Section 63-23-9, Mississippi Code of 1972, is 127
amended as follows: 128
63-23-9. The last-known registered owner of an abandoned 129
motor vehicle and all lienholders of record, when such information 130
is reasonably obtainable, shall be notified by * * * certified 131
mail that such vehicle will be sold pursuant to the provisions of 132
this chapter. Said notice shall give such owner and lienholders 133
the date, time and place of sale and name of the person or party 134
who has custody of such vehicle. 135
If the identity of the last registered owner cannot be 136
determined, or if the registration contains no address for the 137
owner, or if it is impossible to determine with reasonable 138
certainty the identity and addresses of all lienholders, notice by 139
three (3) publications once each week for three (3) consecutive 140
weeks in a newspaper of general circulation in the county where 141
the motor vehicle was abandoned shall be sufficient to meet all 142
requirements of notice pursuant to this chapter. 143
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ST: Towing companies; revise require
notification before vehicle is sold.
SECTION 4. This act shall take effect and be in force from 144
and after July 1, 2026. 145