Towing and sale of motor vehicles; revise records and notification requirements related to.

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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Harkins

SENATE BILL NO. 2848
(As Sent to Governor)

AN ACT TO AMEND SECTION 85-7-251, MISSISSIPPI CODE OF 1972, 1
TO REQUIRE TOWING COMPANIES TO RECORD CERTAIN INFORMATION FROM ANY 2
PERSON WHO REQUESTS THE COMPANY'S SERVICES; TO AMEND SECTION 3
63-23-5, MISSISSIPPI CODE OF 1972, TO REVISE NOTIFICATION REQUIRED 4
BY TOWING COMPANIES BEFORE PROPERTY IS SOLD; TO AUTHORIZE 5
THIRD-PARTY VENDORS TO ASSIST IN NOTIFICATION WHEN NO CLAIMS HAVE 6
BEEN MADE TO VEHICLES; TO AMEND SECTION 63-23-9, MISSISSIPPI CODE 7
OF 1972, TO CONFORM TO THE PRECEDING SECTION; AND FOR RELATED 8
PURPOSES. 9
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 10
SECTION 1. Section 85-7-251, Mississippi Code of 1972, is 11
amended as follows: 12
85-7-251. (1) (a) No motor vehicle may be towed except by 13
request of the owner of the motor vehicle, at the direction of a 14
law enforcement officer or by request of a real property owner or 15
the real property owner's designee or assignee upon whose property 16
the motor vehicle has been left. 17
(b) All towing companies shall record, upon receipt of 18
any request to tow a motor vehicle, the name, phone number and/or 19
email address of the person who made the request, and whether such 20
request was made by the owner of the motor vehicle, a law 21
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enforcement officer, the owner of the real property or the real 22
property owner's designee or assignee from which the motor vehicle 23
is being towed. Failure of a tow company to record the 24
information required by this paragraph shall result in a waiver of 25
all storage and towing fees described in this section, unless the 26
company can prove that the request for towing was made by the 27
owner of the motor vehicle. 28
(c) Except as otherwise provided in paragraph (1)(b) of 29
this section, the owner of a motor vehicle that has been towed at 30
his or her request * * *, at the direction of a law enforcement 31
officer, or * * * upon request of a real property owner or the 32
real property owner's designee or assignee upon whose property a 33
vehicle has been left * * *, shall be liable for the reasonable 34
price of towing and storage of such vehicle; and the towing 35
company to whom the price of such labor and storage costs may be 36
due shall have the right to retain possession of such motor 37
vehicle until the price is paid. 38
(2) Within twenty-four (24) hours, the towing company shall 39
report to the local law enforcement agency having jurisdiction any 40
vehicle that has been towed and shall provide the information 41
required by subsection (1)(b) of this section, unless the vehicle 42
was towed at the request of the owner of the vehicle. If the 43
owner of a towed vehicle has not contacted the towing company 44
within * * * two (2) business days of the initial tow, the towing 45
company shall obtain from the appropriate authority the names and 46
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addresses of any owner and lienholder. If the information from 47
the appropriate authority fails to disclose the owner or 48
lienholder, a good faith effort shall be made by the towing 49
company to locate ownership, including a check for tag 50
information, a check of the National Motor Vehicle Title 51
Information System, inspection sticker, or any papers in the 52
vehicle that may indicate ownership. Upon location of the owner 53
and lienholder, the towing company using a third-party vendor that 54
meets the requirements of the department, shall notify them 55
by * * * certified mail of the amount due for towing, postmarked 56
no later than the * * * seventh day following the initial tow. If 57
such amount shall not be paid within thirty (30) days from the 58
initial tow, the towing company to whom such charges are payable 59
shall using a third-party vendor that meets the requirements of 60
the department, notify by certified mail any legal owner and 61
holder of any lien, as disclosed by the motor vehicle title 62
records or other investigation, of notice of sale of the property. 63
For all notifications required to be sent to owners and 64
lienholders, the third-party vendor must utilize the format and 65
transmit the data required by the Department of Revenue. A 66
third-party vendor shall maintain a publicly accessible website 67
which shall provide owners, lienholders, insurance companies or 68
their agents the ability to search for notices sent pursuant to 69
this section. Such notices shall be publicly accessible for a 70
minimum of two (2) consecutive weeks prior to the sale of the 71
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property at public auction. The Department of Revenue shall 72
include on its website a link to any website maintained by a 73
third-party vendor for posting notices. The website must exclude 74
personal identifying information and provide a voluntary option 75
for owners, lienholders, and insurance companies to receive 76
notification of vehicles added to the website. If such property 77
has not been redeemed within ten (10) days after the mailing of 78
the second certified letter, the towing company may commence sale 79
of the property at public auction. The towing company shall 80
publish for two (2) consecutive weeks a notice of sale in the 81
newspaper having circulation in the county where the vehicle was 82
initially towed. The proceeds of the sale of such property in 83
excess of the amount needed to pay the towing, reasonable storage 84
and necessary expenses of the procedures required by this section 85
shall be held by the towing company for a period of six (6) 86
months, and, if not reclaimed by the owner thereof within such 87
time, shall become the property of the county and be paid to the 88
chancery clerk of the county in which the sale was held to be 89
deposited into the county general fund, subject, however, to any 90
rights of the recorded lienholder. 91
(3) The failure to make a good faith effort to comply with 92
the requirements of this section shall * * * prohibit the 93
imposition of any storage charges or towing charges against the 94
towed vehicle. 95
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(4) Every towing company shall maintain accurate records for 96
a period of three (3) years, which records shall identify the 97
vehicles it has towed and stored the name, phone number and/or 98
email address of the person who made the request, and whether the 99
request was made by the owner of the motor vehicle, a law 100
enforcement officer, the owner of the real property or the real 101
property owner's designee or assignee from which the motor vehicle 102
was towed and all procedures that it has taken to comply with the 103
provisions of this chapter. 104
(5) For the purposes of this section, the terms "third-party 105
vendor" means a qualified business entity that, upon a request 106
submitted through a website by a towing company: 107
(a) Accesses the National Motor Vehicle Title 108
Information System records to obtain the last state of record of 109
the vehicle and to verify the vehicle is not reported stolen; 110
(b) Accesses the owner and lienholder information, as 111
applicable, for a vehicle from the Department of Revenue; 112
(c) Electronically generates the notices required of a 113
towing company by this section through the website; 114
(d) Prints and send the notices required under this 115
section to each owner and lienholder of record by certified mail; 116
(e) Electronically returns tracking information or 117
other proof of mailing and delivery of the notices to the 118
towing-storage operator; 119
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(f) Electronically reports onto its website the 120
following information related to the towing and storage notice: 121
(i) The vehicle identification number; 122
(ii) The license plate number, if available; 123
(iii) The name and address of the towing-storage 124
operator or lienor; 125
(iv) The physical location of the vehicle; 126
(v) The date on which the vehicle was towed; 127
(vi) The amount of storage fees owed at the time 128
of the notice; 129
(vii) The date of assessment of storage charges; 130
(viii) The dates on which the notice was mailed 131
and delivered; 132
(ix) Other information required by the Department 133
of Revenue. 134
(6) A third-party vendor must apply to and be approved by 135
the Department of Revenue. The Department of Revenue shall 136
prescribe the format for the application. The Department of 137
Revenue may approve the applicant as qualified if the applicant: 138
(a) Provides the Department of Revenue with a One 139
Million Dollars ($1,000,000.00) bond; 140
(b) Submits an acceptable internal control and data 141
security audit or its equivalent performed by a licensed certified 142
public accountant to the Department of Revenue; 143
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(c) Successfully demonstrates the ability to 144
electronically provide required data onto its website. 145
(7) The Department of Revenue may deny, suspend, or revoke 146
approval of a third-party vendor if the Department of Revenue 147
determines that the third-party vendor has committed an act of 148
fraud or misrepresentation related to a notice required by this 149
section. 150
(8) A third-party vendor must maintain all records related 151
to providing notices under this section for five (5) years and 152
allow the Department of Revenue to inspect and copy such records 153
upon request. The records may be maintained in an electronic 154
format. 155
(9) A third-party vendor must annually provide the 156
Department of Revenue with evidence that it maintains a One 157
Million Dollars ($1,000,000.00) bond and must annually submit an 158
internal control and data security audit or its equivalent 159
performed by a licensed certified public accountant to continue 160
its approved status each year. 161
SECTION 2. Section 63-23-5, Mississippi Code of 1972, is 162
amended as follows: 163
63-23-5. (1) Any automobile dealer, wrecker service, or 164
repair service owner, or any person or party on whose property a 165
motor vehicle is lawfully towed at the written request of a law 166
enforcement officer, who shall have an abandoned motor vehicle on 167
his property, may sell, free and clear of all claims such motor 168
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vehicle by public auction, or if the abandoned motor vehicle has 169
no market value, may dispose of the same after having received at 170
least two (2) written statements from licensed automobile dealers 171
as to the worthlessness of such motor vehicle and after compliance 172
with subsection (2) of this section and Section 63-23-9. An 173
abandoned motor vehicle as defined by Section 63-23-3(b) shall not 174
be sold at auction until thirty (30) days from date of removal 175
from a public street, road or highway. 176
(2) The person authorized to execute the sale or disposal of 177
an abandoned motor vehicle shall notify by certified mail using a 178
third-party vendor that meets the requirements of the department, 179
within * * * seven (7) days of receipt of such vehicle, any 180
Mississippi lienholder on such vehicle that unless a claim on the 181
vehicle is made within thirty (30) days of receipt of such notice, 182
the vehicle will be sold or destroyed. If no claim is made on the 183
vehicle within thirty (30) days following receipt of such required 184
notifications to lienholders under this section, and if the 185
authorized person intends to sell the vehicle to a scrap metal 186
processor, used auto parts dealer, or otherwise destroy or 187
dismantle the vehicle, the authorized person shall notify the 188
Department of Revenue directly or via a third-party vendor that no 189
claim has been made and provide the Department of Revenue with 190
electronic copies of all notifications required to be sent to 191
lienholders, and the Department of Revenue shall immediately 192
remove any and all outstanding liens from the motor vehicle in the 193
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Department of Revenue's automated statewide motor vehicle 194
registration system, provided the authorized person provides 195
adequate evidence that any lienholders were notified in compliance 196
with this section, and attests in writing that no claim was made 197
on the vehicle. For all notifications required to be sent to 198
lienholders, the third-party vendor must utilize the format and 199
transmit the data as required by the Department of Revenue. Motor 200
vehicle dealers, as defined in Section 63-17-55, Mississippi Code 201
of 1972, shall not be required to utilize a third-party vendor or 202
comply with any third-party vendor transmission requirements 203
imposed by the Department of Revenue under this subsection. 204
(3) A third-party vendor shall maintain a publicly 205
accessible website which shall provide owners, lienholders, 206
insurance companies or their agents the ability to search for 207
notices sent pursuant to this section. Such notices shall be 208
publicly accessible for a minimum of three (3) consecutive weeks 209
prior to the sale of the property at public auction. The 210
Department of Revenue shall include on its website a link to any 211
website maintained by a third-party vendor for posting notices. 212
The website must exclude personal identifying information and 213
provide a voluntary option for owners, lienholders, and insurance 214
companies to receive notification of vehicles added to the 215
website. 216
( * * *4) After the sale of any vehicle as set out 217
hereinabove is made, the person or officer designated and making 218
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the sale of such property shall promptly upon completion of the 219
sale deliver to the chancery clerk a list or itemization of the 220
property sold, the amount paid for each item, the person to whom 221
each item was sold, and all monies received from such sale, the 222
gross charges levied by the person making the sale against the 223
property sold and the net amount paid over to the chancery clerk. 224
Any sale made by any person, officer, corporation or association, 225
shall have attached to the report of sale a sworn statement 226
certifying as to the date such personal property or items sold 227
first came into his possession or was abandoned on his premises 228
and the date said personal property or item was sold. 229
( * * *5) The proceeds of the sale in excess of repair, 230
towing and storage expenses and all expenses incurred in 231
connection with a sale when a sale is made under the provisions of 232
this chapter, shall escheat to the county and shall be paid over 233
to the chancery clerk to be placed into the general fund of the 234
county in which the vehicle is abandoned. However, in those 235
municipalities availing themselves of the provisions of Section 236
21-39-21, the proceeds of the sale in excess of the repairs, 237
towing, storage or other necessary expenses incurred shall escheat 238
to the general fund of the municipality. 239
(6) Every towing company shall maintain accurate records for 240
a period of three (3) years, which records shall identify the 241
vehicles it has towed and stored and all procedures that it has 242
taken to comply with the provisions of this chapter. 243
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(7) For the purposes of this section, the terms "third-party 244
vendor" means a qualified business entity that, upon a request 245
submitted through a website by an authorized person: 246
(a) Accesses the National Motor Vehicle Title 247
Information System records to obtain the last state of record of 248
the vehicle and to verify the vehicle is not reported stolen; 249
(b) Accesses the owner and lienholder information, as 250
applicable, for a vehicle from the Department of Revenue; 251
(c) Electronically generates the notices required of an 252
authorized person by this section through the website; 253
(d) Prints and sends the notices required under this 254
section to each owner and lienholder of record by certified mail; 255
(e) Electronically returns tracking information or 256
other proof of mailing and delivery of the notices to the 257
authorized person; 258
(f) Electronically reports onto its website the 259
following information related to the notice: 260
(i) The vehicle identification number; 261
(ii) The license plate number, if available; 262
(iii) The name and address of the towing-storage 263
operator or authorized person; 264
(iv) The physical location of the vehicle; 265
(v) The date on which the vehicle was towed or 266
abandoned; 267
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(vi) The amount of storage fees owed at the time 268
of the notice; 269
(vii) The date of assessment of storage charges; 270
(viii) The dates on which the notice was mailed 271
and delivered; 272
(ix) Other information required by the Department 273
of Revenue. 274
(8) A third-party vendor must apply to and be approved by 275
the Department of Revenue. The Department of Revenue shall 276
prescribe the format for the application. The Department of 277
Revenue may approve the applicant as qualified if the applicant: 278
(a) Provides the Department of Revenue with a bond 279
valued at One Million Dollars ($1,000,000.00); 280
(b) Submits an acceptable internal control and data 281
security audit or its equivalent performed by a licensed certified 282
public accountant to the Department of Revenue; 283
(c) Successfully demonstrates the ability to 284
electronically provide required data onto its website. 285
(9) The Department of Revenue may deny, suspend, or revoke 286
approval of a third-party vendor if the Department of Revenue 287
determines that the third-party vendor has committed an act of 288
fraud or misrepresentation related to a notice required by this 289
section. 290
(10) A third-party vendor must maintain all records related 291
to providing notices under this section for five (5) years and 292
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allow the Department of Revenue to inspect and copy such records 293
upon request. The records may be maintained in an electronic 294
format. 295
(11) A third-party vendor must annually provide the 296
Department of Revenue with evidence that it maintains a bond 297
valued at One Million Dollars ($1,000,000.00) and must annually 298
submit an internal control and data security audit or its 299
equivalent performed by a licensed certified public accountant to 300
continue its approved status each year. 301
SECTION 3. Section 63-23-9, Mississippi Code of 1972, is 302
amended as follows: 303
63-23-9. The last-known registered owner of an abandoned 304
motor vehicle and all lienholders of record, when such information 305
is reasonably obtainable, shall be notified by * * * certified 306
mail that such vehicle will be sold pursuant to the provisions of 307
this chapter. Said notice shall give such owner and lienholders 308
the date, time and place of sale and name of the person or party 309
who has custody of such vehicle. 310
If the identity of the last registered owner cannot be 311
determined, or if the registration contains no address for the 312
owner, or if it is impossible to determine with reasonable 313
certainty the identity and addresses of all lienholders, the 314
notice required by Section 63-23-5(3) and notice by three (3) 315
publications once each week for three (3) consecutive weeks in a 316
newspaper of general circulation in the county where the motor 317
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ST: Towing and sale of motor vehicles; revise
records and notification requirements related
to.
vehicle was abandoned shall be sufficient to meet all requirements 318
of notice pursuant to this chapter. Motor vehicle dealers, as 319
defined in Section 63-17-55, Mississippi Code of 1972, shall not 320
be required to utilize a third-party vendor or comply with any 321
third-party vendor notice requirements imposed in Section 322
63-23-5(3). 323
SECTION 4. This act shall take effect and be in force from 324
and after July 1, 2026. 325