A873

An Act concerning the disposition of vehicles and supplementing Title 39 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. The governing body of a municipality may sell at public auction any vehicle impounded by a law enforcement agency for a violation of Title 39 of the Revised Statutes if the owner of the impounded vehicle fails to claim the vehicle by midnight of the 30th day following the day on which the vehicle was impounded.

b. The municipality shall give notice of the sale by certified mail to the registrant of the motor vehicle, if the registrant’s name and address are known, and to the holder of any security interest filed with the chief administrator, and by publication in a form to be prescribed by the chief administrator by one insertion, at least five days before the date of the sale, in one or more newspapers published in this State and circulating in the municipality in which the vehicle is impounded.

c. At any time prior to the sale, the owner of the motor vehicle or other person entitled to the motor vehicle may reclaim possession of the motor vehicle upon showing proof of: registration and insurance; and payment of the reasonable costs of removal and storage of the motor vehicle, any fine or penalty and court costs assessed for the violation that gave rise to the impoundment of the motor vehicle, and any outstanding warrants against the vehicle. However, if the other person entitled to the motor vehicle is a lessor or the holder of a lien on the motor vehicle, the other person may reclaim the motor vehicle without providing payment or proof of: registration and insurance. In such cases, the violator shall be liable for all outstanding costs, fines, and penalties; and the municipality shall have a lien against the property and income of that violator for the total amount of all outstanding costs, fines, and penalties.

d. Any proceeds obtained from the sale of a motor vehicle at public auction pursuant to subsection a. of this section in excess of the amount owed to the municipality for the reasonable costs of removal and storage of the motor vehicle, any fine or penalty and court costs assessed for the violation that gave rise to the impoundment of the motor vehicle, and any outstanding warrants against the vehicle, shall be returned to the registrant of the vehicle, if the registrant’s name and address are known.

e. The provisions of this section shall not apply to any violation that provides separate statutory authorization for a municipality to sell an impounded motor vehicle.

2. This act shall take effect immediately.

STATEMENT

This bill permits a municipality to sell at public auction any vehicle impounded for a violation of Title 39 of the Revised Statutes if the owner of the vehicle failed to claim it by midnight of the 30th day following impoundment. Under current law, a municipality may only sell an impounded motor vehicle for certain violations. This bill expands that authority to all motor vehicle violations.

In order to sell a motor vehicle, the municipality is to provide notice to the registrant of the motor vehicle, to the holder of any security interest in the vehicle, and to the public. The vehicle’s owner may reclaim the vehicle at any time before the sale by showing proof of: registration and insurance; payment of the reasonable costs of removal and storage, plus any fine or penalty and court costs assessed for the violation; and payment of any other outstanding warrants against the vehicle. However, a lessor or the holder of a lien on an impounded motor vehicle may reclaim the motor vehicle without providing payment or proof of registration and insurance.

Any proceeds obtained from the sale in excess of the amount owed to the municipality are to be returned to the registrant of the vehicle.

The bill’s provisions do not apply to those violations that already expressly permit the sale of an impounded vehicle.