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CSHB 251(JUD): "An Act relating to liens on vehicles and to towing, transporting, and storage of vehicles; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 251(JUD) 01 "An Act relating to liens on vehicles and to towing, transporting, and storage of vehicles; 02 and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 28.10.391(a) is amended to read: 05 (a) The filing of the application and documents under AS 28.10.381 and the 06 issuance of a new certificate of title are constructive notice of any liens or 07 encumbrances against the vehicle described in the certificate to a creditor of the 08 owner, or to a subsequent purchaser or encumbrancer. However, a mortgage, 09 conditional sale contract, or similar lien or encumbrance on the vehicle is 10 subordinate to a lien under AS 28.10.502 and is subject to the procedure 11 provided in that section. A [A] lien or encumbrance on a vehicle for labor, material, 12 transportation, storage, or similar activity, other than a lien under AS 28.10.502, 13 whether or not dependent on possession for its validity, is subordinate only to a 14 mortgage, conditional sale contract, or similar lien or encumbrance on the vehicle

01 properly filed on or before the time that the vehicle is subject to, or comes into 02 possession of, the lien or encumbrance claimant for the labor, material, transportation, 03 storage, or similar activity. 04 * Sec. 2. AS 28.10.502(b) is amended to read: 05 (b) A lien under this section is limited to towing and storage charges and 06 associated mailing fees. Unless a vehicle has already been reclaimed by the 07 owner, the person possessing the vehicle under this section shall notify the 08 registered owner and primary lienholder, if any, of the towing, transporting, or 09 storage of the vehicle, by certified letter, return receipt requested, mailed to the 10 registered owner and primary lienholder, if any, within seven working days after 11 the initial towing, transporting, or storage of the vehicle. The letter shall be sent 12 to the addresses of record of the registered owner and primary lienholder, if any, 13 on file with the department or the corresponding office in another jurisdiction in 14 which the title to the motor vehicle and the lien on it are recorded. Storage charges 15 cease to be part of the lien after 60 days unless the registered owner or primary 16 lienholder, if any, has been given actual notice of the possessory lien within that time 17 or unless the [A] certified letter has been mailed within the time required in this 18 subsection [THAT TIME TO THE OWNER AND PRIMARY LIENHOLDER, IF 19 ANY, AT THEIR ADDRESSES OF RECORD WITH THE DEPARTMENT OR 20 THE CORRESPONDING OFFICE IN ANOTHER JURISDICTION IN WHICH THE 21 TITLE TO THE MOTOR VEHICLE AND THE LIEN ON IT ARE RECORDED]. 22 * Sec. 3. This Act takes effect immediately under AS 01.10.070(c).