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).