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House OKs Prioritizing Towing and Storage Liens - Ramras' HB 251

Ramras’ HB 251 corrects state law to allow towing companies

to receive payment in certain situations


Thursday, April 01, 2010, Juneau, Alaska – The Alaska State House today unanimously passed House Bill 251, legislation prioritizing Towing and Storage Liens to ensure that towers receive payment for their services. House Judiciary Committee Chair Jay Ramras, R-Fairbanks, sponsored the bill.

“Without House Bill 251’s clarifying language, Alaska’s towing service companies could be harmed by allowing lien holders to take possession of a vehicle in impound without paying for towing and storage services already provided,” Ramras said. “The bill makes sense and eases the burden on towers, ensuring they receive payment priority. HB 251 reduces the unfair risk for Alaska small businesses.”

HB 251 amends state law, AS 28.10, to prioritize possessory liens for towing services over all other liens except mortgages. The bill also includes a consumer protection provision stating that a company that has impounded a vehicle has to notify the lien-holder and vehicle’s registered owner within seven working days after initially taking the vehicle into possession to maintain their lien. The change from the current 60-day notice allows consumers to receive notice before incurring additional storage fees, and work towards satisfying the lien earlier.

HB 251 now heads to the Alaska State Senate for consideration.

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