PRINTER'S NO. 1060
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
894
Session of
2023
INTRODUCED BY CULVER, PHILLIPS-HILL AND BROWN, AUGUST 31, 2023
REFERRED TO JUDICIARY, AUGUST 31, 2023
AN ACT
Amending Titles 42 (Judiciary and Judicial Procedure) and 75
(Vehicles) of the Pennsylvania Consolidated Statutes, in
magisterial district judges, further providing for
jurisdiction and venue; in abandoned vehicles and cargos,
further providing for reports by garage keepers of abandoned
vehicles; and providing for garage or repair shop liens.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1515(a)(3) of Title 42 of the
Pennsylvania Consolidated Statutes is amended to read:
§ 1515. Jurisdiction and venue.
(a) Jurisdiction.--Except as otherwise prescribed by general
rule adopted pursuant to section 503 (relating to reassignment
of matters), magisterial district judges shall, under procedures
prescribed by general rule, have jurisdiction of all of the
following matters:
* * *
(3) Civil claims, except claims against a Commonwealth
party as defined by section 8501 (relating to definitions),
wherein the sum demanded does not exceed $12,000, exclusive
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of interest and costs, in the following classes of actions:
(i) In assumpsit, except cases of real contract
where the title to real estate may be in question.
(ii) In trespass, including all forms of trespass
and trespass on the case.
(iii) For fines and penalties by any government
agency.
(iv) For release of a vehicle from a garage or
repair shop lien under 75 Pa.C.S. Ch. 73A (relating to
garage or repair shop liens).
A plaintiff may waive a portion of his claim of more than
$12,000 so as to bring the matter within the monetary
jurisdiction of a magisterial district judge. Such waiver
shall be revoked automatically if the defendant appeals the
final order of the magisterial district judge or when the
judgment is set aside upon certiorari.
* * *
Section 2. Section 7311 of Title 75 is amended to read:
§ 7311. Reports by garage keepers of abandoned vehicles.
The person in charge of any garage or repair shop authorized
to retain possession of a vehicle under Chapter 73A (relating to
garage or repair shop liens) in which a vehicle of unknown
ownership has been left for a period of 15 consecutive days [or,
in the case of repair or storage, 15 consecutive days following
the completion of repairs or storage agreement without being
removed by the owner or any other person duly authorized to
remove the vehicle] shall report to the department within 24
hours of the expiration of the 15-day period giving the make,
vehicle identification number[,] and registration plate number
[and the name and address of the person abandoning the vehicle
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if known]. Upon receipt of the report the department shall make
a distinctive record of the report and issue a private property
abandoned vehicle information report under section 7311.1
(relating to reports by private property owners of abandoned
vehicles) to the garage keeper to complete and file with the
police.
Section 3. Title 75 is amended by adding a chapter to read:
CHAPTER 73A
GARAGE OR REPAIR SHOP LIENS
Sec.
73A01. Definitions.
73A02. Liens.
73A03. Loss of possession.
73A04. Sale to satisfy liens.
73A05. Release of owner's interest in vehicle.
73A06. Notice of sale and disposition of proceeds.
73A07. Registered vehicles.
73A08. Priority of lien.
73A09. Remedy of owner.
73A10. Jurisdiction.
73A11. Rules.
§ 73A01. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Garage or repair shop." A repair or towing business
registered with the department under section 1337(c)(1)
(relating to use of "Miscellaneous Motor Vehicle Business"
registration plates) engaged in the repair or storage of a
vehicle in the ordinary course of business.
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§ 73A02. Liens.
(a) Creation.-- A garage or repair shop that repairs or
stores a vehicle shall have a lien upon the vehicle and the
right to detain the vehicle to secure payment of the repair or
storage costs.
(b) Attachment.--A lien created under this chapter is not
required to be recorded on the vehicle record.
§ 73A03. Loss of possession.
If, either before or after payment becomes due and payable, a
garage or repair shop loses possession of a vehicle, except by
court order under this chapter, the garage or repair shop lien
shall continue in full force and effect, provided that within 10
days from the time of the loss of possession the garage or
repair shop files an application for the issuance of an
authorization to conduct a lien sale under section 73A04
(relating to sale to satisfy liens) or files a counterclaim for
the sale of the vehicle under this chapter in a replevin action
by the owner or any other person claiming an interest in the
vehicle.
§ 73A04. Sale to satisfy liens.
(a) General rule.--If a garage or repair shop is not paid
the amount due within 30 days following the completion of
repairs or a storage agreement, the garage or repair shop may
proceed to sell the property, or so much as may be necessary, to
satisfy the lien and costs of sale under section 73A06 (relating
to notice of sale and disposition of proceeds) if any of the
following apply:
(1) An authorization to conduct a lien sale has been
issued under this section.
(2) A judgment has been entered in favor of the garage
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or repair shop on the claim which gives rise to the lien.
(3) The owners and any secured parties of record or
known lienholders of the vehicle have signed, after the lien
has arisen, a release of any interest in the vehicle in the
form prescribed under section 73A05 (relating to release of
owner's interest in vehicle).
(b) Application.--A garage or repair shop may apply to the
magisterial district judge of the magisterial district in which
the garage or repair shop is located for the issuance of an
authorization to conduct a lien sale under section 73A06. The
application shall be executed under penalty of perjury and shall
include all of the following:
(1) A description of the vehicle.
(2) The names and addresses of the owners of the vehicle
and the names and addresses of any other persons who the
garage or repair shop knows claim an interest in the
property.
(3) A statement of the amount of the lien and facts
concerning the claim which gives rise to the lien. If
compensation for storage is claimed, the per diem rate of
storage established in advance and posted in the garage or
repair shop shall be shown.
(4) The date, time and place that the vehicle will be
sold if the authorization to conduct a lien sale is issued.
(5) A statement that the garage or repair shop has no
information or belief that there is a valid defense to the
claim which gives rise to the lien.
(c) Notice.--Upon receipt of an application which is made
under subsection (b), the magisterial district judge shall send
a notice and a copy of the application by certified mail or
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registered mail, return receipt requested, to the owner, secured
party of record, lienholder and any other person whose name and
address are listed in the application. If the identity of the
last registered owner or secured party cannot be determined with
reasonable certainty, the notice under section 73A06 shall
satisfy the notice requirement under this subsection. The notice
shall include all of the following:
(1) A statement that an application has been made with
the magisterial district judge for the issuance of an
authorization to conduct a lien sale.
(2) A statement that:
(i) the person has a legal right to a hearing in
court;
(ii) if a hearing in court is desired, the enclosed
declaration under penalty of perjury must be signed and
returned; and
(iii) if the declaration is signed and returned, the
garage or repair shop will be allowed to sell the vehicle
only if the garage or repair shop obtains a judgment in
court or obtains a release from the owner and any known
lienholder.
(3) A statement that if the declaration is signed and
returned, a hearing will be scheduled within 30 days and the
owner may appear to contest the claim of the garage or repair
shop.
(4) A statement of the date, time and place that the
vehicle will be sold if the authorization to conduct a lien
sale is issued.
(5) A statement that the magisterial district judge will
issue the authorization to conduct a lien sale unless the
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person signs and returns, within 20 days after the date on
which the notice was mailed, the enclosed declaration stating
that the person desires to contest the claim which gives rise
to the lien.
(6) A statement that the person shall be liable for
costs if a judgment is entered in favor of the garage or
repair shop on the claim which gives rise to the lien.
(7) A declaration which may be executed by the person
under penalty of perjury stating that:
(i) the person desires to contest the claim which
gives rise to the lien; and
(ii) the person has a valid defense to the claim and
the person shall furnish names and addresses where
official notice may be received of any person known to
claim an interest in the property of the hearing date.
(d) Declaration.--If the magisterial district judge receives
a declaration described under subsection (c) which meets the
requirements under subsection (c), the magisterial district
judge shall notify the garage or repair shop, owner and any
other persons listed in the application or declaration of the
hearing date unless the owner of the vehicle and any known
lienholder have signed, after the lien has arisen, a release of
any interest in the vehicle in the form prescribed by section
73A05.
(e) Authorization.--If a magisterial district judge does not
receive a declaration described under subsection (c) which meets
the requirements under subsection (c), the magisterial district
judge shall issue an authorization to conduct a lien sale.
(f) Hearing.--In a hearing conducted under this chapter:
(1) the garage or repair shop may have the amount of the
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indebtedness and right to sale determined; and
(2) the person requesting the hearing may present and
have determined any defenses, setoffs, counterclaims, cross-
claims or third-party actions.
(g) Fees.--Fees shall be recoverable as a cost by the garage
or repair shop if a sale is conducted.
(h) Form.--The form of the applications, notices and
declarations described in this section shall be prescribed by
the Supreme Court. The language used in the applications,
notices and declarations shall be simple and nontechnical.
§ 73A05. Release of owner's interest in vehicle.
(a) General rule.--An owner of a vehicle subject to a lien
under this chapter may release any interest in the vehicle after
the lien has risen. The release shall be dated when signed and a
copy shall be given at the time the release is signed to the
person releasing the interest.
(b) Contents.--The release shall contain all of the
following information in simple, nontechnical language:
(1) A description of the vehicle.
(2) The name and address of the owner.
(3) A statement of the amount of the lien and the facts
concerning the claim which gives rise to the lien.
(4) A statement that the person releasing the interest
understands that the person has a legal right to a hearing in
court prior to any sale of the vehicle to satisfy the lien
and the person is giving up the right to appear to contest
the claim of the garage or repair shop.
(5) A statement that the person releasing the interest
gives up any interest that person may have in the vehicle and
the person is giving the garage or repair shop permission to
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sell the vehicle.
(6) A statement that there is no other person or
lienholder that has an outstanding interest in the vehicle.
§ 73A06. Notice of sale and disposition of proceeds.
(a) General rule.--Prior to any sale under this chapter, the
garage or repair shop must give at least 15 days' notice of the
sale by handbills posted in five or more public places and by
advertising in a newspaper circulated in the county in which the
sale is to be held.
(b) Proceeds.--The proceeds of the sale shall be applied to
the discharge of the lien and the cost of keeping and selling
the vehicle. The balance of the proceeds of the sale, if any,
shall be applied to the payment of any lien or security interest
to which the vehicle may be subject in the order of their
priority, with any remaining proceeds to be paid to the owner of
the vehicle sold. If the owner of the vehicle cannot be found,
the balance shall be turned over, not later than 60 days from
the date of the sale, to the State Treasurer, Bureau of
Unclaimed Property within the Treasury Department.
(c) Form.--In every lien sale authorized under this chapter,
it shall be the duty of a garage or repair shop to complete and
file with the magisterial district judge a disposition of
proceeds form, as designated by the magisterial district judge,
within 10 days from the date of the sale. No transfer of or new
certificate of title to the vehicle sold or certificate of
salvage shall be issued by the department without proof of the
filing of the disposition of proceeds form with the magisterial
district judge within the required time period. A copy of the
disposition of proceeds form sealed with the magisterial
district judge's seal shall constitute sufficient proof of
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filing.
§ 73A07. Registered vehicles.
(a) Notice.-- In the case of vehicles required to be
registered under this title or the laws of any other state,
notice containing the information required in section 73A04(b)
(relating to sale to satisfy liens) shall be given to the
registered owner and any known lienholder at their addresses of
record with the Driver and Vehicle Services Division of the
department or a similar agency of another state. The return
receipt, signed or unsigned, shall be held and considered as
prima facie evidence of service of the notice. The lienholder
shall notify the Pennsylvania Auto Theft Prevention Authority.
(b) Limits.--A lien created under this chapter may not
extend to personal property that is not attached to or
considered necessary for the proper operation of a motor
vehicle. This property shall be returned to the owner of the
motor vehicle if the owner claims the items prior to the sale of
the motor vehicle.
§ 73A08. Priority of lien.
(a) General rule.--All liens created under this chapter
shall be superior to any lien, title or interest of a person who
has a security interest by virtue of a conditional sales
contract or a prior perfected security interest in accordance
with 13 Pa.C.S. (relating to Commercial Code).
(b) Exception.--Notwithstanding the provisions of subsection
(a), a garage or repair shop that stores a vehicle towed at the
request of a party other than the owner of the vehicle may
attain priority of lien as follows:
(1) by providing notice by certified mail to a title
holder of record within seven business days of the date upon
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which possession is taken;
(2) by providing notice by certified mail to lienholders
of record within seven business days of the date upon which
possession is taken; and
(3) by providing notice by telephone or in person to the
appropriate police agency.
§ 73A09. Remedy of owner.
The owner or other person claiming an interest in the
vehicle, in addition to the right to a hearing as provided under
this chapter, shall have the right to file an action in replevin
or detinue at any time. No bond shall be required to be posted
as a prerequisite to the filing of the action or the issuance of
the writ.
§ 73A10. Jurisdiction.
The magisterial district judge of the magisterial district in
which the garage or repair shop is located shall have exclusive
original jurisdiction of all petitions for sale under this
chapter, notwithstanding the monetary amount claimed by the
garage or repair shop. The magisterial district judge shall also
hear actions in replevin or detinue filed under this chapter,
unless a party requests a jury and pays all necessary costs to
transfer the action to the court of common pleas of the county
in which the garage or repair shop is located. If the garage or
repair shop is located in more than one county, the court of
common pleas in the county where the vehicle is, or most
recently was, located shall have exclusive jurisdiction.
§ 73A11. Rules.
The Supreme Court may adopt appropriate and specific rules to
effectuate the intent and purpose of this chapter.
Section 4. This act shall take effect in 60 days.
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