BILL NUMBER: AB 299 CHAPTERED 10/03/03 CHAPTER 658 FILED WITH SECRETARY OF STATE OCTOBER 3, 2003 APPROVED BY GOVERNOR OCTOBER 2, 2003 PASSED THE ASSEMBLY SEPTEMBER 3, 2003 PASSED THE SENATE AUGUST 27, 2003 AMENDED IN SENATE JUNE 2, 2003 INTRODUCED BY Assembly Members Lowenthal and Koretz FEBRUARY 6, 2003 An act to add Section 5386.5 to the Public Utilities Code, and to add Section 21100.4 to the Vehicle Code, relating to vehicles. LEGISLATIVE COUNSEL'S DIGEST AB 299, Lowenthal. Vehicles: taxicabs and passenger vehicles for hire: violations: impoundment: charter-party carriers of passengers: advertisement as taxicabs. (1) Existing law requires a magistrate presented with the affidavit of a peace officer establishing reasonable cause to believe that a vehicle was an instrumentality used in the peace officer's presence in violation of certain provisions relating to reckless driving and fleeing a peace officer, to issue a warrant or order authorizing any peace officer to immediately seize and cause the removal of the vehicle. The warrant or court order may be entered into a computerized database, and a vehicle so impounded may be impounded for a period not to exceed 30 days. Existing law provides procedures for release of the vehicle prior to the end of the 30-day period. This bill would require a magistrate presented with the affidavit of a peace officer establishing reasonable cause to believe that a vehicle is being operated as a taxicab or other passenger vehicle for hire in violation of licensing requirements adopted by a local authority under a specified provision of the Vehicle Code to issue a warrant or order authorizing any peace officer to immediately seize and cause the removal of the vehicle. The bill would authorize a vehicle so impounded to be impounded for a period not to exceed 30 days. The bill would provide procedures for release of the vehicle prior to the end of the 30-day period. (2) Under existing law, the Public Utilities Commission is vested with regulatory authority over public utilities including charter-party carriers. The existing Passenger Charter-Party Carriers Act requires a charter-party carrier of passengers, as defined, to obtain a certificate of public convenience and necessity or a permit issued by the commission, and to operate within the state on a prearranged basis, as defined. The act requires every charter-party carrier of passengers to display on the vehicle a distinctive identifying symbol in the form prescribed by the commission and requires every written or oral advertisement of services to state the number of its permit or identifying symbol, as specified by the commission. This bill would prohibit a charter-party carrier of passengers from advertising or otherwise representing their services to the public, as a taxicab or taxi service. Because a violation of the act or an order of the commission under the act is a crime under existing law, the bill would impose a state-mandated local program by creating a new crime. (3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 5386.5 is added to the Public Utilities Code, to read: 5386.5. No charter-party carrier of passengers shall advertise its services, or in any manner represent its services, as being a taxicab or taxi service. For the purposes of this section, "advertise" includes any business card, stationery, brochure, flyer, circular, newsletter, fax form, printed or published paid advertisement in any media form, or telephone book listing. SEC. 2. Section 21100.4 is added to the Vehicle Code, to read: 21100.4. (a) (1) A magistrate presented with the affidavit of a peace officer establishing reasonable cause to believe that a vehicle, described by vehicle type and license number, is being operated as a taxicab or other passenger vehicle for hire in violation of licensing requirements adopted by a local authority under subdivision (b) of Section 21100 shall issue a warrant or order authorizing any peace officer to immediately seize and cause the removal of the vehicle. (2) The warrant or court order may be entered into a computerized database. (3) A vehicle so impounded may be impounded for a period not to exceed 30 days. (4) The impounding agency, within two working days of impoundment, shall send a notice by certified mail, return receipt requested, to the legal owner of the vehicle, at an address obtained from the department, informing the owner that the vehicle has been impounded and providing the owner with a copy of the warrant or court order. Failure to notify the legal owner within two working days shall prohibit the impounding agency from charging for more than 15 days impoundment when a legal owner redeems the impounded vehicle. (b) (1) An impounding agency shall release a vehicle to the registered owner or his or her agent prior to the end of the impoundment period and without the permission of the magistrate authorizing the vehicle's seizure under any of the following circumstances: (A) When the vehicle is a stolen vehicle. (B) When the vehicle was seized under this section for an offense that does not authorize the seizure of the vehicle. (2) No vehicle may be released under this subdivision, except upon presentation of the registered owner's or agent's currently valid license to operate the vehicle under the licensing requirements adopted by the local authority under subdivision (b) of Section 21100, and proof of current vehicle registration, or upon order of the court. (c) (1) Whenever a vehicle is impounded under this section, the magistrate ordering the storage shall provide the vehicle's registered and legal owners of record, or their agents, with the opportunity for a poststorage hearing to determine the validity of the storage. (2) A notice of the storage shall be mailed or personally delivered to the registered and legal owners within 48 hours after issuance of the warrant or court order, excluding weekends and holidays, by the person or agency executing the warrant or court order, and shall include all of the following information: (A) The name, address, and telephone number of the agency providing the notice. (B) The location of the place of storage and a description of the vehicle, which shall include, if available, the name or make, the manufacturer, the license plate number, and the mileage of the vehicle. (C) A copy of the warrant or court order and the peace officer's affidavit, as described in subdivision (a). (D) A statement that, in order to receive their poststorage hearing, the owners, or their agents, are required to request the hearing from the magistrate issuing the warrant or court order in person, in writing, or by telephone, within 10 days of the date of the notice. (3) The poststorage hearing shall be conducted within two court days after receipt of the request for the hearing. (4) At the hearing, the magistrate may order the vehicle released if he or she finds any of the circumstances described in subdivision (b) or (e) that allow release of a vehicle by the impounding agency. (5) Failure of either the registered or legal owner, or his or her agent, to request, or to attend, a scheduled hearing satisfies the poststorage hearing requirement. (6) The agency employing the peace officer who caused the magistrate to issue the warrant or court order shall be responsible for the costs incurred for towing and storage if it is determined in the poststorage hearing that reasonable grounds for the storage are not established. (d) The registered owner or his or her agent is responsible for all towing and storage charges related to the impoundment, and any administrative charges authorized under Section 22850.5. (e) A vehicle removed and seized under subdivision (a) shall be released to the legal owner of the vehicle or the legal owner's agent prior to the end of the impoundment period and without the permission of the magistrate authorizing the seizure of the vehicle if all of the following conditions are met: (1) The legal owner is a motor vehicle dealer, bank, credit union, acceptance corporation, or other licensed financial institution legally operating in this state or is another person, not the registered owner, holding a financial interest in the vehicle. (2) The legal owner or the legal owner's agent pays all towing and storage fees related to the seizure of the vehicle. No lien sale processing fees shall be charged to the legal owner who redeems the vehicle prior to the 15th day of impoundment. Neither the impounding authority nor any person having possession of the vehicle shall collect from the legal owner of the type specified in paragraph (1), or the legal owner's agent any administrative charges imposed pursuant to Section 22850.5 unless the legal owner voluntarily requested a poststorage hearing. (3) (A) The legal owner or the legal owner's agent presents either lawful foreclosure documents or a certificate of repossession and a security agreement or title showing proof of legal ownership for the vehicle. Any documents presented may be originals, photocopies, or facsimile copies, or may be transmitted electronically. The impounding agency may not require any documents to be notarized. The impounding agency may require the agent of the legal owner to produce a photocopy or facsimile copy of its repossession agency license or registration issued pursuant to Chapter 11 (commencing with Section 7500) of Division 3 of the Business and Professions Code, or to demonstrate, to the satisfaction of the impounding agency, that the agent is exempt from licensure pursuant to Section 7500.2 or 7500.3 of the Business and Professions Code. (B) No administrative costs authorized under subdivision (a) of Section 22850.5 may be charged to the legal owner of the type specified in paragraph (1), who redeems the vehicle unless the legal owner voluntarily requests a poststorage hearing. No city, county, city and county, or state agency shall require a legal owner or a legal owner's agent to request a poststorage hearing as a requirement for release of the vehicle to the legal owner or the legal owner's agent. The impounding agency may not require any documents other than those specified in this paragraph. The impounding agency may not require any documents to be notarized. (C) As used in this paragraph, "foreclosure documents" means an "assignment" as that term is defined in subdivision (o) of Section 7500.1 of the Business and Professions Code. (f) (1) A legal owner or the legal owner's agent that obtains release of the vehicle pursuant to subdivision (e) may not release the vehicle to the registered owner of the vehicle or any agents of the registered owner until the termination of the impoundment period. (2) The legal owner or the legal owner's agent may not relinquish the vehicle to the registered owner until the registered owner or that owner's agent presents his or her valid driver's license or valid temporary driver's license, and an operator's license that is in compliance with the licensing requirements adopted by the local authority under subdivision (b) of Section 21100, to the legal owner or the legal owner's agent. The legal owner or the legal owner's agent shall make every reasonable effort to ensure that the licenses presented are valid. (3) Prior to relinquishing the vehicle, the legal owner may require the registered owner to pay all towing and storage charges related to the impoundment and the administrative charges authorized under Section 22850.5 that were incurred by the legal owner in connection with obtaining the custody of the vehicle. (g) Notwithstanding any other provision of this section, the registered owner and not the legal owner shall remain responsible for any towing and storage charges related to the impoundment and the administrative charges authorized under Section 22850.5 and any parking fines, penalties, and administrative fees incurred by the registered owner. (h) The impounding agency is not liable to the registered owner for the improper release of the vehicle to the legal owner or the legal owner's agent if the release complies with this section. SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.