BILL ANALYSIS                                                                                                                                                                                                    
                                                                  AB 1132
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          GOVERNOR'S VETO
          AB 1132 (Torrico)
          As Amended August 29, 2005
          2/3 vote
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          |ASSEMBLY:  |61-17|(June 2, 2005)  |SENATE: |24-14|(September 6,  |
          |           |     |                |        |     |2005)          |
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          |ASSEMBLY:  |44-29|(September 7,   |        |     |               |
          |           |     |2005)           |        |     |               |
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           Original Committee Reference:    TRANS.
          SUMMARY  :  Repeals the mandatory 30-day impoundment of a vehicle  
          that has been seized due to its driver being unlicensed.  
           The Senate amendments  add language to assure that this bill does  
          not inadvertently chapter out AB 979 (Runner), in the event that  
          both bills are enacted.  (AB 979, which deals with  
          driving-under-the-influence violations and is currently on the  
          Senate Floor, proposes to amend the same Vehicle Code section as  
          does this bill.)  
           EXISTING LAW  :  
          1)Authorizes a peace officer who determines that a person was  
            driving a vehicle while his or her driving privilege was  
            suspended or revoked or without ever having been issued a  
            driver's license, to either immediately arrest that person and  
            cause the removal and seizure of that vehicle or, if the  
            vehicle has been involved in a traffic collision, cause the  
            removal and seizure of the vehicle.  
          2)Sets at 30 days the term of impoundment for a vehicle  
            impounded under those circumstances.  
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          3)Provides the registered and legal owner of a vehicle that is  
            impounded under those circumstances, or their agents, the  
            opportunity for a storage hearing to determine the validity  
            of, or to consider any mitigating circumstances attendant to,  
            the vehicle's storage.  
          4)Requires the impounded vehicle to be returned to its owner  
            prior to the 30 day period if:  a) it is a stolen vehicle; b)  
            it is subject to bailment and is driven by an unlicensed  
            employee of a business establishment, including a parking  
            service or repair garage; c) the license of the driver was  
            suspended or revoked for an offense other than speeding,  
            reckless driving, leaving the scene of an injury accident, or  
            using a vehicle as part of a felony; d) it was seized for an  
            offense that does not authorize the seizure of a vehicle; or,  
            e) the driver reinstates his or her driver's license or  
            acquires a driver's license and proper insurance.  
          5)Prohibits an impounded vehicle from being released without  
            presentation of the registered owner's or agent's currently  
            valid driver's license and proof of current vehicle  
            registration, or upon order of a court.  
          6)Holds the registered owner responsible for all towing and  
            storage charges related to the impoundment, and any authorized  
            administrative charges.  
          7)Requires the release of an impounded vehicle to the legal  
            owner or the owner's agent prior to the end of 30 days'  
            impoundment if the legal owner is a vehicle dealer, bank,  
            credit union, acceptance corporation, or other licensed  
            financial institution, the legal owner or agent pays all  
            towing and storage fees, and the owner or agent presents  
            either lawful foreclosure documents or an affidavit of  
            repossession for the vehicle.  
          8)Prohibits a legal owner or owner's agent who obtains release  
            of an impounded vehicle from releasing the vehicle to the  
            registered owner of the vehicle or any agents of the  
            registered owner, unless the registered owner is a rental car  
            agency, until after the termination of the 30-day impoundment  
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            period.  
          9)Prohibits a legal owner or owner's agent from relinquishing a  
            vehicle to the registered owner until the registered owner or  
            owner's agent presents his or her valid driver's license or  
            valid temporary driver's license to the legal owner or owner's  
            agent.  The legal owner or owner's agent must make every  
            reasonable effort to ensure that the license presented is  
            valid.  
          10)  Allows the legal owner, prior to relinquishing the vehicle,  
            to require the registered owner to pay all towing and storage  
            charges related to the impoundment and any authorized  
            administrative charges that were incurred by the legal owner  
            in connection with obtaining custody of the vehicle.  
          11)  Requires an impounded vehicle to be released to a rental  
            car agency prior to the end of 30 days' impoundment if the  
            agency is either the legal owner or registered owner of the  
            vehicle and the agency pays all towing and storage fees  
            related to the seizure of the vehicle.  
          12)  Allows the owner of a rental vehicle that was impounded to  
            continue to rent the vehicle upon recovery of the vehicle.   
            However, the rental car agency may not rent another vehicle to  
            the driver of the vehicle that was seized until 30 days after  
            the date that the vehicle was seized.  
          13)  Allows a rental car agency to require the person to whom  
            the vehicle was rented to pay all towing and storage charges  
            related to the impoundment and any authorized administrative  
            charges that were incurred by the rental car agency in  
            connection with obtaining custody of the vehicle.  
           AS PASSED BY THE ASSEMBLY  , this bill:  
          1)Authorized a peace officer who determines that a person who  
            has been driving a vehicle and has never been issued a  
            driver's license, to either immediately arrest that person and  
            remove and seize the vehicle or, if the vehicle was involved  
            in a collision, to seize and remove it without arresting the  
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            driver.  
          2)Required the impounding agency to send a notice by certified  
            mail, return receipt requested, to the legal owner of the  
            vehicle, informing him or her of the impoundment.  
          3)Prohibited charging more than 15 days impoundment if the  
            notice is not made within two working days of the impoundment.  
             
          4)Required the impounding agency to maintain a published  
            telephone number that provides 24 hour a day impoundment  
            information.  
          5)Allowed the registered and legal owners of any vehicle  
            impounded under these circumstances an opportunity for a  
            storage hearing, conducted by the agency that has ordered the  
            storage, to determine the validity of the storage or to  
            consider any mitigating circumstances.  
          6)Provided that the vehicle duration of storage under these  
            provisions shall be included as part of any impoundment order  
            by a court.  
          7)Required an impounding agency to release an impounded vehicle  
            upon request of the legal or registered owner, or the legal  
            owner's agent.  
          8)Required the person requesting release of the vehicle to  
            present a currently valid driver's license and proof of  
            current vehicle registration, unless the release is ordered by  
            a court.
          9)Exempted from the requirement to provide proof of current  
            registration a vehicle that is being transported to a  
            repossessor's storage facility.  
          10)  Required the release of an impounded vehicle to the legal  
            owner if that owner is a vehicle dealer, or a bank, credit  
            union, acceptance corporation, or other financial institution,  
            or is another person, other than the registered owner, holding  
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            a security interest in the vehicle.  
          11)  Held the registered or legal owner responsible for all  
            towing, storage, and administrative charges.  
          12)  Prohibited the legal owner from relinquishing the vehicle  
            to the registered owner until that owner, or his or her agent,  
            presents a valid driver's license that the legal owner must  
            attempt to validate.  
          13)  Allowed the legal owner to require the registered owner to  
            pay all towing, storage and administrative charges, plus any  
            parking fines, penalties and fees incurred by the registered  
            owner.  
          14)  Specified that the registered owner is responsible for any  
            towing and storage and administrative charges incurred by the  
            legal owner related to the impoundment.  
          15)  Provided that the impounding agency is not liable to the  
            registered owner for the improper release of the vehicle to  
            the legal owner if the vehicle was released under the  
            provisions of this bill.  
          16)  Provided that the existing 30-day impoundment required for  
            any vehicle driven by an individual driving without a license  
            or with a suspended or revoked license, does not apply to a  
            driver who has never been licensed.  
           FISCAL EFFECT  :  Unknown.  The bill is keyed nonfiscal. 
           COMMENTS  :  This bill repeals the mandatory 30-day impoundment  
          period for vehicles driven by an individual who has never been  
          licensed at all.  The author asserts that current law allowing  
          vehicles to be impounded for 30 days "can put an undue burden on  
          registered owners in many ways.  For example, if an unlicensed  
          teen is apprehended on a 'joy ride,' the impounding of the  
          vehicle will severely restrict the, possible, sole means of  
          transportation for any other licensed family members.  Such a  
          situation could negatively impact a family's ability to travel  
          to school, work, or at worst, a hospital in an emergency  
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          situation.  Compounding this problem are the costs for payment  
          to release an impounded vehicle which may equal the amount in  
          upwards of $1,500, adding a financial burden for owners."  The  
          author contrasts this situation with one where a driver charged  
          with driving under the influence is able to retrieve his or her  
          vehicle after 24 hours.  
          The sponsors, the California Legal Assistance Foundation and  
          State Farm Insurance Company, note that a 30-day impoundment  
          results in an "undue punishment for many vehicle owners,  
          including those who have a driver's license."  In the case of  
          low-income persons, the cost of a lengthy impoundment may even  
          exceed the value of the vehicle.  
          Currently, a 30-day impoundment is required when a driver is  
          either unlicensed, or is driving on a suspended or revoked  
          license.  By removing unlicensed drivers from that provision,  
          the author appears to be trying to differentiate high risk  
          individuals with demonstrably poor driving records and who ought  
          not have access to their vehicles for at least 30 days from  
          those who may simply be unable to obtain a license due, for  
          instance, to residency issues.  (In order to obtain a driver's  
          license in California, an applicant must provide proof of legal  
          residency.)  Thus, this bill seeks to protect these drivers from  
          losing the use of their vehicles for an entire month and,  
          perhaps more importantly, from accruing storage charges that  
          exceed the value of the vehicle.  
          Opponents of similar legislation have noted that "this bill  
          appears to apply a 'double standard' because legal residents  
          whose licenses were suspended or revoked still would be  
          punished," while those who have not provided proof of residency  
          in order to obtain a driver's license would escape punishment.  
          Related legislation:  SB 591 (Cedillo), a two-year bill that is  
          in the Senate Public Safety Committee, would require a city or  
          county to exempt from the impound period persons who have never  
          been issued a driver's license due to their inability to meet  
          the driver's license application requirement to document one's  
          legal presence in the United States.  
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           GOVERNOR'S VETO MESSAGE  :
               Repealing the mandatory 30-day impoundment period for  
               vehicles that law enforcement seizes because the  
               driver does not have a valid driver's license would  
               endanger public safety.  By requiring the impounding  
               agency to release the vehicle to the owner upon  
               request fails to address the problem the author states  
               he would like to solve, vehicles impounded due to joy  
               riding.
               AB 1132 severely weakens a law, which has been proven  
               an effective measure to discourage unlicensed drivers  
               from driving and to deter vehicle owners from  
               irresponsibly lending their vehicle to an unlicensed  
               driver.  Enacting this measure would send a message to  
               unlicensed drivers that it is acceptable to break the  
               law by driving because the consequences for their  
               actions have been eliminated.  Given the existing law  
               contains many reasonable exceptions where an owner may  
               retrieve a vehicle from impoundment before the end of  
               the 30-day impoundment period, this bill is  
               unnecessary.
           
          Analysis Prepared by  :    Howard Posner / TRANS. / (916) 319-2093  
                                                                FN: 0013461