BILL ANALYSIS AB 14 Page 1 ASSEMBLY THIRD READING AB 14 (Fuentes) As Amended March 12, 2009 Majority vote PUBLIC SAFETY 7-0 ----------------------------------------------------------------- |Ayes:|Solorio, Hagman, | | | | |Furutani, Gilmore, Hill, | | | | |Ma, Skinner | | | | | | | | ----------------------------------------------------------------- SUMMARY : Authorizes cities or counties to adopt local ordinances declaring a motor vehicle to be a public nuisance subject to impoundment for not more than 30 days upon a valid arrest of a person who uses the vehicle in the commission or attempted commission of specified prostitution crimes or illegal commercial dumping and has one prior conviction for either of those crimes. Specifically, this bill : 1)Requires that within two working days after impoundment, the impounding agency shall send a notice by certified mail, return receipt requested, to the legal owner of the vehicle, at the address obtained from the department, informing the owner that the vehicle has been impounded. 2)States the notice shall also include notice of the opportunity for a post-storage hearing to determine the validity of the storage or to determine mitigating circumstances establishing that the vehicle should be released. The impounding agency shall be prohibited from charging for more than five-days' storage if it fails to notify the legal owner within two working days after the impoundment when the legal owner redeems the impounded vehicle. 3)Provides that the impounding agency shall maintain a published telephone number that provides information 24 hours per day regarding the impoundment of vehicles and the rights of a legal owner and a registered owner to request a hearing. 4)Mandates the notice include all of the following information: a) The name, address, and telephone number of the agency AB 14 Page 2 providing the notice; b) The location of the place of storage and description of the vehicle, that shall include, if available, the model or make, the manufacturer, the license plate number, and the mileage; c) The authority and purpose for the removal of the vehicle; and, d) A statement that in order to receive a post-storage hearing, the owners, or their agents, shall request the hearing in person, writing, or by telephone within 10 days of the date appearing on the notice. 5)States the post-storage hearing shall be conducted within 48 hours of the request, excluding weekends and holidays. The public agency may authorize one of its own officers or employees to conduct the hearing if that hearing officer is not the same person who directed the seizure of the vehicle. Failure of the legal and the registered owners, or their agents, to request or to attend a scheduled hearing shall satisfy the post-storage hearing requirement. 6)Requires the agency employing the person who directed the storage to be responsible for the costs incurred for towing and storage if it is determined in the post-storage hearing that reasonable grounds for the storage are not established. Any period during which a vehicle is subjected to storage under an ordinance adopted pursuant to this bill shall be included as part of the period of impoundment. 7)States the impounding agency shall release the vehicle to the registered owner or his or her agent prior to the end of the impoundment period under any of the following circumstances: a) The driver of the impounded vehicle was arrested without probable cause; b) The vehicle is a stolen vehicle; c) The vehicle is subject to bailment and was driven by an unlicensed employee of a business establishment, including a parking service or repair garage; AB 14 Page 3 d) The driver of the vehicle is not the sole registered owner of the vehicle and the vehicle is being released to another registered owner of the vehicle who agrees not to allow the driver to use the vehicle until after the end of the impoundment period; e) The registered owner of the vehicle was neither the driver nor a passenger of the vehicle at the time of the alleged violation, or was unaware that the driver was using the vehicle to engage in pimping or pandering, as specified, or solicitation of prostitution; or, f) A spouse, registered domestic partner, or other affected third party objects to the impoundment of the vehicle on the grounds that it would create a hardship if the subject vehicle is the sole vehicle in a household. The hearing officer shall release the vehicle where the hardship to a spouse, registered domestic partner, or other affected third party created by the impoundment of the subject vehicle, or the length of the impoundment, outweigh the seriousness and the severity of the act in which the vehicle was used. 8)Provides that notwithstanding any provision of law, if a motor vehicle is released prior to the conclusion of the impoundment period because the driver was arrested without probable cause, neither the arrested person nor the registered owner of the motor vehicle is responsible for towing and storage charges nor shall the motor vehicle be sold to satisfy those charges. 9)Requires that the registered owner or his or her agent be responsible for all towing and storage charges related to the impoundment except as otherwise provided. 10)States 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 vehicle having possession of the vehicle shall collect from the legal owner fees associated with towing a storage, as specified, unless the legal owner voluntarily requests a post-storage hearing. 11)Provides a person operating or in charge of a storage AB 14 Page 4 facility where vehicles are stored, as specified, shall accept a valid bank credit card or cash for payment of towing, storage and related fees by a legal or registered owner or the owner's agent claiming the vehicle. A credit card or debit card shall be in the name of the person presenting the card. The term "credit card" does not include one issued by a retail seller and is defined in the Civil Code. 12)Requires that if a person operating or in charge of a storage facility, as specified, does not allow for the use of a credit card or cash, he or she shall be civilly liable to the owner of the vehicle or the person who tendered the fees for four times the amount of the towing, storage, and related fees not to exceed $500. 13)Mandates a person operating or in charge of the storage facility, as specified, must have sufficient funds on the premises during normal business hours to accommodate, and make change for a reasonable monetary transaction. 14)States credit charges for towing and storage services shall comply with relevant sections of the Civil Code. Law enforcement agencies may include the costs of providing for payment by credit when making agreements with towing companies on rates. 15)States a vehicle removed and seized under an ordinance adopted pursuant to this bill shall be released to the legal owner of the vehicle or the legal owner's agent prior to the end of the impoundment period if all of the following conditions are met: a) 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 who is not the registered owner and holds a security interest in the vehicle; b) The legal owner or the legal owner's agent pays all towing and storage fees related to the seizure and impoundment of the vehicle; c) The legal owner, or his or her agent, presents to the law enforcement agency, impounding agency, person in AB 14 Page 5 possession of the vehicle or any person acting on behalf of those agencies, a copy of the assignment, as specified, a release from the one responsible governmental agency, a government-issued photographic identification card and any one of the following as determined by the legal owner or his or her agent: a certificate of repossession for the vehicle; a security agreement for the vehicle; and, title showing proof of ownership, as specified; d) The law enforcement agency, impounding agency, or any person acting on behalf of those agencies may require the agent of the legal owner to produce a photocopy or fax of its repossession agency license or registration issued pursuant to the Business and Professions Code. Any document may be originals, photocopies, or faxes, or may be transmitted electronically and need not be notarized; e) Administrative costs, as specified, shall not be charged to the legal owner, as specified, unless he or she requests a post-storage hearing. No agency may require a post-storage hearing as a requirement for release of a vehicle. Copies of all documents must be provided to the legal owner except for the vehicle evidentiary log book. The legal owner shall indemnify and hold harmless a storage facility from any claims arising out of the release of the vehicle to the legal owner or his or her agent and from any damage to the vehicle after its release, including the reasonable costs associated with defending any such claims; and, f) A failure by a storage facility to comply with any applicable conditions set forth in this bill shall not affect the right of the legal owner or his or her agent to retrieve the vehicle if all the conditions are met, as specified. 16)States a legal owner, or his or her agent, who meets the requirements for release of a vehicle, as specified, shall not be required to request a post-storage hearing as a requirement for release of the vehicle to the legal owner or the legal owner's agent. 17)Provides a legal owner, or his or her agent, who meets the requirements for release of a vehicle, as specified, shall not AB 14 Page 6 release the vehicle to the registered owner of the vehicle or an agent of the registered owner unless the registered owner is a rental car agency, until after the termination of the impoundment period. 18)States prior to relinquishing the vehicle, the legal owner may require the registered owner to pay all towing and storage charges related to the seizure and impoundment. 19)Provides a vehicle removed and seized pursuant to an ordinance adopted pursuant to this bill shall be released to a rental car agency prior to the end of the impoundment period 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 and impoundment of the vehicle. 20)States the owner of a rental vehicle that was seized under an ordinance adopted pursuant to this bill may continue to rent the vehicle upon recovery of the vehicle. However, the rental car agency shall not rent another vehicle to the driver of the vehicle that was seized until the impoundment period has expired. The rental car agency may require the person to whom the vehicle was rented to pay all towing and storage charges related to the seizure and impoundment. FISCAL EFFECT : None COMMENTS : According to the author, "Recently, the California Supreme Court, in O'Connell v. City of Stockton , struck down a vehicle forfeiture ordinance on the grounds that the area of vehicle forfeiture is fully occupied by the State, and the ordinance was therefore preempted by state law. Although it did not reach the question, the Court was also concerned about whether the ordinance violated substantive and procedural due process. This decision throws into question the authority of cities and counties to pass vehicle impoundment ordinances. AB 14 expressly grants local governments the authority to regulate in the area of nuisance abatement vehicle impoundment so long as certain guidelines are adhered to. Specifically, AB 14 allows local governments to adopt ordinances intended to abate nuisances created by vehicles that are involved in certain prostitution-related criminal offenses (Penal Code Sections 647(b), 266h and 266i)." AB 14 Page 7 Please see the policy committee analysis for a full discussion of this bill. Analysis Prepared by : Kimberly Horiuchi / PUB. S. / (916) 319-3744 FN: 0000278