BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 14
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          ASSEMBLY THIRD READING
          AB 14 (Fuentes)
          As Amended  March 12, 2009
          Majority vote 

           PUBLIC SAFETY       7-0                                         
           
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          |Ayes:|Solorio, Hagman,          |     |                          |
          |     |Furutani, Gilmore, Hill,  |     |                          |
          |     |Ma, Skinner               |     |                          |
          |     |                          |     |                          |
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           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  








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               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;








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             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  








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            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  








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               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  








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            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)."









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          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