BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 519
                                                                  Page  1

          Date of Hearing:   April 27, 2009

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                                   Mike Eng, Chair
                    AB 519 (Duvall) - As Amended:  April 14, 2009
           
          SUBJECT  :  Vehicle towing 

           SUMMARY  :  Requires towing companies to display a "California  
          Consumer Bill of Rights for Towed Vehicles."  Specifically,  this  
          bill  :  

          1)Requires towing companies to display in the office areas of  
            their storage facilities, in plain view to the public, the  
            California Consumer Bill of Rights for Towed Vehicles (see  
            attachment for the text of this proposed document) and have  
            copies readily available to the public.  

          2)Requires these companies, upon request, to provide a copy of  
            the California Consumer Bill of Rights for Towed Vehicles to  
            any owner or operator of a towed or stored vehicle.  

          3)Requires these companies to provide an itemized invoice for  
            any towing and storage charges and a separate and distinct  
            notice, within a bordered text box, printed in no less than  
            10-point type, stating: "Upon request, you are entitled to  
            receive a copy of the California Consumer Bill of Rights for  
            Towed Vehicles."  

          4)Requires the California Consumer Bill of Rights for Towed  
            Vehicles to be a separate standardized document and plainly  
            printed in no less that 10-point type.  

          5)Allows towing companies to distribute the form using its own  
            letterhead and requires the language to be composed as  
            specified.  

          6)Grants vehicle owners, prior to paying any towing, recovery,  
            or storage-related fees, the right to receive a clear,  
            itemized, and detailed invoice of actual charges; receive  
            their personal property, at no charge, during normal business  
            hours; retrieve their vehicle during the first 72 hours of  
            storage without paying a lien fee; request a copy of the  
            California Consumer Bill of Rights for Towed Vehicles; and pay  
            by cash or credit card.  








                                                                  AB 519
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          7)Defines an "itemized invoice" to mean a written document that  
            substantially contains the following information:

             a)   The name, address, telephone number, and carrier  
               identification number of the person or towing company that  
               is charging for towing and storage;

             b)   If ascertainable, the registered owner or operator's  
               name, address, and telephone number;

             c)   The date service was initiated;

             d)   The specific location of the vehicle at the time service  
               was initiated, including either the exact address or  
               nearest intersecting roadways;

             e)   A vehicle description that includes, if ascertainable,  
               the vehicle year, make, model, odometer reading, license  
               plate number, or if a license plate number is unavailable,  
               the vehicle identification number (VIN);

             f)   The service dispatch time, the service arrival time of  
               the vehicle, and the service completion time;

             g)   A clear, itemized, and detailed explanation of any  
               additional services that caused the total towing-related  
               service time to exceed one hour between service dispatch  
               time and service completion time;

             h)   The hourly rate or per item rate used to calculate the  
               total towing and recovery-related fees, with the fees  
               listed as separate line items;

             i)   If subject to storage fees, the daily storage rate and  
               the total number of days stored, with the fees listed as a  
               separate line item;

             j)   If subject to an after-hours fee, gate fee, or other  
               similar fee, the date and time the vehicle was released,  
               with the fees listed as a separate line item;

             aa)  A distinct and separate notice, contained within a  
               bordered text box, printed in 10-point type, stating: "Upon  
               request, you are entitled to receive a copy of the  








                                                                  AB 519
                                                                  Page  3

               California Consumer Bill of Rights for Towed Vehicles;"  
               and,

             bb)  A description of the method of towing.  

           EXISTING LAW  :

          1)Allows a peace officer or a regularly employed and salaried  
            public agency employee who is engaged in directing traffic or  
            enforcing parking laws and regulations, to remove a vehicle  
            located within the territorial limits in which the officer or  
            employee may act, under any of several specified  
            circumstances.  These circumstances include a vehicle being  
            left unattended and constituting an obstruction to traffic, a  
            vehicle that has been reported as stolen or embezzled, and a  
            vehicle that is illegally parked and is blocking a private  
            driveway or is preventing access by firefighting equipment to  
            a fire hydrant.  

          2)Prohibits any towing service from providing, and any person or  
            public entity from accepting, any direct or indirect  
            commission, gift, or any compensation whatever from a towing  
            service in consideration of arranging or requesting the  
            services of a tow truck.  

          3)Allows any public entity otherwise authorized by law to  
            require a fee in connection with the award of a franchise for  
            towing vehicles on behalf of that public entity.  

          4)Prohibits such a fee from exceeding the amount necessary to  
            reimburse the public entity for its actual and reasonable  
            costs incurred in connection with the towing program.  

          5)Prohibits any towing service or any employee of a towing  
            service from accepting any money or anything of value from a  
            repair shop and any repair shop or any employee of a repair  
            shop from paying any money or anything of value as a  
            commission, referral fee, inducement, or in any manner a  
            consideration, for the delivery or the arranging of a delivery  
            of a vehicle.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  The author has introduced this bill in an effort to  
          address consumer confusion over towing laws and the actions of a  








                                                                  AB 519
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          narrow segment of the towing industry that has given the  
          industry as a whole a bad name.  "Unfortunately," he laments, "a  
          few non-professional, dishonest towing operators may actually  
          capitalize on consumer confusion in order to garner a profit.   
          This negative perception has hurt honest towing operations  
          through loss of goodwill and trust among potential customers.   
          In fact, the confusion has led to an increasingly antagonistic  
          relationship with insurance companies, who pay the bill for  
          frustrated policyholders on many non-consensual (accident-based)  
          tows.  As a result, many insurers claim and dispute towing and  
          storage charges for their policyholders as not reasonable or  
          ordinary."  

          By establishing and making widely available a "Consumer's Bill  
          of Rights for Towed Vehicles," the author hopes to "alleviate  
          the frustration felt by consumers who do not currently know the  
          laws applicable to nonconsensual tows (and to provide) ample  
          disclosure of the way a just and law-abiding towing company  
          should operate.  Consumers will know exactly what to expect,  
          exactly what questions to ask, and where to go to seek redress  
          of any improprieties."  

          This bill is the product of a stakeholder group (insurance  
          companies, auto clubs, and the towing industry) that has been  
          seeking to clarify responsible business practices.  The  
          stakeholders acknowledge that "Many times the vehicle is taken  
          without authorization; the owner is given no cost estimate, no  
          receipt, and no information telling him/her where the car was  
          taken.  Eventually, days later, maybe a week, the vehicle owner,  
          or even the insurance company may track down the lot where the  
          car is located, only to find out that the tow company has  
          charged outrageous fees for towing and storage."  The intent of  
          the group was to develop a bill of rights that would advise  
          consumers of all pertinent information regarding a towed  
          vehicle.  A review of the attached language of the group's work  
          product reveals that it is very comprehensive, written in an  
          everyday vernacular, and seems to answer almost every question  
          that a consumer might reasonably pose.  

          The California Association of Licensed Repossessors opposes this  
          bill, pointing out that the Business and Professions Code places  
          separate specific disclosure requirements on repossessors who  
          tow and store repossessed vehicles.  The Association asks that  
          this bill be amended to exempt operations that are governed by  
          the Collateral Recovery Act.  The author of this bill is  








                                                                  AB 519
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          considering steps to take that would address the legitimate  
          concerns of the repossessors.  

           Technical amendment required  :  The provisions on page 6, lines 9  
          through 16, are curiously phrased as if they were instructions  
          to a vehicle owner rather than as statutory prescriptions.   
          These need to be redrafted to read appropriately.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Allstate Insurance Company
          Association of California Insurance Companies (ACIC)
          Automobile Club of Southern California
          California State Automobile Association
          California Tow Truck Association
          Personal Insurance Federation of California
          State Farm Insurance

           Opposition 
           
          California Association of Licensed Repossessors (oppose unless  
          amended)
           

          Analysis Prepared by  :   Howard Posner / TRANS. / (916) 319-2093 


























                                                                  AB 519
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           --------------------------------------------------------- 
          |                                                         |
          |_____ _____ _____ California Consumer Bill of Rights for |
          |                  Towed Vehicles _____                   |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |                Who can tow your vehicle?                |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |  Law enforcement officials can order public tows, when  |
          |                        vehicles:                        |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |          ? Have been involved in an accident.           |
          |                                                         |








                                                                  AB 519
                                                                  Page  7

          |---------------------------------------------------------|
          |                                                         |
          |       ? Are being driven by an unlicensed driver.       |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |                                                         |
          |             ? Have unpaid parking tickets.              |
          |                                                         |
          |---------------------------------------------------------|
          |   ? Have registrations expired in excess of 6 months.   |
          |---------------------------------------------------------|
          |                                                         |
          |              ? Are disabled (broken down).              |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |   ? Are parked in tow-away or other no-parking zones.   |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |               ? Block private driveways.                |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |                                                         |
          |  ? Are abandoned or threaten public health or safety.   |
          |                                                         |
          |---------------------------------------------------------|
          |    ? The driver has been arrested for or committed a    |
          |                      criminal act.                      |
          |---------------------------------------------------------|
          |                                                         |
          |          (Additional circumstances may apply.)          |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          | A private property owner or his or her agent by written |
          |  agreement with a towing company can order a "private   |
          |  property tow" if a vehicle is illegally or improperly  |
          | parked on private property. (The towing company may not |
          |   act as the agent for the private property owner and   |
          |                   authorize the tow.)                   |








                                                                  AB 519
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          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |   The vehicle's owner or driver can make arrangements   |
          |    directly with a towing company to tow his or her     |
          |  vehicle. This is commonly referred to as an "owner's   |
          |                      request tow."                      |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |          How much can a towing company charge?          |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |     Rates for public tows and storage are generally     |
          |established by the law enforcement agency requesting the |
          | tow (to confirm the approved rates, you may contact the |
          |     law enforcement agency that initiated the tow;      |
          | additionally, these rates are required to be posted at  |
          |                 the storage facility).                  |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |   Rates for private property tows and storage can not   |
          |exceed the approved rates for the law enforcement agency |
          |   that has primary jurisdiction for the property from   |
          |  which the vehicle was removed or the towing company's  |
          |                   approved CHP rate.                    |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |Rates for owner's request tows and storage are generally |
          |  established by mutual agreement between the requestor  |
          |     and the towing company, but may be dictated by      |
          |  agreements established between the requestor's motor   |
          |club and motor club service provider.                    |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |








                                                                  AB 519
                                                                  Page  9

          |---------------------------------------------------------|
          |                                                         |
          |       If my vehicle was towed how can I find it?        |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          | Call your local law enforcement agency. Vehicles placed |
          |   in storage after either a public or private tow are   |
          |              reported to law enforcement.               |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |     Where can you complain about a towing company?      |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          | Public tows: The law enforcement agency initiating the  |
          |                          tow.                           |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          | Private property tows: The local law enforcement agency |
          |or District Attorney's or City Attorney's office in your |
          |  area. (The towing company is required to provide you   |
          |      with the agency's name and telephone number.)      |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |          Your rights if your vehicle is towed:          |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |                                                         |
          |                                                         |
          |---------------------------------------------------------|
          | If the owner or driver is present prior to the vehicle  |
          |   being towed the tow truck operator must provide the   |








                                                                  AB 519
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          | vehicle owner or driver with the following information: |
          |---------------------------------------------------------|
          |                                                         |
          |                                                         |
          |    ? A list of all towing and storage-related fees.     |
          |                                                         |
          |---------------------------------------------------------|
          |? A signed authorization of services containing the date |
          |  and time of the tow; location from which the vehicle   |
          |  will be towed; the location where the vehicle will be  |
          |    towed or stored; the vehicle operators or vehicle    |
          | owner's name and address (if obtainable); the odometer  |
          |   reading (if obtainable) and the name, address, and    |
          | telephone number of the towing company and the storage  |
          |     facility if different from the towing company.      |
          |---------------------------------------------------------|
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          | Prior to paying any towing and storage-related fees you |
          |                   have the right to:                    |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |    ? Receive a clear and itemized invoice of actual     |
          |                        charges.                         |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          | ? Receive your personal property, at no charge, during  |
          |                 normal business hours.                  |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |  ? Retrieve your vehicle during the first 72 hours of   |
          |                                                         |
          |             storage and not pay a lien fee.             |
          |                                                         |
          |---------------------------------------------------------|
          |   ? Request a copy of the California Consumer Bill of   |
          |               Rights for Towed Vehicles.                |
          |---------------------------------------------------------|
          |                                                         |








                                                                  AB 519
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          |              ? Pay by cash or credit card.              |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |    ? Have you or your insurance carrier inspect your    |
          | vehicle at the storage facility during normal business  |
          |                         hours.                          |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |                                                         |
          |                                                         |
          |---------------------------------------------------------|
          | You have the right to have the vehicle released to you  |
          |upon (1) payment of all towing and storage-related fees, |
          |  (2) presentation of a valid photo identification, and  |
          | (3) presentation of reliable documentation showing that |
          | you are the owner of the vehicle or that the owner has  |
          |    authorized you to take possession of the vehicle.    |
          |---------------------------------------------------------|
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |          Prior to your vehicle being repaired:          |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          | ? You have the right to choose the repair facility and  |
          |   to have no repairs made to your vehicle unless you    |
          |               authorize them in writing.                |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |     ? Any authorization you sign for towing and any     |
          |  authorization you sign for repair must be on separate  |
          |                         forms.                          |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |                                                         |
          |                                                         |
          |---------------------------------------------------------|
          |   What is the towing company required to do prior to    |








                                                                  AB 519
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          |                  towing your vehicle?                   |
          |---------------------------------------------------------|
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |Prior to towing your vehicle, the towing service must do |
          |                                                         |
          |                  all of the following:                  |
          |                                                         |
          |---------------------------------------------------------|
          |    ? Have a Motor Carrier Permit (issued by DMV) and    |
          | display their Carrier Identification Number (issued by  |
          |                CHP) on their tow truck.                 |
          |---------------------------------------------------------|
          |                                                         |
          | ? Have insurance as required by the California Vehicle  |
          |                          Code.                          |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |   ? Have On-Hook or Cargo insurance that covers your    |
          | vehicle while in transit as required by the California  |
          |                                                         |
          |                      Vehicle Code.                      |
          |                                                         |
          |---------------------------------------------------------|
          |     ? Have posted in the office area of the storage     |
          |  facility, in plain view to the public, its towing and  |
          |                                                         |
          |                  storage-related fees.                  |
          |                                                         |
          |---------------------------------------------------------|
          |     ? Have posted in the office area of the storage     |
          |  facility, in plain view to the public, the California  |
          |   Consumer Bill of Rights for Towed Vehicles and have   |
          |                                                         |
          |         copies easily available to the public.          |
          |                                                         |
          |---------------------------------------------------------|
          |  ? A signed authorization for services containing the   |
          |    date and time of the tow; location from which the    |
          |  vehicle will be towed; the location where the vehicle  |
          |    will be towed or stored; the vehicle operators or    |
          |  vehicle owners name and address (if obtainable); the   |
          | odometer reading (if available); and the name, address, |








                                                                  AB 519
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          |   and telephone number of the towing company and the    |
          | storage facility if different from the towing company.  |
          |---------------------------------------------------------|
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |What if I do not pay the towing and storage-related fees |
          |      or abandon my vehicle at the towing company?       |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |  The towing company will hold a public auction to sell  |
          | your vehicle and any moneys received will be applied to |
          |  towing and storage-related fees that have accumulated  |
          |against your vehicle.                                    |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
          |  You are responsible for paying the towing company any  |
          |  outstanding balance of these fees once the auction is  |
          |                        complete.                        |
          |                                                         |
          |---------------------------------------------------------|
          |                                                         |
           ---------------------------------------------------------