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 Page 2 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 Page 4 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 Page 5 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 Page 6 --------------------------------------------------------- | | |_____ _____ _____ 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 Page 8 | | |---------------------------------------------------------| | | | 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 Page 10 | 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 Page 11 | ? 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 Page 12 | 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 Page 13 | 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. | | | |---------------------------------------------------------| | | ---------------------------------------------------------