BILL NUMBER: AB 2078 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Brown
FEBRUARY 20, 2014
An act to amend, repeal, and add Section 14602.6 of the Vehicle
Code, relating to vehicles.
LEGISLATIVE COUNSEL'S DIGEST
AB 2078, as introduced, Brown. Vehicles: impoundment and sale.
Existing law authorizes a peace officer who determines that a
person was driving a vehicle while his or her driving privilege was
suspended or revoked, driving in violation of a driver's license
restriction, or driving a vehicle without ever having been issued a
driver's license, to cause the removal and seizure of the vehicle.
Existing law requires a 30-day impoundment period for these seized
vehicles, subject to exceptions allowing earlier release.
This bill would, until January 1, 2018, prohibit the impoundment
of a vehicle on the basis that the driver has not been issued a
driver's license if the driver establishes that he or she has applied
for, but not yet received, a driver's license pursuant to a
specified law.
Existing law requires the impounding agency, within 2 working days
of impoundment, to send a notice of impoundment to the legal owner
of the vehicle. Under existing law, failure to notify the legal owner
within 2 working days prohibits the impounding agency from charging
for more than 15 days' impoundment when the legal owner redeems the
impounded vehicle.
This bill would expand these provisions to require that a
registered owner of the vehicle receive a notice of impoundment.
Existing law authorizes the imposition of a lien on a vehicle to
compensate a person who is legally entitled for compensation for
towing or storage of the vehicle, and provides procedures for the
sale of a vehicle at a lien sale.
This bill would declare the intent of the Legislature to prohibit
a lien sale of a vehicle subject to a 30-day impoundment under the
above-described provisions prior to the conclusion of the 30-day
period.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 14602.6 of the Vehicle Code is amended to read:
14602.6. (a) (1) Whenever a peace officer determines that a
person was driving a vehicle while his or her driving privilege was
suspended or revoked, driving a vehicle while his or her driving
privilege is restricted pursuant to Section 13352 or 23575 and the
vehicle is not equipped with a functioning, certified interlock
device, or , except as provided in subdivision (k),
driving a vehicle without ever having been issued a driver's license,
the peace officer may either immediately arrest that person and
cause the removal and seizure of that vehicle or, if the vehicle is
involved in a traffic collision, cause the removal and seizure of the
vehicle without the necessity of arresting the person in accordance
with Chapter 10 (commencing with Section 22650) of Division 11. A
vehicle so impounded shall be impounded for 30 days.
(2) The impounding agency, within two working days of impoundment,
shall send a notice by certified mail, return receipt requested, to
the legal owner and registered owner of the vehicle, at
the address obtained from the department, informing the owner or
owners that the vehicle has been impounded. Failure to notify
the legal owner and registered owner within two working
days shall prohibit the impounding agency from charging for more than
15 days' impoundment when the legal owner or registered owner
redeems the impounded vehicle. The impounding agency shall
maintain a published telephone number that provides information 24
hours a day regarding the impoundment of vehicles and the rights of a
registered owner to request a hearing. The law enforcement agency
shall be open to issue a release to the registered owner or legal
owner, or the agent of either, whenever the agency is open to serve
the public for regular, nonemergency business.
(b) The registered and legal owner of a vehicle that is removed
and seized under subdivision (a) or their agents shall be provided
the opportunity for a storage hearing to determine the validity of,
or consider any mitigating circumstances attendant to, the storage,
in accordance with Section 22852.
(c) Any period in which a vehicle is subjected to storage under
this section shall be included as part of the period of impoundment
ordered by the court under subdivision (a) of Section 14602.5.
(d) (1) An impounding agency shall release a vehicle to the
registered owner or his or her agent prior to the end of 30 days'
impoundment under any of the following circumstances:
(A) When the vehicle is a stolen vehicle.
(B) When the vehicle is subject to bailment and is driven by an
unlicensed employee of a business establishment, including a parking
service or repair garage.
(C) When the license of the driver was suspended or revoked for an
offense other than those included in Article 2 (commencing with
Section 13200) of Chapter 2 of Division 6 or Article 3 (commencing
with Section 13350) of Chapter 2 of Division 6.
(D) When the vehicle was seized under this section for an offense
that does not authorize the seizure of the vehicle.
(E) When the driver reinstates his or her driver's license or
acquires a driver's license and proper insurance.
(2) No vehicle shall be released pursuant to this subdivision
without presentation of the registered owner's or agent's currently
valid driver's license to operate the vehicle and proof of current
vehicle registration, or upon order of a court.
(e) The registered owner or his or her agent is responsible for
all towing and storage charges related to the impoundment, and any
administrative charges authorized under Section 22850.5.
(f) A vehicle removed and seized under subdivision (a) shall be
released to the legal owner of the vehicle or the legal owner's agent
prior to the end of 30 days' impoundment if all of the following
conditions are met:
(1) 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, not the
registered owner, holding a security interest in the vehicle.
(2) (A) The legal owner or the legal owner's agent pays all towing
and storage fees related to the seizure of the vehicle. 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 person having possession of the vehicle shall
collect from the legal owner of the type specified in paragraph (1),
or the legal owner's agent any administrative charges imposed
pursuant to Section 22850.5 unless the legal owner voluntarily
requested a poststorage hearing.
(B) A person operating or in charge of a storage facility where
vehicles are stored pursuant to this section 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 shall be in the name of the person presenting
the card. "Credit card" means "credit card" as defined in
subdivision (a) of Section 1747.02 of the Civil Code, except, for the
purposes of this section, credit card does not include a credit card
issued by a retail seller.
(C) A person operating or in charge of a storage facility
described in subparagraph (B) who violates subparagraph (B) shall be
civilly liable to the owner of the vehicle or to the person who
tendered the fees for four times the amount of the towing, storage,
and related fees, but not to exceed five hundred dollars ($500).
(D) A person operating or in charge of a storage facility
described in subparagraph (B) shall have sufficient funds on the
premises of the primary storage facility during normal business hours
to accommodate, and make change in, a reasonable monetary
transaction.
(E) Credit charges for towing and storage services shall comply
with Section 1748.1 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.
(3) The legal owner or the legal owner's agent presents a copy of
the assignment, as defined in subdivision (b) of Section 7500.1 of
the Business and Professions Code; a release from the one responsible
governmental agency, only if required by the agency; a
government-issued photographic identification card; and any one of
the following, as determined by the legal owner or the legal owner's
agent: a certificate of repossession for the vehicle, a security
agreement for the vehicle, or title, whether paper or electronic,
showing proof of legal ownership for the vehicle. Any documents
presented may be originals, photocopies, or facsimile copies, or may
be transmitted electronically. The law enforcement agency, impounding
agency, or any other governmental agency, or any person acting on
behalf of those agencies, shall not require any documents to be
notarized. 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 facsimile copy of its
repossession agency license or registration issued pursuant to
Chapter 11 (commencing with Section 7500) of Division 3 of the
Business and Professions Code, or to demonstrate, to the satisfaction
of the law enforcement agency, impounding agency, or any person
acting on behalf of those agencies, that the agent is exempt from
licensure pursuant to Section 7500.2 or 7500.3 of the Business and
Professions Code.
No administrative costs authorized under subdivision (a) of
Section 22850.5 shall be charged to the legal owner of the type
specified in paragraph (1), who redeems the vehicle unless the legal
owner voluntarily requests a poststorage hearing. No city, county,
city and county, or state agency shall require a legal owner or a
legal owner's agent to request a poststorage hearing as a requirement
for release of the vehicle to the legal owner or the legal owner's
agent. The law enforcement agency, impounding agency, or other
governmental agency, or any person acting on behalf of those
agencies, shall not require any documents other than those specified
in this paragraph. The law enforcement agency, impounding agency, or
other governmental agency, or any person acting on behalf of those
agencies, shall not require any documents to be notarized. The legal
owner or the legal owner's agent shall be given a copy of any
documents he or she is required to sign, except for a vehicle
evidentiary hold logbook. The law enforcement agency, impounding
agency, or any person acting on behalf of those agencies, or any
person in possession of the vehicle, may photocopy and retain the
copies of any documents presented by the legal owner or legal owner's
agent.
(4) A failure by a storage facility to comply with any applicable
conditions set forth in this subdivision shall not affect the right
of the legal owner or the legal owner's agent to retrieve the
vehicle, provided all conditions required of the legal owner or legal
owner's agent under this subdivision are satisfied.
(g) (1) A legal owner or the legal owner's agent that obtains
release of the vehicle pursuant to subdivision (f) shall not release
the vehicle to the registered owner of the vehicle, or the person who
was listed as the registered owner when the vehicle was impounded,
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 period.
(2) The legal owner or the legal owner's agent shall not
relinquish the vehicle to the registered owner or the person who was
listed as the registered owner when the vehicle was impounded until
the registered owner or that owner's agent presents his or her valid
driver's license or valid temporary driver's license to the legal
owner or the legal owner's agent. The legal owner or the legal owner'
s agent or the person in possession of the vehicle shall make every
reasonable effort to ensure that the license presented is valid and
possession of the vehicle will not be given to the driver who was
involved in the original impoundment proceeding until the expiration
of the impoundment period.
(3) Prior to relinquishing the vehicle, the legal owner may
require the registered owner to pay all towing and storage charges
related to the impoundment and any administrative charges authorized
under Section 22850.5 that were incurred by the legal owner in
connection with obtaining custody of the vehicle.
(4) Any legal owner who knowingly releases or causes the release
of a vehicle to a registered owner or the person in possession of the
vehicle at the time of the impoundment or any agent of the
registered owner in violation of this subdivision shall be guilty of
a misdemeanor and subject to a fine in the amount of two thousand
dollars ($2,000) in addition to any other penalties established by
law.
(5) The legal owner, registered owner, or person in possession of
the vehicle shall not change or attempt to change the name of the
legal owner or the registered owner on the records of the department
until the vehicle is released from the impoundment.
(h) (1) A vehicle removed and seized under subdivision (a) shall
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.
(2) The owner of a rental vehicle that was seized under this
section may 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.
(3) The rental car agency may require the person to whom the
vehicle was rented to pay all towing and storage charges related to
the impoundment and any administrative charges authorized under
Section 22850.5 that were incurred by the rental car agency in
connection with obtaining custody of the vehicle.
(i) Notwithstanding any other provision of this section, the
registered owner and not the legal owner shall remain responsible for
any towing and storage charges related to the impoundment, any
administrative charges authorized under Section 22850.5, and any
parking fines, penalties, and administrative fees incurred by the
registered owner.
(j) The law enforcement agency and the impounding agency,
including any storage facility acting on behalf of the law
enforcement agency or impounding agency, shall comply with this
section and shall not be liable to the registered owner for the
improper release of the vehicle to the legal owner or the legal owner'
s agent provided the release complies with the provisions of this
section. 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 the legal owner's agent and from any damage to
the vehicle after its release, including the reasonable costs
associated with defending any such claims. A law enforcement agency
shall not refuse to issue a release to a legal owner or the agent of
a legal owner on the grounds that it previously issued a release.
(k) A vehicle is not subject to impoundment on the basis that the
driver has not been issued a driver's license if the driver
establishes that he or she has applied for, but not yet received, a
driver's license pursuant to Section 12801.6.
(l) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 2. Section 14602.6 is added to the Vehicle Code, to read:
14602.6. (a) (1) If a peace officer determines that a person was
driving a vehicle while his or her driving privilege was suspended or
revoked, driving a vehicle while his or her driving privilege is
restricted pursuant to Section 13352 or 23575 and the vehicle is not
equipped with a functioning, certified interlock device, or driving a
vehicle without ever having been issued a driver's license, the
peace officer may either immediately arrest that person and cause the
removal and seizure of that vehicle or, if the vehicle is involved
in a traffic collision, cause the removal and seizure of the vehicle
without the necessity of arresting the person in accordance with
Chapter 10 (commencing with Section 22650) of Division 11. A vehicle
so impounded shall be impounded for 30 days.
(2) The impounding agency, within two working days of impoundment,
shall send a notice by certified mail, return receipt requested, to
the legal owner and registered owner of the vehicle, at the address
obtained from the department, informing the owner or owners that the
vehicle has been impounded. Failure to notify the legal owner and
registered owner within two working days shall prohibit the
impounding agency from charging for more than 15 days' impoundment
when the legal owner or registered owner redeems the impounded
vehicle. The impounding agency shall maintain a published telephone
number that provides information 24 hours a day regarding the
impoundment of vehicles and the rights of a registered owner to
request a hearing. The law enforcement agency shall be open to issue
a release to the registered owner or legal owner, or the agent of
either, whenever the agency is open to serve the public for regular,
nonemergency business.
(b) The registered and legal owner of a vehicle that is removed
and seized under subdivision (a) or their agents shall be provided
the opportunity for a storage hearing to determine the validity of,
or consider any mitigating circumstances attendant to, the storage,
in accordance with Section 22852.
(c) Any period in which a vehicle is subjected to storage under
this section shall be included as part of the period of impoundment
ordered by the court under subdivision (a) of Section 14602.5.
(d) (1) An impounding agency shall release a vehicle to the
registered owner or his or her agent prior to the end of 30 days'
impoundment under any of the following circumstances:
(A) When the vehicle is a stolen vehicle.
(B) When the vehicle is subject to bailment and is driven by an
unlicensed employee of a business establishment, including a parking
service or repair garage.
(C) When the license of the driver was suspended or revoked for an
offense other than those included in Article 2 (commencing with
Section 13200) of Chapter 2 of Division 6 or Article 3 (commencing
with Section 13350) of Chapter 2 of Division 6.
(D) When the vehicle was seized under this section for an offense
that does not authorize the seizure of the vehicle.
(E) When the driver reinstates his or her driver's license or
acquires a driver's license and proper insurance.
(2) A vehicle shall not be released pursuant to this subdivision
without presentation of the registered owner's or agent's currently
valid driver's license to operate the vehicle and proof of current
vehicle registration, or upon order of a court.
(e) The registered owner or his or her agent is responsible for
all towing and storage charges related to the impoundment, and any
administrative charges authorized under Section 22850.5.
(f) A vehicle removed and seized under subdivision (a) shall be
released to the legal owner of the vehicle or the legal owner's agent
prior to the end of 30 days' impoundment if all of the following
conditions are met:
(1) 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, not the
registered owner, holding a security interest in the vehicle.
(2) (A) The legal owner or the legal owner's agent pays all towing
and storage fees related to the seizure of the vehicle. 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 person having possession of the vehicle shall
collect from the legal owner of the type specified in paragraph (1),
or the legal owner's agent any administrative charges imposed
pursuant to Section 22850.5 unless the legal owner voluntarily
requested a poststorage hearing.
(B) A person operating or in charge of a storage facility where
vehicles are stored pursuant to this section 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 shall be in the name of the person presenting
the card. "Credit card" means "credit card" as defined in
subdivision (a) of Section 1747.02 of the Civil Code, except, for the
purposes of this section, credit card does not include a credit card
issued by a retail seller.
(C) A person operating or in charge of a storage facility
described in subparagraph (B) who violates subparagraph (B) shall be
civilly liable to the owner of the vehicle or to the person who
tendered the fees for four times the amount of the towing, storage,
and related fees, but not to exceed five hundred dollars ($500).
(D) A person operating or in charge of a storage facility
described in subparagraph (B) shall have sufficient funds on the
premises of the primary storage facility during normal business hours
to accommodate, and make change in, a reasonable monetary
transaction.
(E) Credit charges for towing and storage services shall comply
with Section 1748.1 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.
(3) The legal owner or the legal owner's agent presents a copy of
the assignment, as defined in subdivision (b) of Section 7500.1 of
the Business and Professions Code; a release from the one responsible
governmental agency, only if required by the agency; a
government-issued photographic identification card; and any one of
the following, as determined by the legal owner or the legal owner's
agent: a certificate of repossession for the vehicle, a security
agreement for the vehicle, or title, whether paper or electronic,
showing proof of legal ownership for the vehicle. Any documents
presented may be originals, photocopies, or facsimile copies, or may
be transmitted electronically. The law enforcement agency, impounding
agency, or any other governmental agency, or any person acting on
behalf of those agencies, shall not require any documents to be
notarized. 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 facsimile copy of its
repossession agency license or registration issued pursuant to
Chapter 11 (commencing with Section 7500) of Division 3 of the
Business and Professions Code, or to demonstrate, to the satisfaction
of the law enforcement agency, impounding agency, or any person
acting on behalf of those agencies, that the agent is exempt from
licensure pursuant to Section 7500.2 or 7500.3 of the Business and
Professions Code.
Administrative costs authorized under subdivision (a) of Section
22850.5 shall not be charged to the legal owner of the type specified
in paragraph (1), who redeems the vehicle unless the legal owner
voluntarily requests a poststorage hearing. A city, county, city and
county, or state agency shall not require a legal owner or a legal
owner's agent to request a poststorage hearing as a requirement for
release of the vehicle to the legal owner or the legal owner's agent.
The law enforcement agency, impounding agency, or other governmental
agency, or any person acting on behalf of those agencies, shall not
require any documents other than those specified in this paragraph.
The law enforcement agency, impounding agency, or other governmental
agency, or any person acting on behalf of those agencies, shall not
require any documents to be notarized. The legal owner or the legal
owner's agent shall be given a copy of any documents he or she is
required to sign, except for a vehicle evidentiary hold logbook. The
law enforcement agency, impounding agency, or any person acting on
behalf of those agencies, or any person in possession of the vehicle,
may photocopy and retain the copies of any documents presented by
the legal owner or legal owner's agent.
(4) A failure by a storage facility to comply with any applicable
conditions set forth in this subdivision shall not affect the right
of the legal owner or the legal owner's agent to retrieve the
vehicle, provided all conditions required of the legal owner or legal
owner's agent under this subdivision are satisfied.
(g) (1) A legal owner or the legal owner's agent that obtains
release of the vehicle pursuant to subdivision (f) shall not release
the vehicle to the registered owner of the vehicle, or the person who
was listed as the registered owner when the vehicle was impounded,
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 period.
(2) The legal owner or the legal owner's agent shall not
relinquish the vehicle to the registered owner or the person who was
listed as the registered owner when the vehicle was impounded until
the registered owner or that owner's agent presents his or her valid
driver's license or valid temporary driver's license to the legal
owner or the legal owner's agent. The legal owner or the legal owner'
s agent or the person in possession of the vehicle shall make every
reasonable effort to ensure that the license presented is valid and
possession of the vehicle will not be given to the driver who was
involved in the original impoundment proceeding until the expiration
of the impoundment period.
(3) Prior to relinquishing the vehicle, the legal owner may
require the registered owner to pay all towing and storage charges
related to the impoundment and any administrative charges authorized
under Section 22850.5 that were incurred by the legal owner in
connection with obtaining custody of the vehicle.
(4) Any legal owner who knowingly releases or causes the release
of a vehicle to a registered owner or the person in possession of the
vehicle at the time of the impoundment or any agent of the
registered owner in violation of this subdivision shall be guilty of
a misdemeanor and subject to a fine in the amount of two thousand
dollars ($2,000) in addition to any other penalties established by
law.
(5) The legal owner, registered owner, or person in possession of
the vehicle shall not change or attempt to change the name of the
legal owner or the registered owner on the records of the department
until the vehicle is released from the impoundment.
(h) (1) A vehicle removed and seized under subdivision (a) shall
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.
(2) The owner of a rental vehicle that was seized under this
section may 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.
(3) The rental car agency may require the person to whom the
vehicle was rented to pay all towing and storage charges related to
the impoundment and any administrative charges authorized under
Section 22850.5 that were incurred by the rental car agency in
connection with obtaining custody of the vehicle.
(i) Notwithstanding any other provision of this section, the
registered owner and not the legal owner shall remain responsible for
any towing and storage charges related to the impoundment, any
administrative charges authorized under Section 22850.5, and any
parking fines, penalties, and administrative fees incurred by the
registered owner.
(j) The law enforcement agency and the impounding agency,
including any storage facility acting on behalf of the law
enforcement agency or impounding agency, shall comply with this
section and shall not be liable to the registered owner for the
improper release of the vehicle to the legal owner or the legal owner'
s agent provided the release complies with the provisions of this
section. 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 the
legal owner's agent and from any damage to the vehicle after its
release, including the reasonable costs associated with defending any
such claims. A law enforcement agency shall not refuse to issue a
release to a legal owner or the agent of a legal owner on the grounds
that it previously issued a release.
SEC. 3. It is the intent of the Legislature to prohibit a lien
sale of a vehicle subject to a 30-day impoundment pursuant to Section
14602.6 of the Vehicle Code prior to the conclusion of the 30-day
period.