BILL ANALYSIS Ó
AB 1222
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Date of Hearing: April 13, 2015
ASSEMBLY COMMITTEE ON TRANSPORTATION
Jim Frazier, Chair
AB 1222
(Bloom) - As Amended April 6, 2015
SUBJECT: Tow trucks
SUMMARY: Adds provisions to curb "bandit towing" practices.
Specifically, this bill:
1)Authorizes a local jurisdiction to license and regulate tow
operators working within the local jurisdiction and allows law
enforcement to seize, remove, and impound tow trucks operated
without a license.
2)Requires a tow operator who is summoned to the scene of an
accident to possess certain information prior to arriving at
the scene.
3)Requires a tow operator who is requested to stop or is flagged
down at the scene of an accident or disabled vehicle to
collect certain information and provide it to law enforcement
or other investigating agencies, upon request.
4)Requires a tow operator who moves an unattended vehicle or a
vehicle involved in an injury accident, to obtain certain
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information and provide it to law enforcement or other
investigating agencies, upon request.
5)Requires a tow operator to furnish specified information to a
vehicle's owner or operator prior to attaching the vehicle to
the tow truck.
6)Requires a tow operator, prior to removing a vehicle, to
obtain the vehicle owner or operator's signature on an
itemized, written estimate of costs and furnish a copy to the
owner or operator of the vehicle.
7)Requires that if neither the vehicle owner or operator is
present at the time of the tow, the tow operator to send a
copy of the itemized invoice, by registered mail, within one
business day to the address where the vehicle is registered.
8)Prohibits charges made in excess of the written estimate
without prior written consent of the vehicle's owner or
operator.
9)Prohibits tow operators from placing a lien against a vehicle
for non-payment if the tow operator fails to collect or
provide specified information related to the tow.
10)Requires a tow operator to maintain all required written
documentation for three years and to make the documents
available for inspection and copying within 48 hours of a
written request by law enforcement or other investigating
agencies.
11)Requires a business taking possession of a towed vehicle to
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collect specified information when the vehicle is dropped off,
maintain the information for three years, and make it
available for inspection by law enforcement or other
investigating agencies.
12)Revises and recasts various provisions and makes related,
clarifying amendments.
EXISTING LAW:
1)Generally authorizes a local jurisdiction to license and
regulate the operation of tow truck services whose place of
business or employment is within their jurisdiction and
provides that failure obtain a license is punishable by
seizure and impoundment of the tow truck.
2)Generally prohibits a tow operator from stopping or soliciting
tow services at the scene of an accident or near a disabled
vehicle unless called to the scene by the owner of the
vehicle, law enforcement, or a public agency.
FISCAL EFFECT: Unknown
COMMENTS: "Bandit towing," or predatory towing as it is
sometimes called, involves unauthorized towing of a vehicle.
Bandit towing can include unauthorized removal of parked cars.
It can also include towing a vehicle from the scene of an
accident when the tow operator was not legally authorized to be
at the scene. When a vehicle is towed by a bandit tower, a
variety of scenarios can play out. For example, in some
instances, bandits charge excessive towing fees or take a car to
a vehicle storage facility and hold it for a prolonged period of
time and then charge excessive storage fees when the owner comes
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to retrieve the vehicle. In other instances, bandit towers will
take a vehicle to an unscrupulous auto shop, where costly and
sometimes unnecessary repairs are performed.
Nearly a decade ago there was a growing problem with bandit
towing that involved the removal of legitimately parked cars.
In these cases, a tower would remove the parked car, take it to
a storage lot, and then charge inflated towing and storage fees.
To address the problem, AB 2210 (Goldberg), Chapter 609,
Statutes of 2006, required written approval before the tow
operator could remove a parked car. If the tow was on private
property, the written approval had to come from the property
owner and, if on public property, the written approval was
required to be from law enforcement or a public agency. AB
2210, among other things, also required tow operators to
maintain California Highway Patrol (CHP)-approved rates, vehicle
storage facilities release towed vehicles after normal business
hours, and set specified storage rate fees. According to the
Los Angeles City Attorney's office, the sponsor of AB 1222,
after AB 2210 took effect, incidences of predatory towing
dropped dramatically in the Los Angeles area. It is believed,
however, that many of these unscrupulous tow operators simply
moved their operations "to the streets" and began illicitly
towing disabled vehicles or vehicles involved in accidents.
Generally, existing law makes it illegal for a tow operator to
approach a disabled vehicle or arrive on the scene of an
accident to provide tow services unless they are specifically
summoned by law enforcement or called to the scene (or flagged
down) by the vehicle's owner or operator. Many bandit towers,
however, are known to monitor police radio frequencies to
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determine where an accident has occurred or where a disabled
vehicle is stopped and then arrive on the scene to offer
assistance. If asked, bandit towers typically convey to the
vehicle operator that they were dispatched by law enforcement, a
motor club, or an insurance company. If asked by law
enforcement, bandit towers will typically relay that they were
flagged down or otherwise summoned by the vehicle's operator.
Because there is no requirement for documentation of how the
tower was summoned to the scene, it is difficult to refute their
claims or prosecute them.
The author has introduced AB 1222 in an effort to curb of
predatory towing practices which, the sponsor indicates, is a
growing problem in the Los Angeles area. Specifically, the
sponsor notes that in a little over a year, 586 incidences of
bandit towing were reported in California with most occurring in
the Los Angeles area. To address this growing problem, AB 1222
implements many of the successful documentation requirements set
forth in AB 2210. AB 1222 also sets rates for tow operators and
storage facilities and requires each to maintain specific
information on who summoned them to the scene. AB 1222 provides
that the information must be made available to law enforcement
and other investigating agencies, as required. Additionally,
AB 1222 expands the authority of local jurisdictions to permit
and license tow companies operating within their jurisdiction
(regardless of the location of the tow operator's principal
place of business).
While the California Tow Truck Association (CTTA) vehemently
supports actions that crack down on bandit towing practices,
they oppose the bill in its current form primarily because of
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the provision that would allow a local jurisdiction to license
all tow operators operating in a local jurisdiction would make
it difficult and costly for legitimate tow operators to conduct
business while likely having little impact on illicit towing
practices. CTTA also expressed concerns about the amount of
information that towers would be required to collect "on scene"
but they were willing to work with the author to establish
working practices that accomplished the goal of documenting how
a tow operator was summoned to the scene.
To address concerns raised by CTTA and others, the author worked
closely with stakeholders to craft amendments that removed the
local licensing and other onerous data collection requirements.
The amendments, discussed below, provide data collection
requirements that are tailored for specific scenarios (e.g., the
tow operator was summoned by law enforcement, through an auto
club, or flagged down at the scene) and data collection and data
storage requirements are far less burdensome. The amendments
also set forth misdemeanor penalties for failure to comply,
which CTTA believes will improve AB 1222's effectiveness. With
regard to licensing, CTTA has agreed to work with the author and
other stakeholders over the coming year on a proposal to develop
a statewide licensing structure for all tow operators. With the
proposed amendments, CTTA and others have removed their
opposition
Author's proposed amendments: The author's proposed amendments
attempt to reduce bandit towing by requiring tow companies to
maintain proof that they were actually summoned to the scene or
were flagged down and to provide the information to law
enforcement and others, as specified. Tow operators and others
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subject to the bill's provisions would be required to keep the
specified documentation for three years and make it available to
law enforcement and other specified state and local agencies,
upon request. The amendments also require tow companies to
present a detailed estimate of charges to customers for
services, limits the towing and storage fees that can be
charged, requires businesses taking possession of a towed
vehicle to document the transaction, and provides misdemeanor
penalties for willfully violating these requirements.
Specifically, the amendments:
1)Delete proposed provisions authorizing a local jurisdiction to
license and regulate tow trucks that operate within their
jurisdiction regardless of whether or not the tow operator's
principal place of business is within the local jurisdiction.
2)Delete proposed requirements that written estimates for tow
services be mailed to a customer if they are not present at
the scene when the vehicle is towed.
3)Delete provisions prohibiting a tow operator from placing a
lien on a vehicle if the tow operator does not comply with
reporting provisions.
4)Adds the requirement that a tow operator summoned to the scene
by the owner or operator of a disabled vehicle possess all of
the following information in writing prior to arriving at the
scene:
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a) The name of the person and phone number of the person
who summoned them to the scene;
b) The make, model, and license plate number of the
disabled vehicle;
c) The date and time it was summoned; and,
d) The name of the person(s) who obtained the information.
5)Adds the requirement that a tow operator summoned to the scene
by a motor club by the owner or operator of a disabled vehicle
possess the following information prior to arriving at the
scene:
a) The business name of the motor club;
b) The identification number the motor club assigns to the
referral; and,
c) The date and time it was summoned to the scene by the
motor club.
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6)Adds the requirement that a tow operator requested to stop or
flagged down at the scene by the owner or operator of a
disabled vehicle possess the following information in writing
before leaving the scene:
a) The first and last name and working telephone number of
the person who requested the stop or flagged it down;
b) The make, model, license and plate number (if displayed)
of the disabled vehicle;
c) The date and time it was requested to stop or was
flagged down; and,
d) The name of the person(s) who obtained the information.
7)Adds the requirement that a tow operator requested to stop by
a law enforcement officer or public agency possess the
following information, in writing before leaving the scene:
a) The identity of the law enforcement agency or public
agency;
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b) The log number, call number, incident number or dispatch
number assigned to the incident by law enforcement or the
public agency or the surname and badge number of the law
enforcement office or surname and employee identification
number of the public agency employee; and,
c) The date and time of the summons, request, or express
authorization.
8)Adds the requirement that a tow operator make the written
information regarding the summons available to law enforcement
from the time it appears to the scene until the vehicle is
towed and released.
9)Adds the requirement that the tow operator maintain the
written information regarding the summons and make the
information available for inspection and copying within 48
hours of a written request from law enforcement.
10)Adds the requirement that a tow operator furnish a written,
itemized estimate of all charges and services to be performed
to the owner or operator of the disabled vehicle (if present)
that includes information including a description of all
service including labor and equipment, and storage fees
expressed as a 24-hour rate.
11)Adds the requirement that the owner or operator of the
disabled vehicle sign the estimate and be provided with a
copy.
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12)Adds the requirement that the collection of information on
who summoned the tow operator to the scene may be performed
after the vehicle is attached and removed to the nearest safe
shoulder or street, if done at the request of law enforcement
or a public agency, provided the estimate is furnished prior
to removal of the vehicle from the safe shoulder or street.
13)Adds the requirement that the tow operator maintain the
written documents for 3 years and that they make the documents
available for inspection and copying within 48 hours of a
written request of law enforcement, the Attorney General's
office, or a district attorney of a local jurisdiction.
14)Adds the requirement that a tow operator summoned to the
scene by a motor club or by law enforcement or a public agency
is exempt from the requirement to provide an itemized estimate
of charges.
15)Adds the requirement that a tow operator may not charge a fee
for towing or storage of a vehicle over and above law
enforcement-approved rates.
16)Adds the requirement that no towing charges be made in excess
of the estimated price without prior consent of the vehicle's
owner or operator.
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17)Adds the requirement that all services (including warranty or
zero cost services) be recorded on an invoice.
18)Adds the requirement that failure to comply with the
requirements is a misdemeanor punishable by a fine of not more
than $2,500 or imprisonment in a county jail for not more than
three months or both.
19)Adds the requirement that a business taking possession of a
vehicle from a tow truck operator must collect the following
information, maintain it for 3 years, and provide it when
requested to do so by law enforcement or an investigating
agency:
a) The name, address and telephone number of the towing
company;
b) The make, model, license plate number, and vehicle
identification number of the tow truck; and,
c) The date and time that possession was taken of the
vehicle.
20)Adds the requirement that if a business takes the possession
of a vehicle after hours that the information that would be
collected at the in-person drop off must be collected from the
towing company on the next business day.
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21)Make related, clarifying amendments.
Previous legislation: AB 529 (Lowenthal), Chapter 500, Statutes
of 2013, revised the BIT Program as administered by CHP to,
among other things, include tow trucks under the program.
AB 2210 (Goldberg) Chapter 609, Statutes of 2006 enhanced
protections provided to motorists from unfair vehicle towing
practices and unauthorized vehicle towing from private property.
SB 600 (Dills) Chapter 755, Statutes of 1991, among other
things, prohibited the owner or operator of a tow truck to stop
at the scene of an accident or near a disable vehicle unless
summoned to the scene, requested to stop, or flagged down by the
owner or operator of the vehicle or a law enforcement officer or
public agency.
REGISTERED SUPPORT / OPPOSITION:
Support
Official Police Garage Association of Los Angeles
Opposition
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Note: the following entities have indicated they will remove
their opposition if the proposed amendments are accepted.
California Tow Truck Association
Glowniak Quality Towing, Inc.
Hammer Towing, Inc.
Royal Coaches Auto Body and Towing
United Coalition for Motor Club Safety
Analysis Prepared by:Victoria Alvarez / TRANS. / (916) 319-2093