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