BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1222


                                                                    Page  1





          Date of Hearing:  April 27, 2015


                        ASSEMBLY COMMITTEE ON TRANSPORTATION


                                 Jim Frazier, Chair


          AB 1222  
          (Bloom) - As Amended April 29, 2015


          SUBJECT:  Tow trucks.


          SUMMARY:  Adds provisions to curb "bandit towing" practices.    
          Specifically, this bill:  



          1)Requires that tow operators maintain specified documentation  
            that they were summoned to the scene or flagged down to the  
            scene of an accident or disabled vehicle and that they provide  
            that documentation to law enforcement or specified  
            investigating entities, upon request.



          2)Requires tow operators to provide vehicle owners or operators,  
            if present at the scene, a detailed estimate of charges and  
            services to be performed before the tow operator attaches the  
            vehicle to the tow truck, or, if the vehicle needs to be moved  
            to clear the roadway, immediately after the vehicle is moved  
            to a safe shoulder.  Tow operators summoned to the scene by a  
            motor club and tow operators operating under a contract with  
            law enforcement are exempted from this provision.

          3)Requires businesses taking possession of a towed vehicle to  








                                                                    AB 1222


                                                                    Page  2





            maintain specified documentation from the tow operator and  
            that they provide that documentation to law enforcement or  
            specified investigating entities, upon request.





          4)Caps towing and storage fees at rates permitted by law  
            enforcement.

          5)Requires tow operators to maintain copies of estimates,  
            charging invoices, and proof of summons to the scene for a  
            minimum of three years and requires that they make the  
            information available to law enforcement and investigating  
            agencies, upon request.



          6)Establishes misdemeanor penalties, including 90 days in jail  
            and/or a $2,500 fine, for tow operators that willfully violate  
            these provisions.



          7)Make related, clarifying amendments.





          EXISTING LAW:  





          1)Generally authorizes a local jurisdiction to license and  
            regulate the operation of tow truck services whose place of  








                                                                    AB 1222


                                                                    Page  3





            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  
          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  








                                                                    AB 1222


                                                                    Page  4





          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  
          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.













                                                                    AB 1222


                                                                    Page  5





          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.  Because many do not even realize they are  
          involved in a scam, it is believed that the actual instances of  
          bandit towing is far greater than the statistics indicate. 





          The author worked closely with the California Tow Truck  
          Association (CTTA) and other stakeholders to craft workable data  
          collection requirements.  The bill also requires tow companies  
          to present vehicle operators with a detailed estimate of  
          charges, limits the towing and storage fees, requires businesses  
          taking possession of a towed vehicle to document the  
          transaction, and provides misdemeanor penalties for willfully  
          violating these requirements.  Given that documentation  
          procedures set forth in AB 2210 were successful, it is likely  
          that this bill will help curb bandit towing practices and give  
          law enforcement and prosecuting entities an adequate "paper  
          trail" to follow up on and, if necessary, prosecute bandit  
          towers.








          REGISTERED SUPPORT / OPPOSITION:












                                                                    AB 1222


                                                                    Page  6





          Support
          


          Official Police Garage Association of Los Angeles




           Opposition
          


          None on file




          Analysis Prepared by:Victoria Alvarez / TRANS. / (916) 319-2093