BILL ANALYSIS Ó AB 1222 Page 1 Date of Hearing: May 13, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1222 (Bloom) - As Amended April 29, 2015 ----------------------------------------------------------------- |Policy |Transportation |Vote:|16 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: No SUMMARY: This bill places new requirements on tow truck operators to curb "bandit towing" practices involving disabled vehicles and vehicles in an accident. Specifically, this bill: AB 1222 Page 2 1)Makes it a misdemeanor for a tow truck operator to stop at the scene of an accident or near a disabled vehicle to solicit towing services, unless requested by a law enforcement officer, public agency, or the operator of the disable vehicle. 2)Specifies information that a tow truck operator must possess when summoned to or flagged down to assist the owner of a disabled vehicle, or summoned by a law enforcement officer or public agency. 3)Requires a tow truck operator, prior to attaching a vehicle to a truck, to furnish the vehicle owner a written itemized estimate of all charges and services to be performed, except if summoned by a motor club upon request of the vehicle owner or by a law enforcement officer or public agency. 4)Requires the tow company owner or operator to maintain the information specified in (2) and (3) for three years and to make the information available within 48 hours of a request by a law enforcement entity or prosecutor. 5)Stipulates that towing and storage fees shall not exceed the greater of (a) the fee that would have been charged if done at the request of the local law enforcement agency, or (b) the rate approved by the CHP for the jurisdiction where the vehicle was removed. 6)Makes a willful violation of (2), (3) or (4) a misdemeanor punishable by a fine of up to $2,500 and/or imprisonment in county jail for up to three months. AB 1222 Page 3 FISCAL EFFECT: Potential nonreimbursable costs for enforcement, offset to some extent by fine revenues. COMMENTS: 1)Background. Nearly a decade ago there was a growing problem with bandit towing, whereby to tow truck operator would remove a legitimately parked car, take it to a storage lot, and then charge inflated towing and storage fees. In response, 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. 2)Purpose. It is believed that many unscrupulous tow operators simply moved their operations "to the streets" and began illicitly towing disabled vehicles or vehicles involved in accidents. According to the sponsor, in a little over a year, 586 incidences of bandit towing were reported in California with most occurring in the Los Angeles area. The author has introduced AB 1222 as a further effort to curb these predatory towing practices by adopting requirements similar to those of AB 2210. AB 1222 Page 4 Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081