BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          AB 1222           Hearing Date:    7/7/2015
           ----------------------------------------------------------------- 
          |Author:   |Bloom                                                 |
          |----------+------------------------------------------------------|
          |Version:  |6/23/2015                                             |
           ----------------------------------------------------------------- 
           ----------------------------------------------------------------- 
          |Urgency:  |No                     |Fiscal:      |Yes             |
           ----------------------------------------------------------------- 
           ----------------------------------------------------------------- 
          |Consultant|Erin Riches                                           |
          |:         |                                                      |
           ----------------------------------------------------------------- 
          

          SUBJECT:  Tow trucks


            DIGEST:  This bill imposes additional requirements on tow trucks  
          responding to accident scenes.

          ANALYSIS:
          
          Existing law:
          
           1) Allows a tow truck owner or operator to stop or park the tow  
             truck on a highway to render assistance to a disabled  
             vehicle.

           2) Makes it a misdemeanor for a tow truck owner or operator to  
             stop at an accident scene or near a disabled vehicle to  
             solicit towing services, either directly or indirectly, or to  
             furnish any towing services, unless summoned to the scene,  
             requested to stop, or flagged down by the owner or operator  
             of a disabled vehicle or requested to perform the service by  
             a law enforcement officer or public agency.

           3) Makes it a misdemeanor for a tow truck owner or operator to  
             move any vehicle from a highway, street, or public property  
             without the express authorization of the owner or operator of  
             the vehicle or a law enforcement officer or public agency,  
             when the vehicle has been left unattended or when there is an  
             injury as the result of an accident.

           4) Exempts a vehicle owned or operated by, or under contract  







          AB 1222 (Bloom)                                    Page 2 of ?
          
          
             to, a motor club that stops to provide services for which  
             compensation is neither requested nor received, provided  
             those services do not include towing other than that  
             necessary to remove the vehicle to the nearest safe shoulder.  
              Allows the owner or operator of such vehicle to contact a  
             law enforcement agency or other public agency on behalf of a  
             motorist, but prohibits them from referring a motorist to a  
             tow truck owner or operator unless the motorist is a member  
             of the motor club, the motorist is referred to a tow truck  
             owner or operator under contract with the motor club, and, if  
             there is a dispatch facility that services the area and is  
             owned or operated by the motor club, the referral is made  
             through that dispatch facility.  

           5) Also exempts a tow truck operator employed by a law  
             enforcement or other public agency, as well as a tow truck  
             owner or operator acting under contract with a law  
             enforcement or other public agency to abate abandoned  
             vehicles, or to provide towing service or emergency road  
             service to motorists while involved in freeway service patrol  
             operations.

          This bill:  

           1) Makes it a misdemeanor for a tow truck owner, operator, or  
             company (hereafter referred to as a tow truck), unless  
             summoned to an accident scene or requested to stop by the  
             owner or operator of a disabled vehicle (hereafter referred  
             to as a driver), to stop at an accident scene or near a  
             disabled vehicle to solicit or provide towing services, move  
             an unattended vehicle, or accrue charges for these services.

           2) Requires a tow truck summoned to the scene by a driver to  
             possess all of the following information in writing prior to  
             arriving at the scene:

              a)    The make, model, year, and license plate number of the  
                disabled vehicle;
              b)    The date and time the tow truck was summoned to the  
                scene; and
              c)    The name of the person who took the call.  

           1) Exempts a tow truck summoned to the scene by a motor club  
             pursuant to the request of the owner or operator of a  
             disabled vehicle, from the requirements of provision (2) if  








          AB 1222 (Bloom)                                    Page 3 of ?
          
          
             it possesses all the following in writing:

              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 the tow truck was summoned to the  
                scene by the motor club.

           1) Requires a tow truck requested to stop at the scene by a  
             driver to possess all of the following information in writing  
             upon arriving at the scene:

              a)    The first and last name and telephone number of the  
                driver;
              b)    The make, model, and license plate number, if one is  
                displayed, of the disabled vehicle;
              c)    The date and time the tow truck was requested to stop;  
                and
              d)    The name of the person who took the call.

           1) Requires a tow truck summoned or requested by a law  
             enforcement officer or public agency to possess the following  
             in writing before leaving the scene:

              a)    The identity of the law enforcement agency or public  
                agency;
              b)    The log number, call number, incident number, or  
                dispatch number assigned to the incident by the law  
                enforcement agency or public agency, the surname and badge  
                number of the law enforcement officer, or the surname and  
                employee identification number of the public agency  
                employee; and
              c)    The date and time of the summons, request, or  
                authorization.

           1) Requires the tow truck, if the driver is present, to provide  
             a written itemized estimate of all charges and services to be  
             performed, prior to attaching the vehicle to the tow truck,  
             including:

              a)    The name, address, telephone number, and motor carrier  
                permit number of the towing company;
              b)    The license plate of the tow truck;
              c)    The first and last name of the tow truck owner,  
                operator, or driver; and








          AB 1222 (Bloom)                                    Page 4 of ?
          
          
              d)    A description and cost of all services, including but  
                not limited to charges for labor, equipment, mileage from  
                dispatch to return, and storage fees.

           1) Requires the tow truck to obtain the driver's signature on  
             the itemized estimate and provide a copy to the driver.

           2) Exempts from provision (7) a tow truck summoned to the scene  
             by a motor club by a driver or summoned by a law enforcement  
             agency or a public agency.

           3) Prohibits a tow truck from charging a fee for towing or  
             storage, or both, of a vehicle that exceeds the greater of  
             the following:

              a)    The fee that would have been charged for towing or  
                storage, or both, made at the request of a law enforcement  
                agency under an agreement between a tow truck and the law  
                enforcement agency that exercises primary jurisdiction in  
                the area in which the vehicle was removed or attempted to  
                be removed.
              b)    The fee that would have been charged for towing or  
                storage, or both, under the rate approved for that tow  
                truck by CHP for that jurisdiction.
           1) Exempts from provision (10) the towing or transportation of  
             a vehicle or temporary storage of a vehicle in transit, if  
             the service is performed with the prior consent of a driver.   


           2) Prohibits any charge in excess of the estimated price  
             without the prior consent of a driver.

           3) Requires all charges to be recorded on an invoice.  

           4) Requires the tow truck to make available to law enforcement,  
             within 48 hours of a request, written information from the  
             time it appears on the scene until the time the vehicle is  
             towed and released to a third party, and to maintain this  
             information for three years.  

           5) Provides that a person who violates these provisions is  
             guilty of a misdemeanor, punishable by a maximum fine of  
             $2,500, a maximum of three months in county jail, or both.

           6) Requires a business taking possession of a vehicle from a  








          AB 1222 (Bloom)                                    Page 5 of ?
          
          
             tow truck to document:

               a)     The name, address, and telephone number of the tow  
                 company; 
               b)     The name and driver's license of the tow truck  
                 operator; 
               c)     The make, model, and license plate or vehicle  
                 identification number; and 
               d)     The date and time that possession was taken of the  
                 vehicle.  

           1) Requires a business taking possession of a vehicle from a  
             tow truck to make written information available to law  
             enforcement or the Bureau of Automotive Repair within 48  
             hours of a request, and to maintain this information for  
             three years.  Provides that a person who willfully violates  
             this provision is guilty of a misdemeanor, punishable by a  
             maximum fine of $2,500, a maximum of three months in county  
             jail, or both.

          COMMENTS:

          Purpose.  The author states that in 2006, the Los Angeles City  
          Attorney's Office sponsored legislation (see below) to curb the  
          practice of predatory towing, in which tow trucks would tow  
          vehicles from parking lots late at night to a tow yard and then  
          charge excessive fees to vehicle owners.  This statute has been  
          used successfully by prosecuting agencies across the state.  The  
          author states, however, that a new type of towing scam has  
          emerged in which a tow truck driver appears unsolicited at an  
          accident scene and convinces the vehicle owner to sign a release  
          giving the tow truck driver permission to tow the vehicle.  The  
          tow truck driver then transports the vehicle to an affiliated  
          repair shop or storage yard, which charges thousands of dollars  
          in "storage" fees to the vehicle owner.  

          Existing law does not require a tow truck owner or operator to  
          provide proof that they were solicited to the scene.  Nor does  
          it require the facility where the vehicle is towed to obtain the  
          identity of the tow truck driver, making it nearly impossible  
          for law enforcement to investigate allegations that the tow  
          truck driver was a part of a scheme to extract excessive fees.   
          In addition, the vehicle owner often fails to ask the amount of  
          towing costs up front and the tow truck driver is not required  
          to disclose them.  The Los Angeles Police Commission has  








          AB 1222 (Bloom)                                    Page 6 of ?
          
          
          received numerous complaints about these issues from consumers,  
          rental car companies, and legitimate tow businesses.  

          The author states that his bill will provide law enforcement  
          with the necessary tools to stop this practice by requiring tow  
          companies to obtain, maintain, and provide proof that they were  
          solicited to the accident scene.  This bill will also protect  
          consumers by requiring tow truck drivers to disclose the towing  
          and storage costs prior to towing the vehicle.

          Negotiated language.  The author states that he has negotiated  
          extensively with interested parties to alleviate concerns and  
          remove all opposition.  The California Tow Truck Association  
          states that it has removed its opposition based on the following  
          amendments, reflected in the current version of this bill: (1)  
          removal of provisions that would expand a local agency's  
          regulatory authority over a tow company to anyone that is  
          operating within its jurisdiction; (2) removal of provisions  
          allowing for impoundment of tow trucks for a violation of local  
          regulations; (3) addition of provisions recognizing that towing  
          companies legitimately summoned to the scene by law enforcement  
          or a motor club are not the source of abuse in this area; (4)  
          removal of provisions that would subject a towing company to a  
          loss of its lien for even minor violations in this area; and (5)  
          removal of "flagged down" language, which promoted abuse in this  
          area.
             
          Related Legislation:
          
          AB 529 (Lowenthal, Chapter 500, Statutes of 2013) - which  
          revised the Biennial Inspection of Terminals Program  
          administered by CHP, included a provision to bring tow trucks  
          into the program.

          AB 2210 (Goldberg, Chapter 609, Statutes of 2006) - provided  
          enhanced protections to motorists from unfair vehicle towing  
          practices and unauthorized vehicle towing from private property.  
           
          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  Yes     
          Local:  Yes


            POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,
                          July 1, 2015.)








          AB 1222 (Bloom)                                    Page 7 of ?
          
          
          
            SUPPORT:  

          Los Angeles City Attorney Michael N. Feuer (sponsor)
          California District Attorneys Association
          City of Los Angeles
          League of California Cities
          National Insurance Crime Bureau
          Official Police Garage Association of Los Angeles

          OPPOSITION:

          None received


                                      -- END --