BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 519
                                                                  Page  1

          Date of Hearing:   May 13, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    AB 519 (Duvall) - As Amended:  April 29, 2009 

          Policy Committee:                               
          TransportationVote:14-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill requires a towing company that charges for towing and  
          storage to post a copy of the "California Bill of Rights for  
          Towed Vehicles", which contains specific information regarding a  
          vehicle owner's rights and responsibilities if his or her  
          vehicle is towed. The bill also:

          1)Requires that, prior to receiving payment for towing,  
            recovery, or storage-related fees, a towing company shall  
            provide an itemized invoice of actual charges to the owner or  
            his or her agent.

          2)Provides that a customer has the right to receive his or her  
            personal property at no charge during normal business hours,  
            retrieve his or her vehicle during the first 72 hours and not  
            pay a lien fee, receive a copy of the bill of rights document,  
            and pay by cash or credit card.

           FISCAL EFFECT  

          Minor state costs. Local costs not reimbursable.

           COMMENTS  
           
          1)Rationale  . The bill is intended to address consumer confusion  
            over towing laws and, according to the author, the actions of  
            a narrow segment of the towing industry that has given the  
            industry as a whole a bad name.  It is the product of a  
            stakeholder group (insurance companies, auto clubs, and the  
            towing industry) that has been seeking to clarify responsible  
            business practices.  The author notes that confusion over the  








                                                                  AB 519
                                                                  Page  2

            rights and responsibilities of consumers that have had their  
            cars towed has led to an increasingly antagonistic  
            relationship with insurance companies, who pay the bill for  
            policyholders on many non-consensual (accident-based) tows.   
            As a result, many insurers claim and dispute towing and  
            storage charges for their policyholders as not reasonable or  
            ordinary.

           2)Opposition.  The California Association of Licensed  
            Repossessors opposes this bill, pointing out that the Business  
            and Professions Code places separate specific disclosure  
            requirements on repossessors who tow and store repossessed  
            vehicles.  The Association asks that this bill be amended to  
            exempt operations that are governed by the Collateral Recovery  
            Act.  

           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081