BILL ANALYSIS
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: AB 519
SENATOR ALAN LOWENTHAL, CHAIRMAN AUTHOR: Duvall
VERSION: 6/17/09
Analysis by: Mark Stivers FISCAL: Yes
Hearing date: June 23, 2009
SUBJECT:
Towing charges and access to towed vehicles
DESCRIPTION:
This bill requires towing companies to provide consumers with a
Towing Fees and Access Notice and an itemized invoice of all
towing and storage fees. The bill also specifies who is
authorized to retrieve or inspect a towed vehicle and relives
the towing company of responsibility for determining the
authenticity of documents provided to demonstrate a person's
authority.
ANALYSIS:
Current law allows a peace officer, traffic control officer, or
parking control officer to have a vehicle towed in various
circumstances, such as when the vehicle impedes the flow of
traffic or when the driver is arrested or cited for specific
offenses. Such tows are referred to as "public tows." The
charges for towing and storage related to a public tow are set
by the law enforcement agency that requested the tow.
Current law also allows private property owners to have vehicles
towed when they are illegally or improperly parked on their
property, subject to specified conditions and procedures. These
are referred to as "private property tows." Current law limits
what a towing company can charge for towing and storage related
to a private property tow to the rate approved by the law
enforcement agency or the towing company's approved rate from
the California Highway Patrol.
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In addition, a vehicle owner may hire a tow-truck company to tow
his or her vehicle. These are "owner's request tows." The
rates for towing and storage related to this type of tow is
generally established by mutual agreement between the requestor
and the towing company but may be dictated by agreements
established between the requestor's motor club and the tower.
For all three types of tows, the towing company has a lien
against the vehicle for costs related to towing, storage, or
labor associated with recovery or load salvage of the vehicle.
The lien arises on the date that the tower takes possession of
the vehicle. The towing company may commence lien sale
proceedings to recover uncollected costs within 15 days of the
date the lien arises.
This bill :
Places into statute a form known as the "Towing Fees and
Access Notice," which answers questions relating to how much a
towing company can charge, where a person can complain, one's
rights when a vehicle is towed, and what happens if the towing
and storage fees are not paid. The notice includes a
disclaimer stating that the notice does not summarize all of
the laws that may be applicable to towing nor does it fully
and completely state the entire law with respect to any
specific question.
Requires a person or towing company that charges for towing
and storage to post in the office area of the storage
facility, to make available upon request to vehicle owners,
and to have copies readily available to the public of the
Towing Fees and Access Notice.
Requires a person or towing company that charges for towing
and storage to print on every invoice for towing or storage
charges a statement alerting the payer that the Towing Fees
and Access Notice is available upon request.
Requires a person or towing company that charges for towing
and storage, prior to receiving payment for any towing,
recovery, or storage-related fees, to provide an itemized
invoice of actual charges to the vehicle owner or his or her
agent. The invoice must include:
? The name, address, telephone number, and carrier
identification number of the person or towing company that
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is charging for towing and storage.
? If ascertainable, the registered owner or operator's
name, address, and telephone number.
? The date service was initiated.
? The location of the vehicle at the time service was
initiated.
? A vehicle description that includes, if ascertainable,
the vehicle year, make, model, odometer reading, license
plate number, or if a license plate number is unavailable,
the vehicle identification number.
? The service dispatch time, the service arrival time at
the vehicle, and the service completion time.
? A detailed explanation of any additional services that
caused the total towing-related service time to exceed one
hour between service dispatch time and service completion
time.
? The hourly rate or per item rate used to calculate the
total towing and recovery-related fees.
? The daily storage rate and the total number of days
stored, if applicable.
? If subject to a gate fee, the date and time the vehicle
was either accessed or released after normal business
hours.
? A description of the method of towing.
? If the tow was not at the owner's request, the identity
of the person or governmental agency that directed the tow
unless protected by law.
? A clear, itemized, and detailed explanation of any
additional services or fees.
Provides that prior to paying any towing, recovery, or
storage-related fees, a vehicle owner or his or her agent has
the right to all of the following:
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? To receive his or her personal property, at no charge,
during normal business hours, which are Monday through
Friday from 8:00 a.m. to 5:00 p.m., except state holidays.
? To retrieve his or her vehicle during the first 72 hours
of storage and not pay a lien fee.
? To request a copy of the Towing Fees and Access Notice.
? To be permitted to pay by cash or a valid bank credit
card.
Provides that a person who fails to honor the rights described
above, to provide all the information required in the invoice,
or to make available the Towing Fees and Access Notice is
civilly liable to the person tendering payment for up to two
times the amount charged, not to exceed $500.
Exempts from the bill the towing or storage of a repossessed
vehicle pursuant to the Collateral Recovery Act.
Specifies that the documents entitling a person to retrieve a
vehicle from the storage yard include, but are not limited to:
? A certificate of ownership
? The vehicle registration
? Information in the possession of the towing company such
as ownership information obtained from the Department of
Motor Vehicles or a valid registration found within the
vehicle
? A notarized letter or statement from the legal or
registered owner providing authorization to release to a
particular person with a government-issued photographic
identification card
? A letter from the owner's insurance company establishing
that the person is a person is the owner's insurance
representative
Provides that a towing company is not responsible for
determining the authenticity of documentation establishing a
person's authority to retrieve the vehicle or that a person is
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the owner's insurance representative.
For purposes of allowing inspection of the vehicle at the
storage yard, clarifies that the owner's agent includes, but
is not limited to, any person that the legal owner designates
in writing or by telephone to inspect the vehicle and provides
that the towing company is not responsible for determining the
authenticity of documentation establishing a person's
authority to inspect the vehicle.
COMMENTS:
1.Purpose of the bill . The intent of this bill is to protect
consumers from abusive towing practices and to address
consumer confusion over towing laws. According to the author,
a few non-professional, dishonest towing operators capitalize
on consumer confusion in order to charge excessive fees and
increase profits. These actions hurt honest towing operations
through loss of goodwill and trust among potential customers.
In addition, excessive charges have led to an increasingly
antagonistic relationship with insurance companies, who pay
the bill for frustrated policyholders on many accident-based
tows and who dispute these charges as not reasonable or
ordinary.
This bill addresses these issues by requiring towers to
provide detailed invoices of all charges and to provide
consumers with a notice describing their rights at the time
they seek to retrieve their vehicles. In an attempt to both
protect consumers and provide greater direction to towing
companies, the bill also seeks to clarify what types of
documentation are appropriate to release or allow inspection
of the vehicle. As a result of this notice, the author
believes that consumers will know exactly what to expect,
exactly what questions to ask, and where to go to seek redress
of any improprieties.
2.Product of a working group . This bill is the product of
working group of insurance companies, auto clubs, and the
towing industry that has met for 18 months. While consumer
groups did not participate directly in the working group, the
insurers represented consumer interests to some extent.
3.Applies to repair shops and dealers . This bill applies to any
"person or towing company that charges for towing and
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storage." As a result, it applies not just to towers but also
to any entity, such as an auto body shop or car dealership,
that retrieves the vehicle from the tower, pays the tower, and
then passes on the towing and storage costs to the vehicle
owner or insurer. This ensures that the ultimate payer of the
charges has an itemized invoice with which he or she can
dispute any unauthorized or illegitimate charges from the
tower if necessary.
4.Suggested amendments . The committee may wish to consider the
following substantive amendments:
Add to the notice information about the court remedies
available to consumers for violations of the rights
described.
Add to the notice information about who is
responsible for any damage to the vehicle that may have
occurred during towing and storage.
On page 11, line 39 make a person or towing company
liable to track the language in earlier subdivisions.
On page 11, line 40, allow the legal owner,
registered owner, or agent to bring the action.
With respect to the provisions on documentation,
provide that a towing companys non-responsibility for
determining the authenticity of documents only applies to
documents specifically listed and not to those that a tower
may accept under the "including, but not limited to"
phrase.
The committee may also wish to consider the following
technical amendments:
On page 8, line 23 strike "a clear and"
On page 8, lines 27-28 strike "California Consumer Bill
of Rights for Towed Vehicles"
On page 9, strike lines 4-28.
On page 10, lines 25-27 strike "and may document that
substantially complies with this subdivision shall be
deemed an "itemized invoice" for purposes of this section"
On page 11, line 3 strike "of" and insert "at"
On page 11, strike lines 29-31 (this is redundant) and
renumber the subsequent paragraphs.
1.Double referral . The Senate Rules Committee has referred this
bill both to this committee and the Judiciary Committee. In
particular, the provisions of the bill relating to a towing
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company's non-liability for determining the authenticity of
documents fall within the jurisdiction of the Judiciary
Committee.
Assembly Votes:
Floor: 77-0
Appr: 16-0
Trans: 14-0
POSITIONS: (Communicated to the Committee before noon on
Wednesday,
June 17, 2009)
SUPPORT: Allstate Insurance
Association of California Insurance Companies
California State Automobile Association/AAA
Personal Insurance Federation of California
State Farm Insurance
OPPOSED: None received.